Kentucky Statutes 286.7-520 – Certain requirements not applicable — Certificates of investment — Designation of depository banks — Petty loan associations prohibited
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(1) KRS § 286.3-215, 286.4-420, 286.4-620, and 360.010 do not apply to loans made under authority of KRS § 286.7-460 to KRS § 286.7-510, but KRS § 286.3-215, 286.4-420,
286.4-620, and 360.010 remain in full force and effect for all other purposes and nothing in this section or in KRS § 286.7-480 to KRS § 286.7-510 shall be construed to impair the validity or effect of KRS § 286.3-215, 286.4-420, 286.4-620, and 360.010 with respect to loans other than those made pursuant to KRS § 286.7-460 to KRS § 286.7-
510.
(2) Any contract of loan in the making or collection of which any act has been done which constitutes a willful violation of any provision of KRS § 286.7-460 to KRS § 286.7-
510 is void, and the corporation has no right to collect or receive any interest or charges whatsoever on such loan, but the unpaid principal of the loan shall be paid in full to the lending institution.
(3) Those industrial loan corporations operating under KRS § 286.7-410 to KRS § 286.7-600 that issue certificates of investment shall establish as a reserve against such certificates of investment an amount which shall not be less than five percent (5%) of the amount of such certificates of investment outstanding. In addition the commissioner shall have authority to require a blanket surety bond with an approved corporate surety which shall include fidelity coverage in an amount deemed adequate by the commissioner to protect holders of certificates of investment.
(4) No corporation organized under KRS § 286.7-410 to KRS § 286.7-600 shall deposit any of its funds with any bank or trust company unless such bank or trust company has been designated as such depository by a vote of the majority of the directors of the executive committee exclusive of any director who is an officer, director or trustee of the depository so designated. A corporation operating under KRS § 286.7-410 to
286.7-600 may invest in the bonds of any federal instrumentality or bonds issued by the Commonwealth of Kentucky or any governmental subdivision thereof.
(5) No corporation organized under KRS § 286.7-410 to KRS § 286.7-600, nor any foreign industrial loan corporation nor any other person shall conduct its business in the same office in which there is conducted a petty loan business under Subtitle 4 of KRS Chapter 286, or solicit any other business, or associate or be in conjunction with any other business except upon a written authorization by the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 754, effective July 15, 2010. — Amended
1974 Ky. Acts ch. 308, sec. 49. — Created 1962 Ky. Acts ch. 166, sec. 7.
Formerly codified as KRS § 291.520.
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.
286.4-620, and 360.010 remain in full force and effect for all other purposes and nothing in this section or in KRS § 286.7-480 to KRS § 286.7-510 shall be construed to impair the validity or effect of KRS § 286.3-215, 286.4-420, 286.4-620, and 360.010 with respect to loans other than those made pursuant to KRS § 286.7-460 to KRS § 286.7-
Terms Used In Kentucky Statutes 286.7-520
- Commissioner: means the commissioner of the Department of Financial
Institutions. See Kentucky Statutes 286.1-010 - Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- 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
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Foreign: when applied to a corporation, partnership, limited partnership, business trust, statutory trust, or limited liability company, includes all those incorporated or formed by authority of any other state. See Kentucky Statutes 446.010
- Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
- Statute: A law passed by a legislature.
- Trustee: A person or institution holding and administering property in trust.
510.
(2) Any contract of loan in the making or collection of which any act has been done which constitutes a willful violation of any provision of KRS § 286.7-460 to KRS § 286.7-
510 is void, and the corporation has no right to collect or receive any interest or charges whatsoever on such loan, but the unpaid principal of the loan shall be paid in full to the lending institution.
(3) Those industrial loan corporations operating under KRS § 286.7-410 to KRS § 286.7-600 that issue certificates of investment shall establish as a reserve against such certificates of investment an amount which shall not be less than five percent (5%) of the amount of such certificates of investment outstanding. In addition the commissioner shall have authority to require a blanket surety bond with an approved corporate surety which shall include fidelity coverage in an amount deemed adequate by the commissioner to protect holders of certificates of investment.
(4) No corporation organized under KRS § 286.7-410 to KRS § 286.7-600 shall deposit any of its funds with any bank or trust company unless such bank or trust company has been designated as such depository by a vote of the majority of the directors of the executive committee exclusive of any director who is an officer, director or trustee of the depository so designated. A corporation operating under KRS § 286.7-410 to
286.7-600 may invest in the bonds of any federal instrumentality or bonds issued by the Commonwealth of Kentucky or any governmental subdivision thereof.
(5) No corporation organized under KRS § 286.7-410 to KRS § 286.7-600, nor any foreign industrial loan corporation nor any other person shall conduct its business in the same office in which there is conducted a petty loan business under Subtitle 4 of KRS Chapter 286, or solicit any other business, or associate or be in conjunction with any other business except upon a written authorization by the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 754, effective July 15, 2010. — Amended
1974 Ky. Acts ch. 308, sec. 49. — Created 1962 Ky. Acts ch. 166, sec. 7.
Formerly codified as KRS § 291.520.
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.