Title XXV, Business and Financial Institutions

In addition to the requirements of this subtitle, student education loan servicers shall comply with all applicable federal and state laws.

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 to be filed with the commissioner under this subtitle, the commissioner may require, by admi…

information -- Prima facie evidence -- Enforcement of subpoena -- Use of specialists -- Examination of affiliates. (1) For purposes of enforcing this subtitle, the commissioner may: (a) Conduct routine examinations of the books, accounts, records, and files of: 1. Any licensee an…

(1) Subject to subsection (2) of this section, the commissioner may issue a written order to condition, deny, suspend, or revoke a license issued under this subtitle if the commissioner finds that one (1) or more of the following has occurred: (a) The licensee: 1. No longer meets…

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

(1) (a) The commissioner may file an administrative complaint against any person if it appears on grounds satisfactory to the commissioner that a potential or actual violation of this subtitle has been committed. (b) The commissioner shall serve the administrative complaint, by c…

(1) Any person aggrieved by a final order of the commissioner under this subtitle may obtain a review of the order in Franklin Circuit Court by filing with that court, within thirty (30) days after entry of the order, a written petition requesting that the order be modified or se…

(1) (a) In addition to any other remedies, penalties, or damages available under common law or statute, the commissioner may impose a civil penalty based on the following: 1. Repeat violations of this subtitle, any administrative regulation promulgated under this subtitle, or any…

(1) The provisions of this subtitle shall be subject to all applicable federal laws and regulations. (2) To the extent any provision of this subtitle conflicts with an applicable federal law or regulation, the applicable federal law or regulation shall control.

Nothing in this subtitle shall be construed to prevent a civil right of action on behalf of an aggrieved party.

As used in this subtitle, unless the context requires otherwise: (1) "Affiliate" means a person that, either directly or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person; (2) "Agent": (a) Means a person …

This subtitle shall not apply to: (1) The United States or any department, agency, or instrumentality thereof; (2) A state or any agency, department, or political subdivision of a state; (3) A state-chartered or federally chartered bank, savings bank, savings and loan association…

Reports -- Aid of courts -- Construction of subtitle. (Effective April 30, 2027) (1) (a) The commissioner: 1. Shall enforce the provisions of this subtitle; and 2. Subject to paragraph (b) of this subsection, may promulgate administrative regulations in accordance with KRS Chapte…

30, 2027) (1) (a) A person shall not engage in virtual currency kiosk business in this state without: 1. A license; and 2. First obtaining, for each: a. Agent, the written approval of the commissioner to designate the agent to engage in virtual currency kiosk business in this sta…

protocols -- Relationships with affiliated entities -- Agent for distributing information. (Effective April 30, 2027) (1) As used in this section, "registry" means the State Regulatory Registry, LLC, or its successor organization. (2) When an application, report, or approval requ…

Conditional license -- Notice of intent. (Effective April 30, 2027) (1) (a) A person seeking to become a licensee shall file a complete application for a license with the commissioner. (b) An application for a license shall not be complete unless it: 1. Is made in writing, under …

An application filed under KRS 286.13-035 shall provide all of the following information, documentation, and evidence unless the commissioner, for good cause, waives any requirement of this section with respect to a license application: (1) The following for the applicant, each e…

commissioner. (Effective April 30, 2027) (1) (a) An applicant or licensee seeking to engage in virtual currency kiosk business at one (1) or more locations in this state, either directly or through an agent, shall file a complete application for approval of the location or locati…

April 30, 2027) (1) As used in this section: (a) "Bond" means: 1. A surety bond; or 2. Another similar security acceptable to the commissioner; (b) "Net worth" means assets less liabilities as determined by generally accepted accounting principles; and (c) "Person" includes any a…

30, 2027) Every applicant and licensee shall, at the time of filing a license application and at all times during the consideration of the application and licensure: (1) Be in good standing in its state of incorporation or formation; (2) Be registered or qualified to do business …

report. (Effective April 30, 2027) (1) As used in this section, "United States dollar equivalent of virtual currency" means the equivalent value of virtual currency in United States dollars shown on a virtual currency exchange based in the United States for a particular date or p…

by person seeking to acquire control -- Notice of termination or resignation of responsible individual or agent -- Application to add or replace responsible individual or agent. (Effective April 30, 2027) (1) A person shall not take any action that results in a change of control …

(Effective April 30, 2027) (1) Subject to subsection (2) of this section, the commissioner shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish: (a) The format of, and manner of submission for, applications, notices, and reports required und…

funds of operator -- Report of loss of funds. (Effective April 30, 2027) (1) Virtual currency kiosk operators desiring to engage in virtual currency kiosk business through agents shall authorize each agent to operate pursuant to an express written contract, which shall include th…

(1) Each virtual currency kiosk operator and its agents shall: (a) Maintain the books, accounts, and records of its virtual currency kiosk business activities in this state that are required under subsection (2) of this section; and (b) Keep the books, accounts, and records refer…

(1) Every virtual currency kiosk operator shall, at all times, maintain permissible investments that: (a) Have a market value that is computed in accordance with generally accepted accounting principles; and (b) Are not less than the aggregate amount of all of the operator's and …

service -- Notices at kiosk -- Disclosures -- Receipts -- Administrative regulation. (Effective April 30, 2027) (1) As used in this section: (a) "New virtual currency kiosk user": 1. Means a virtual currency kiosk user: a. On the day of the user's first virtual currency kiosk tra…

analytics -- Verifying identity of user -- Refunds -- Communications line -- Cooperation with investigations -- Chief compliance officer. (Effective April 30, 2027) (1) As used in this section: (a) "Blockchain analytics" means the analysis of data from blockchains or publicly dis…

