2013 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 2 - Financial Institutions Generally 2.2-685 Prohibition against use of certain banking-related words and characters or financial institution trademarks by unauthorized person -- Exceptions -- Enforcement and penalties.
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286.2-685 Prohibition against use of certain banking-related words and
characters or financial institution trademarks by unauthorized person -Exceptions -- Enforcement and penalties.
(1)
(2)
(3)
(4)
(5)
(6)
No person may use the term "bank," "banker," "banking," "trust," or a similar
term or a character, ideogram, phonogram, phrase, or foreign language word in
its name, stationery, or advertising in a manner that would imply to the public
that the person is engaged in the banking or trust business.
Subsection (1) of this section does not apply to a depository institution or other
entity organized under the laws of this state, another state, or the United States
to the extent that the depository institution or other entity is:
(a) Authorized under its charter or the laws of this state or the United States
to use a term, word, character, ideogram, phonogram, or phrase
prohibited by subsection (1) of this section; and
(b) Authorized by the laws of this state or the United States to conduct the
activities in which it is engaged in this state.
For purposes of this section, unless the context requires otherwise, "financial
institution" means any person or entity operating in the Commonwealth of
Kentucky, as permitted under the laws of this state, any other state, or the
United States, as a bank, bank holding company, credit union, savings and
loan association, or any wholly owned subsidiary thereof.
Except as provided in subsection (5) of this section, no person that is not a
financial institution may use the trade name, trademark, service mark, logo, or
symbol, or any combination thereof, of any financial institution, or any trade
name, trademark, service mark, logo, or symbol, or any combination thereof,
that is similar to the trade name, trademark, service mark, logo, or symbol of
such a financial institution, in any marketing material, solicitation, or advertising
provided or directed to another person in a manner such that a reasonable
person may be confused, mistaken, or deceived that the marketing material,
solicitation, or advertising originated from, is endorsed by, or has been
consented to by the financial institution.
Subsection (4) of this section shall not apply to a person who uses the trade
name, trademark, service mark, logo, or symbol of a financial institution with
the written consent of the financial institution.
The financial institution whose trade name, trademark, service mark, logo, or
symbol has been used in violation of this section may institute an action in the
Franklin Circuit Court or any court of competent jurisdiction against any person
or entity in violation of subsection (4) of this section to enjoin a continuance of
any activity in violation of subsection (4) of this section and, if injured thereby,
for the recovery of damages at three (3) times the amount of any actual
damages sustained and for civil penalties in the amount of one thousand
dollars ($1,000). It shall not be necessary that actual damages be alleged or
proved in order to recover injunctive relief or civil penalties. The penalties
prescribed by this subsection shall be cumulative.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 28, sec. 1, effective July 15, 2010. -- Created
2006 Ky. Acts ch. 183, sec. 1, effective July 12, 2006.
Legislative Research Commission Note (7/12/2006). This section was created in
2006 Ky. Acts ch. 183 as a new section of KRS Chapter 287. 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 codified
this section as a new section of KRS Chapter 286.
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