Last Updated July 23, 2012
Enactments through the 2012 Extraordinary Session
This page was produced on 7/24/2012 at 8:49:51 AM
Terms & Conditions
| PDF Viewer
KRS Chapter 286.03
Terms & Conditions
| PDF Viewer
.010 Definitions for subtitle.
.020 Approval of application for charter -- Prerequisites to financial institution doing business under its charter.
.025 Prohibition against transacting business before issuance of charter.
.030 Limitation on right to engage in business -- Authorization for Kentucky chartered banks and subsidiaries to sell insurance -- Names to be used by branch offices.
.040 Who may organize -- Number of directors required.
.050 Organization to be approved by commissioner.
.060 Oath required of each director before transacting business and upon any election or reelection -- Oath to be filed with commissioner and subject to review.
.065 Duties of directors.
.070 Minimum capital stock required.
.080 Minimum capital and surplus required to begin business.
.090 Reduction of capital stock of bank or trust company to be approved by commissioner -- $2,500,000 in capital stock to be maintained.
.095 Change in control or certain loans to be reported to commissioner -- Contents of report.
.100 Investment of bank funds -- Property that may be held.
.102 Activities permitted to state bank receiving CAMELS rating of 1 or 2 -- Section not applicable to deferred deposit transactions or title pledge lending.
.103 Investment in property.
.105 Bank may acquire and hold personal property at request of customer -- Property deemed collateral.
.110 Investment of funds held in fiduciary capacity -- Capital stock liable for fiduciary obligations.
.115 Capital notes and debentures may be issued -- Conditions.
.135 Banker's bank authorized -- Limitations on holdings -- Issuance of charter.
.140 Amendment of articles and reorganization to engage in a trust business -- Consolidation -- Transfer of fiduciary account to affiliate.
.145 Kentucky state trust company -- Scope of activities -- Acquisition of office within or outside of this state by Kentucky state trust company -- Rights, privileges, obligations, and liabilities of selling trust company.
.146 Out-of-state trust company doing business in Kentucky -- Scope of activities -- Fiduciary-related activities limited by reciprocity -- Evidence and notice to be provided to commissioner.
.150 Consolidation of trust companies -- Method and effect.
.160 State bank may reorganize as national bank.
.170 National bank may reorganize as state bank.
.172 Conditions of and procedure for conversion of national banking association to state bank or merger with state bank.
.173 Conversion of state bank to or merger with national banking association.
.174 Provisions of KRS 286.3-172 and 286.3-173 to constitute alternative method -- Legislative purpose declared.
.180 Banking business, where done -- Branch banks.
.183 Transfer of branches between commonly controlled banks.
.185 Change of location -- Approval by commissioner.
.187 Bank acting as agent of another financial institution -- Filing -- Commissioner's approval -- Scope of activities.
.190 Powers of banks.
.193 Bank holidays.
.199 Closing of banks -- Emergency.
.200 Certain banks may continue to act as fiduciaries.
.210 Powers of banks or trust companies.
.212 Deposit of securities with district federal reserve bank by bank acting as fiduciary or custodian for fiduciary -- Accounting and crediting of deposits.
.214 Rate of interest allowed on loans of $15,000 or less -- Trust company not to extend credit -- Exception.
.215 Authority to charge interest in advance -- Installment loans with interest in advance -- Exceptions -- Restrictions on installment loans.
.218 Definitions for KRS 286.3-219 and 286.3-220.
.219 Continuation of trust by corporate trustee -- Limitations -- Application.
.220 Corporate fiduciaries subject to laws governing individuals -- Security on bonds -- Ability to serve as trustee of multiple trusts with common or nonidentical beneficiaries.
.225 Appointment of a nominee by banking institutions acting in a fiduciary capacity.
.230 Common trust funds -- Consent of cofiduciary.
.235 Common trust fund not separate entity for tax purposes -- Circumstances when no gain or loss to be recognized.
.240 Real estate mortgage investment fund -- Participation certificates.
.250 Operation of real estate mortgage investment fund.
.260 Liquidation of investment fund.
