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286.3-330 Assets may be pledged or surety bonds provided as collateral security -Security not required if deposit insured.
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Banks, subject to statutory or charter limitations, may pledge such portion of their
assets or provide surety bonds as may be required by law as collateral security for
government deposits made with them, or any of them, by or under the authority of
the United States, or for any other deposit required by law to be secured.
Notwithstanding any law requiring security for deposits in the form of collateral,
surety bond, or in any other form, security for such deposits shall not be required to
the extent said deposits are insured under the provisions of Section 12B of the
Federal Reserve Act (38 Stat. 251) as amended.
If a bank proposes to sell its assets and transfer its deposit liability to another bank
and the purchasing bank is unwilling to accept a sufficient amount of the assets to
cover the liability to depositors and other creditors, the selling bank may, with the
consent of the commissioner, pledge all or a part of its remaining or unacceptable
assets to secure a loan for an amount sufficient to cover the remaining liability to
the depositors and other creditors.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 635, effective July 15, 2010. -- Amended
1998 Ky. Acts ch. 554, sec. 4, effective July 15, 1998. -- Amended 1984 Ky. Acts ch.
324, sec. 27, effective July 13, 1984. -- Recodified 1942 Ky. Acts ch. 208, sec. 1,
effective October 1, 1942, from Ky. Stat. sec. 579.
Formerly codified as KRS 287.330.
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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