Title 26 — BANKS AND BANKING

26-2408. Amendment to articles of incorporation. The articles of incorporation may be amended by the votes of the stockholders and the members of the corporation, voting separately by classes, and such amendments shall require approval by the affirmative vote of two-thirds (2/3) …

26-2409. Business of corporation managed by board of directors. The business and affairs of the corporation shall be managed and conducted by a board of directors, a president, a vice-president, a secretary, a treasurer, and such other officers and such agents as the corporation …

26-2410. Earned surplus. Each year the corporation shall set apart as earned surplus not less than ten percent (10%) of its net earnings for the preceding fiscal year until such surplus shall be equal in value to one-half (1/2) of the amount paid in on capital stock then outstand…

26-2411. Deposits in banks. The corporation shall not deposit any of its funds in any banking institution unless such institution has been designated as a depository by a vote of a majority of the directors present at an authorized meeting of the board of directors, exclusive of …

26-2412. Annual financial examination. The corporation shall be examined at least once annually by the director of the department of finance and shall make reports of its condition not less than annually to said director of the department of finance and more frequently upon call …

26-2413. Meetings. The first meeting of the corporation shall be called by a notice signed by three (3) or more of the incorporators, stating the time, place and purpose of the meeting, a copy of which notice shall be mailed, or delivered, to each incorporator at least five (5) d…

26-2414. Duration of corporation. Unless otherwise provided in the articles of incorporation, the period of duration of the corporation shall be perpetual, subject, however, to the right of the stockholders and the members to dissolve the corporation prior to the expiration of sa…

26-2415. Dissolution. The corporation may upon the affirmative vote of two-thirds (2/3) of the votes to which the stockholders shall be entitled and two-thirds (2/3) of the votes to which the members shall be entitled dissolve said corporation as provided by sections 30-1-82 thro…

26-2416. Credit of state not pledged. Under no circumstances shall the credit of the state of Idaho be pledged to any corporation organized under the provisions of this act.

26-2417. Corporation deemed a state development company. Any corporation organized under the provisions of this act shall be a state development company, as defined in the Small Business Investment Act of 1958, and amendments thereto, or any other similar federal legislation, and…

26-2418. Fiscal year. Corporations organized under this act shall adopt the calendar year as their fiscal year.

26-2501. Definition. "Loan broker" means any person, corporation, partnership or other business entity which offers for compensation, in this state, to arrange for a loan or other extension of credit. "Loan broker" includes a person, corporation, partnership or other business ent…

26-2502. Exceptions. This chapter shall not apply to: (a) Any person doing business under any law of this state or of the United States relating to banks, credit unions, trust companies, savings and loan associations, insurers, pension trusts, real estate investment trusts and ot…

26-2503. Fees prohibited until a loan is made. No loan broker shall directly or indirectly receive any fee, interest or other charge of any nature until a loan or extension of credit is made or a written commitment to loan or extend credit is made by any person exempt under secti…

26-2504. Fees recoverable. A person damaged as a result of a violation of the provisions of this chapter may recover from the loan broker the amount of the fee thus paid, plus damages in the amount of twice the fee.

26-2505. Administration — Enforcement — Actions for monetary relief. (1) The director of the Idaho department of finance shall have the power to administer and enforce the provisions of this chapter. Whenever it appears to the director that a loan broker has violated section 26-2…

26-2506. Criminal penalty. Any person who wilfully violates any provision of chapter 25, title 26, Idaho Code, shall be guilty of a felony.

26-2601. Short title. This chapter shall be known as the "Idaho Interstate Banking Act."

26-2602. Statement of purpose. It is the policy of the state of Idaho to allow acquisitions of Idaho financial institutions by out-of-state financial institution holding companies under the terms and conditions set forth in this chapter.

26-2603. Definitions. As used in this chapter: (1) "Applicant" means an out-of-state financial institution holding company which has submitted an application under section 26-2605, Idaho Code. (2) "Control." A person has "control" of a financial institution or financial instituti…

26-2604. Prohibited acquisition. Except as authorized in this chapter, chapter 16, title 26, Idaho Code, and by the laws of the United States, no out-of-state financial institution or out-of-state financial institution holding company, nor any subsidiary or affiliate thereof, may…

26-2605. Acquisition by out-of-state company. If an application has been submitted by such out-of-state financial institution holding company to, and prior written approval has been obtained from the director, pursuant to section 26-2606, Idaho Code, an out-of-state financial ins…

26-2606. Requirements for acquisition. No person shall effect any of the transactions described in section 26-2605, Idaho Code, or make any public offer to do so unless it shall first have complied with the provisions of chapters 5 and 9, title 26, Idaho Code, and this section. (…

26-2607. Acquisition of failing institution. (1) Notwithstanding any provision of the laws of this state to the contrary, if the director determines, in his discretion, that an Idaho financial institution is in danger of failing, or takes possession of a failing Idaho financial i…

26-2608. Conditions for approval. The director may make the acquisition of an Idaho financial institution by an out-of-state financial institution holding company subject to any conditions, restrictions, and requirements that would apply to the acquisition by an Idaho financial i…

26-2610. Cooperative agreements. (1) The director is authorized to enter into cooperative and reciprocal agreements with other financial institution regulatory agencies, both federal and state, and from bank supervisory authorities from foreign countries, to facilitate the regula…

