2016 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 286.3-095 Change in control or certain loans to be reported to commissioner -- Contents of report.
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286.3-095 Change in control or certain loans to be reported to commissioner -Contents of report.
(1)
(2)
(3)
(4)
At least sixty (60) days prior to a change occurring in the outstanding voting stock
of any bank or trust company which will result in control or in a change in the
control of the bank or trust company, the proposed acquiring party or parties shall
report such facts to the commissioner for approval unless the commissioner finds
that:
(a) The terms of the acquisition are not in accordance with the laws of this state;
or
(b) The financial condition, or the competence, experience, and integrity of the
acquiring party or parties are such as will jeopardize the financial stability of
the bank; or
(c) The public convenience and advantage will not be served by the acquisition.
As used in subsection (1) of this section, the term "control" means the power to
directly or indirectly direct or cause the direction of the management or policies of
the bank or trust company. A change in ownership of voting stock which would
result in direct or indirect ownership by a stockholder or an affiliated group of
stockholders of less than twenty-five percent (25%) of the outstanding voting stock
shall not be considered a change of control. If there is any doubt as to whether a
change in the outstanding voting stock is sufficient to result in control thereof or to
effect a change in the control thereof, such doubt shall be resolved in favor of
reporting the facts to the commissioner.
Whenever a bank makes a loan or loans, secured, or to be secured, by twenty-five
percent (25%) or more of the outstanding voting stock of a bank, the president or
other chief executive officer of the lending bank shall promptly report such fact to
the commissioner upon obtaining knowledge of such loan or loans, except that no
report need be made in those cases where the borrower has been the owner of record
of the stock for a period of one (1) year or more, or the stock is that of a newly
organized bank prior to its opening.
The reports required by subsections (1), (2), and (3) of this section shall contain the
following information to the extent that it is known by the person making the report:
(a) The number of shares involved;
(b) The names of the sellers (or transferors);
(c) The names of the purchasers (or transferees);
(d) The names of the beneficial owners if the shares are registered in another
name;
(e) The purchase price;
(f) The total number of shares owned by the seller (or transferors), the purchasers
(or transferees) and the beneficial owners both immediately before and after
the transaction; and in the case of a loan:
1.
The name of the borrower;
2.
The amount of the loan; and
3.
(5)
The name of the bank issuing the stock securing the loan and the number
of shares securing the loan.
In addition to the foregoing, such reports shall contain such other information as
may be available to inform the commissioner of the effect of the transaction upon
control of the bank or trust company whose stock is involved.
Whenever such a change as described in subsection (1) of this section occurs, each
bank or trust company shall report promptly to the commissioner any changes or
replacement of its chief executive officer or of any director occurring in the next
twelve (12) month period, including in its report a statement of the past and current
business and professional affiliations of the new chief executive officer or directors.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 621, effective July 15, 2010. -- Amended
1996 Ky. Acts ch. 338, sec. 9, effective July 15, 1996. -- Amended 1984 Ky. Acts ch.
324, sec. 10, effective July 13, 1984. -- Created 1970 Ky. Acts ch. 209, sec. 4,
effective June 18, 1970.
Formerly codified as KRS 287.095.
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.
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