It shall be a violation of this subtitle for an applicant, a licensee, a virtual currency kiosk operator, an agent, or any other person to do any of the following: (1) With regard to virtual currency kiosk business in this state, whether or not the person is required to have a li…

In addition to the requirements of this subtitle, every virtual currency kiosk operator and its agents shall comply with all applicable federal and state laws.

commissioner -- Licensee deemed to consent to investigation -- Examination- related information. (Effective April 30, 2027) (1) Any person may file a written complaint with the commissioner relating to: (a) Virtual currency kiosk business in this state; or (b) The conduct of any …

commissioner may disclose and share information -- Disclosure does not constitute waiver. (Effective April 30, 2027) (1) Except as otherwise provided in subsection (3) of this section, any document, material, report, or other information in the possession or control of the commis…

2027) The commissioner shall prepare and publish for public distribution on the department's website an annual report that details and summarizes, in composite form: (1) The data received from virtual currency kiosk operators relating to virtual currency kiosk business conducted …

restrictive action -- Hearing -- Service of notice -- Consent order. (Effective April 30, 2027) (1) As used in this section: (a) "Applicant" includes: 1. With respect to conditions placed on, or denial of an application for, an approval to engage in virtual currency kiosk busines…

of intent -- Conditions imposed on license or approval -- Administrative complaint -- Ineligibility if license or approval denied or revoked. (Effective April 30, 2027) (1) As used in this section: (a) "Adverse action" means to take any of the following actions: 1. Deny or condit…

(1) As used in this section: (a) "Emergency order" means an order that does one (1) or more the following without prior notice and hearing: 1. Suspends or conditions: a. Any license; or b. An approval to engage in virtual currency kiosk business at a location, or through an agent…

(1) Subject to KRS 286.13-125, the commissioner may issue a cease and desist order requiring an applicant, a licensee, a virtual currency kiosk operator, an agent, or any other person to cease and desist from violating one (1) or more identified provisions of the following, if th…

30, 2027) (1) As used in this section, "person" means any applicant, licensee, virtual currency kiosk operator, agent, or other person. (2) Subject to KRS 286.13-125, the commissioner may do one (1) or more of the following: (a) Issue an order against any person to: 1. Refund any…

(1) A person that intentionally or knowingly makes a false statement, misrepresentation, false certification, or false entry, or omits a material entry, in a record filed or required to be maintained under this subtitle is guilty of a Class D felony. (2) A person that intentional…

The provisions of this chapter shall be interpreted and applied: (1) To the fullest extent practicable under law; and (2) In a manner consistent with applicable: (a) Federal laws and regulations; and (b) Policies and orders of federal regulatory agencies.

governing matters preempted by state or federal law -- Exception for civil rights. (Effective until April 30, 2027) (1) Except as provided in KRS 41.470 to 41.476 and 41.480, and subsection (3) of this section, all political subdivisions of the Commonwealth shall be prohibited fr…

Protection Center. (1) "Kentucky Homeownership Protection Center" means the center established in KRS 198A.400. (2) At the time of closing and together with the final signed loan documents, if the Kentucky Homeownership Protection Center is operational as provided in KRS 198A.400…

federal regulatory agency -- Confidentiality and evidentiary value of report -- Examination fees -- Cooperative agreements. (1) As used in this section: (a) "Covered service" means: 1. Data processing; 2. Any activity that supports financial services, including but not limited to…

funeral arrangements -- Definitions for section. (1) As used in this section: (a) "Interested person" means a: 1. Lessee's surviving spouse, adult child, or parent; 2. Person named as the personal representative in a copy of a purported will of a lessee produced by the person; 3.…

in Kentucky. (1) (a) As used in this subsection, a "foreign financial institution" means any bank, bank holding company, trust company, savings and loan association, savings and loan association holding company, credit union, or wholly owned subsidiary of any of the foregoing, th…

Unless otherwise specifically provided for in this subtitle, the commissioner may levy a civil penalty against any person who violates any provision of this subtitle, any administrative regulation promulgated under this subtitle, or any order issued by the commissioner under this…

As used in this subtitle, unless the context requires otherwise: (1) "Articles of incorporation" means the organizing records of a corporation filed and recorded with the Secretary of State in accordance with KRS Chapter 271B or 275; (2) "Bank" or "state bank" means any bank or c…

institution doing business under its charter -- Waiver in cases of merger or consolidation. (1) (a) The commissioner shall approve an application for a bank, trust company, or combined bank and trust company charter upon a finding that the public convenience and advantage will be…

(1) A person shall not transact banking or trust business in this state unless the person: (a) Has been issued a charter under this subtitle to transact the business; (b) Is transacting business authorized under KRS 286.2-670; or (c) Is otherwise specifically authorized by the la…

or financial institution trademarks by unauthorized person -- Exceptions -- Enforcement and penalties. (1) Except as provided in subsection (2) of this section, a person doing business in this state shall not use the term "bank," "banker," "banking," "trust," or a similar term, w…