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 not be included:
(1) Federal funds purchased.
(2) The sale of securities by a bank, under an agreement to repurchase at the end of a stated period.
(3) Borrowings from the federal reserve system.
(4) The sale of mortgage loans by a bank, under agreement to repurchase at the end of a stated period.
(5) Money borrowed to meet seasonal requirements.
(6) Money borrowed to meet unexpected withdrawals.
(7) Capital notes issued in accordance with section 26-802, Idaho Code.
(8) Borrowing from federal home loan banks.
The total of all borrowings by a bank including those items excluded from the computation of total borrowings may not exceed in the aggregate an amount equal to two and one-half (2 1/2) times the capital structure of the bank, except with the consent of the director.
Whenever it shall appear to the director that a bank is borrowing money in excess of the above limitation, or for purposes other than as specified above, he may require it to reduce such borrowings within a time to be fixed by him.
History:
[26-801, added 1979, ch. 41, sec. 2, p. 94; am. 2004, ch. 159, sec. 16, p. 524; am. 2007, ch. 126, sec. 5, p. 378.]
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.