Title XXV, Business and Financial Institutions

No licensee shall advertise, print, display, publish, distribute, broadcast or televise, or permit to be advertised, printed, displayed, published, distributed, broadcast or televised, any statement or representation with regard to the rates, terms, or conditions for making loans…

Reduction when installments in default -- Charges computed on unpaid balance -- Principal may include balance on prior loan -- Loan entered into within 10 days of another loan -- Restrictions on interest and consideration. (1) (a) Every licensee may lend any sum of money not exce…

Notwithstanding the provisions of KRS 286.4-530(10) or any other law, in any extension of credit under this subtitle, a licensee may charge and collect the following charges: (1) A fee, or premium for insurance, in lieu of perfecting a security interest, except in no event shall …

Notwithstanding the provisions of KRS 286.4-530(10) or of any other law, in any extension of credit pursuant to KRS 286.4-420 to 286.4-991 wherein the licensee shall take a lien on real estate for security for any loan under this subtitle, the licensee may charge and collect the …

Every licensee shall: (1) Deliver to the borrower at the time of making a loan, or to one (1) of them if there are two (2) or more obligors on the loan, a statement showing in clear and distinct terms the amount and date of the loan and the date of its maturity, the nature of the…

Every person licensed under this subtitle shall maintain an agent in this Commonwealth for service of process. The name, physical address, telephone number, and electronic mail address of the agent shall be filed with the application for licensure. The commissioner shall be notif…

In addition to the requirements contained in this subtitle, every person or licensee shall comply with all applicable federal and state laws relating to financial services. However, the regulatory penalties utilized to address violations of this section shall be limited to those …

(Effective January 1, 2027) Notwithstanding any other provision of this subtitle, a consumer loan company shall comply with KRS 367.701 to 367.709.

The borrower may pay all, or any part of any loan equal to one (1) or more full installments, at any time during the regular business hours of the licensee, but the licensee may apply any such payment first to all accrued charges in full up to the date of such payment.

(1) A licensee may request a borrower to insure tangible personal property, except household goods, offered as security for a loan exceeding three hundred dollars ($300) under this subtitle against any substantial risk of loss, damage, or destruction for an amount not to exceed t…

(1) The payment of fifteen thousand dollars ($15,000) or less in money, credit, goods, or things in action, as consideration for any sale, assignment, or order for the payment of wages, salary, commissions, or other compensation for services, whether earned or to be earned, shall…

- Lien on real estate as security. (1) No licensee shall take any confession of judgment or any power of attorney running to the licensee or to any third person to confess judgment or to appear for the borrower in a judicial proceeding; nor take any note or promise to pay that do…

Each licensee shall annually on or before January 30, file with the commissioner a report for the preceding calendar year. The report shall give information with respect to the financial condition of the licensee and other relevant information as the commissioner may reasonably r…

records -- Request for destruction -- Withholding or altering records. (1) (a) To enable the commissioner to determine whether the licensee is complying with the provisions of this subtitle, and with the administrative regulations promulgated under it, each licensee shall keep an…

Privilege or claim of confidentiality not waived. (1) The following shall be considered confidential by law and privileged, and shall not be subject to disclosure under the Kentucky Open Records Act, KRS 61.870 to 61.884: (a) Reports of examination, and correspondence that relate…

licensees -- Investigations -- Enforcement of subpoena -- Powers of commissioner. (1) The provisions of this subtitle shall be enforced by the commissioner, who may promulgate administrative regulations in accordance with KRS Chapter 13A for the proper conduct of the business lic…

commissioner. No licensee shall be subject to any liability for any act or omission made in conformity with a written notice, opinion, or interpretation issued by the commissioner.

financial condition of consumer loan company. In undertaking the examination of a consumer loan company neither the Commonwealth of Kentucky, the commissioner of the Department of Financial Institutions, nor any examiner employed by the Commonwealth shall become liable to any dep…

(1) Any loan in the amount of fifteen thousand dollars ($15,000) or less for which there has been charged, contracted for or received a greater rate of interest, discount or consideration, except as provided for by statute, is against the public policy of this state. (2) No such …

This subtitle or any part thereof may be modified, amended or repealed so as to effect the cancellation or authorization of any license or right of a licensee hereunder, provided that such modification, amendment or repeal shall not impair or affect the obligation of any pre-exis…

of penalties and fees. (1) (a) For any repetitive violation of this subtitle or an administrative regulation promulgated under this subtitle, or any willful violation of an order of the commissioner entered under this subtitle, the commissioner may levy a civil penalty against an…

(1) Any person who shall engage in the business regulated by this subtitle without first securing a license therefor shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than five hundred dollars ($500) nor more than five thousand d…

(1) No savings and loan association incorporated under the laws of another state shall establish an office, branch or agency in this state. No savings and loan association incorporated under the laws of another state shall transact any savings and loan business in this state exce…

As used in this subtitle, unless the context otherwise requires: (1) "Credit union" means a cooperative, nonprofit association, incorporated under this subtitle, for the purposes of encouraging thrift among its members, creating a source of credit at a fair and reasonable rate of…

Any party aggrieved by a decision of the commissioner under the provisions of KRS 286.6-015, 286.6-035, 286.6-055, 286.6-065, 286.6-700, or 286.6-710 may request an administrative hearing which shall be conducted in accordance with KRS Chapter 13B.

