Idaho State Statutes - Idaho Attorney Directory

POWER OF BANKS TO GRANT OPTIONS TO PURCHASE OR SELL SHARES OF ITS
STOCK TO ITS EMPLOYEES. (1) Any bank may grant options to purchase, sell or
enter into agreements to sell, shares of its stock to its employees whether or
not such transactions qualify for special tax treatment under the Internal
Revenue Code of 1954 as defined in section 63-3004, Idaho Code, and
regulations promulgated thereunder, provided that the following conditions are
met:
(a) Application for approval shall be made to the director of the
department of finance in the form of a letter accompanied by the following
information:
1. Description of all material provisions of the plan.
2. Proposed notice of stockholders' meeting, proxy and proxy
statement.
3. The number of shares of authorized but unissued stock to be
allocated to the plan.
4. Proposed amendments, if any, to articles of incorporation
creating authorized but unissued stock and eliminating preemptive
rights as to the shares reserved under the plan.
(b) The plan is administered by a committee, none of whose members may
participate in the plan;
(c) The number of shares allocable to any person under the plan is
reasonable in relation to the purpose of the plan and the needs of the
bank; and
(d) In the case of a stock option plan, the number of shares subject to
the plan is not unreasonable in relation to the bank's capital structure
and anticipated growth.
(2) (a) Employees' stock option and stock purchase plans or agreements
may provide that options may be exercisable or that shares may be
purchased on any business day. Stock certificates representing the shares
purchased pursuant to the exercise of options may be validly issued to
such purchasers on receipt of the purchase price.
(b) The increase in capital represented by stock certificates issued
pursuant to this section will not be applicable for the purposes of
permitted investment in banking premises, permitted indebtedness, lending
limits, branches, banking facilities and other like purposes until it has
been duly paid in as part of the capital of such bank.

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