BANKS AND BANKING
IDAHO CREDIT UNION ACT
26-2155. Designation of depository — Reporting of reserves and undivided earnings. (1) The state treasurer shall designate credit unions qualified under this chapter as a state depository or depositories. Such designation shall be determined by competitive bidding or by other means generally accepted as standard business practice. In no case shall the deposit or deposits of state funds in the account of any public entity in any credit union exceed at any one time, the total of the reserves and undivided earnings of such credit union or the total sum covered by share and deposit insurance provided by either the national credit union share insurance fund or by a deposit guarantee corporation authorized to issue share and deposit insurance contracts in this state, whichever sum shall be less. In the event that any credit union has been designated as a depository under this chapter, such designation shall continue in force until revoked by the treasurer.
(2) Every credit union designated as a state depository and holding any deposit of the funds of the state of Idaho under the provisions of this section shall, on or before beginning to hold such deposits, file with the state treasurer the affidavit of one (1) of its officers containing the following:
(a) The amount of the reserves and undivided earnings of such credit union; and
(b) A certification that such credit union is not currently engaged in and will not for the duration of its designation as a state depository engage in a boycott of any individual or company because the individual or company:
(i) Engages in or supports the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based energy, timber, minerals, hydroelectric power, nuclear energy, or agriculture; or
(ii) Engages in or supports the manufacture, distribution, sale, or use of firearms, as defined in section 18-3302(2)(d), Idaho Code.
(3) Upon receipt of the affidavit pursuant to subsection (2) of this section, the state treasurer shall determine, subject to the uniform prudent investor act, chapter 5, title 68, Idaho Code, whether to maintain deposits with such credit union. Such affidavits shall be effective for the purposes of this section, to and including January 31 next following the date of their filing but no longer, and, on or before that date, if such credit union is to continue as a designated state depository under this section, a like affidavit shall be filed in like manner for the succeeding year. No such credit union shall receive deposits from or act as depository for the funds of the state of Idaho unless and until the affidavit required pursuant to this section is on file with the state treasurer in accordance with this section. The state treasurer shall revoke the state depository designation of any credit union determined by the state treasurer to be currently engaged in any activities prohibited by this section.
(4) Subsection (2)(b) of this section shall not apply to a state depository designation issued by the state treasurer if the state treasurer determines the requirements of subsection (2)(b) of this section would be inconsistent with the constitutional or statutory duties of the state treasurer or would be contrary to the business needs of the state of Idaho and prevent the state of Idaho from fulfilling its legal duties or obligations.
(5) The state treasurer shall revoke the state depository designation of any credit union determined by the state treasurer to be currently engaged in any activities prohibited by this section. In determining if a credit union has engaged in activities prohibited by this section, the state treasurer shall rely only upon publicly available statements or information made by any person authorized to speak on behalf of the credit union or in the credit union’s official external communications. Prior to any such revocation of a state depository designation, the state treasurer shall provide the credit union with sixty (60) days’ prior written notice identifying the specific prohibited activities at issue and providing the credit union the opportunity to refute in writing having engaged in the specified prohibited activities. A decision by the treasurer revoking a depository designation may be appealed by the credit union to district court within twenty-eight (28) days of the treasurer’s decision, and the reviewing court shall review the appeal under the standard for appeals set forth in section 67-5279, Idaho Code.
(6) The state treasurer is authorized in his or her discretion and from time to time to negotiate for the payment to designated state depositories of reasonable compensation for services rendered in acting as such depositories. The method and/or rate of such compensation and the terms and conditions thereof shall be fixed by the state treasurer after such negotiation, which may include the calling of bids for specific services. All bids received, whether by a formal bidding process or by negotiation, and the compensation fixed by the treasurer, which shall be in the form of a written agreement, shall be a matter of public record.
(7) For the purposes of this section, a boycott means that the credit union, without a reasonable business purpose, refuses to offer financial services to an individual or organization, terminates business with an individual or organization, or takes another action that is intended to penalize, inflict economic harm on, or limit commercial relations with an individual or organization because the individual or organization:
(a) Engages in a particular business sector;
(b) Engages in a particular business sector and does not commit or pledge to meet standards beyond applicable federal and state law; or
(c) Does business with an individual or organization that engages in a particular business sector.
(8) For purposes of this section, reasonable business purpose means any purpose directly related to:
(a) Promoting the financial success or stability of a financial institution;
(b) Mitigating risk to a financial institution;
(c) Complying with legal or regulatory requirements; or
(d) Limiting liability of a financial institution.
[26-2155, added 1986, ch. 74, sec. 2, p. 221; am. 1988, ch. 158, sec. 3, p. 288; am. 2023, ch. 235, sec. 1, p. 729.]