TITLE 26

BANKS AND BANKING

CHAPTER 8

LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS

26-801.  Borrowing money — Limitations. At no time shall the total borrowings of any bank exceed in the aggregate an amount equal to the capital structure of the bank, except with the consent of the director.

For the purpose of computing total borrowings the following items shall not be included:

(1)  Federal funds purchased.

(2)  The sale of securities by a bank, under an agreement to repurchase at the end of a stated period.

(3)  Borrowings from the federal reserve system.

(4)  The sale of mortgage loans by a bank, under agreement to repurchase at the end of a stated period.

(5)  Money borrowed to meet seasonal requirements.

(6)  Money borrowed to meet unexpected withdrawals.

(7)  Capital notes issued in accordance with section 26-802, Idaho Code.

(8)  Borrowing from federal home loan banks.

The total of all borrowings by a bank including those items excluded from the computation of total borrowings may not exceed in the aggregate an amount equal to two and one-half (2 1/2) times the capital structure of the bank, except with the consent of the director.

Whenever it shall appear to the director that a bank is borrowing money in excess of the above limitation, or for purposes other than as specified above, he may require it to reduce such borrowings within a time to be fixed by him.

History:

[26-801, added 1979, ch. 41, sec. 2, p. 94; am. 2004, ch. 159, sec. 16, p. 524; am. 2007, ch. 126, sec. 5, p. 378.]