Idaho State Statutes - Idaho Attorney Directory

(1) Subject to the provisions of the bank act,
and by and with the approval and consent of the director, any bank now or
hereafter incorporated under the laws of this state, may issue such part of
its capital as is approved by the director, as preferred stock having such
special rights, preferences, privileges, immunities, qualifications and
restrictions as to voting, dividends, redemption, retirement, participation in
corporate assets, not common to other stock, as provided in its articles of
incorporation as hereafter adopted or amended, and as are not inconsistent
with the provisions of the bank act and the provisions of its articles of
incorporation or amendments thereto.
(2) Dividends on preferred stock may be declared and paid only from net
profits as defined by section 26-503 [26-604], Idaho Code, but such net
profits may be current profits or those accumulated as surplus. No dividend
shall be declared nor paid, any retirement or redemption of such stock be
made, nor any other distribution or payment of corporate assets made thereon
or therefor at any time when the total common stock and surplus is below or
will be thereby reduced below the minimum common stock required by law plus a
surplus fund equal to ten percent (10%) of such minimum common stock or the
amount of common stock required by the director at the time the bank's charter
was issued plus a surplus fund equal to ten percent (10%) of such required
common stock.
(3) Preferred stock under the provisions of this act must be subscribed
and paid for at not less than par value.
(4) Except as otherwise provided in the bank's articles of incorporation
or by the bank act, preferred stock authorized by this act is capital and
shall be considered as such in computing the capital structure of the bank
within the meaning of all provisions of the bank act.

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