2005 Idaho Code - 26-2603 — DEFINITIONS

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 26
                         IDAHO INTERSTATE BANKING ACT
    26-2603.  DEFINITIONS. As used in this chapter:
    (1)  "Applicant"  means an out-of-state financial institution holding
company which  has submitted an application under section 26-2605, Idaho Code.
    (2)  "Control." A person has "control" of a financial institution or
financial institution holding company if the person:
    (a)  Directly or indirectly, owns, controls or has the power to vote
    twenty-five percent (25%) or more of any class of voting securities of the
    financial institution or financial institution holding company;
    (b)  The  person, directly or indirectly, controls the election of a
    majority of the directors or trustees of the financial institution or
    financial institution holding company; or
    (c)  The person, directly or indirectly, directs or exercises a
    controlling influence over the management or policies of the financial
    institution or financial institution holding company.
There is a rebuttable presumption that a person has control of a financial
institution or financial institution holding company if the person owns,
controls or has the power to vote five percent (5%) of more of the voting
securities of the financial institution or financial institution holding
company. Owning voting securities in a fiduciary capacity does not constitute
"control" unless the director determines, after notice and an opportunity for
hearing, that the person exercises a controlling influence over the management
or policies of the financial institution or financial institution holding
company. No person shall be deemed to have control of a financial institution
or financial institution holding company by virtue of the person's ownership
or control of shares acquired by him in connection with his underwriting of
shares in the financial institution or financial institution holding company
which are held only for such period of time as will permit the sale thereof on
an orderly and reasonable basis, and no person shall be deemed to have control
of a financial institution or financial institution holding company by virtue
of his ownership or control of shares acquired and held in the ordinary course
of securing or collecting a debt previously contracted in good faith and which
is held only for such period of time as will permit the sale thereof on an
orderly and reasonable basis, which period of time shall have a duration of no
more than two (2) years.
    (3)  "Director" means the director of the department of finance.
    (4)  "Financial institution" means any state bank, national bank, trust
company, savings and loan association, savings bank, federal savings and loan
association, federal savings bank, or credit union, as those terms are defined
in title 26, Idaho Code, or any federal credit union organized under the
federal credit union act (12 U.S.C. section 1751, et seq.). The term also
includes any other institution which holds and receives deposits, savings or
share accounts; issues certificates of deposit; or provides to its customers
any deposit accounts which are subject to withdrawal by check, instrument,
order or electronic means to effect third-party payments.
    (5)  "Financial institution holding company" means a person, other than an
individual, that has or acquires control over any financial institution.
    (6)  "Idaho  financial  institution" means:
    (a)  A financial institution chartered by or incorporated in the state of
    Idaho;
    (b)  With respect to financial institutions chartered by the federal
    government, those which have their main office located in Idaho.
    (7)  "Idaho financial institution holding company" means a  financial
institution holding company whose principal place of  business is, and whose
operations are principally conducted in,  this state.  "Idaho financial
institution holding company" also means an out-of-state financial institution
holding company which lawfully has control of an Idaho financial institution
on the effective date of this chapter.
    (8)  "In danger of failing" means a financial institution is in danger of
failing if: (i) the financial institution is not likely to be able to meet the
demands of its depositors or pay its obligations in the normal course and
there is no reasonable prospect for it to do so without federal or other
governmental assistance; or (ii) the financial institution has incurred or is
likely to incur losses that will deplete all or substantially all of its
capital and there is no reasonable prospect for replenishing the financial
institutions' capital without federal or other governmental assistance.
    (9)  "Person" means a natural person, corporation, partnership,
association, cooperative association, unincorporated association, trust or any
other legal or commercial entity.
    (10) "Principally conducted."  The operations of a financial institution
are "principally conducted" in the state in which the  total deposits of the
financial institution are largest. The operations of a financial institution
holding company are principally conducted in the state in which the financial
institution  holding company's financial institution subsidiary having the
largest percentage of the total deposits of all of the financial institution
subsidiaries of the holding company is located.
    (11) "Out-of-state financial institution" means a financial institution
whose operations are principally conducted outside this state.
    (12) "Out-of-state financial institution holding company"  means a
financial institution holding company whose principal place of business is,
and whose operations are principally conducted, outside this state.