(1) The director may issue a written order, pursuant to chapter 52, title 67, Idaho Code, suspending or removing a credit union director, supervisory committee member, officer, or employee upon finding that the director, supervisory committee member, officer, or employee has:
(a)  Been dishonest or reckless in the performance of his official duties;
(b)  Breached his fiduciary duties to the credit union in a manner that is likely to cause substantial loss or seriously weaken the credit union;
(c)  Violated any provision of this chapter, any state or federal law or regulation pertaining to the business of the credit union, or any order of the director;
(d)  Been convicted of a felony or any misdemeanor involving theft or dishonesty; or
(e)  Engaged or participated in any unsafe or unsound practice in the conduct of the affairs of the credit union.
(2)  In the event a director, supervisory committee member, officer, or employee has been removed from office as set forth in this section, and the order has not been modified, rescinded, or set aside, or if a person has been removed as a director, supervisory committee member, officer, or employee of a credit union by a federal financial institution regulator or a financial institution regulator in another state, the person is prohibited from becoming employed by a credit union supervised by the director in this state, except as specifically permitted by the director.
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Terms Used In Idaho Code 26-2140B

  • 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.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • person: includes a corporation as well as a natural person;
Idaho Code 73-114
  • Remand: When an appellate court sends a case back to a lower court for further proceedings.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
  • 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. See Idaho Code 26-2104
    • (3)  The director, officer, employee, or credit union affected by order of the director may immediately petition the district court in the judicial district of the county in which the credit union has its principal place of business or in Ada county to set aside the order of the director. Upon the filing of such petition, the court shall have the jurisdiction to affirm or set aside in whole or in part and remand to the director.
    (4)  An order issued under this section must contain a statement of the facts that constitute grounds for removal or prohibition and cite relevant state or federal law or regulation.
    (5)  A prevailing party in any proceeding under this section may be awarded attorney’s fees and costs pursuant to section 12-117, Idaho Code.