Idaho State Statutes - Idaho Attorney Directory

(1) Every banking
corporation hereafter organized must have common stock, surplus and undivided
profits paid up in unhypothecated cash of not less than the following amounts:
(a) In cities, and communities the population of which does not exceed
six thousand (6,000), a minimum of two hundred fifty thousand dollars
($250,000) in par value of common stock, fifty thousand dollars ($50,000)
in surplus, and twenty-five thousand dollars ($25,000) in undivided
profits.
(b) In cities, or communities the population of which exceeds six
thousand (6,000), but does not exceed fifty thousand (50,000), a minimum
of three hundred fifty thousand dollars ($350,000) in par value common
stock, seventy thousand dollars ($70,000) in surplus, and thirty-five
thousand dollars ($35,000) in undivided profits.
(c) In cities, or communities the population of which exceeds fifty
thousand (50,000), a minimum of one million dollars ($1,000,000) in par
value of common stock, two hundred thousand dollars ($200,000) in surplus,
and one hundred thousand dollars ($100,000) in undivided profits.
(d) The par value of common stock, surplus and undivided profit amounts
set out herein are minimum amounts only, and the director may in his
discretion require larger amounts of par value of common stock, surplus
and undivided profits.
(2) No original subscription to the stock of any bank hereafter organized
under the laws of this state shall be valid or operative unless the subscriber
also subscribes and actually pays in, in cash, at the time he pays such
subscription an additional amount equal to twenty percent (20%) of his
subscription, for the purpose of constituting surplus funds for such bank and
an additional amount equal to ten percent (10%) of his subscription for the
purpose of constituting undivided profits for such bank to be used, so far as
necessary, in paying the costs of organization and for the general expenses of
the bank. No bank shall issue any share of stock until the full par value
thereof, plus twenty percent (20%) surplus and ten percent (10%) undivided
profits, has been actually paid in, in cash, as above provided.
(3) The entire par value of the common stock, plus surplus and undivided
profits of every banking corporation hereafter formed shall be paid in, in
cash, and deposited in a bank in the state of Idaho before a corporation may
be authorized to commence banking business. A subscription for which a
subscriber gives the banking corporation his or her note in payment or part
payment of the par value of common stock, plus surplus or undivided profits is
void. Stock issued pursuant to this section may not be used as security for a
loan to purchase stock.
(4) For the purpose of this section, the population shown and determined
by the last preceding federal census, or any subsequent census compiled and
certified under any law of this state, shall be deemed to be the population of
any city in which any such bank is to be organized. If the principal place of
business of any bank so organized is located outside of the corporate limits
of any city or village, then the population within a radius of five (5) miles
of its principal place of business, which is not included within the
boundaries of any municipal corporation, as such population is shown and
determined by such federal or subsequent official census, shall be the basis
for classification under the provisions of this section.
(5) A bank may not issue preferred stock to meet the capitalization
requirements of this section.

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