Title 26 — BANKS AND BANKING

26-706. Loans to officers and directors. Except as authorized under this section, no bank may extend credit in any manner to any of its own executive officers. Any extension of credit under this section must be approved by the board of directors of the bank, and may be made only …

26-707. Real estate holdings. A bank may purchase, acquire, hold and convey real estate for the following purposes only: (1) Such as shall be necessary for the convenient transaction of its business, including at the same location as its banking offices’ other property to rent as…

26-708. Valuation of assets. No bank shall enter or at any time carry on its books any of its assets at a valuation exceeding their actual cost to the bank; nor shall the value of any of its assets be increased on the books of the bank without the written consent of the director.…

26-709. Statutory bad debt. Every bank carrying any bad debt, or a debt of doubtful value, as an asset shall, upon the request or demand of the director, collect the same or put it in good bankable condition or charge it out of its books. Any debt on which interest is past due an…

26-710. Ownership and leasing of property for customers. A bank may become the owner and lessor of personal property acquired upon the specific request and for the use of a customer and may incur such additional obligations as may be incident to becoming an owner and lessor of su…

26-711. Lending of credit — Suretyship and guarantyship. A bank may lend its credit, bind itself as a surety to indemnify another, or otherwise become a guarantor, only if it has a substantial interest in the performance of the transaction involved or has a segregated deposit suf…

26-712. Validity of transactions. Nothing in any law of this state shall in any manner whatsoever affect the validity of, or render void or voidable, the payment, certification or acceptance of a check or other negotiable instrument, or any other transaction by a bank in this sta…

26-713. Adverse claim to bank deposit. Notice to any bank of an adverse claim to a deposit standing on its books to the credit of any person shall not require the bank to recognize the adverse claim unless the adverse claimant shall: (1) Procure a restraining order, injunction or…

26-714. Account of person under disability. Whenever any minor or any person under disability shall become a depositor, as defined in section 26-106, Idaho Code, in any bank in his or her name, such bank may pay such money on the check, order or endorsement of such depositor the …

26-715. Branch or office at which instruments are to be presented must be indicated. All checks, drafts, bills of exchange or other orders for the payment of money drawn against any bank operating branch banks shall indicate the particular bank and branch at which the same are to…

26-801. Borrowing money — Limitations. At no time shall the total borrowings of any bank exceed in the aggregate an amount equal to the capital structure of the bank, except with the consent of the director. For the purpose of computing total borrowings the following items shall …

26-802. Issuance of convertible or nonconvertible capital debentures and notes. The issuance of convertible or nonconvertible capital debentures and notes by banks in accordance with normal business considerations is permissible. With the consent of the director, every bank is, h…

26-803. Borrowing from federal agencies. With the consent of the director, a bank may borrow from any agency of the United States. The limitations imposed on borrowing by this chapter shall not apply to borrowings under this section.

26-804. Borrowing money — Accounting. No officer or employee of any bank shall issue the note of such corporation for money borrowed or rediscount any of its paper, or pledge or hypothecate any of its assets, except when authorized by resolution of its board of directors, or by a…

26-805. Extent assets may be pledged. No bank, banker or bank officer shall, except as otherwise authorized by law, pledge or hypothecate as collateral security for money borrowed, its assets in a ratio exceeding one and one-half (1 1/2) times the amount borrowed (except as other…

26-806. Giving security for deposit prohibited. It shall be unlawful for any bank to pledge, mortgage or hypothecate to any depositor any of its real or personal property as security for any deposit except money of the United States, the state of Idaho and its political subdivisi…

26-901. Resulting national bank. (1) Nothing in the law of this state shall restrict the right of a state bank to merge with or convert into a resulting national bank. The action to be taken by such merging or converting state bank and its rights and liabilities and those of its …

26-902. Resulting state bank. Upon approval by the director, banks may be merged to result in a state bank or a national bank may convert into a state bank as hereafter prescribed, except that the action by a national bank shall be taken in the manner prescribed by and shall be s…

26-903. Merger procedure — Resulting state bank. (1) The board of directors of each merging state bank shall, by a majority of the entire board, approve a merger agreement which shall contain: (a) A statement or recital that the agreement is subject to approval by the director an…

26-904. Merger — Approval by stockholders of state banks. (1) To be effective, a merger which is to result in a state bank must be approved by the stockholders of each merging state bank by a vote of two-thirds (2/3) of the outstanding voting stock of each class at a meeting call…

26-905. Effective date of merger — Filing of approved agreement — Certificate of merger as evidence. (1) A merger or sale which is to result in a state bank shall, unless a later date is specified in the agreement, become effective upon the filing with the director of the execute…

26-906. Conversion of national into state bank. (1) A national bank located in this state which follows the procedure prescribed by the laws of the United States to convert into a state bank, shall be granted a charter by the director unless he finds that the bank does not meet t…

26-907. Continuation of corporate entity — Use of old name. (1) A resulting state or national bank shall be the same business and corporate entity as each merging bank or as the converting bank with all the property, rights, powers, and duties of each merging bank or the converti…

26-908. Sale of assets of bank or department. (1) Any state bank may sell to any other bank: (a) all or substantially all of the selling bank assets and business; or (b) all or substantially all of the assets and business of any department of the selling bank. (2) Any state bank …

26-909. Dissenting stockholders. (1) A dissenting stockholder of a state bank shall be entitled to receive the value in cash of only those shares which were voted against a merger to result in a state bank, against the conversion of a state bank into a national bank or against a …

