BANKS AND BANKING
IDAHO CREDIT UNION ACT
26-2109. POWER TO ACQUIRE AND HOLD REAL PROPERTY. (1) A credit union may invest in fixed assets necessary or related to its operations, subject to the following limitations:
(a) The credit union’s net worth equals at least seven percent (7%) of total assets;
(b) The board approves any investment in real property; and
(c) The aggregate book value of all such investments does not exceed seven and one-half percent (7.5%) of the total of its assets.
(2) The director may, upon written application, waive any of the limitations listed in subsection (1) of this section.
(3) A credit union may acquire property through foreclosure, deed in lieu of foreclosure, repossession, or other means in connection with protection or enforcement of the credit union’s rights as a secured lender. Property acquired in this manner shall not be subject to the limitations of subsection (1) of this section.
(4) For purposes of this section:
(a) "Abandoned premises" means premises previously used to transact credit union business but no longer used for that purpose. It also means premises originally acquired to transact future credit union business but no longer intended for that purpose.
(b) "Fixed assets" means premises and furniture, fixtures, and equipment.
(c) "Immediate family member" means a spouse, domestic partner, or other family member living in the same household.
(d) "Partially occupy" means occupation and use, on a full-time basis, of at least fifty percent (50%) of each of the premises by the credit union.
(e) "Premises" means any office, branch office, suboffice, service center, parking lot, other facility, or real estate where the credit union transacts or will transact business.
(f) "Senior management employee" means the credit union’s chief executive officer, any assistant chief executive officers, and the chief financial officer.
(g) "Unimproved land" or "unimproved real property" means:
(i) Raw land or land without development, significant buildings, structures, or site preparation;
(ii) Land that has never had improvements;
(iii) Land that was improved at one time but has functionally reverted to its unimproved state; or
(iv) Land that has been improved, but the improvements serve no purpose for the credit union’s planned use of the property.
(5) Premises not currently used to transact credit union business.
(a) If a credit union acquires premises, including unimproved land or unimproved real property, it must partially occupy each of them within a reasonable period, but no later than six (6) years after the date of acquisition. The director may waive the partial occupation requirements based on economic or business conditions, or other conditions affecting use of the property, subject to a reasonable plan for partial occupancy. To seek a waiver, a credit union must submit a written request to the director and fully explain why it needs the waiver. The director shall provide the credit union a written response, either approving or disapproving the request. The director’s decision shall be based on safety and soundness considerations.
(b) A credit union must make diligent efforts to dispose of abandoned premises and property acquired as described in subsection (3) of this section. The credit union must seek fair market value for the premises or property and record its efforts to dispose of the premises or property. The credit union must complete the sale within five (5) years of abandonment of the premises or acquisition of the property. Upon application by the credit union, the director shall approve the continued holding by the credit union for an additional period of five (5) years upon the credit union’s showing of its good faith attempt to dispose of the premises or property, or that disposal within the first five (5) year period would be detrimental to the credit union. The director shall provide the credit union a written response, either approving or disapproving the application. If the director fails to respond within forty-five (45) days of receipt, the application is deemed approved. The director’s decision shall be based on safety and soundness considerations.
[26-2109, added 2020, ch. 230, sec. 4, p. 672; am. 2022, ch. 78, sec. 5, p. 220.]