Idaho Code 26-2114B – Officials — Fiduciary Duty — Reliance On Information
Current as of: 2023 | Check for updates
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(1) Officials owe a fiduciary duty to the credit union and must discharge the duties of their respective positions:
(a) In good faith;
(b) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and
(c) In a manner the official reasonably believes to be in the best interests of the credit union.
(2) In discharging the duties of an official, the official is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:
(a) One (1) or more officers or employees of the credit union whom the official reasonably believes to be reliable and competent in the matters presented;
(b) Legal counsel, public accountants or other persons as to matters the official reasonably believes are within the person’s professional or expert competence; or
(c) A committee of the board of directors or supervisory committee of which the official is not a member if the official reasonably believes the committee merits confidence.
Terms Used In Idaho Code 26-2114B
- Credit union: means a cooperative nonprofit corporation chartered under the provisions of this chapter. See Idaho Code 26-2104
- Director: means the director of the department of finance of the state of Idaho. See Idaho Code 26-2104
- Fiduciary: A trustee, executor, or administrator.
- person: includes a corporation as well as a natural person;
Idaho Code 73-114
(3) An official is not acting in good faith if the official has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (2) of this section unwarranted.
(4) An official is not liable for any action taken as a director, or any failure to take any action, if the director performed the duties of the director’s office in compliance with this section.
(5) As used in this section, "official" means a member of the board of directors, board officer, supervisory committee member or senior operating officer of the credit union.