26-910. Nonconforming assets of business. If a merging, converting or selling bank has assets which do not conform to the requirements of state law for the resulting or purchasing state bank or carries on business activities which are not authorized or permitted for the resulting…

26-911. Book value of assets. Without approval by the director no asset shall be carried on the books of the resulting or purchasing bank at a valuation higher than that on the books of the merging or converting bank at the time of its last examination by a state or national bank…

26-1001. Grounds for closing bank. Whenever it shall appear to the department of finance that: (1) Any bank has violated its charter or any law of this state; or (2) Has violated any general rule or regulation of the director, made in accordance with law, or any special lawful or…

26-1002. Penalty for closing bank with criminal intent. If the director of the department of finance or official in the department of finance, shall, as a result of malice or for personal gain, declare any bank insolvent, he shall, upon conviction thereof be subject to punishment…

26-1003. Receiving deposits when insolvent. The owners or officers of any bank or trust company who shall receive any deposits, knowing that such bank or trust company is insolvent, shall be guilty of a felony and punished, upon conviction thereof, by a fine not exceeding one tho…

26-1004. Bank may be placed in director’s possession. Any bank may place its affairs and assets under the control and in the possession of the director after oral or written notice to the director by posting a notice on the front door of such bank, indicating that said bank is in…

26-1005. Effect of posting notice. The posting of such notice by the directors of any bank, or of a like notice signed by the director, shall be sufficient to place all assets and property of such bank, of whatever nature and wherever situate, in possession of the director, and s…

26-1006. Taking possession of bank — Notice. On taking possession of the assets and business of the bank, the director shall, in addition to posting notice thereof, on the front door of such bank, as aforesaid, also notify personally or by telephone or mail or by public announcem…

26-1007. Resumption after closing. After the director has taken possession of any bank, he may permit such bank to resume business upon such conditions as may be approved by him.

26-1008. Powers of director on closing bank. Upon taking the assets and business of any bank into his possession, the director is authorized to collect all moneys due to such bank, assess the stock of such bank, and to do such other acts as are necessary to conserve its assets an…

26-1009. Recourse of aggrieved bank. Any bank deeming itself aggrieved by the action of the director in taking possession of its assets or closing its doors may, within ten (10) days after such possession shall have been taken, apply to the district court of the county in which i…

26-1010. Director may appoint agents. The director may, under his hand and seal, appoint and authorize an agent to assist him or act for him in the performance of any powers or duties hereunder, the certificate of appointment to be filed in the office of said director, and a cert…

26-1011. Federal Deposit Insurance Corporation — Right to act as receiver or liquidator. The Federal Deposit Insurance Corporation created by section 8 of the federal "Banking Act of 1933" (section 12B of the Federal Reserve Act, as amended) is hereby authorized and empowered to …

26-1012. Closed bank — Federal Deposit Insurance Corporation furnishing funds for payment of insured deposit liabilities — Subrogation. Whenever any banking institution shall have been closed as aforesaid, and said Federal Deposit Insurance Corporation shall pay or make available…

26-1013. Closed banks — Pledge or sale of assets by director or liquidator to Federal Deposit Insurance Corporation — Court order. With respect to any banking institution, which is now or may hereafter be closed on account of inability to meet the demands of its depositors or by …

26-1014. Federal Deposit Insurance Corporation acting as liquidator — Possession and control of assets and business of bank. Upon the acceptance of the appointment of receiver or liquidator aforesaid by said corporation, and during its continuance as such receiver or liquidator, …

26-1015. Enforcement of individual liability of directors of closed bank. Among its other powers, said corporation, in the performance of its powers and duties as such receiver or liquidator, when acting as such in lieu of the director of the department of finance, shall have the…

26-1016. Notice to creditors of insolvent bank. The director shall cause notice to be given by advertisement in a newspaper of general circulation in the town or city in which said bank is situated, if there be one, and if not, then in such other newspaper published in the state …

26-1017. Claims — Allowance and rejection. The director shall reject or allow all claims in (the) whole or in part, and on each claim allowed shall designate the order of its priority. If a claim is rejected or an order of priority allowed lower than that claimed, notice shall be…

26-1018. Payment of claims. Claims presented to the director prior to the expiration of the time fixed in the notice to creditors therefor, and allowed by him, shall be paid in the order of priority hereinafter fixed. Those filed after such expiration and prior to one (1) year th…

26-1019. Claims — Order of payment — Priorities. The order of payment of the debts of a bank liquidated by the director shall be as follows: (1) The expense of liquidation, including compensation of agents, employees and attorneys. (2) All funds held by bank in trust. (3) Debts d…

26-1020. Partial payment of claims — Calculation of dividends — Assignment of claims — Checks against closed bank. The director need not await the expiration of the time allowed for filing claims, as fixed in the notice to the creditors, for the payment of dividends, but he may, …

26-1021. Statement of condition. The director of the department of finance shall, within sixty (60) days after taking possession of any bank or trust company under the provisions of this chapter and at intervals of every six (6) months thereafter during the liquidation thereof an…

26-1022. Deposit of funds in director’s hands. All funds in the hands of the director belonging to any bank in process of liquidation shall be deposited in his name as director in such banks within the state as may be selected and designated by him and subject to his checks as di…

26-1023. Disposition of unclaimed funds. The director shall certify to the treasurer of the state a complete list of funds remaining in his hands uncalled for, which have been left in his hands in his official capacity, in trust for depositors in and creditors of any liquidated b…