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286.3-187 Bank acting as agent of another financial institution -- Filing -Commissioner's approval -- Scope of activities.
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(2)
(3)
(4)
(5)
(6)
(7)
Except as set forth in subsection (7) of this section, with prior approval of the
commissioner and upon compliance with the requirements of this section, any
state bank may agree to receive deposits, renew time deposits, close loans,
service loans, receive payments on loans and other obligations, and perform
other services as may be authorized by administrative regulations, as an agent
for any national bank, savings and loan, or savings bank having its principal
office in Kentucky or any state bank.
A state bank that proposes to enter into an agency agreement under this
section shall file with the commissioner, at least thirty (30) days before the
effective date of the agreement:
(a) A notice of intention to enter into an agency agreement with a national
bank, savings and loan, or savings bank having its principal office in
Kentucky or a state bank;
(b) A description of the services to be performed under the agency
agreement; and
(c) A copy of the agency agreement.
The commissioner shall decide whether to approve the agency agreement
within thirty (30) days of the receipt of the notice required by subsection (2) of
this section; except if the commissioner requests additional information after
receiving such notice, the time limit for the commissioner's decision shall be
thirty (30) days after receiving the additional information.
The commissioner may order a state bank to cease acting as an agent or
principal under any agency agreement with a state bank or a national bank,
savings and loan, or savings bank having its principal office in Kentucky that
the commissioner finds to be inconsistent with safe and sound banking
practices.
A state bank acting as an agent for a state bank or a national bank, savings
and loan, or savings bank having its principal office in Kentucky in accordance
with this section shall not be considered to be a branch of that institution.
Except as set forth in subsection (7) of this section, a state bank may act as an
agent for a national bank, savings and loan, or savings bank having its
principal office outside Kentucky to the same extent it could act were it
operating as a national bank at the time.
Nothing in this section authorizes a state bank to conduct any activity as an
agent under this section which the bank is not permitted to conduct as a
principal under any applicable federal or state law.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 630, effective July 15, 2010. -Created 1996 Ky. Acts ch. 338, sec. 1, effective July 15, 1996, retroactive to
September 29, 1995.
Formerly codified as KRS 287.187.
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.
Legislative Research Commission Note (7/15/96). Because of the subject matter
of this statute and the exception phrases beginning subsections (1) and (6) of
the statute, references to "this Act" appearing in subsection (7) of the statute
have been codified as "this section" under KRS 7.136(1)(f).
Legislative Research Commission Note (7/15/96). This statute is retroactive to
September 29, 1995. See 1996 Ky. Acts ch. 338, sec. 22.
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