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286.5-031 Commissioner to investigate -- Objections -- Approval -- Certificate
issued -- Filing.
(1)
(2)
(3)
(4)
Upon receipt of the articles of incorporation, the commissioner shall first
determine whether or not the articles comply with the provisions of this subtitle
and, if he so finds, he shall promptly notify any state or federal savings and
loan association in the locality in which the proposed office or offices are to be
located specifying a time in which they must file objections. The commissioner
shall then inquire into the advisability of approving the application by
investigating:
(a) The moral character and the financial responsibility of the incorporators
and the principles of the applicant;
(b) The public necessity of such an association in the community to be
served; and
(c) The reasonable probability of its usefulness and success. In so doing he
shall determine whether or not the savings and loan association can be
established without undue injury to properly conducted existing savings
and loan associations, in connection with which the incorporators and
principals shall furnish such information as they may desire and as the
commissioner may require.
After allowing the specified time for filing objections, the commissioner shall
approve the application if he finds that the moral character and financial
responsibility of the incorporators and principals are sound and such as to
justify public confidence and to insure the reasonable probability of the success
of the association; that the incorporators and principals have complied with the
provisions of this subtitle, that the incorporation is advisable and, after
investigation there is reason to believe that no undue injury to properly
conducted existing savings and loan associations, either state or federal, will
result. Unless the application, after investigation, meets all the above
requirements the commissioner shall disapprove it.
If approved, the commissioner shall at the same time execute in triplicate a
certificate of incorporation in the form prescribed by him.
The commissioner shall file one (1) signed copy of such certificate of approval
and of the certificate of incorporation with the Secretary of State. The
commissioner shall indorse upon the two (2) copies of the petition for certificate
of incorporation filed with him or her such certificate of approval and return the
duplicate original and a copy of the certificate of incorporation to the
association, addressed to the chairman of the incorporators, and shall retain
the original petition for certificate of incorporation and a copy of the certificate
of incorporation in the permanent files of the department. The certificate of
incorporation shall not be filed or recorded in any other state or county office.
The failure of the commissioner to file, return, or retain any such document
shall not affect the validity of the incorporation of any association.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 677, effective July 15, 2010. -Created 1964 Ky. Acts ch. 138, sec. 3 (2) and (3), effective June 18, 1964.
Formerly codified as KRS 289.031.
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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