2013 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 5 - Savings and Loan Associations 5.5-905 Acquisition of one or more associations wherever located -- Limitations -- Acquisition by out-of-state associations -- Merger or consolidation.
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286.5-905 Acquisition of one or more associations wherever located -Limitations -- Acquisition by out-of-state associations -- Merger or
consolidation.
(1)
(2)
(3)
Any individual, or any Kentucky savings and loan association holding
company, may acquire control of one (1) or more savings and loan
associations or savings and loan association holding companies wherever
located, except that no individual who on July 15, 1988, controls a savings and
loan association or savings and loan association holding company wherever
located, and no savings and loan association holding company wherever
located, shall acquire, directly or indirectly, control of a Kentucky savings and
loan association if the Kentucky savings and loan association was chartered
after July 15, 1988, and if, at the time of the acquisition, the Kentucky savings
and loan association has been in existence less than five (5) years. The
provisions of this subsection shall not prohibit the organization of a one (1)
savings and loan association holding company for the purpose of acquiring
control of a savings and loan association even if the savings and loan
association was chartered after July 15, 1988, and has been in existence less
than five (5) years at the time of the acquisition.
No individual or savings and loan association holding company wherever
located shall acquire control of any savings and loan association or savings
and loan association holding company if, upon the acquisition, the individual or
savings and loan association holding company would control Kentucky savings
and loan associations holding more than fifteen percent (15%) of the total
deposits in all Kentucky savings and loan associations as reported in the most
recent year-end reports made by Kentucky savings and loan associations to
their respective supervisory authorities which are available at the time of the
acquisition.
(a) During the period expiring five (5) years after July 15, 1988, no individual
or corporation wherever located shall, directly or indirectly, by merger,
consolidation, purchase or any other means, acquire control of a savings
and loan association or savings and loan association holding company if
as a result thereof such individual or corporation would acquire control of
more than three (3) Kentucky savings and loan associations during any
twelve (12) month period;
(b) However, a savings and loan association holding company wherever
located, may acquire control of a savings and loan association holding
company which has its principal place of business in this state and which
controls more than three (3) Kentucky savings and loan associations
under conditions approved by the commissioner which would require the
following:
1.
That an acquisition made under this subsection shall be limited to
only one (1) acquisition;
2.
That the Kentucky savings and loan associations acquired in excess
of the three (3) Kentucky savings and loan associations per year
limitation included in this acquisition shall be counted against future
acquisitions during the remaining five (5) year period provided in this
subsection; and
3.
(4)
(5)
(6)
That the total Kentucky savings and loan association acquisitions by
a savings and loan association holding company shall not exceed in
the aggregate five (5) Kentucky savings and loan associations
during any five (5) year period.
The limitations set forth in this section or any other provision of this subtitle or
any regulation promulgated thereunder, as now in effect or amended after July
15, 1988, shall not apply to the acquisition of a Kentucky savings and loan
association if, in his discretion, the commissioner, if the Kentucky savings and
loan association is organized under the laws of this state, or the Federal Home
Loan Bank Board, if the Kentucky savings and loan association is federally
chartered, determines that an emergency exists and the acquisition is
appropriate in order to prevent the probable failure of a Kentucky savings and
loan association or savings and loan holding company having its principal
place of business in this state which is closed or is in danger of closing.
Any savings and loan association holding company having its principal place of
business in any state may acquire control of any Kentucky savings and loan
association or of any savings and loan association holding company having its
principal place of business in this state, if the state wherein the savings and
loan association holding company has its principal place of business shall
authorize the acquisition of control of a savings and loan association or savings
and loan association holding company in that state by a savings and loan
association holding company having its principal place of business in this state
under conditions substantially no more restrictive than those imposed by this
section;
The provisions of this section shall not be construed to prohibit or restrict the
merger, consolidation or other acquisition of Kentucky savings and loan
associations or of savings and loan association holding companies having their
principal places of business in this state and the operation by the merged or
consolidated corporation of the Kentucky savings and loan associations, nor to
prohibit the sale of any savings and loan association or savings and loan
association holding company to, and the purchase thereof by, any Kentucky
savings and loan association or any savings and loan association holding
company with its principal place of business in this state or the operation of the
savings and loan association as a branch.
Effective:July 15, 1988
History: Created 1988 Ky. Acts ch. 156, sec. 2, effective July 15, 1988.
Formerly codified as KRS 289.905.
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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