Kentucky Statutes 286.5-521 – Limits on power to borrow money
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(1) If an association is not a member of a federal home loan bank, it may borrow money, but not more than an aggregate amount equal to one-fourth (1/4) of its savings liability on the date of borrowing.
(2) If an association is a member of a federal home loan bank, it may secure advances of not more than an aggregate amount equal to one-half (1/2) of its savings liability; within an amount equal to one-half (1/2) of its savings liability, the association may borrow from sources other than such federal home loan bank, an aggregate amount not in excess of ten percent (10%) of its savings liability.
(3) A subsequent reduction of savings liability shall not affect in any way outstanding obligations for borrowed money.
(4) All such loans and advances may be secured by property of the association.
Effective: June 18, 1964
History: Created 1964 Ky. Acts ch. 138, sec. 34, effective June 18, 1964.
Formerly codified as KRS § 289.521.
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.
(2) If an association is a member of a federal home loan bank, it may secure advances of not more than an aggregate amount equal to one-half (1/2) of its savings liability; within an amount equal to one-half (1/2) of its savings liability, the association may borrow from sources other than such federal home loan bank, an aggregate amount not in excess of ten percent (10%) of its savings liability.
Terms Used In Kentucky Statutes 286.5-521
- 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
- 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
- Home loan: means a real estate loan the security for which is home property. See Kentucky Statutes 286.5-011
- 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 liability: means the aggregate amount of savings accounts and savings certificates of members, including dividends credited to such accounts, less redemptions and withdrawals. See Kentucky Statutes 286.5-011
- Statute: A law passed by a legislature.
(3) A subsequent reduction of savings liability shall not affect in any way outstanding obligations for borrowed money.
(4) All such loans and advances may be secured by property of the association.
Effective: June 18, 1964
History: Created 1964 Ky. Acts ch. 138, sec. 34, effective June 18, 1964.
Formerly codified as KRS § 289.521.
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.