2016 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 286.3-020 Approval of application for charter -- Prerequisites to financial institution doing business under its charter.
Download as PDF
286.3-020
Approval of application for charter -- Prerequisites to financial
institution doing business under its charter.
(1)
(2)
The commissioner shall approve an application for a bank or trust company charter
upon a finding that the public convenience and advantage will be served by opening
of the proposed institution. To determine whether public convenience and
advantage will be served, the commissioner shall consider the following factors:
(a) Whether conditions in the community indicate reasonable assurance of
successful operation for the proposed institution;
(b) Whether the organizational and capital structure and amount of capitalization
is adequate for the business plan; and
(c) Whether the officers and directors have sufficient experience, ability,
standing, and reputation to provide reasonable assurance of successful
operation and of compliance with the law.
Before any institution shall commence business, it shall obtain from the
commissioner a charter authorizing it to commence doing business and shall
comply with the following requirements:
(a) The oaths of all directors have been taken;
(b) The commissioner has received satisfactory proof that the accounts of the
banking institution's depositors will be insured by the Federal Deposit
Insurance Corporation; and
(c) The commissioner has received satisfactory proof that the institution has
subscribed and paid in the required capital and has otherwise fully complied
with all pertinent laws and administrative regulations.
Effective: July 15, 2010
History: Created 2010 Ky. Acts ch. 28, sec. 2, effective July 15, 2010.
Legislative Research Commission Note (7/15/2010). References to the "executive
director" of financial institutions in this section, as created by 2010 Ky. Acts ch. 28,
sec. 2, have been changed in codification to the "commissioner" of financial
institutions to reflect the reorganization of certain parts of the Executive Branch, as
set forth in Executive Orders 2009-535 and 2009-1086 and confirmed by the General
Assembly in 2010 Ky. Acts ch. 24. These changes were made by the Reviser of
Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
