BANKS AND BANKING
IDAHO CREDIT UNION ACT
26-2140B. suspension or removal of directors, supervisory committee members, officers, or employees — prohibition of future employment. (1) The director may issue a written order, pursuant to chapter 52, title 67, Idaho Code, suspending or removing a credit union director, supervisory committee member, officer, or employee upon finding that the director, supervisory committee member, officer, or employee has:
(a) Been dishonest or reckless in the performance of his official duties;
(b) Breached his fiduciary duties to the credit union in a manner that is likely to cause substantial loss or seriously weaken the credit union;
(c) Violated any provision of this chapter, any state or federal law or regulation pertaining to the business of the credit union, or any order of the director;
(d) Been convicted of a felony or any misdemeanor involving theft or dishonesty; or
(e) Engaged or participated in any unsafe or unsound practice in the conduct of the affairs of the credit union.
(2) In the event a director, supervisory committee member, officer, or employee has been removed from office as set forth in this section, and the order has not been modified, rescinded, or set aside, or if a person has been removed as a director, supervisory committee member, officer, or employee of a credit union by a federal financial institution regulator or a financial institution regulator in another state, the person is prohibited from becoming employed by a credit union supervised by the director in this state, except as specifically permitted by the director.
(3) The director, officer, employee, or credit union affected by order of the director may immediately petition the district court in the judicial district of the county in which the credit union has its principal place of business or in Ada county to set aside the order of the director. Upon the filing of such petition, the court shall have the jurisdiction to affirm or set aside in whole or in part and remand to the director.
(4) An order issued under this section must contain a statement of the facts that constitute grounds for removal or prohibition and cite relevant state or federal law or regulation.
(5) A prevailing party in any proceeding under this section may be awarded attorney’s fees and costs pursuant to section 12-117, Idaho Code.
[26-2140B, added 2020, ch. 214, sec. 8, p. 632.]