Terms Used In Kentucky Statutes > Chapter 286 > Subtitle 8 - Mortgage Loan Companies and Brokers

• Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
• Affiliate: means any person who directly or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person. See Kentucky Statutes 286.8-010
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
• any other state: includes any state, territory, outlying possession, the District of Columbia, and any foreign government or country. See Kentucky Statutes 446.010
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Appointing authority: means the agency head or any person whom he or she has authorized by law to designate to act on behalf of the agency with respect to employee appointments, position establishments, payroll documents, register requests, waiver requests, requests for certification, or other position actions. See Kentucky Statutes 18A.005
• Appraisal: A determination of property value.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
• Attorney: means attorney-at-law. See Kentucky Statutes 446.010
• Base salary or wages: means the compensation to which an employee is entitled under the salary schedules adopted pursuant to the provisions of KRS §. See Kentucky Statutes 18A.005
• Board: means the Personnel Board created by KRS §. See Kentucky Statutes 18A.005
• Borrower: means any person that seeks, applies for, or obtains a mortgage loan. See Kentucky Statutes 286.8-010
• branch budget: means an enactment by the General Assembly which provides appropriations and establishes fiscal policies and conditions for the biennial financial plan for the judicial branch, the legislative branch, and the executive branch, which shall include a separate budget bill for the Transportation Cabinet. See Kentucky Statutes 446.010
• Cabinet: means the Personnel Cabinet provided for in KRS §. See Kentucky Statutes 18A.005
• Career employee: means a state employee with sixteen (16) or more years of permanent full-time state service, or the part-time employment equivalent of at least sixteen (16) years of full-time state service. See Kentucky Statutes 18A.005
• Certified mail: means any method of governmental, commercial, or electronic delivery that allows a document or package to have proof of:
  (a) Sending the document or package. See Kentucky Statutes 446.010
• City: includes town. See Kentucky Statutes 446.010
• Class: means a group of positions sufficiently similar as to duties performed, scope of discretion and responsibility, minimum requirements of training, experience, or skill, and such other characteristics that the same title, the same tests of fitness, and the same schedule of compensation have been or may be applied to each position in the group. See Kentucky Statutes 18A.005
• Classified employee: means an employee appointed to a position in the classified service under this chapter whose appointment and employment are subject to the classified service provisions of this chapter and the administrative regulations promulgated under this chapter. See Kentucky Statutes 18A.005
• classified position: is a position in the classified service. See Kentucky Statutes 18A.005
• Classified service: includes all the employment subject to the terms of this chapter except for those positions expressly cited in KRS §. See Kentucky Statutes 18A.005
• Classroom: means a physical classroom environment in which teachers and participants are physically present for the teaching of a course. See Kentucky Statutes 286.8-010
• clerical or support duties: means administrative functions such as gathering information, requesting information, word processing, sending correspondence, or assembling files, and may include:
  1. See Kentucky Statutes 286.8-010
• Commissioner: means the commissioner of the Department of Financial
  Institutions. See Kentucky Statutes 286.1-010
• Committee amendment: An amendment recommended by a committee in reporting a bill or other measure.
• Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
• Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
• Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
• Contract: A legal written agreement that becomes binding when signed.
• Control: means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. See Kentucky Statutes 286.8-010
• 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
• Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. ^{Source: OCC}
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Deed: The legal instrument used to transfer title in real property from one person to another.
• Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
• Demotion: means a change in the rank of an employee from a position in one (1) class to a position in another class having a lower minimum salary range and less discretion or responsibility. See Kentucky Statutes 18A.005
• Department: means the Department of Financial Institutions. See Kentucky Statutes 286.1-010
• Dependent: A person dependent for support upon another.
• Depository institution: means a depository institution as defined in the Federal Deposit Insurance Act, 12 U. See Kentucky Statutes 286.8-010
• Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
• Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
• Dismissal: The dropping of a case by the judge without further consideration or hearing. ^Source:
• Domestic: when applied to a corporation, partnership, business trust, or limited liability company, means all those incorporated or formed by authority of this state. See Kentucky Statutes 446.010
• Donor: The person who makes a gift.