(1) Any seven (7) or more residents of this state, of legal age, who have a common bond referred to in KRS 286.6-107 may organize a credit union and become charter members thereof by complying with this section. (2) The subscribers shall execute in duplicate articles of incorpora…

In order to simplify the organization of credit unions, the commissioner shall cause to be prepared a form of articles of incorporation and a form of bylaws, consistent with this subtitle, which may be used by credit union incorporators for their guidance. Such articles of incorp…

(1) The articles of incorporation or the bylaws may be amended as provided in the bylaws. Amendments to the articles of incorporation or bylaws shall be submitted to the commissioner who shall approve or disapprove the amendments within sixty (60) days. (2) Amendments shall becom…

No person, corporation, partnership or association, other than a legally chartered credit union, an association of credit unions, or an organization, corporation, or association whose membership or ownership is primarily confined or restricted to credit unions or credit union org…

(1) A credit union may change its principal place of business within this state upon written authorization by the commissioner. If the commissioner has not notified a credit union of his or her action on an application to change the place of business within fifteen (15) calendar …

(1) A credit union organized in another state may conduct business as a credit union in this state with the approval of the commissioner. The commissioner shall find that the out-of-state credit union: (a) Is a credit union organized under laws similar to this subtitle; (b) Is fi…

Credit unions shall be under the supervision of the commissioner, who may make general rules and regulations, and special rulings, demands and findings necessary for the proper conduct and regulation of the business. Such action by the commissioner shall be in addition to and not…

A credit union organized under this subtitle may: (1) Make contracts; (2) Sue and be sued; (3) Adopt and use a common seal and alter same; (4) Acquire, lease, hold, assign, pledge, hypothecate, sell and otherwise dispose of property, either in whole or in part, necessary or incid…

A credit union may exercise such incidental powers as are granted corporations organized under the laws of this state, including such as are convenient or useful to enable it to promote and carry on most effectively its purposes.

Each credit union shall make a report of its condition to the commissioner, on blank forms to be supplied by the Department of Financial Institutions on the dates of the calls made to state banks. Notice of the calls shall be sent out by the commissioner. The reports shall be ver…

Injunctions. (1) If any credit union fails to make the report prescribed by KRS 286.6-090 within fifteen (15) days after it is due, or fails to pay the charges required by this subtitle, including the charges for delay in filing reports, the commissioner shall give notice to the …

Notwithstanding any other provision of law, the commissioner may make reasonable rules authorizing credit unions to exercise any of the powers conferred upon federal credit unions, if the commissioner deems it reasonably necessary for the well-being of such credit unions.

Fees. (1) Credit unions shall: (a) Be under the supervision of the commissioner; (b) File financial reports with the commissioner as specified by administrative regulation, but no less frequently than annually; (c) Be subject to examination by any person designated by the commiss…

financial condition of credit union. In undertaking the examination of any credit union, neither the Commonwealth of Kentucky, the commissioner of the Department of Financial Institutions, nor any examiner employed by the Commonwealth shall become liable to any depositor, investo…

(1) The membership of a credit union shall be limited to and consist of the subscribers to the articles of incorporation and such other persons within the common bond set forth in the bylaws as have been duly admitted members, have paid any required entrance fee or membership fee…

(1) The participation by a credit union in any government program providing unemployment social security, old age pension or other benefits shall not be deemed a waiver of the taxation exemption hereby granted. (2) A credit union shall be deemed an institution for savings, and sh…

Members who leave the field of membership may be permitted to retain their membership in the credit union, under reasonable standards established by the board of directors.

The members of the credit union shall not be personally or individually liable for the payment of its debts.

(1) The annual meeting and any special meetings of the members of the credit union shall be held at the time, place, and in the manner indicated by the bylaws. (2) At all such meetings a member shall have but one (1) vote, irrespective of his shareholding. No member may vote by p…

appointments prohibited. (1) The credit union shall be directed by a board consisting of an odd number of directors, at least five (5) in number, to be elected at the annual members' meeting by and from the members. All members of the board shall hold office for such terms as the…

Within fifteen (15) days after election or appointment, a record of the names and addresses of the members of the board, committees and all officers of the credit union shall be filed with the commissioner on forms provided by the department.

The board of directors shall fill any vacancies occurring in the board until successors elected at the next annual meeting have qualified. The board shall also fill vacancies in the credit and supervisory committees.

(1) A credit union has a special obligation of confidentiality to its members; therefore, any contrary provisions of KRS Chapter 271B notwithstanding, a credit union shall be obligated to provide a shareholder only names and addresses of its member shareholders. (2) No officer or…

No director, committee member, officer, agent or employee of the credit union shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his pecuniary interest or the pecuniary interest of any corporation, part…

(1) At their organization meeting held within thirty (30) days following each annual meeting of the members, the directors shall elect from their own number a chairman of the board, one (1) or more vice chairmen, a treasurer, and a secretary. The treasurer and the secretary may b…