Idaho § 26-2104 - Definition and use of terms

§ 26-2104. Definition and use of terms

As used in this chapter, unless the context otherwise requires:

(1) "Credit union" means a cooperative nonprofit corporation chartered under the provisions of this chapter.

(2) "Director" means the director of the department of finance of the state of Idaho.

(3) "Electronic service facility" means an electronic device that is operated by a credit union and that can be used to conduct transactions or obtain services offered by the credit union.

(4) "Federal supervisory agency" means the national credit union administration.

(5) "Financial institution" means any institution the deposits of which are insured by the federal deposit insurance corporation, any federal credit union, and any credit union chartered under the laws of this state or another state.

(6) "Immediate family member" means a spouse, parent, grandparent, child, grandchild, sibling, stepparent, stepchild, stepsibling, step grandparent, or grandchild, including adoptive relationships and persons who are in a relationship in the same residence maintaining a single economic unit.

(7) "Interstate credit union" means a credit union chartered under the provisions of this chapter or under the authority of the laws of another state and operating both in Idaho and in one (1) or more other states.

(8) "Net worth" means the total of the following:

(a) The retained earnings balance of the credit union as determined in accordance with United States generally accepted accounting principles;

(b) If the credit union has acquired another credit union in a mutual combination, the retained earnings balance of the acquired credit union, or of an integrated set of activities and assets, less any bargain purchase gain recognized in either case to the extent the difference between the two is greater than zero, determined at the time of acquisition in accordance with United States generally accepted accounting principles;

(c) For a low-income designated credit union, the outstanding principal amount of any subordinated debt treated as regulatory capital in accordance with 12 CFR 702, and the amount of any secondary capital that is treated as regulatory capital in accordance with 12 CFR 702, in each case that is uninsured and subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the credit union’s share insurer; and

(d) Loans to and accounts in a credit union to the extent that such loans and accounts:

(i) Have a remaining maturity of more than five (5) years;

(ii) Are subordinate to all other claims, including those of shareholders, creditors, and the credit union’s share insurer;

(iii) Are not pledged as security on a loan to, or other obligation of, any party;

(iv) Are not insured by a share insurer;

(v) Have non-cumulative dividends;

(vi) Are transferable; and

(vii) Are available to cover operating losses realized by the credit union that exceed its available earnings.

(9) "Reserves" includes all regular reserves and special reserves designated by a credit union pursuant to section 26-2129 , Idaho Code.

(10) "Risk assets" means all of a credit union’s assets except:

(a) Cash;

(b) Loans to the extent secured by shares or deposits in the credit union;

(c) Obligations of the United States government, federal reserve bank stock, and national credit union administration central liquidity facility stock;

(d) Obligations described in 12 CFR 702.104(c)(2)(i)(B)(3);

(e) Insured balances on deposit with federally insured credit unions or federally insured banks;

(f) Covered loans issued under the United States small business administration paycheck protection program; and

(g) The portion of loans subject to guaranty by the United States or an agency thereof, or by any state or an agency thereof.

(11) "Surplus funds" means those funds that are not needed to meet a credit union’s members’ loan needs and credit union expenses.

(12) "Unsafe or unsound practice" means any action or lack of action that is contrary to the generally accepted standards of prudent operation, the likely consequences of which, if continued, would be abnormal risk of loss or danger to a credit union, its members, or an organization insuring or guaranteeing its shares and deposits.

[26-2104, added 1977, ch. 213, sec. 2, p. 583; am. 1997, ch. 111, sec. 1, p. 269; am. 2022, ch. 78, sec. 1, p. 217; am. 2024, ch. 130, sec. 1, p. 520.]