2005 Idaho Code - 56-1104 — APPROVED PURPOSE OF ACCOUNT -- EMERGENCY WITHDRAWAL -- REMOVAL OF ACCOUNT HOLDER FROM PROGRAM

                                  TITLE  56
                        PUBLIC ASSISTANCE AND WELFARE
                                  CHAPTER 11
                    IDAHO FAMILY ASSET BUILDING INITIATIVE
    56-1104.  APPROVED PURPOSE OF ACCOUNT -- EMERGENCY WITHDRAWAL -- REMOVAL
OF ACCOUNT HOLDER FROM PROGRAM. (1) A person may establish an individual
development account only for a purpose approved by a fiduciary organization.
Disbursements from an account for an approved purpose shall be made directly
by the fiduciary organization on behalf of the account holder but in no event
shall the fiduciary organization make a disbursement for an approved purpose
directly to the account holder. Purposes that the fiduciary organization may
approve are:
    (a)  Educational costs for any family member eighteen (18) years of age or
    older, at an accredited institution of postsecondary education.
    (b)  The purchase of a primary residence. In addition to payment on the
    purchase price of the residence, account moneys may be used to pay any
    usual or reasonable settlement, financing or other closing costs. The
    account holder must not have owned or held any interest in a residence
    during the three (3) years prior to making the purchase. However, this
    three (3) year period shall not apply to displaced homemakers or other
    individuals who have lost home ownership as a result of divorce.
    (c)  The capitalization of a small business. Account moneys may be used
    for capital, plant, equipment and inventory expenses or for working
    capital pursuant to a business plan. The business plan must have been
    developed through a financial institution, nonprofit microenterprise
    program or other qualified agent demonstrating business expertise and have
    been approved by the fiduciary organization. The business plan must
    include a description of the services or goods to be sold, a marketing
    plan and projected financial statements.
    (2)  (a) If an emergency occurs, an account holder may withdraw all or
    part of the account holder's deposits to an individual development account
    for a purpose not described in subsection (1) of this section. As used in
    this paragraph, an approved emergency includes making payments for
    necessary medical expenses, to avoid eviction of the account holder from
    the account holder's residence and for necessary living expenses following
    a loss of employment.
    (b)  The account holder must reimburse the account for the amount
    withdrawn under this subsection within twelve (12) months after the date
    of the withdrawal. Failure of an account holder to make a timely
    reimbursement to the account is grounds for removing the account holder
    from the individual development account program. Until the reimbursement
    has been made in full, an account holder shall not be approved for
    matching funds or accrued interest on matching funds.
    (3)  If an account holder withdraws, or directs the withdrawal, of moneys
from an individual development account for other than an approved purpose, the
fiduciary organization may remove the account holder from the program.
    (4)  If an account holder moves from the area where the program is
conducted or is otherwise unable to continue in the program, the fiduciary
organization may remove the account holder from the program.
    (5)  If an account holder is removed from the program under subsection
(2), (3) or (4) of this section, the account holder shall retain moneys he or
she deposited in the account, including interest earned. In the event of the
death of the account holder, moneys deposited in the account by the account
holder and interest earned on those deposits shall be distributed to the
designated beneficiary of the account and, if there is none, then according to
the laws of the state of Idaho as moneys of the estate of the account holder.
If the account holder is removed from the program or in the event of the
account holder's death, all matching deposits in the account and all interest
earned on matching deposits shall revert to the fiduciary organization. The
fiduciary organization shall use the reverted funds as a source of matching
deposits for other accounts.