2005 Idaho Code - 26-1114 — REMOVAL OF DIRECTORS, OFFICERS, OR EMPLOYEES

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 11
                     SUPERVISION BY DEPARTMENT OF FINANCE
    26-1114.  REMOVAL OF DIRECTORS, OFFICERS, OR EMPLOYEES. Any director,
officer or employee of any bank found by the director to be negligent,
dishonest, reckless or incompetent in the performance of his official duties,
shall be removed from office by the board of directors of such bank on the
written order of the director.  If the directors neglect or refuse to remove
such director, officer or employee, in the event any losses accrue to such
bank thereafter by reason of the negligence, dishonesty, recklessness or
incompetency of such director, officer or employee, the written order of the
director shall be deemed to be conclusive evidence of the negligence of the
directors failing to act upon the same in any action brought against them, or
any of them, for recovery of such losses.  The director, officer or employee
affected by order of the director may petition the district court in the
judicial district in which the bank is located to set aside the order of the
director.  Upon the filing of such petition the court shall have the
jurisdiction to affirm, set aside, or modify the order of the director.  If
the directors fail or neglect to remove such director, officer or employee,
and the director of the department of finance has reasonable cause to believe
that the continued participation in the affairs of the bank by the director,
officer or employee will place the bank in an unsafe or unsound condition, the
director of the department of finance may apply to the district court for a
temporary restraining order and injunction preventing the participation of the
director, officer or employee in the affairs of the bank.  The findings of the
director as to the facts, if supported by substantial evidence, shall be
conclusive that the bank director, officer or employee who is the subject of
an order for removal by the director of the department of finance is or has
been negligent, dishonest, reckless or incompetent in the performance of his
duties.