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286.7-440 Investigation of applicant -- Approval of articles of incorporation
and application.
(1)
(2)
Before delivering the articles of incorporation to the Secretary of State for
recording, a copy of the articles shall be presented to the commissioner for
approval. Upon receipt of such articles, the commissioner shall first determine
whether or not the articles comply with the provisions of KRS 286.7-410 to
286.7-600 and, if the commissioner so finds, he or she shall promptly notify the
industrial loan companies in the locality in which the proposed office or offices
are to be located, specifying a time within which they may file objections. The
commissioner shall then inquire into the advisability of approving the
application by investigating:
(a) The moral character and financial responsibility of the incorporators and
principals of the applicant.
(b) The public necessity for such association in the community to be served;
and
(c) The reasonable probability of its usefulness and success. In so doing the
commissioner shall determine whether or not the industrial loan company
can be established without undue injury to properly conducted existing
industrial loan companies, 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 the filing of objections, the commissioner
shall approve the application if he or she 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 corporation, that the incorporators and principals have complied
with the provisions of KRS 286.7-410 to 286.7-600, that the incorporation is
advisable and, after investigation, there is reason to believe that no undue
injury to properly conducted existing industrial loan companies will result.
Unless the application, after investigation, meets all of the above requirements,
the commissioner shall disapprove it.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 751, effective July 15, 2010. -Created 1962 Ky. Acts ch. 166, sec. 3.
Formerly codified as KRS 291.440.
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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