Financial Institutions Generally

KRS tit. XXV, ch. 286, subtit. 2

in effect

KRS 286.2-010 Application of chapter

286.2-010. Application of chapter The provisions of this chapter shall be interpreted and applied: (1) To the fullest extent practicable under law; and (2) In a manner consistent with applicable: (a) Federal laws and regulations; and (b) Policies and orders of federal regulatory agencies. Effective: July 15, 2024 History: Created 2024 Ky. Acts ch. 152, sec. 6, effective July 15, 2024.

KRS 286.2-015 Political subdivisions prohibited from enacting or enforcing legislation governing matters preempted by state or federal law -- Exception for civil rights. (Effective until April 30, 2027)

286.2-015. Political subdivisions prohibited from enacting or enforcing legislation governing matters preempted by state or federal law -- Exception for civil rights. (Effective until April 30, 2027) (1) Except as provided in KRS 41.470 to 41.476 and 41.480, and subsection (3) of this section, all political subdivisions of the Commonwealth shall be prohibited from enacting and enforcing ordinances, resolutions, and regulations pertaining to the financial or lending activities of persons or entitie s that: (a) Are subject to: 1. The jurisdiction of the department; or 2. The provisions of this chapter; (b) Are subject to the jurisdiction or regulatory supervision of the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Farm Credit Administration, the Federal Deposit Insurance Corporation, or the United States Department of Housing and Urban Development; or (c) Originate, purchase, sell, assign, securitize, assi st, facilitate, or service property interests or obligations created by financial transactions or loans made, executed, or originated by persons or entities referred to in paragraph (a) or (b) of this subsection. (2) The requirements of this section shall apply to all ordinances, resolutions, or regulations pertaining to financial or lending activities, including any ordinances, resolutions, or regulations that: (a) Limit or disqualify persons or entities from doing business with a political subdivision based upon financial or lending activities; or (b) Impose additional reporting requirements or other obligations on persons or entities referred to in subsection (1) of this section seeking to do business with a political subdivision. (3) Nothing in this section shall be interpreted as preventing the enforcement of ordinances, regulations, or resolutions of political subdivisions of the Commonwealth pertaining to civil rights. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 7, effective July 15, 2024. -- Amended 2022 Ky. Acts ch. 120, sec. 6, effective July 14, 2022. -- Amended 2010 Ky. Acts ch. 24, sec. 614, effective July 15, 2010. -- Created 2003 Ky. Acts ch. 64, sec. 11, effective June 24, 2003. Formerly codified as KRS 287.015. 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.

KRS 286.2-020 Required disclosure of services provided by Kentucky Homeownership Protection Center

286.2-020. Required disclosure of services provided by Kentucky Homeownership Protection Center (1) "Kentucky Homeownership Protection Center" means the center established in KRS 198A.400. (2) At the time of closing and together with the final signed loan documents, if the Kentucky Homeownership Protection Center is operational as provided in KRS 198A.400, a mortgagee shall provide to the homeowner any brochure, pamphlet, or other brief document prepared or approved by the Kentucky Housing Corporation that describes the services provided by the Kentucky Homeownership Protection Center. Effective: April 24, 2008 History: Created 2008 Ky. Acts ch. 175, sec. 2, effective April 24, 2008.

KRS 286.2-040 Examination of service provider by commissioner or other state or federal regulatory agency -- Confidentiality and evidentiary value of report -- Examination fees -- Cooperative agreements

