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286.3-290 Exceptions to maximum debt to banks.
In the case of obligations to banks and trust companies, the limitations and
restrictions of KRS 286.3-280 shall not apply to:
(1) Obligations of the United States or of the State of Kentucky;
(2) Obligations guaranteed as to principal and interest by the United States or the
State of Kentucky; or all obligations to the extent secured or covered by
guarantees or by commitments or agreements to take over or to purchase the
same made by any federal reserve bank or by the United States or by any
department, bureau, board, commission or establishment of the United States,
including any corporation wholly owned directly or indirectly by the United
States; or consolidated bonds issued by or for federal land banks or
consolidated debentures issued by or for federal intermediate credit banks
under the Act of Congress known as the "Federal Farm Loan Act," and
amendments thereto; or consolidated debentures issued by or for banks for
cooperatives under the Act of Congress known as the "Farm Credit Act of
1933," and amendments thereto; or obligations issued by the federal home
loan banks; or obligations which are insured by the federal housing
administrator pursuant to Title 12, Section 12, Section 1713, United States
Code, if the debentures to be issued in payment of such insured obligations are
guaranteed as to the principal and interest by the United States; or obligations
of national mortgage associations; except that the commissioner may make,
alter and repeal regulations respecting the total liabilities of any person which:
(a) Are secured by direct obligations of the United States or the State of
Kentucky, and
(b) Have a face value at least equal to the amount of such liabilities, and
(c) Will mature within five (5) years from the date such liabilities were
incurred;
(3) Obligations of Kentucky counties and school districts incurred through
borrowing in anticipation of the current year's tax receipts as authorized by
KRS 68.320 and 160.540; and
(4) Loans secured by a segregated deposit account in the lending bank if the
lending bank has a perfected security interest in the segregated deposit
account and if the security interest is clearly documented in the bank's books
and records.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 634, effective July 15, 2010; and
ch. 28, sec. 16, effective July 15, 2010. -- Amended 1970 Ky. Acts ch. 209,
sec. 7, effective June 18, 1970. -- Amended 1960 Ky. Acts ch. 152, sec. 1. -Amended 1946 Ky. Acts ch. 177, sec. 1. -- Amended 1944 Ky. Acts ch. 15,
sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942,
from Ky. Stat. sec. 583.
Formerly codified as KRS 287.290.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 24 and 28, which do not appear to be in conflict and have
been codified together.
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.
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