Idaho State Statutes - Idaho Attorney Directory

(1) The
director may issue an order removing a subject person of a licensee from his
office, if any, with the licensee and prohibiting the subject person from
further participating in any manner in the conduct of the business of the
licensee, if, after notice and the opportunity for a hearing, the director
determines all of the following are true:
(a) The subject person has violated the provisions of this chapter or
another applicable law; the subject person has engaged or participated in
an unsafe or unsound act with respect to the business of the licensee; or
the subject person has engaged or participated in an act which constitutes
a breach of the subject person's fiduciary duty.
(b) The act, violation, or breach of fiduciary duty has caused or is
likely to cause substantial financial loss or other damage to the licensee
or has seriously prejudiced or is likely to seriously prejudice the
interests of the licensee, or the subject person has received financial
gain by reason of the act, violation, or breach of fiduciary duty.
(c) The act, violation, or breach of fiduciary duty either involves
dishonesty on the part of the subject person or demonstrates the subject
person's gross negligence with respect to the business of the licensee or
a willful disregard for the safety and soundness of the licensee.
(2) The director may issue an order removing the subject person from his
office with the licensee, if any, and prohibiting the subject person from
further participating in any manner in the conduct of the business of the
licensee, except with the prior consent of the director, if, after notice and
the opportunity for a hearing, the director determines that, by engaging or
participating in an act with respect to a financial or other business
institution which resulted in substantial financial loss or other damage, the
subject person of a licensee has demonstrated both of the following:
(a) Dishonesty or willful or continuing disregard for the safety and
soundness of the financial or other business institution.
(b) Unfitness to continue as a subject person of the licensee or to
participate in conducting the business of the licensee.
(3) If the director determines that the factors set forth in subsection
(1) or (2) of this section are true with respect to a subject person of a
licensee, and that it is necessary for the protection of the interest of the
licensee or for the protection of the public interest that the director
immediately suspend the subject person from his or her office, if any, with
the licensee and prohibit the subject person from further participating in any
manner in conducting the business of the licensee, the director may issue an
order suspending the subject person from his or her office, if any, with the
licensee and prohibiting the subject person from further participating in any
manner in conducting the business of the licensee, except with the consent of
the director.
(4) Within thirty (30) days after an order is issued under subsection (3)
of this section, the subject person of a licensee to whom the order is
directed may file with the director an application for a hearing on the order.
If the director fails to begin a hearing within fifteen (15) business days
after the application is filed or within a longer period to which the subject
person consents, the order shall be considered rescinded. Upon the conclusion
of the hearing, the director shall affirm, modify, or rescind the order. A
subject person of a licensee to whom an order is issued under subsection (3)
of this section may petition for judicial review of the order pursuant to
chapter 52, title 67, Idaho Code.
(5) A person to whom an order is directed under this section may apply to
the director to modify or rescind the order. The director shall not modify or
rescind the order unless the director determines that it is in the public
interest to do so and that it is reasonable to believe that the person, if and
when he or she becomes a subject person of a licensee, will comply with this
chapter.
(6) As used in this section, "office," if used with respect to a
licensee, means the position of director, officer, or employee of the licensee
or of a subsidiary of the licensee.

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