Kentucky Statutes 286.5-225 – Loan to director, officer, employee, or attorney prohibited — Exceptions
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A state savings and loan association may not make a real estate loan to a director, officer, or employee of the association, or to any attorney or firm of attorneys regularly serving the association in the capacity of attorney-at-law, or to any partnership in which any such director, officer, employee, attorney, or firm of attorneys has any interest, and no real estate loan shall be made to any corporation in which any of such parties are stockholders, except that with the prior approval of its board of directors a real estate loan may be made to a corporation in which no such party owns more than fifteen percent (15%) of the total outstanding stock and in which the stock owned by all such parties does not exceed twenty-five percent (25%) of the total outstanding stock: provided, that nothing herein shall prohibit a state savings and loan association from making loans on the security of a first lien on the home or combination of home and business property owned and occupied by a director, officer, or employee of an association, or by an attorney or member of a firm of attorneys regularly serving the association in the capacity of attorney-at-law.
History: Created 1972 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 2.
Formerly codified as KRS § 289.225.
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.
History: Created 1972 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 2.
Terms Used In Kentucky Statutes 286.5-225
- 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
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Attorney-at-law: A person who is legally qualified and licensed to practice law, and to represent and act for clients in legal proceedings.
- 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
- Directors: when applied to corporations, includes managers or trustees. 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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 - real estate: includes lands, tenements, and hereditaments and all rights thereto and interest therein, other than a chattel interest. See Kentucky Statutes 446.010
- Real estate loan: means any loan or other obligation secured by real estate, whether in fee or in a leasehold. 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.
Formerly codified as KRS § 289.225.
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.