2014 Kentucky Revised Statutes CHAPTER 155 - BUSINESS DEVELOPMENT CORPORATIONS 155.070 Powers and limitations of other corporate bodies in relation to corporation.
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155.070 Powers and limitations of other corporate bodies in relation to
corporation.
Notwithstanding any rule at common law or any provision of any general or special
law or any provision in their respective charters, agreements of association, articles
of organization, or trust indentures: (1) all domestic corporations organized for the
purpose of carrying on business within this Commonwealth including without implied
limitation any public utility companies and insurance and casualty companies and
foreign corporations licensed to do business in the Commonwealth, and all trusts,
and private or public pension or retirement funds are hereby authorized to acquire,
purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any
bonds, securities or other evidences of indebtedness created by, or the shares of the
capital stock of, the corporation, and while owners of said stock to exercise all the
rights, powers and privileges of ownership, including the right to vote thereon, all
without the approval of any regulatory authority of the Commonwealth; (2) all
financial institutions are hereby authorized to become members of the corporation
and to make loans to the corporation as provided herein; (3) a financial institution
which does not become a member of the corporation shall not be permitted to
acquire any shares of the capital stock of the corporation; and (4) each financial
institution which becomes a member of the corporation is hereby authorized to
acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise
dispose of, any bonds, securities or other evidences of indebtedness created by, or
the shares of the capital stock of the corporation, and while owners of said stock to
exercise all the rights, powers and privileges of ownership, including the right to vote
thereon, all without the approval of any regulatory authority of the Commonwealth;
provided, that the amount of the capital stock of the corporation which may be
acquired by any member pursuant to the authority granted herein shall not exceed
ten percent (10%) of the loan limit of such member, except that a public pension or
retirement fund which becomes a member may acquire capital stock of the
corporation not to exceed twenty-five percent (25%) of the loan limit of such
member. The amount of capital stock of the corporation which any member is
authorized to acquire pursuant to the authority granted herein is in addition to the
amount of capital stock in corporations which such member may otherwise be
authorized to acquire.
Effective:March 21, 1960
History: Created 1960 Ky. Acts ch. 73, sec. 7, effective March 21, 1960.
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