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Office of Financial Institutions

KRS tit. XXV, ch. 286, subtit. 1
in effect

KRS 286.1-010 Definitions for chapter

286.1-010. Definitions for chapter As used in this chapter, unless the context requires otherwise: (1) "Commissioner" means the commissioner of the Department of Financial Institutions; (2) "Department" means the Department of Financial Institutions; and (3) "Person" means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. Effective:June 29, 2017 History: Created 2017 Ky. Acts ch. 87, sec. 1, effective June 29, 2017.

KRS 286.1-011 Department of Financial Institutions -- Appointment of commissioner and deputy commissioner -- Seal -- Functions -- Divisions within department

286.1-011. Department of Financial Institutions -- Appointment of commissioner and deputy commissioner -- Seal -- Functions -- Divisions within department (1) There is created within the Public Protection Cabinet a Department of Financial Institutions headed by a commissioner, who shall be: (a) The executive head of the department; and (b) Charged with the administration of the department. (2) (a) The Governor, in accordance with KRS 12.040, shall appoint as commissioner a person knowledgeable in bank ing with not less than three (3) years of banking experience. (b) As used in this subsection, "banking experience" means service as: 1. An executive officer in a bank with its principal office located in Kentucky; or 2. An executive with policy making auth ority in a state or federal agency having regulatory authority over an insured financial institution or another financial institution that is regulated by the department. (3) (a) With prior written approval of the Governor, the secretary of the Public Protection Cabinet may appoint a deputy commissioner. (b) The deputy commissioner shall be vested with all of the powers, and perform all of the duties, of the commissioner: 1. During the absence or inability of the commissioner; 2. At other times as the commissioner may instruct; or 3. During any vacancy in the office of the commissioner. (4) (a) The commissioner shall devise a seal for the department, which shall be renewed whenever necessary. (b) A description and impression of the seal shall be: 1. Approved by the Governor; and 2. Filed, together with a certificate of approval from the Governor, in the office of the Secretary of State. (5) The department shall exercise all administr ative functions of the state in relation to the regulation, supervision, chartering, and licensing of: (a) Persons under this chapter; and (b) Securities and persons under KRS Chapter 292. (6) (a) There are established within the department the following d ivisions: 1. The Division of Depository Institutions; 2. The Division of Non-Depository Institutions; and 3. The Division of Securities. (b) Each division shall be headed by a director appointed by the secretary of the Public Protection Cabinet in accordance with KRS 12.050. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 1, effective July 15, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 607, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 279, sec. 2, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 147, sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 165, sec. 1, effective July 15, 1994. -- Amended 1984 Ky. Acts ch. 324, sec. 2, effective July 13, 1984; and ch. 388, sec. 3, effective July 13, 1984. -- Amended 1976 Ky. Acts ch. 299, sec. 59. -- Amended 1968 Ky. Acts ch. 152, sec. 137. -- Amended 1966 Ky. Acts ch. 255, sec. 229. -- Amended 1950 Ky. Acts ch. 179, sec. 2. -- Created 1946 Ky. Acts ch. 191, sec. 1. Formerly codified as KRS 287.011. Legislative Researc h 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 286.1-013 Financial Institutions Board -- Duties

