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Can you summarize IDST Title 26, Chapter 4?
BANKS AND BANKING > BANK SERVICE CORPORATIONS
Short Summary
These documents govern the relationship between applying banks, stockholding banks, and bank service corporations in the state of Idaho. When an applying bank applies for a type of bank service from a bank service corporation that supplies the same type of services to another bank, the corporation must offer to supply such services either by issuing stock to the applying bank and furnishing bank services on the same basis as other stockholding banks, or by furnishing bank services to the applying bank at rates no higher than necessary to reflect the cost of such services. The burden of proof to show the availability of comparable services or the practical capacity of the corporation lies with the bank service corporation. These documents also state that no bank service corporation may engage in any revenue-producing activity other than the performance of bank services for banks and, to an extent not exceeding one-half (1/2) of its total activity, the performance of similar services for persons or organizations other than banks. Additionally, the documents allow banks to invest not more than ten percent (10%) of their paid-in and unimpaired capital and unimpaired surplus in a bank service corporation. The documents provide definitions for key terms such as ‘invest,’ ‘applying bank,’ and ‘stockholding bank.’ These documents were added to the Idaho Statutes in 1979.
Whom does it apply to?
Applying banks, stockholding banks, and bank service corporations
What does it govern?
Relationship between applying banks, stockholding banks, and bank service corporations
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Idaho