2005 Idaho Code - 26-1113 — IMPAIRMENT OF CAPITAL -- ASSESSMENT

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 11
                     SUPERVISION BY DEPARTMENT OF FINANCE
    26-1113.  IMPAIRMENT OF CAPITAL -- ASSESSMENT.  Notwithstanding any law of
this state to the contrary, the stock of a bank chartered by the state of
Idaho shall be assessable. Whenever the director has reason to believe that
the capital and surplus of any bank is impaired or reduced below the amount
required by the director at the time the bank's charter was issued or an
amount which the director reasonably believes to be necessary for the
protection of the depositors of the bank, it shall be the duty of the director
to examine said bank and ascertain the facts.  In case he finds an impairment
or reduction of capital and surplus, he shall order the bank to make good the
deficiency within thirty (30) days after the date of the order.  The directors
of the bank upon which an order shall have been made, shall levy an assessment
upon the stock of the bank to repair the capital deficiency.  The director
shall cause notice of the order and the amount of the assessment to be given
to each stockholder of the bank.  Notice shall be given by a written notice
mailed to each stockholder at his last known address or served personally upon
him.  If any stockholder shall refuse or neglect to pay the assessment
specified in the notice within ten (10) days from the date of mailing or
service upon him of the notice, the directors of the bank shall have the right
to sell the stock of such stockholder, at public auction.  Previous notice of
such sale shall be given ten (10) days in advance of the date of the sale in a
newspaper of general circulation in the county where the principal place of
business of the bank is located.  A copy of the notice of sale shall also be
served personally on the stockholder or by mailing same to his last known
address ten (10) days before the day fixed for the sale.  Such stock may be
sold at private sale and without such public notice; provided that an offer in
writing shall first be obtained and a copy thereof served upon the owner of
record of the stock sought to be sold, either personally or by mailing a copy
of the offer to his last known address.  If, after service of the offer, the
owner shall refuse or neglect to pay the assessment within two (2) weeks from
the time of the service of the offer, the directors may accept the offer and
sell the stock to the person(s) making the offer, or to any other person(s)
making a larger offer than the offer submitted to the stockholder. Stock shall
in no event be sold for less than the amount of the assessment called for and
the expense of the sale.
    The stockholder whose shares of stock are to be sold shall return the
certificates evidencing such shares to the bank prior to the date the shares
will be sold.
    Out of the proceeds of the stock so sold, the directors shall pay the
amount of assessment levied thereon and the necessary costs of sale, and the
balance, if any, shall be paid to the person or persons whose stock has thus
been sold.  A sale of stock as herein provided shall effect an absolute
cancelation of the outstanding certificate or certificates evidencing the
stock so sold and shall make the same null and void, and a new certificate
shall be issued to the purchaser thereof.