286.2-040. Examination of service provider by commissioner or other state or federal regulatory agency -- Confidentiality and evidentiary value of report -- Examination fees -- Cooperative agreements (1) As used in this section: (a) "Covered service" means: 1. Data processing; 2. Any activity that supports financial services, including but not limited to lending, funds transfer, fiduciary activity, trading activity, and deposit taking; and 3. Internet-related services, including but not limited to Web services and electronic bill payments, mobile applications, system and software development and maintenance, and security monitoring; (b) "Depository institution" means any: 1. State bank as defined in KRS 286.3-010; 2. Branch of an out-of-state bank as defined in KRS 286.3-010 that is doing business under the laws of this state; 3. Trust company as defined in KRS 286.3-010; or 4. Credit union as defined in KRS 286.6-005; and (c) "Service provider" means any person that provides a covered service listed in paragraph (a) of this subsection to a depository institution, except any: 1. Bank service company that is examined and regulated by the appropriate federal banking agency. For the purposes of this subparagraph, "bank service company" and "appropriate federal banking agency" have the meanings set forth in the Bank Service Company Act, 12 U.S.C. sec. 1861, as amended, or any successor statute; 2. Depository institution, holding company of a depository institution, or subsidiary of that holding company; and 3. Federally chartered depository institution, holding company of a federally chartered depository institution, or subsidiary of that holding company. For the purposes of this subparagraph, "federally chartered depository institution" means a bank, savings association, or credit union organized pursuant to the laws of the United States. (2) The commissioner may examine a service provider for any covered service it provides to a depository institution if the examination is conducted in conjunction with an examination conducted by a properly authorized federal regulatory agency. (3) The commissioner may accept an examination made by other properly authorized state or federal regulatory agencies that have concurrent jurisdiction over a service provider in lieu of any examination authorized or required under the laws of this state. (4) A report of examination and related correspondence shall be considered confidential information. No person shall release any information contained in the examination unless required by court order. Notwithstanding this subsection, the department may furnish: (a) A copy of a report of examination performed by the commissioner of the condition and affairs of any service provider to the depository institutions serviced by the service provider; and (b) To and exchange information and reports of examinations with officials and examiners of other properly authorized state or federal regulatory agencies. (5) Every official report concerning a service provider, and every report of examination, shall be prima facie evidence of the facts contained in the report for any purpose in any action in which the department or service provider is a party. (6) The commissioner shall fix a scale of examination fees to be paid by service providers. The fees shall be: (a) Sufficient to cover the cost of the examination based upon a fair compensation for time and actual expense; (b) Assessed and paid by service providers promptly after completion of the examination; and (c) Set by administrative regulation. (7) The commissioner may enter into cooperative agreements with other properly authorized state or federal regulatory agencies that have concurrent jurisdiction over a service provider to facilitate the examination process, including joint examination, scheduling, resources, fee collection and sharing, report of examination processing, and enforcement actions. Effective:June 29, 2017 History: Created 2017 Ky. Acts ch. 87, sec. 2, effective June 29, 2017.

KRS 286.2-105 Examination of contents of a decedent's safe deposit box to find will or funeral arrangements -- Definitions for section

286.2-105. Examination of contents of a decedent's safe deposit box to find will or funeral arrangements -- Definitions for section (1) As used in this section: (a) "Interested person" means a: 1. Lessee's surviving spouse, adult child, or parent; 2. Person named as the personal representative in a copy of a purported will of a lessee produced by the person; 3. Person designated by a lessee in a writing that is: a. Acceptable to a lessor; and b. Filed with a lessor before the death of a lessee; or 4. Person named in a court order to examine the contents of a safe deposit box for any purpose listed in subsection (2) of this section; (b) "Lessee" means a person who contracts with a lessor for the use of a safe deposit box; (c) "Lessor" means any of the following entities that rent safe deposit boxes: 1. A state or national bank, bank holding company, trust company, savings and loan association, savings and loan association holding company, credit union, or wholly owned subsidiary of any of the foregoing; or 2. A safe deposit company; and (d) "Safe deposit box" means a safe deposit box, vault, receptacle, or other safe deposit facility maintained by a lessor that may be used for the safekeeping and storage of property and documents. (2) (a) If an interested person presents satisfactory proof of the death of a lessee and the interested person possesses a key to the lessee's safe deposit box, a lessor shall permit the interested person to open and examine the contents of the safe deposit box in the presence of an employee of the lessor for any or all of the following purposes: 1. To conduct a will search; or 2. To obtain any document purporting to: a. Be a deed to a burial plot; or b. Give funeral or burial instructions. (b) For purposes of this subsection, the following shall be considered satisfactory proof of the death of a lessee: 1. A death certificate; 2. A notice or indication of death fro m a governmental agency, funeral home, or hospital; or 3. Any other document that a reasonable person would rely on as an indication of death. (3) If a safe deposit box is opened for any or all of the purposes listed in subsection (2) of this section, an employee of the lessor shall remove any document that appears to satisfy the purpose or purposes, make a true and correct machine copy thereof, replace the copy or copies in the box, and then deliver the original document or documents to the interested person requesting the search. (4) This section shall not be construed to authorize the removal of any safe deposit box contents other than a will, a document purporting to be a deed to a burial plot, and a document giving funeral or burial instructions. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 8, effective July 15, 2024. -- Created 2001 Ky. Acts ch. 141, sec. 2, effective June 21, 2001. Formerly codified as KRS 286.105. 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.

