Title XXV, Business and Financial Institutions

In examinations under KRS 286.3-450 the examining officer shall investigate: (1) The cash, bills, collateral, securities, other assets, books of account, and all other papers and books of the bank or trust company; (2) The condition and resources of the bank, the mode of conducti…

Reports as evidence. (1) Reports of examination, and correspondence that relates to the report of examination, of a bank or trust company shall be considered confidential information. No officer or director of a bank or trust company, employee of the department, or employee of a …

(1) The following fees shall be paid to the commissioner by corporations engaged in a banking or trust business: (a) For the investigation incident to the approval of articles of incorporation, applications for branch banks and loan production offices, and applications to relocat…

officer, director, or board to commissioner. (1) Every institution under the supervision of the department shall make a report to the commissioner whenever required by the commissioner to do so. The commissioner shall not require more than five (5) reports from any one (1) instit…

The department shall examine banks and trust companies in the hands of a receiver, as other banks and trust companies, until its affairs are wound up, and a copy of the examination shall be filed with the circuit clerk in the county where the bank is located. The receiver or pers…

(1) Whenever in the opinion of the commissioner and of a majority of the members of the respective boards of directors of the banks concerned, an emergency exists warranting an immediate transfer of such assets and liabilities, the board of directors of any bank, by a majority vo…

Any shareholder of the transferor bank who deems himself aggrieved by reason of a transfer made under KRS 286.3-630, shall be paid the fair cash value of his shares as of the day before the day on which the vote of the board of directors was taken authorizing such transfer, exclu…

Each June, the commissioner shall make a report to the Governor setting forth: (1) A summary of the condition of every bank or trust company organized and doing business under the laws of this state, subject to examination and inspection under this subtitle, and such other inform…

Appeal -- Enforcement of orders. (1) (a) If the commissioner has knowledge or reasonable cause to believe that any bank or trust company, or any director, officer, employee, agent, or other person participating in the conduct of the affairs of the bank or trust company has engage…

certain instances. Any officer or director removed from office pursuant to the provisions of KRS 286.3-690 shall not serve as an officer or director of any state-chartered bank without prior written approval of the commissioner.

Notice to any bank doing business in the Commonwealth of any adverse claim to a deposit standing on its books to the credit of any person shall not be effective to cause the bank to recognize the adverse claim unless the adverse claimant shall also either: (1) Procure a restraini…

(1) For the purpose of this section: (a) "Loan production office" means a bank office located at a place other than the principal or branch office, at which bank employees solicit and originate loans for final approval and disbursement of funds at the principal or branch office; …

As used in KRS 286.3-852 to 286.3-884: (1) "Bank" means any state bank; (2) "FDIC" means the Federal Deposit Insurance Corporation and includes any successor to the corporation or other agency or instrumentality of the United States which undertakes to discharge the purposes of t…

KRS 286.3-850 to 286.3-884 is applicable to all state banks the deposits of which are to any extent insured by the FDIC.

Appointment of receiver. (1) The commissioner may take possession and close a bank for purposes of liquidation in any case in which the commissioner finds that the bank: (a) Is insolvent; (b) Has permitted capital to become impaired to a level which does not permit the bank to op…

The commissioner shall tender appointment as receiver to the FDIC if any deposits in the closed bank are insured by the FDIC. Upon acceptance of the appointment as receiver, the FDIC shall not be required to post bond.

Upon confirmation of the appointment of a receiver, title to all assets of the bank shall vest in the receiver without the execution of any instruments of conveyance, assignment, transfer or endorsement.

Immediately after closing any state bank for purposes of liquidation under the provisions of KRS 286.3-854, the commissioner shall post an appropriate notice of closing at the main entrance of the bank, and thereafter no judgment lien, attachment lien or any voluntary lien shall …

(1) A receiver shall have the following powers: (a) To take possession of all books, records and assets of the bank; (b) To collect all debts, claims and judgments belonging to the bank, and to do such other acts as are necessary to preserve and liquidate its assets; (c) To execu…

(1) A preference is a transfer of any of the property of the bank: (a) To or for the benefit of a creditor; (b) For or on account of an antecedent debt owed by the bank before such transfer was made; (c) Made while the bank was insolvent; (d) Made: 1. On or within ninety (90) day…

The receiver may, with ex parte approval of the receivership court, sell all or any part of the bank's assets to another state or national bank or to the FDIC, provided that the effect of such sale shall not be to prefer one (1) or more members of a class of creditors, including …

receivership court. All parties having claims against the bank shall present their claims substantiated by legal proof to the receiver within one hundred eighty (180) days after the bank closing. The receiver shall cause notice of the claims procedure prescribed by this section t…

Any claim filed after the one hundred eighty (180) day claim period prescribed by KRS 286.3-868 and subsequently accepted by the receiver or allowed by the receivership court, shall be entitled to share in the distribution of assets only to the extent of the undistributed assets …

(1) All claims against the bank's estate, approved by a court of competent jurisdiction, shall be paid in the following order: (a) The actual and necessary administration expenses of the liquidation; (b) Claims given priority under other provisions of state or federal law; (c) Ge…

The granting of a participation in a loan or other asset shall, unless otherwise expressly so stated in the participation agreement or certificate, constitute a sale and assignment of, and transfer of ownership in, a proportionate interest in the loan or other asset and in all se…

Within one hundred eighty (180) days of the date of the closing of a bank, the receiver may at his election reject any lease to which the closed bank is a party without any further liability to the closed bank. The receiver's election to reject a lease creates no claim for rent o…

Whenever the FDIC pays or makes available for payment the insured deposit liabilities of a closed bank, the FDIC, whether or not it acts as receiver, shall be subrogated to all rights of depositors against the closed bank to the same extent as subrogation is provided for in the F…

(1) The receiver, with the approval of the receivership court, has the authority to appoint a successor to all rights, obligations, assets, deposits, agreements and trusts held by the closed bank as trustee, administrator, executor, guardian, agent and all other fiduciary or repr…

receiver or liquidating agent. KRS 286.3-850 to 286.3-884 provides the exclusive procedure for the appointment of a receiver or other liquidating agent of a bank under the laws of this state.

