2013 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 5 - Savings and Loan Associations 5.5-024 Proof by existing association of federal insurance or private insurance meeting minimum standard -- Effect of noncompliance.
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286.5-024 Proof by existing association of federal insurance or private
insurance meeting minimum standard -- Effect of noncompliance.
(1)
(2)
(3)
Notwithstanding the provisions of KRS 286.5-451(13) any state savings and
loan association which has not become insured by December 31, 1974, must
furnish proof satisfactory to the commissioner of financial institutions prior to
June 30, 1975, that it has:
(a) Obtained insurance of its savings accounts and share accounts by the
Federal Savings and Loan Insurance Corporation, any agency of this
state or other federal agency established for the purpose of insuring
savings accounts in associations, or with any other insurer approved by
the commissioner and meeting the qualifications prescribed in this
subsection; provided that no association subject to the provisions of this
subtitle shall have the power to obtain insurance of accounts from, or
represent in any way its accounts are insured by, any insurer other than
the Federal Savings and Loan Insurance Corporation, or other federal
agency or state agency, unless the commissioner, after application to him
for approval and after reasonable notice and an opportunity to be heard
the commissioner shall have determined:
1.
That the contract of insurance contemplated is written upon
substantially the same basis as to form, amount, coverage, maturity,
voluntary and involuntary termination and other provisions as the
insurance contract provided at that time by the Federal Savings and
Loan Insurance Corporation, and complies with the further
requirements for protection as the commissioner in his discretion
may deem reasonably necessary; and
2.
That the contract is underwritten by an insurer having a net worth
reasonably commensurate with the risk underwritten, which is
licensed in this state and authorized to do business in this state, and
the commissioner shall have issued a certificate of approval of such
application; or
(b) Become a federal savings and loan association member of the Federal
Home Loan Bank Board; or
(c) Merged into an existing insured savings and loan association, either state
or federal; or
(d) Entered into voluntary liquidation.
Any merger into an insured savings and loan association or any voluntary
liquidation must have the prior written approval of the commissioner.
Any state savings and loan association which has not by the close of business
June 30, 1975, accomplished any one of the four steps prescribed in
subsection (1) shall on and after July 1, 1975, be prohibited from:
(a) Making any loans pursuant to this subtitle; and
(b) Accepting any savings accounts, payments on share accounts or
membership fees.
Notwithstanding any other provisions of state law to the contrary, if any state
savings and loan association has not accomplished one of the four steps
prescribed in subsection (1) of this section by December 31, 1974, the
commissioner shall apply to a court of general jurisdiction in the county in
which the home office of such association is located for the appointment of a
liquidating receiver for purposes of liquidating the assets and winding up the
business affairs of such association. However, if such state savings and loan
association shall furnish to the commissioner proof satisfactory to him that a
definite plan of accomplishment of one of said four conditions prescribed in
subsection (1) of this section has been substantially completed, the
commissioner may, in his sole discretion, extend the time for taking action for
the appointment of such receiver. The commissioner in granting such
extension may permit the acceptance of savings account payments on share
accounts, membership fees or the making of loans.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 675, effective July 15, 2010. -Amended 1984 Ky. Acts ch. 111, sec. 127, effective July 13, 1984. -- Created
1974 Ky. Acts ch. 276, sec. 1.
Formerly codified as KRS 289.024.
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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