Idaho State Statutes - Idaho Attorney Directory

As used in this chapter, unless the context
otherwise requires:
(1) "Bank" shall mean any bank chartered under this act.
(2) "Company" shall mean any corporation, business trust, association, or
similar organization but shall not include:
(a) An individual; or
(b) Any corporation the majority of shares of which are owned by the
United States or any state.
(3) "Business trust" shall mean a business organization wherein a
business or other property is conveyed to trustees who manage the business or
other property for the benefit of the certificate or shareholders of the
trust. Business trust shall not include a voting trust.
(4) "Bank holding company" shall mean any company:
(a) Which directly or indirectly owns or controls twenty-four percent
(24%) or more of the voting shares of a bank;
(b) Which controls in any manner the election of the majority of the
directors of a bank; or
(c) For the benefit of whose shareholders or members twenty-four percent
(24%) or more of the voting shares of a bank is held by trustees;
For the purposes of any proceeding under subsection (4)(b) of this
section, there is a presumption that any company which directly or indirectly
owns, controls or has power to vote less than five percent (5%) of the voting
shares of a bank does not have control over that bank; and
(5) Notwithstanding the foregoing:
(a) No estate, trust, guardianship, or conservatorship or fiduciary
thereof shall be a bank holding company by virtue of its ownership or
control of shares of stock of a bank unless such trust is a business trust
or a voting trust which by its terms or by law does not expire within ten
(10) years from the effective date of the voting trust;
(b) No company shall be a bank holding company by virtue of its ownership
or control of shares acquired by it in connection with its underwriting of
bank shares and which are held only for such period of time as will permit
the sale thereof on a reasonable basis; and
(c) No company shall be a bank holding company by virtue of its ownership
or control of shares acquired and held in the ordinary course of securing
or collecting a debt previously contracted in good faith and which are
held only for such period of time as will permit the sale thereof on a
reasonable basis.
(6) "Financial holding company" shall mean a bank holding company that,
notwithstanding subsection (4) of this section, may engage in any activity,
and may acquire and retain the shares of any company engaged in any activity,
that the director determines, by rule or order:
(a) To be financial in nature or incidental to such financial activity;
or
(b) Is complementary to a financial activity and does not pose a
substantial risk to the safety or soundness of depository institutions or
the financial system in general.

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