Subject to the approval of the receivership court the closed bank's records may be destroyed after receiver determines that there is no further need for them.

Acquisition of in-state banks -- Limitations -- In-county merger or consolidation. (1) As used in this section and KRS 286.3-905: (a) "Bank" means: 1. Any institution organized under this subtitle, the banking laws of another state, or the National Bank Act, as amended, to do a b…

of applicant -- Cooperative agreements by commissioner to examine out-of- state bank or exchange confidential information. (1) Any bank holding company which proposes to acquire control of a bank chartered in this state or a bank holding company which includes a bank chartered in…

For purposes of this subtitle, it shall be illegal for any individual, corporation or bank holding company to directly or indirectly acquire, control, hold, charter, convert or operate any bank, as defined in KRS 286.3-900, located in this state which is an "insured bank" or elig…

surviving bank -- Transfer of combined bank's main office and branches -- Definitions. (1) Notwithstanding any other provision of Subtitle 1, 2, or 3 of KRS Chapter 286: (a) An individual or bank holding company that controls two (2) or more banks in this state may, from time to …

Combinations of commonly controlled banks -- Scope of activities of branch outside home state. (1) As used in this section: (a) "Bank" includes: 1. An out-of-state bank; and 2. A national bank; (b) "Interstate merger transaction" means: 1. The merger or consolidation of banks wit…

(1) (a) The commissioner may levy a civil penalty against any person that violates KRS 286.3-025. (b) The civil penalty levied under paragraph (a) of this subsection shall not be less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000) for each violati…

(1) As used in this subtitle, unless the context requires otherwise: (a) "Applicant" means a person filing an application under this subtitle; (b) "Consumer loan company" means a person licensed under this subtitle to engage in the business of making loans to a consumer for perso…

No person shall, without first obtaining a license from the commissioner, engage in the business of making loans in the amount or of the value of fifteen thousand dollars ($15,000) or less at a greater rate of interest, or consideration therefor than otherwise permitted by law. A…

agencies. (1) As used in this section, "registry" means the State Regulatory Registry, LLC, or its successor organization. (2) When an application, report, or approval request is required under this subtitle to be filed with the commissioner, the commissioner may require, by admi…

(1) Each application for a license under this subtitle shall be made in writing, under oath or affirmation, in a form the commissioner prescribes. (2) Each application shall contain the following information: (a) In the case of an applicant that is a natural person, the name, ele…

Each applicant, at the time of making application, shall pay the following to the commissioner: (1) Five hundred dollars ($500) as a fee for investigating the application to conduct business as a consumer loan company in Kentucky; and (2) The additional sum of five hundred dollar…

2020 -- Demonstration of financial condition -- Managing principal -- Background check -- Incomplete application -- Approval or rejection of application -- Time limit -- Appeal -- Hearing -- Eligibility if license denied. (1) For any new application for a license, submitted on or…

license. (1) Every license shall state the physical address of the office at which the business is to be conducted, the name of the licensee, any assumed names used by the licensee at that location, and the initial date of licensure. (2) The license shall not be transferable or a…

whether proposed transaction constitutes change of control. (1) As used in this section, "change of control" means any of the following: (a) A transfer of ownership interest that results in giving a person the power to direct the management or policies of a licensee; (b) For publ…

Construction of subtitle regarding types of loans. (1) No licensee shall conduct the business authorized by this subtitle in any office, room, or place of business in which any other business, except purchase of retail and installment sales contracts, tax preparation, and motor c…

Reinstatement. (1) Each license shall remain in full force and effect until it is surrendered by the licensee, suspended, revoked, or expired as provided in this subtitle. Each licensee shall, on or before each December 31, pay to the commissioner the annual license fee for the n…

which adverse action applies -- Eligibility if license revoked -- Effect of adverse action -- Complaint -- Relief -- Civil penalty. (1) For the purposes of this section, "adverse action" means the suspension of, revocation of, conditioning or restricting of, or refusal to issue o…

order. (1) The commissioner may enter an emergency order suspending, conditioning, limiting, or restricting a license issued under this subtitle without notice or hearing if, after a thorough investigation and written findings, it appears upon grounds satisfactory to the commissi…

orders -- Findings -- Service by certified mail. (1) (a) Notice of entry of any order denying a license shall be in writing and served personally or sent by certified mail to the last known address of the applicant. (b) A person whose application has been denied may, within twent…

of commissioner. Unless a remedy is otherwise specifically provided in this subtitle, any licensee or person aggrieved by a final decision of the commissioner issued pursuant to this subtitle may, within twenty (20) days of service of notice of the decision, request an administra…