Idaho State Statutes - Idaho Attorney Directory

It shall be unlawful for
any person to engage in or transact any banking business in this state except
by means of a corporation duly organized for that purpose and chartered under
the bank act. Corporations organized to engage in and transact banking
business shall be formed by five (5) or more natural persons under the general
business corporation laws of this state and as provided in the bank act.
Except as specifically authorized by other laws of the state of Idaho, no
person except a national bank shall engage in or transact any banking business
except as is incidental or necessarily preliminary to its organization without
the written approval of the director and without his written charter stating
that it has complied with the provisions of the bank act and all of the
requirements of law and that it is authorized to transact banking business
within the state. To obtain a charter the incorporators shall file with the
director the following information:
(a) five (5) copies of its articles of incorporation,
(b) satisfactory proof of compliance with section 26-204, Idaho Code,
(c) the names and addresses of its officers and directors,
(d) the names and addresses of all subscribers to its common stock and
the amounts subscribed by each,
(e) the oath of each and every director as provided in section 26-213,
Idaho Code,
(f) the affidavit of its directors to the effect that said corporation
has complied with all the provisions of the bank act required to authorize
it to commence business, and
(g) such other information as the director may require in the form
required by the director.
Upon filing of the foregoing, it shall be the duty of the department to
examine and investigate into the condition of the corporation, ascertaining
whether or not the capital has been paid in and whether the corporation has
complied with all the provisions of the law required to entitle it to engage
in the business of banking. The department shall also ascertain from the best
sources of information at its command whether the character and general
fitness of the persons named as subscribers and officers and directors are
such that the bank may be operated in a safe, prudent and profitable manner
and as to command the confidence of the community in which such bank is
proposed to be located. The department shall collect a fee on demand from the
corporation which fee shall not be less than one hundred fifty dollars ($150)
or more than two thousand dollars ($2,000) based upon the cost of such
examination and investigation. If upon such examination, and investigation, it
appears that the corporation is lawfully entitled to commence banking
business, and the directors and officers are competent to engage in banking
business, and its subscribers are such as to command the confidence of the
community, and if, in the opinion of the director the organization of the bank
is justified, the director shall forthwith issue to the corporation a bank
charter, under official seal.
If the director has reason to believe that the corporation has been formed
for any other business than the legitimate banking business contemplated by
the bank act or that the subscribers, officers and directors will not operate
the bank in a safe, prudent and profitable manner, or that the bank will not
have qualified experienced management with experience commensurate with the
area where the bank is proposed to be located, he shall withhold such charter,
and he may withhold the issuance of such charter to a corporation seeking to
engage in banking business in an area which in his judgment does not justify
or warrant a new or additional bank or could not support a profitable banking
corporation.
No unit bank hereafter organized shall be permitted to be acquired for the
purpose of establishing a branch banking office or a branch bank until it
shall have been in operation as a unit bank for a period of five (5) years.

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