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Can you summarize IDST Title 26, Chapter 8?
BANKS AND BANKING > LIMITATIONS ON BORROWING MONEY AND PLEDGING ASSETS
Short Summary
This legal document governs the limitations on borrowing money and pledging assets by banks in Idaho. According to the document, the total borrowings of any bank should not exceed the aggregate amount equal to the bank’s capital structure, unless with the consent of the director. Certain items such as federal funds purchased, sale of securities with repurchase agreement, borrowings from the federal reserve system, sale of mortgage loans with repurchase agreement, money borrowed to meet seasonal requirements, money borrowed to meet unexpected withdrawals, capital notes issued in accordance with section 26-802 of Idaho Code, and borrowing from federal home loan banks are excluded from the computation of total borrowings. The total of all borrowings by a bank, including the excluded items, should not exceed two and one-half times the capital structure of the bank, unless with the consent of the director. If a bank is found to be borrowing money in excess of the limitation or for purposes other than specified, the director may require the bank to reduce such borrowings within a fixed time. No specific penalties are mentioned in the document.
Whom does it apply to?
Banks in Idaho
What does it govern?
Limitations on borrowing money and pledging assets by banks in Idaho
What are exemptions?
Certain items such as federal funds purchased, sale of securities with repurchase agreement, borrowings from the federal reserve system, sale of mortgage loans with repurchase agreement, money borrowed to meet seasonal requirements, money borrowed to meet unexpected withdrawals, capital notes issued in accordance with section 26-802 of Idaho Code, and borrowing from federal home loan banks are excluded from the computation of total borrowings.
What are the Penalties?
No specific penalties are mentioned in the document.
Jurisdiction
Idaho