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286.3-450
Examination -- Procedure -- Agreement to examine and supervise
branches -- Joint examination and enforcement actions.
(1)
(2)
(3)
(4)
(5)
Every state bank, branch of an out-of-state state bank, or trust company doing
business under the laws of this state shall be subject to inspection by the
commissioner or by an examiner appointed by the commissioner. Examination shall
be made of each institution at least once every twenty-four (24) months, unless
other examinations are accepted as provided in subsections (3), (4), and (5) of this
section, and not more than twice unless it appears from examination or from the
reports of the institution that it has failed to comply with laws or regulations relating
to banks or trust companies, or has engaged in unsafe or unsound banking practices.
The commissioner, deputy commissioner, and each examiner may compel the
appearance of any person for the purpose of the examination, which shall be made
in the presence of one (1) of the officers of the institution being examined.
Any bank that becomes a member of a Federal Reserve Bank shall be subject to the
examination required by the Federal Reserve Act, (38 Stat. 251) as amended, and
the commissioner may, in his discretion, accept examinations made by the Federal
Reserve authorities in lieu of examinations made under state laws. The
commissioner shall furnish to the Federal Reserve agent of the district in which the
member bank is situated, copies of reports and examinations made of the member
bank.
The commissioner may, in his discretion, accept examinations made by the Federal
Deposit Insurance Corporation in lieu of examinations made under state laws.
The commissioner may, in his discretion, enter into cooperative, coordinating, and
information-sharing agreements with any other bank supervisory agencies or any
organization affiliated with or representing one (1) or more bank supervisory
agencies with respect to the periodic examination or other supervision of any branch
of an out- of- state state bank, any branch of a state bank in any host state, any trust
office or trust representative office of an out-of-state trust company, or any trust
office or trust representative office of a Kentucky state trust company in any host
state. The commissioner may accept reports of examinations and reports of
investigation from other bank supervisory agencies and home state regulators in lieu
of examinations made under state law. The commissioner may enter into joint
examinations or joint enforcement actions with other bank supervisory agencies
having concurrent jurisdiction over any bank, bank holding company, branch of an
out- of- state state bank, any branch of a state bank located in any host state, any
trust office or trust representative office of an out-of-state trust company, or any
trust office or trust representative office of a Kentucky state trust company in any
host state. Information produced or provided under this section shall be considered
confidential as provided in KRS 286.3-470.
Effective: June 8, 2011
History: Amended 2011 Ky. Acts ch. 67, sec. 5, effective June 8, 2011. -- Amended
2010 Ky. Acts ch. 24, sec. 639, effective July 15, 2010. -- Amended 2006 Ky. Acts
ch. 183, sec. 11, effective July 12, 2006. -- Amended 1998 Ky. Acts ch. 196, sec. 16,
effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 338, sec. 17, effective July
15, 1996. -- Amended 1992 Ky. Acts ch. 77, sec. 4. effective July 14, 1992. -Amended 1984 Ky. Acts ch. 324, sec. 30, effective July 13, 1984. -- Amended 1982
Ky. Acts ch. 251, sec. 14, effective April 1, 1982. -- Recodified 1942 Ky. Acts ch.
208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 165a-8.
Formerly codified as KRS 287.450.
Legislative Research Commission Note (7/12/2006). This section was amended in
2006 Ky. Acts ch. 183. In that same session, 2006 Ky. Acts ch. 247, sec. 38 required
that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be
renumbered as sections of a single KRS chapter entitled the "Kentucky Financial
Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has
changed the number of this section and codified it as a section of KRS Chapter 286.
In addition, a KRS reference has been adjusted to conform with the renumbering.
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