286.1-013. Financial Institutions Board -- Duties (1) There is created a Financial Institutions Board whose duties shall be to advise the commissioner and the Governor as provided in this section. The board shall consist of: (a) Twelve (12) voting members appointed by the Governor, who shall serve terms of four (4) years; and (b) The commissioner as a nonvoting ex officio member, who shall serve as chair of the board. (2) The voting board member appointments made by the Governor shall consist of: (a) Three (3) members selected from the banking industry regulat ed by the department with appropriate recognition as to bank size and geographic diversity; (b) Three (3) members selected from the securities industry regulated by the department; (c) One (1) member selected from the credit union industry regulated by the department; (d) One (1) member selected from the consumer finance industry regulated by the department; (e) One (1) member selected from an industry regulated by the department that is not represented in another capacity on the board; and (f) Three (3) members selected from the public at large who are residents of Kentucky and knowledgeable concerning financial institutions, the legislative process, and consumer interests, two (2) of whom are not employees, officers, or directors of any financial institution. (3) All members of the board from an industry regulated by the department shall be persons: (a) With practical experience in the industry so represented; and (b) Currently serving at the executive level of that industry at the time of their appointment. (4) (a) Vacancies in the membership of the board shall be filled in the same manner as original appointments. (b) Appointments to fill vacancies occurring before th e expiration of a term shall be for the remainder of the unexpired term. (5) No member of the board, other than the commissioner, shall serve more than two (2) consecutive terms on the board. (6) (a) The board shall meet at the call of the Governor or chai r, at a time and place determined by the Governor or chair. (b) The board may elect other officers for the conduct of its business. (c) A majority of voting board members shall constitute a quorum. (d) If a quorum is present, a decision of the board shall require the majority vote of those present. (e) Each voting board member shall have one (1) vote, and voting by proxy is prohibited. (7) Voting board members shall: (a) Receive one hundred dollars ($100) per diem for each board meeting they attend; and (b) Be reimbursed for other reasonable and necessary expenses incurred while engaged in carrying out the duties of the board. (8) The board shall: (a) Prepare and submit, at the Governor's request, the following recommendations: 1. A list of candidates qualified to serve as commissioner; 2. A proposed salary for each nomination for commissioner; and 3. A proposed salary structure for other department staff in order to provide competitive salaries for recruitment and retention of staff; (b) Receive and comment on various reports relating to the department and its activities as submitted to the board by the commissioner or the Governor; and (c) Review, consider, and make recommendations to the commissioner on any matters referred to the board by the commissioner or the Governor. (9) In no event shall the board or its members interfere with the statutory duties of the commissioner, whose decisions shall be governed by law. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 2, effective July 15, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 609, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 183, sec. 3, effective July 12, 2006. -- Amended 1998 Ky. Acts ch. 196, sec. 2, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 59, sec. 1, effective July 15, 1986. -- Created 1984 Ky. Acts ch. 324, sec. 40, effective July 13, 1984. Formerly codified as KRS 287.013. Legislative Research Commission Note (7/12/2006). This section was amended in 2006 Ky. Acts ch. 183. In that same session, 2006 Ky. Acts ch. 247, sec. 38 required that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be renumbered as sections of a single KRS chapter entitled the "Kentucky Financial Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has changed the number of this section and codified it as a new section of KRS Chapter 286.

KRS 286.1-020 Duties of commissioner -- Administrative regulations

286.1-020. Duties of commissioner -- Administrative regulations (1) The commissioner may promulgate, amend, and repeal any administrative regulations, forms, and orders as are necessary to interpret and carry out the provisions and intent of this chapter. (2) The commissioner and his or her designees shall be allowed their necessary traveling and other expenses of conducting their office. (3) The commissioner may designate the deputy commissioner, division directors, general counsel, or branch managers to sign documents under his or her instructions. (4) The department may accept any application or other document required to be filed with it in electronic format or in any other technology acceptable to the department. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 3, effective July 15, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 610, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 196, sec. 3, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 318, sec. 211, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 226, sec. 1, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 324, sec. 4, effective July 13, 1984. -- Amended 1976 Ky. Acts ch. 234, sec. 1. -- Amended 1970 Ky. Acts ch. 209, sec. 1, effective June 18, 1970. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 165a-2, 165a-22. Formerly codified as KRS 287.020. 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 286.1-440 Appointment of examiners -- Oath -- Restrictions on debt and stock ownership -- Contracts for services of agency's examiners

286.1-440. 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.

KRS 286.1-485 Disposition of fees collected under various KRS provisions

286.1-485. Disposition of fees collected under various KRS provisions All fees collected and paid into the State Treasury under the provisions of this chapter and KRS Chapter 292, or any other statute administered by the department, shall be: (1) Credited to a revolving trust or agency fund account, as provided in KRS 45.253, for the department; (2) Separately accounted for; and (3) Used solely for the administration and enforcement of said KRS chapters and statutes. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 152, sec. 5, effective July 15, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 613, effective July 15, 2010. -- Amended 1984 Ky. Acts ch. 111, sec. 126, effective July 13, 1984; ch. 116, sec. 25, effective July 13, 1984; and ch. 324, sec. 34, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 251, sec. 2, effective April 1, 1982. Formerly codified as KRS 287.485. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, F, 3, (4) at 2082. 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.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38623Fetched: 10/20/2026

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