26-2611. No repeal by implication. Nothing contained in this chapter, or any amendment thereto, shall be construed to amend or modify the provisions of any other chapter of this title governing the supervision or regulation of financial institutions and financial institution hold…

26-2612. Severability. If any court of competent jurisdiction shall adjudge to be invalid or unconstitutional any clause, sentence, paragraph, section or part of this chapter, such judgment or decree shall not affect, impair, invalidate or nullify the remainder of this chapter, b…

26-2613. Banks as "issuing public corporations." Notwithstanding any other provision of law, banks chartered by the state of Idaho and bank holding companies as defined in section 26-501, Idaho Code, shall be considered "issuing public corporations" as used in chapters 16 and 17,…

26-2701. Purpose of chapter. The purposes of this chapter are to: (1) Promote economic development by encouraging the formation of business and industrial development corporations, a new type of private institution, to help meet the financing assistance and management assistance …

26-2702. Definitions. For the purposes of this chapter: (1) "Advisor" means a person who regularly provides legal, accounting, or management services or advice to a licensee. (2) "Affiliate" means, if used with respect to a specified person other than a natural person, a person c…

26-2703. Powers of director. (1) The director shall administer this chapter. The director may issue orders and promulgate rules that, in the opinion of the director, are necessary to execute, enforce, and effectuate the purposes of this chapter. Any rules promulgated shall be pro…

26-2704. Applications — Investigations — Service of process. (1) An application filed with the director under this chapter shall be in such a form and contain such information as the director may require. (2) The director may make public or private investigations within or outsid…

26-2705. Fees. (1) The director shall set the fees required under this chapter at a level sufficient to cover the department’s expenses which arise due to the administration of the provisions of this chapter provided, the fees shall be set within the parameters set forth in this …

26-2706. Required recordkeeping — Independent audit — Application to outside recordkeepers — Report required. (1) A licensee shall make and keep books, accounts, and other records in such a form and manner as the director may require. These records shall be kept at such a place a…

26-2707. Annual report to legislature required. (1) The director shall publish annually and provide to the house business committee and senate commerce and labor committee, or the appropriate germane legislative committees, information on the impact of this chapter in promoting e…

26-2708. Annual license review by director. (1) The director shall examine each licensee not less than once each calendar year to determine whether or not the licensee is in compliance with the provisions of this chapter. (2) The director may at any time examine a licensee or sub…

26-2709. Requirements for licensure. (1) An Idaho corporation may apply to the director for licensure as a BIDCO. A person other than an Idaho corporation shall not apply for a license. (2) After a review of information regarding the directors, officers, and controlling persons o…

26-2710. Preliminary approval — Denial in writing — Posting of license. (1) A person may apply to the director for preliminary approval of an application for a license. Notwithstanding that commitments to invest in the equity of the applicant have not been obtained and that all d…

26-2711. Use of Bidco name restricted — Exception. (1) Except as otherwise provided in subsection (2) of this section, a person transacting business in this state, other than a licensee, shall not use a name or title which indicates that the person is a business and industrial de…

26-2712. Dual licensure — Exceptions. (1) An Idaho corporation that is licensed under another law of this state or under any law of the United States may apply for and be issued a license under this chapter unless the transaction of business by that corporation as a licensee unde…

26-2713. Surrender of license. (1) Upon approval of a two-thirds (2/3) vote of its board of directors and after complying with subsection (2) of this section, a licensee may apply to the director to have the director accept the surrender of the licensee’s license. If the director…

26-2714. Corporate name — Directors — Dividends — Restriction on use of public moneys. (1) The corporate name of each licensee may include the phrase "Business and Industrial Development Corporation" or may include the word "BIDCO." A licensee shall not transact business under a …

26-2715. Offices — Location. (1) A licensee shall maintain not less than one (1) office in this state. (2) A licensee, with the approval of the director, may maintain an office at any place outside this state. (3) Each office of a licensee shall be located in a place which is rea…

26-2716. Business activities — Corporate powers. (1) The business of a licensee shall be the business of providing financing assistance and management assistance to business firms. A licensee shall not engage in a business other than the business of providing financing assistance…

26-2717. Forms of financial and management assistance — Interest rates. (1) A licensee may determine the form and the terms and conditions for financing assistance provided by that licensee to a business firm including, but not limited to, forms such as loans; purchase of debt in…

26-2718. BIDCO acquiring another firm — Application — Requirements. (1) Either by itself or in concert with a director, officer, principal shareholder, or affiliate; another licensee; or a director, officer, principal shareholder, or affiliate of another licensee, a licensee shal…

26-2719. Sound business practices required. (1) A licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound condition. (2) In determining whether a licensee is transacting business in a safe and sound manner or has committed an …

26-2720. Conflict of interest — Defined. (1) For purposes of this section: (a) "Associate" means that term as defined in section 26-2702, Idaho Code. (b) "Relative" means parent, child, sibling, spouse, father-in-law, mother-in-law, son-in-law, brother-in-law, daughter-in-law, si…

26-2721. Acquisition of Bidco — Approval required. (1) Without the prior approval of the director, a person shall not acquire control of a licensee. (2) With respect to an application for approval to acquire control of a licensee, if the director determines, that the applicant an…