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286.3-920
Interstate merger transactions -- Restrictions -- Combinations of
commonly controlled banks -- Scope of activities of branch outside home state.
(1)
(2)
(3)
(4)
(5)
As used in this section, unless the context requires otherwise:
(a) "Interstate merger transaction" means the merger or consolidation of banks
with different home states, and the conversion of branches of any bank
involved in the merger or consolidation into branches of the resulting bank;
and
(b) "Resulting bank" means a bank that has resulted from an interstate merger
transaction under this section.
A Kentucky state bank may establish, maintain, and operate one (1) or more
branches in a state other than Kentucky in accordance with an interstate merger
transaction in which the Kentucky state bank is the resulting bank, or if the other
state permits, by acquisition of a branch or branches in the other state. Not later than
the date on which the required application for the interstate merger transaction or
branch acquisition is filed with the responsible federal bank supervisory agency, the
applicant shall file an application on a form prescribed by the commissioner and pay
the fee prescribed by KRS 286.3-480. The applicant shall also comply with the
applicable provisions of KRS 286.3-180(2) and the commissioner shall base his or
her approval or disapproval in the same manner as prescribed in KRS 286.3-180(2).
An out- of- state state bank may establish, maintain, and operate one (1) or more
branches in Kentucky in accordance with an interstate merger transaction in which
the out- of- state state bank is the resulting bank in accordance with the
requirements of Kentucky laws and administrative regulations. If the laws of the
home state of the out- of- state bank place more restrictive terms or requirements on
Kentucky state banks seeking to acquire and merge with a bank in that state, the
interstate merger of the out- of- state bank may be allowed only under substantially
the same terms and conditions as applicable to Kentucky state banks in that state.
Not later than the date on which the required application for the interstate merger
transaction is filed with the responsible federal bank supervisory agency, the
applicant shall file an application on a form prescribed by the commissioner, pay the
fee prescribed by KRS 286.3-480, and agree in writing to comply with the laws of
this state applicable to its operation of branches in Kentucky. The applicant shall
also comply with the applicable provisions of KRS 286.3-180(2) and the
commissioner shall base his or her approval or disapproval in the same manner as
prescribed in KRS 286.3-180(2).
No interstate merger transaction under subsection (2) or (3) of this section shall be
approved if the transaction would result in a bank holding company having control
of banks or branches in this state holding more than fifteen percent (15%) of the
total deposits and member accounts in the offices of all federally insured depository
institutions in this state as reported in the most recent June 30 quarterly report made
by the institutions to their respective supervisory authorities which are available at
the time of the transaction.
An individual or bank holding company that controls two (2) or more banks may,
from time to time, combine any or all of the commonly controlled banks in this
(6)
(7)
Commonwealth into and with any one (1) of the banks, and thereafter the surviving
bank shall continue to operate its principal office and may operate the other
authorized offices of the banks so combined as branches of the surviving bank.
(a) A branch of an out-of-state state bank may conduct any activities that are
authorized under the laws of this state for state banks. Additionally, the branch
of an out-of-state state bank is authorized to conduct any activities relating to
the administration of trusts that are authorized under the laws of its home
state, if the activities are conducted in conformity with the laws of its home
state.
(b) A branch office of an out-of-state bank may conduct any fiduciary activities
that are authorized under the laws of this state for banks, provided that a
branch office of a Kentucky bank is permitted, pursuant to the laws of the
state under which the out-of-state bank is organized to engage in substantially
similar activities.
A branch of a Kentucky state bank located in a host state may conduct any activities
that are:
(a) Authorized under the laws of the host state for banks chartered by the host
state; or
(b) Authorized for branches of national banks located in the host state, but whose
principal location is in a state other than the host state.
Effective: June 8, 2011
History: Amended 2011 Ky. Acts ch. 67, sec. 6, effective June 8, 2011. -- Amended
2010 Ky. Acts ch. 24, sec. 654, effective July 15, 2010. -- Amended 2004 Ky. Acts
ch. 13, sec. 1, effective July 13, 2004. -- Amended 2000 Ky. Acts ch. 135, sec. 5,
effective July 14, 2000; and ch. 279, sec. 7, effective July 14, 2000. -- Amended
1998 Ky. Acts ch. 196, sec. 22, effective July 15, 1998. -- Created 1996 Ky. Acts ch.
338, sec. 2, effective June 1, 1997.
Formerly codified as KRS 287.920.
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, and KRS references within
this statute have been adjusted to conform with the 2006 renumbering of that code.
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