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ID H0009
Bill
Status
3/12/2013
Primary Sponsor
Business Committee
Click for details
AI Summary
HB 9 Summary
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Amends Idaho Code Section 26-705 to define "derivative transaction" as contracts, agreements, swaps, warrants, notes or options based on commodities, securities, currencies, interest rates, indices or other assets.
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Expands the definition of "borrower" to include counterparties to whom a bank has credit exposure in a derivative transaction, in addition to named borrowers and those deemed borrowers under direct benefit and common enterprise tests.
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Adds "any credit exposure in a derivative transaction" as an item that constitutes a loan or extension of credit for purposes of the 20% lending limit per person.
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Requires banks to evaluate credit exposure in derivative transactions using a methodology approved by federal bank supervisory agencies, with consistent methodology applied across all derivative transactions of the same type.
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Declares an emergency and provides retroactive application to January 21, 2013.
Legislative Description
Amends existing law relating to limitations on loans, investments and practices to define terms, to revise a definition, to provide an additional item that does not constitute a loan or extension of credit, to provide requirements for a bank that enters into a derivative transaction, to revise headings and to provide provisions relating to extensions of credit and credit exposure in a derivative transaction.
BANKS AND BANKING
Last Action
Reported Signed by Governor on March 12, 2013 Session Law Chapter 55 Effective: 01/21/13
3/12/2013