2005 Idaho Code - 26-2606 — REQUIREMENTS FOR ACQUISITION

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 26
                         IDAHO INTERSTATE BANKING ACT
    26-2606.  REQUIREMENTS FOR ACQUISITION. No person shall effect any of the
transactions described in section 26-2605, Idaho Code, or make any public
offer to do so unless it shall first have complied with the provisions of
chapters 5 and 9, title 26, Idaho Code, and this section.
    (1)  An applicant must request authorization to engage in any of the
transactions described in section 26-2605, Idaho Code, shall pay such
application fee as the director may prescribe for such transactions and shall
file with the director:
    (a)  An application in such form as the director may prescribe;
    (b)  Such other information as the director may require pursuant to any
    rule, or which he determines to be necessary to allow him to make the
    findings in the case of any specific transactions which are required in
    this section;
    (c)  Unless the applicant is an Idaho resident, a domestic corporation or
    a foreign corporation qualified to do business in this state, a written
    consent to service of process in any action or suit arising out of or in
    connection with said proposed action, said service to be on a resident of
    this state;
    (d)  A written undertaking on the part of the applicant to provide the
    director, if requested, the financial institution holding company
    examination records and any and all examination reports of such financial
    institution holding company subsidiaries as the director may designate.
    (2)  The director may, as a condition upon acceptance of an application as
complete or upon approval of an application, require cooperation from the
administrative regulator or regulators of the out-of-state financial
institution holding company and its subsidiaries involved in the transaction.
    (3)  Within thirty (30) days of acceptance of the application as complete,
the director shall act upon the application by approving or disapproving it
and shall state in writing his findings of fact, conclusions and order. The
director may approve an application subject to such terms and conditions as he
may consider necessary to protect the public interest and carry out the
purposes of this chapter. The director may not approve an application for a
transaction in which the applicant is a foreign corporation which has not
qualified to do business in this state under title 30, Idaho Code, and which
is required to do so.
    (4)  The director shall disapprove any application filed under this
section if he finds:
    (a)  That the proposed transaction would be detrimental to the safety and
    soundness of the applicant or to any Idaho financial institution or Idaho
    financial institution holding company which is a party to the proposed
    transaction or to a subsidiary or affiliate of that institution or holding
    company;
    (b)  The applicant, its executive officers, directors or principal
    shareholders do not have a record of sound performance, efficient
    management, financial responsibility and integrity such that it would be
    against the interest of the depositors, other customers, creditors or
    shareholders of an Idaho financial institution or an Idaho financial
    institution holding company, or against the public interest to authorize
    the proposed transaction;
    (c)  The financial condition of the applicant or any Idaho financial
    institution or Idaho financial institution holding  company which is a
    party to or participant in the proposed transaction is such that the
    financial stability of such applicant or other institution or holding
    company might be jeopardized or the interests of depositors or other
    customers of such applicant or other institutions or holding companies
    might be prejudiced;
    (d)  The Idaho financial institution to be acquired has been chartered and
    actively engaged in business for less than five (5) years prior to the
    date of the application;
    (e)  The consummation of the proposed transaction will tend substantially
    to lessen competition within this state unless the director finds that the
    anticompetitive effects of the proposed transaction are clearly outweighed
    by the benefit of meeting the convenience and needs of the community to be
    served; or
    (f)  The applicant has not established a record of meeting the credit
    needs of the communities which it or its subsidiary financial
    institution(s) services.
    (5)  Subsection (4)(d) of this section shall not be construed as
prohibiting either:
    (a)  The approval of the acquisition of any Idaho financial institution or
    Idaho financial institution holding company formed solely to facilitate
    the acquisition of all of the voting shares of an Idaho financial
    institution which itself has been chartered and actively engaged in
    business for five (5) years or more prior to the date of the application;
    or
    (b)  The acquisition of an Idaho financial institution holding company
    which has been in existence for less than five (5) years if each of the
    financial institutions controlled by the financial institution holding
    company have been chartered and actively engaged in business for five (5)
    years or more.