2005 Idaho Code - 26-702 — BANK STOCK

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 7
               LIMITATIONS ON LOANS, INVESTMENTS, AND PRACTICES
    26-702.  BANK STOCK. (1) Except as provided in subsection (2) of this
section, no bank shall accept as collateral, nor make any loans or discounts
on the security of nor purchase any shares of its own capital stock. No bank
shall purchase the shares of any other bank wherever organized, or situated,
except stock of federal reserve banks. A bank may acquire a security interest
in or purchase its own stock if the acquisition is necessary to prevent loss
upon a debt previously contracted in good faith and the stock so purchased or
acquired shall within six (6) months from the date of acquirement be sold or
disposed of at public or private sale. After the expiration of six (6) months
any such stock shall not be considered as a part of the assets of such bank.
    (2)  With the written approval of the director, a bank may redeem or
otherwise purchase a portion of its own capital stock if the director finds
that such redemption or purchase does not impair the capital structure of the
bank as required by section 26-205, Idaho Code, is not for an unreasonable
price, does not conflict with the articles of incorporation or the bylaws of
the bank, and is not otherwise detrimental to the bank or to the public
interest, provided, however, (i) that a bank may not hold its capital stock so
redeemed or purchased for a period longer than twelve (12) months from the
date of such redemption or purchase, and (ii) a bank shall not retain at any
one time a total number of shares of its capital stock so redeemed or
purchased in excess of seven per cent (7%) of the total number of shares of
its capital stock then issued and outstanding.