Idaho State Statutes - Idaho Attorney Directory

(1) The trust
fund may borrow money to defray the expenses of its organization, provide it
with surplus funds, or for any purpose of its business, upon a written
agreement that such money is required to be repaid only out of the trust
fund's surplus in excess of the amount stipulated in such agreement. The
agreement may provide for interest, which interest shall or shall not
constitute a liability of the insurer as to its funds other than such excess
or surplus, as stipulated in the agreement. No commission or promotion expense
shall be paid in connection with any such loan.
(2) Money so borrowed, together with the interest thereon, if so
stipulated in the agreement, shall not form a part of the fund's legal
liabilities except as to its surplus in excess of the amount thereof
stipulated in the agreement, or be the basis of any setoff, but until repaid,
financial statements filed or published by the insurer shall show as a
footnote thereto the amount thereof then unpaid together with any interest
thereon accrued but unpaid.
(3) Any such loan shall be subject to the approval of the director. The
trust fund shall, in advance of the loan, file with the director a statement
of the purpose of the loan and a copy of the proposed loan agreement. The loan
and agreement shall be deemed approved unless within fifteen (15) days after
the date of such filing, the trust fund is notified of the director's
disapproval and the reasons therefor. The director shall disapprove any
proposed loan or agreement if he finds the loan is unnecessary or excessive
for the purpose intended, or that the terms of the loan agreement are not fair
and equitable to the parties, and to other similar lenders, if any, to the
trust fund, or that the information so filed by the trust fund is inadequate.
(4) Any such loan to the trust fund or substantial portion thereof shall
be repaid by the trust fund when no longer reasonably necessary for the
purpose originally intended. No repayment of such a loan shall be made by the
fund unless approved in advance by the director.
(5) In the event of liquidation, repayment of the balance of the borrowed
funds and any accrued interest then due and owing shall be paid only out of
assets remaining after the payment of all obligations and claims of owners or
operators of petroleum tanks insured by the trust fund and general creditors.
(6) The provisions of this section shall not apply to loans obtained by
the trust fund in ordinary course of business from banks and other financial
institutions, nor to loans secured by pledge or mortgage of assets.

Click here to visit the Official Idaho State Statutes