KRS 286.2-670 Foreign financial institutions, activities deemed not transacting business in Kentucky

286.2-670. Foreign financial institutions, activities deemed not transacting business in Kentucky (1) (a) As used in this subsection, a "foreign financial institution" means any bank, bank holding company, trust company, savings and loan association, savings and loan association holding company, credit union, or wholly owned subsidiary of any of the foregoing, that is organized under the laws of another state or of the United States. (b) Except as provided in subsection (2) of this section, a foreign financial institution shall not be considered to be doing, transacting, or carrying on business in this state, or be required to qualify to do business in this state, solely by reason of engaging in any or all of the following activities, either on its own behalf or as a trustee of a pension plan, employee's profit-sharing or retirement plan, or testamentary or inter vivos trust: 1. The lending of money, or the acquisition by purchase, by contract to purchase, by making of advance commitments to purchase, or by assignment to it of loans, including construction loans, or any interest in loans, secured in whole or in part by mortgages, deeds of trust, or other forms of security on real or personal property in this state, if the activities are carried on from outside this state by the institution or within this state by independent agencies on behalf of the institution; 2. The receipt of principal and interest on any loans referenced in subparagraph 1. of this paragraph; 3. The making of physical inspections and appraisals of real or personal property that secures or is proposed to secure any loan by an officer or employee of the institution if the officer or employee making any physical inspections and appraisals is not a resident of and does not maintain his or her place of business in this state; 4. The ownership of any loans and the enforcement of any loans by trustee's sale, judicial process, or deed in lieu of foreclosure, or otherwise; 5. The modification, renewal, extension, transfer, or sale of loans, the acceptance of additional or substitute security for loans, the full or partial release of security for loans, or the acceptance of substitute or additional obligors on loans if the activities are carried on from outside this state by the institution or carried on within this state by independent agencies; 6. The maintaining and defending of any action or suits relating to loans, mortgages, deeds of trust, security instruments or related agreements, or activities referred to in this section or incidental thereto; 7. The engaging, by contractual arrangement, of a corporation, firm, or association, qualified to do business in this state, which is not a subsidiary or parent of the institution or under common management with the institution, to make collections and to service loans in any manner whatsoever, including: a. The payment of ground rents, taxes, assessments, insurance, and the like; and b. The making and performance of, on behalf of the institution, physical inspections and appraisals of real or personal property securing, or proposed to secure, any loans; 8. The acquisition of title to real or personal property covered by any mortgages, deeds of trust, or other security instrument, by trustees, pledgees, or judicial sales, by deed in lieu of foreclosure, or for the purpose of transferring title to any federal agency o r instrumentality as the insurer or guarantor of any loans, the maintenance or defense of any action or suit relating to the possession of the property, and the retention of title to the property as acquired pending the orderly sale or other disposition thereof; or 9. The maintenance of accounts in banks or credit unions, authorized or licensed to do and transact business as a bank or credit union. (2) The provisions of this section shall be inapplicable for purposes of determining whether, and to what extent, a financial institution is subject to taxation under state law. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 9, effective July 15, 2024. -- Amended 2009 Ky. Acts ch. 104, sec. 24, effective June 25, 2009. -- Amended 1996 Ky. Acts ch. 254, sec. 36, effective July 15, 1996. -- Created 1970 Ky. Acts ch. 228, sec. 1, effective June 18, 1970. Formerly codified as KRS 287.670. 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.

KRS 286.2-990 Civil penalty for violation of subtitle

286.2-990. Civil penalty for violation of subtitle Unless otherwise specifically provided for in this subtitle, the commissioner may levy a civil penalty against any person who violates any provision of this subtitle, any administrative regulation promulgated under this subtitle, or any order issued by the commissioner under this subtitle. The civil penalty shall be not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000) per violation, plus the state's costs and expenses for the examination, investigation, and prosecution of the matter, including reasonable attorney's fees and court costs. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 615, effective July 15, 2010. -- Created 2009 Ky. Acts ch. 104, sec. 26, effective June 25, 2009.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38624Fetched: 10/20/2026