• Eligible: refers to a person who has made a passing score on any examination required under KRS §. See Kentucky Statutes 18A.005
• Employ or use: means to employ, utilize, or contract with a person or the person's employees for the purpose of participating in the mortgage lending process,
  including the servicing of mortgage loans. See Kentucky Statutes 286.8-010
• Employee: means a person regularly appointed to a position in the state service for which he or she is compensated on a full-time, part-time, or interim basis. See Kentucky Statutes 18A.005
• Escrow: Money given to a third party to be held for payment until certain conditions are met.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Ex officio: Literally, by virtue of one's office.
• Fair Credit Reporting Act: A federal law, established in 1971 and revised in 1997, that gives consumers the right to see their credit records and correct any mistakes. ^{Source: OCC}
• Federal: refers to the United States. See Kentucky Statutes 446.010
• Federally funded position: means a full-time or a part-time position in which the unclassified employee is eligible for benefits at the same level as a classified employee in a permanent position. See Kentucky Statutes 18A.005
• Federally funded time-limited employee: means an employee in the unclassified service, appointed to a position that is funded one hundred percent (100%) by a federal grant or grants. See Kentucky Statutes 18A.005
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. ^{Source: OCC}
• 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
• Fraud: Intentional deception resulting in injury to another.
• Full-time position: means a position, other than an interim position, requiring an employee to work at least thirty-seven and one-half (37. See Kentucky Statutes 18A.005
• Immediate family member: means a spouse, child, sibling, parent, grandparent, or grandchild. See Kentucky Statutes 286.8-010
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• Interim position: means a position established to address a one-time or recurring need of less than nine (9) months duration and exempt from the classified service under KRS §. See Kentucky Statutes 18A.005
• Joint committee: Committees including membership from both houses of teh legislature. Joint committees are usually established with narrow jurisdictions and normally lack authority to report legislation.
• 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.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Licensee: means a person to whom a license has been issued. See Kentucky Statutes 286.8-010
• Lien: A claim against real or personal property in satisfaction of a debt.
• Managing principal: means a natural person who:
  (a) Meets the requirements of KRS §. See Kentucky Statutes 286.8-010
• Month: means calendar month. See Kentucky Statutes 446.010
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Mortgage loan: A loan made by a lender to a borrower for the financing of real property. ^{Source: OCC}
• Mortgage loan: means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on residential real property or any loan primarily for personal, family, or household use that is secured by collateral that has a mortgage lien interest in residential real property. See Kentucky Statutes 286.8-010
• Mortgage loan broker: means any person who for compensation or gain, or in the expectation of compensation or other gain, received directly or indirectly, serves as an agent for any borrower in an attempt to obtain a mortgage loan, or holds oneself out as being able to do so. See Kentucky Statutes 286.8-010
• Mortgage loan company: means any person who directly or indirectly:
  (a) Makes, purchases, or sells mortgage loans, or holds oneself out as being able to do so. See Kentucky Statutes 286.8-010
• Mortgage loan originator: means a natural person who:
  (a) 1. See Kentucky Statutes 286.8-010
• Mortgage loan processor: means a natural person who performs only clerical or support duties at the direction of and subject to the supervision and instruction of a mortgage loan originator. See Kentucky Statutes 286.8-010
• National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) ^{Source: OCC}
• Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Originate: means to solicit, place, negotiate, offer to make, or broker a mortgage loan. See Kentucky Statutes 286.8-010
• Oversight: Committee review of the activities of a Federal agency or program.
• Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
• Part-time position: means a position, other than an interim position, requiring an employee to work less than one hundred (100) hours per month. See Kentucky Statutes 18A.005
• 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
• Personal property: All property that is not real property.
• Physical location: means any location where the mortgage lending process, including the servicing of mortgage loans, is conducted. See Kentucky Statutes 286.8-010
• Plaintiff: The person who files the complaint in a civil lawsuit.
• Position: means an office or employment in an agency (whether part-time, full- time, or interim, occupied, or vacant) involving duties requiring the services of one (1) person. See Kentucky Statutes 18A.005
• Preliminary hearing: A hearing where the judge decides whether there is enough evidence to make the defendant have a trial.
• Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
• Promotion: means a change of rank of an employee from a position in one (1) class to a position in another class having a higher minimum salary or carrying a greater scope of discretion or responsibility. See Kentucky Statutes 18A.005
• Promotional probation: means the period of service, consistent with the length of the initial probationary period, following the promotion of an employee with status which must be successfully completed in order for the employee to retain the position to which he or she has been promoted. See Kentucky Statutes 18A.005
• Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
• Quorum: The number of legislators that must be present to do business.
• 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 property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Reallocation: means the correction of the classification of an existing position by placement of the position into the classification that is appropriate for the duties the employee has been and shall continue to perform. See Kentucky Statutes 18A.005
• Reclassification: shall mean the change in the classification of an employee when a material and permanent change in the duties or responsibilities of that employee has been assigned in writing by the appointing authority. See Kentucky Statutes 18A.005
• Record: means any books of account or other books, papers, journals, ledgers, statements, instruments, documents, files, messages, writings, correspondence, or other internal data or information, made or received in the regular course of business or otherwise, regardless of the mode in which it is recorded. See Kentucky Statutes 286.8-010
• Reemployment: shall mean the rehiring of an employee with status who has been laid off. See Kentucky Statutes 18A.005
• Register: means any official list of eligibles for a particular class and, except as provided in this chapter, placed in rank order according to the examination scores maintained for use in making original appointments or promotions to positions in the classified service. See Kentucky Statutes 18A.005
• Registrant: means a person to whom a registration has been issued. See Kentucky Statutes 286.8-010
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Residential mortgage loan application: means the submission of a borrower's financial information in anticipation of a credit decision, whether written or computer-generated, relating to a mortgage loan. See Kentucky Statutes 286.8-010
• Residential real property: means a dwelling as defined in the Federal Truth in Lending Act, 15 U. See Kentucky Statutes 286.8-010
• Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
• Reversion: means either the returning of a status employee to his or her last position held in the classified service, if vacant, or the returning of a status employee to a vacant position in the same or similar job classification as his or her
  last position held in the classified service. See Kentucky Statutes 18A.005
• Secretary: means the secretary of the Personnel Cabinet as provided for in KRS
  18A. See Kentucky Statutes 18A.005
• Seniority: means the total number of months of state service. See Kentucky Statutes 18A.005
• Service of process: The service of writs or summonses to the appropriate party.
• servicing: means :
  (a) Receiving any scheduled periodic mortgage loan payments from a borrower, including amounts for escrow accounts or other fees or obligations related to the mortgage loan, and making or crediting the payments to the mortgage loan account, owner of the loan, or a third party assigned to receive said payments. See Kentucky Statutes 286.8-010
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
• Status: means the acquisition of tenure with all rights and privileges granted by the provisions of this chapter after satisfactory completion of the initial probationary period by an employee in the classified service. See Kentucky Statutes 18A.005
• Statute: A law passed by a legislature.
• Subpoena: A command to a witness to appear and give testimony.
• Sworn: includes "affirmed" in all cases in which an affirmation may be substituted for an oath. See Kentucky Statutes 446.010
• Temporary restraining order: Prohibits a person from an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party, and without a hearing. It is intended to last only until a hearing can be held.
• Testify: Answer questions in court.
• Testimony: Evidence presented orally by witnesses during trials or before grand juries.
• Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
• transacting business in Kentucky: means to participate in any meaningful way in the mortgage lending process, including the servicing of mortgage loans, with respect to any residential real property located in Kentucky. See Kentucky Statutes 286.8-010
• Transfer: means a movement of any employee from one (1) position to another of the same grade having the same salary ranges, the same level of responsibility within the classified service, and the same salary received immediately prior to transfer. See Kentucky Statutes 18A.005
• Trustee: A person or institution holding and administering property in trust.
• Unique identifier: means a number or other identifier assigned by protocols established by the Nationwide Multistate Licensing System and Registry. See Kentucky Statutes 286.8-010
• Usury: Charging an illegally high interest rate on a loan. ^{Source: OCC}
• Violate: includes failure to comply with. See Kentucky Statutes 446.010
• Wholly owned subsidiary: means a subsidiary that is entirely owned or controlled by another person. See Kentucky Statutes 286.8-010
• Writ: A formal written command, issued from the court, requiring the performance of a specific act.
• Year: means calendar year. See Kentucky Statutes 446.010