Kentucky Statutes 286.3-290 – Exceptions to maximum debt to banks
Current as of: 2024 | Check for updates
|
Other versions
In the case of obligations to banks and trust companies, the limitations and restrictions of
KRS § 286.3-280 shall not apply to:
(1) Obligations of the United States or of the State of Kentucky;
(2) Obligations guaranteed as to principal and interest by the United States or the State of Kentucky; or all obligations to the extent secured or covered by guarantees or by commitments or agreements to take over or to purchase the same made by any federal reserve bank or by the United States or by any department, bureau, board, commission or establishment of the United States, including any corporation wholly owned directly or indirectly by the United States; or consolidated bonds issued by or for federal land banks or consolidated debentures issued by or for federal intermediate credit banks under the Act of Congress known as the “Federal Farm Loan Act,” and amendments thereto; or consolidated debentures issued by or for banks for cooperatives under the Act of Congress known as the “Farm Credit Act of
1933,” and amendments thereto; or obligations issued by the federal home loan banks; or obligations which are insured by the federal housing administrator pursuant to Title 12, Section 12, Section 1713, United States Code, if the debentures to be issued in payment of such insured obligations are guaranteed as to the principal and interest by the United States; or obligations of national mortgage associations; except that the commissioner may make, alter and repeal regulations respecting the total liabilities of any person which:
(a) Are secured by direct obligations of the United States or the State of
Kentucky, and
(b) Have a face value at least equal to the amount of such liabilities, and
(c) Will mature within five (5) years from the date such liabilities were incurred; (3) Obligations of Kentucky counties and school districts incurred through borrowing
in anticipation of the current year‘s tax receipts as authorized by KRS § 68.320 and
160.540; and
(4) Loans secured by a segregated deposit account in the lending bank if the lending bank has a perfected security interest in the segregated deposit account and if the security interest is clearly documented in the bank’s books and records.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 634, effective July 15, 2010; and ch. 28, sec. 16, effective July 15, 2010. — Amended 1970 Ky. Acts ch. 209, sec. 7, effective June 18, 1970. — Amended 1960 Ky. Acts ch. 152, sec. 1. — Amended 1946 Ky. Acts ch. 177, sec. 1. — Amended 1944 Ky. Acts ch. 15, sec. 1. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 583.
Formerly codified as KRS § 287.290.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 28, which do not appear to be in conflict and have been codified together.
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.
KRS § 286.3-280 shall not apply to:
Terms Used In Kentucky Statutes 286.3-290
- Commissioner: means the commissioner of financial institutions. See Kentucky Statutes 286.3-010
- Department: means the Department of Financial Institutions. See Kentucky Statutes 286.3-010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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
- 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.
- Year: means calendar year. See Kentucky Statutes 446.010
(1) Obligations of the United States or of the State of Kentucky;
(2) Obligations guaranteed as to principal and interest by the United States or the State of Kentucky; or all obligations to the extent secured or covered by guarantees or by commitments or agreements to take over or to purchase the same made by any federal reserve bank or by the United States or by any department, bureau, board, commission or establishment of the United States, including any corporation wholly owned directly or indirectly by the United States; or consolidated bonds issued by or for federal land banks or consolidated debentures issued by or for federal intermediate credit banks under the Act of Congress known as the “Federal Farm Loan Act,” and amendments thereto; or consolidated debentures issued by or for banks for cooperatives under the Act of Congress known as the “Farm Credit Act of
1933,” and amendments thereto; or obligations issued by the federal home loan banks; or obligations which are insured by the federal housing administrator pursuant to Title 12, Section 12, Section 1713, United States Code, if the debentures to be issued in payment of such insured obligations are guaranteed as to the principal and interest by the United States; or obligations of national mortgage associations; except that the commissioner may make, alter and repeal regulations respecting the total liabilities of any person which:
(a) Are secured by direct obligations of the United States or the State of
Kentucky, and
(b) Have a face value at least equal to the amount of such liabilities, and
(c) Will mature within five (5) years from the date such liabilities were incurred; (3) Obligations of Kentucky counties and school districts incurred through borrowing
in anticipation of the current year‘s tax receipts as authorized by KRS § 68.320 and
160.540; and
(4) Loans secured by a segregated deposit account in the lending bank if the lending bank has a perfected security interest in the segregated deposit account and if the security interest is clearly documented in the bank’s books and records.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 634, effective July 15, 2010; and ch. 28, sec. 16, effective July 15, 2010. — Amended 1970 Ky. Acts ch. 209, sec. 7, effective June 18, 1970. — Amended 1960 Ky. Acts ch. 152, sec. 1. — Amended 1946 Ky. Acts ch. 177, sec. 1. — Amended 1944 Ky. Acts ch. 15, sec. 1. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 583.
Formerly codified as KRS § 287.290.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 28, which do not appear to be in conflict and have been codified together.
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.