26-302. ESTABLISHMENT OF LOAN PRODUCTION OFFICES AUTHORIZED. A bank may, after providing notice to the director, establish and maintain one (1) or more loan production offices at any location in the state of Idaho.

(1) A loan production office when so established may conduct any of the following activities:

(a) Solicit loans on behalf of the bank;

(b) Provide information on loans, rates and terms;

(c) Accept loan applications and supporting documents;

(d) Review and process loan applications for compliance with underwriting standards and completeness of documents;

(e) Approve loan applications;

(f) Conduct loan closing activities, such as the execution of promissory notes and deeds of trust; and

(g) Engage in other loan production office activities that the bank’s primary state or federal regulator has approved for banks subject to its supervision.

(2) A loan production office shall not have the power to solicit, receive or accept money or its equivalent on deposit, or disburse loan funds to customers.

(3) A bank that desires to establish a loan production office in this state shall provide written notice to the director of its intent to do so no later than thirty (30) days prior to opening the loan production office. The notice to the director shall provide the following information:

(a) The name of the bank and address of the main office;

(b) The city and street address of the loan production office;

(c) The activities proposed to be conducted at the loan production office, including the types of loans to be solicited and originated at the office; and

(d) Any additional relevant information required by the director.

(4) Following a bank’s establishment of a loan production office in this state, a bank shall give notice to the director of any relocation or closure of the office, the date of the relocation or closure and the disposition of any records previously maintained at the loan production office.

(5) Each loan production office shall be subject to examination and supervision by the director in the same manner and to the same extent as the bank.

(6) A state bank may establish and operate a loan production office in a state other than Idaho, provided that the bank shall comply with all applicable provisions of Idaho law, the law of the other state where the loan production office will be located and federal law.

(7) Each loan production office operating in Idaho on July 1, 2015, shall provide written notice to the director containing the information required in subsection (3) of this section on or before August 1, 2015.

History:

[26-302, added 2015, ch. 204, sec. 8, p. 624.]