Idaho State Statutes - Idaho Attorney Directory

(1) A licensee shall transact
its business in a safe and sound manner and shall maintain itself in a safe
and sound condition.
(2) In determining whether a licensee is transacting business in a safe
and sound manner or has committed an unsafe or unsound act, the director shall
not consider the risk of a provision of financing assistance to a business
firm, unless the director determines that the risk is so great compared with
the realistically expected return as to demonstrate gross mismanagement.
(3) The provisions of subsection (2) of this section do not limit the
authority of the director to do any of the following:
(a) Determine that a licensee's financing assistance to a single business
firm or a group of affiliated business firms is in violation of subsection
(1) of this section or constitutes an unsafe or unsound act, if the amount
of that financing assistance is unduly large in relation to the total
assets or the total shareholders equity of the licensee.
(b) Require that a licensee maintain a reserve in the amount of
anticipated losses.
(c) Require that a licensee have in effect a written financing assistance
policy, approved by its board of directors, including credit evaluation
and other matters. The director shall not require that a licensee adopt a
financing assistance policy that contains standards which prevent the
licensee from exercising needed flexibility in evaluating and structuring
financing assistance to business firms on a deal by deal basis.

Click here to visit the Official Idaho State Statutes