Kentucky Statutes 286.5-024 – Proof by existing association of federal insurance or private insurance meeting minimum standard — Effect of noncompliance
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(1) Notwithstanding the provisions of KRS § 286.5-451(13) any state savings and loan association which has not become insured by December 31, 1974, must furnish proof satisfactory to the commissioner of financial institutions prior to June 30,
1975, that it has:
(a) Obtained insurance of its savings accounts and share accounts by the Federal Savings and Loan Insurance Corporation, any agency of this state or other federal agency established for the purpose of insuring savings accounts in associations, or with any other insurer approved by the commissioner and meeting the qualifications prescribed in this subsection; provided that no association subject to the provisions of this subtitle shall have the power to obtain insurance of accounts from, or represent in any way its accounts are insured by, any insurer other than the Federal Savings and Loan Insurance Corporation, or other federal agency or state agency, unless the commissioner, after application to him for approval and after reasonable notice and an opportunity to be heard the commissioner shall have determined:
1. That the contract of insurance contemplated is written upon substantially the same basis as to form, amount, coverage, maturity, voluntary and involuntary termination and other provisions as the insurance contract provided at that time by the Federal Savings and Loan Insurance Corporation, and complies with the further requirements for protection as the commissioner in his discretion may deem reasonably necessary; and
2. That the contract is underwritten by an insurer having a net worth reasonably commensurate with the risk underwritten, which is licensed in this state and authorized to do business in this state, and the commissioner shall have issued a certificate of approval of such application; or
(b) Become a federal savings and loan association member of the Federal Home
Loan Bank Board; or
(c) Merged into an existing insured savings and loan association, either state or federal; or
(d) Entered into voluntary liquidation.
Any merger into an insured savings and loan association or any voluntary liquidation must have the prior written approval of the commissioner.
(2) Any state savings and loan association which has not by the close of business June
30, 1975, accomplished any one of the four steps prescribed in subsection (1) shall on and after July 1, 1975, be prohibited from:
(a) Making any loans pursuant to this subtitle; and
(b) Accepting any savings accounts, payments on share accounts or membership fees.
(3) Notwithstanding any other provisions of state law to the contrary, if any state
savings and loan association has not accomplished one of the four steps prescribed in subsection (1) of this section by December 31, 1974, the commissioner shall apply to a court of general jurisdiction in the county in which the home office of such association is located for the appointment of a liquidating receiver for purposes of liquidating the assets and winding up the business affairs of such association. However, if such state savings and loan association shall furnish to the commissioner proof satisfactory to him that a definite plan of accomplishment of one of said four conditions prescribed in subsection (1) of this section has been substantially completed, the commissioner may, in his sole discretion, extend the time for taking action for the appointment of such receiver. The commissioner in granting such extension may permit the acceptance of savings account payments on share accounts, membership fees or the making of loans.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 675, effective July 15, 2010. — Amended
1984 Ky. Acts ch. 111, sec. 127, effective July 13, 1984. — Created 1974 Ky. Acts ch. 276, sec. 1.
Formerly codified as KRS § 289.024.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.
1975, that it has:
Terms Used In Kentucky Statutes 286.5-024
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means a savings and loan association subject to the provisions of this subtitle and as used in KRS §. See Kentucky Statutes 286.5-011
- Commissioner: means the commissioner of financial institutions. See Kentucky Statutes 286.5-011
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Home: means a dwelling or dwellings for not more than four (4) families, the principal use of which is for residential purposes. See Kentucky Statutes 286.5-011
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Member: means a person holding a savings account or a savings certificate of an
association, or a person borrowing from or assuming or obligated upon a loan or interest therein held by an association, or purchasing property securing a loan or interest therein held by an association. See Kentucky Statutes 286.5-011 - Savings account: means that part of the savings liability of the association which is
credited to the account of the holders thereof. See Kentucky Statutes 286.5-011 - State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
(a) Obtained insurance of its savings accounts and share accounts by the Federal Savings and Loan Insurance Corporation, any agency of this state or other federal agency established for the purpose of insuring savings accounts in associations, or with any other insurer approved by the commissioner and meeting the qualifications prescribed in this subsection; provided that no association subject to the provisions of this subtitle shall have the power to obtain insurance of accounts from, or represent in any way its accounts are insured by, any insurer other than the Federal Savings and Loan Insurance Corporation, or other federal agency or state agency, unless the commissioner, after application to him for approval and after reasonable notice and an opportunity to be heard the commissioner shall have determined:
1. That the contract of insurance contemplated is written upon substantially the same basis as to form, amount, coverage, maturity, voluntary and involuntary termination and other provisions as the insurance contract provided at that time by the Federal Savings and Loan Insurance Corporation, and complies with the further requirements for protection as the commissioner in his discretion may deem reasonably necessary; and
2. That the contract is underwritten by an insurer having a net worth reasonably commensurate with the risk underwritten, which is licensed in this state and authorized to do business in this state, and the commissioner shall have issued a certificate of approval of such application; or
(b) Become a federal savings and loan association member of the Federal Home
Loan Bank Board; or
(c) Merged into an existing insured savings and loan association, either state or federal; or
(d) Entered into voluntary liquidation.
Any merger into an insured savings and loan association or any voluntary liquidation must have the prior written approval of the commissioner.
(2) Any state savings and loan association which has not by the close of business June
30, 1975, accomplished any one of the four steps prescribed in subsection (1) shall on and after July 1, 1975, be prohibited from:
(a) Making any loans pursuant to this subtitle; and
(b) Accepting any savings accounts, payments on share accounts or membership fees.
(3) Notwithstanding any other provisions of state law to the contrary, if any state
savings and loan association has not accomplished one of the four steps prescribed in subsection (1) of this section by December 31, 1974, the commissioner shall apply to a court of general jurisdiction in the county in which the home office of such association is located for the appointment of a liquidating receiver for purposes of liquidating the assets and winding up the business affairs of such association. However, if such state savings and loan association shall furnish to the commissioner proof satisfactory to him that a definite plan of accomplishment of one of said four conditions prescribed in subsection (1) of this section has been substantially completed, the commissioner may, in his sole discretion, extend the time for taking action for the appointment of such receiver. The commissioner in granting such extension may permit the acceptance of savings account payments on share accounts, membership fees or the making of loans.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 675, effective July 15, 2010. — Amended
1984 Ky. Acts ch. 111, sec. 127, effective July 13, 1984. — Created 1974 Ky. Acts ch. 276, sec. 1.
Formerly codified as KRS § 289.024.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.