(1) As used in this section, “financial institution” means a bank, trust company, savings and loan association, or credit union authorized by law to do business in this state.
(2) (a) A financial institution that issues a certificate of deposit that is subject to automatic renewal at maturity shall, upon automatic renewal, renew the certificate of deposit for a like term at the best available rate of interest as posted at the issuing financial institution for similarly issued certificates of like term.

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Terms Used In Kentucky Statutes 367.393


(b) Any notice sent by the financial institution to the holder of a certificate of deposit subject to automatic renewal prior to maturity which notifies the holder of the holder’s options upon renewal shall disclose that if the certificate of deposit automatically renews it will be renewed for a like term at the best available rate of interest as posted at the issuing financial institution for similarly issued certificates of like term.
(3) (a) Any violation of this section shall be an unfair, false, misleading, and deceptive act or practice in the conduct of trade or commerce in violation of KRS § 367.170.
(b) All of the remedies, powers, and duties provided for the Attorney General in KRS § 367.190 to KRS § 367.300, and all of the penalties provided in KRS § 367.990, pertaining to acts declared unlawful by KRS § 367.170, shall apply to acts and practices declared unlawful in this section.
Effective: July 13, 2004
History: Created 2004 Ky. Acts ch. 80, sec. 1, effective July 13, 2004.