Idaho § 26-2719 - Sound business practices required
Full text of Idaho Idaho Statutes § 26-2719 — Sound business practices required, with citation guidance and answers to common questions.
§ 26-2719. Sound business practices required
(1) A licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound condition.
(2) In determining whether a licensee is transacting business in a safe and sound manner or has committed an unsafe or unsound act, the director shall not consider the risk of a provision of financing assistance to a business firm, unless the director determines that the risk is so great compared with the realistically expected return as to demonstrate gross mismanagement.
(3) The provisions of subsection (2) of this section do not limit the authority of the director to do any of the following:
(a) Determine that a licensee’s financing assistance to a single business firm or a group of affiliated business firms is in violation of subsection (1) of this section or constitutes an unsafe or unsound act, if the amount of that financing assistance is unduly large in relation to the total assets or the total shareholders equity of the licensee.
(b) Require that a licensee maintain a reserve in the amount of anticipated losses.
(c) Require that a licensee have in effect a written financing assistance policy, approved by its board of directors, including credit evaluation and other matters. The director shall not require that a licensee adopt a financing assistance policy that contains standards which prevent the licensee from exercising needed flexibility in evaluating and structuring financing assistance to business firms on a deal by deal basis.
[26-2719, added 1989, ch. 252, sec. 1, p. 614.]
Source: official Idaho text · Last verified 2026-08-27
Frequently Asked Questions About Idaho § 26-2719
What does Idaho Statutes § 26-2719 cover?
Section 26-2719 ("Sound business practices required") is part of the Idaho Statutes, the codified statutory law of Idaho. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Idaho § 26-2719?
A common citation format is "Idaho Statutes § 26-2719" (Idaho). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Idaho law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Idaho official source linked on this page or consult a licensed Idaho attorney.
How does Idaho § 26-2719 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Idaho can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Idaho.