Appointment of examiners -- Oath -- Restrictions on debt and stock ownership -- Contracts for services of agency's examiners
KRS 286.1-440
in effect286.1-440. Appointment of examiners -- Oath -- Restrictions on debt and stock ownership -- Contracts for services of agency's examiners
(1) (a) The commissioner shall appoint a sufficient number of examiners and assistant examiners to examine all ins titutions coming under the supervision of the department.
(b) A salary schedule for examiners and assistant examiners shall be prepared by the commissioner and presented to the secretary of the Finance and Administration Cabinet for approval.
(2) The commissioner, the deputy commissioner, and each examiner shall take the constitutional oath of office.
(3) (a) Neither the commissioner, nor the deputy commissioner, nor any examiner or assistant examiner shall be: 1. Indebted, directly or indirectly, as borrow er, indorser, surety, or guarantor to any financial institution under his or her supervision or subject to his or her examination; 2. A director, officer, or employee of a financial institution under his or her supervision or subject to his or her examination; or 3. Engaged, or become interested, in the: a. Sale of securities as a business; or b. Negotiation of loans for others.
(b) Any financial institution to which any person becomes indebted in violation of this subsection shall immediately, upon notice of the violation or possible violation, report the fact to: 1. The commissioner; or 2. If the debtor is or may be the commissioner , the secretary of the Public Protection Cabinet.
(c) Subject to paragraph (d) of this subsection, any person who violates this subsection may be removed from office.
(d) An order of removal under paragraph (c) of this subsection shall not be issued without notice to the person, opportunity for a hearing, and written findings of fact and conclusions of law in accordance with KRS Chapter 13B.
(4) No person shall be assigned to examine the affairs of any bank or trust company in a county in which he or she holds stock in either a state or national bank or trust company.
(5) (a) The commissioner may enter into contracts with any bank supervisory agency that has concurrent jurisdiction over a state bank or the branch of an out -of- state bank operating in this sta te to: 1. Engage the services of the agency's examiners at a reasonable rate of compensation; or 2. Provide the services of the commissioner's examiners to the agency at a reasonable rate of compensation.
(b) Any contract entered into pursuant to this subs ection shall be deemed a sole source contract under the provisions of KRS 45A.095.
Effective: July 15, 2024
History: Amended 2024 Ky. Acts ch. 152, sec. 4, effective July 15, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 612, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 338, sec. 16, effective July 15, 1996. -- Amended 1984 Ky. Acts ch. 324, sec. 29, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 251, sec. 13, effective April 1, 1982. -- Amended 1968 Ky. Acts ch. 104, sec. 1. -- Amended 1946 Ky. Acts ch. 27, sec. 8; and ch. 191, sec. 8. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 165a-6, 165a-7. Formerly codified as KRS 287.440.
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.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55135Fetched: 10/20/2026