.270 Fiduciary may act in own name -- Records -- Investments not subject to debts of fiduciary.
.272 Investment of fiduciary assets in company or trust associated with investing institution -- Fee.
.275 Limits on liability of bank or trust company acting as fiduciary.
.277 Standards for bank or trust company acting as fiduciary.
.280 Maximum debt of persons to bank or trust company.
.290 Exceptions to maximum debt to banks.
.300 Required reserves.
.310 Bank may own stock in federal reserve bank or Federal Deposit Insurance Corporation.
.320 Federal Deposit Insurance Corporation to be subrogated to rights against closed banks.
.330 Assets may be pledged or surety bonds provided as collateral security -- Security not required if deposit insured.
.340 Preferred stock.
.350 When dividends may be declared.
.375 Preservation of bank records.
.380 Deposits by minors.
.385 Educational loans to minors -- Validity.
.420 Repealed, 2010.
.450 Examination -- Procedure -- Agreement to examine and supervise branches -- Joint examination and enforcement actions.
.455 Commonwealth or its employees not liable for failure to disclose financial condition of bank or trust company.
.460 Duties of examiners.
.470 Information obtained by examination to be confidential -- Exceptions -- Reports as evidence.
.480 Fees to be paid commissioner for services.
.490 Reports to be made to commissioner -- Contents -- Information from officer, director, or board to commissioner.
.530 Examination of institutions in hands of receiver -- Reports of receivers.
.630 Transfer of assets to another bank -- Procedure -- Publication of notice.
.640 Relief to aggrieved shareholders.
.660 Annual report of commissioner.
.690 Cease and desist orders -- Orders of suspension or removal from office -- Appeal -- Enforcement of orders.
.695 Approval of state-chartered bank officers or directors required in certain instances.
Revolving Credit Plans
.710 Definitions for KRS 286.3-720 to 286.3-770.
.720 Form and provisions of credit plan -- Disclosures.
.730 Billing cycle -- Payment of balance -- Payment of credit card charges.
.740 Finance charges -- Rate.
.750 Additional fees, charges and costs.
.760 Limitation on amount charged.
.765 "Credit card guaranty" defined -- Requirement to insure validity.
.770 Credit plans not invalidated.
Adverse Claim to Deposit
.800 Recognition of adverse claim to a deposit.
Loan Production Offices
.820 Operation of loan production office by bank.
Receivers for Insolvent Banks
.852 Applicability of KRS 286.3-850 to 286.3-884.
.854 Closing of bank by commissioner -- Written statement of grounds -- Appointment of receiver.
.856 Tender of appointment as receiver to FDIC.
.858 Vesting of assets in receiver.
.860 Notice of closing to be posted -- Effect.
.862 Powers and duties of receiver.
.864 "Preference" defined.
.866 Sale of assets by receiver -- Borrowing from FDIC by receiver.
.868 Claims procedure -- Publication -- Rejection of claim -- Petition to receivership court.
.870 Late claim's share in undistributed assets.
.872 Order of payment of claims.
.874 Rights of receiver under participation agreements.
.876 Receiver's election to reject a lease -- Effect.
.878 FDIC subrogated to rights of depositors.
.880 Receiver to appoint successor to bank's rights, assets, obligations.
.882 KRS 286.3-850 to 286.3-884 is exclusive procedure for appointment of receiver or liquidating agent.
.884 Destruction of closed bank's records.
Acquisition of Banks
.900 Definitions of terms used in this section and KRS 286.3-905 -- Acquisition of in-state banks -- Limitations -- In-county merger or consolidation.
.905 Filing of application to acquire bank with commissioner -- Examination of applicant -- Cooperative agreements by commissioner to examine out-of-state bank or exchange confidential information.
.910 Illegal acquisitions.
.915 Bank combinations -- Operation of a combined bank as a branch of the surviving bank -- Transfer of combined bank's main office and branches -- Definitions.
.920 Interstate merger transactions -- Restrictions -- Combinations of commonly controlled banks -- Scope of activities of branch outside home state.