There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Subtitle 5. Savings and Loan Associations
286.5.750 Conservator appointed -- When -- Procedure.
Download pdfa conservator, applies to a court of general jurisdiction in the county in which the
home office of the association is located for the appointment of a conservator court
may appoint a conservator if it finds that the association:
(a) Is in an impaired condition, or
(b) Is in violation of an order or injunction, as authorized by this section, which has become final in that the time to appeal has expired without appeal, or a
final order entered from which there can be no appeal. (2) The commissioner, the commissioner's examiner, or another person may be appointed by the court as conservator, and a certified copy of the order of the court
making the appointment shall be evidence thereof. The conservator shall have the
power and authority provided in this subtitle and such other power and authority as
is expressed in the order of the court. The conservator shall endeavor promptly to
remedy the situations complained of in the petition for his or her appointment. (3) Within six (6) months of the date of the appointment, or within twelve (12) months if the court extends the six (6) months' period, the association shall be returned to its
board of directors and thereafter shall be managed and operated as if no conservator
had been appointed, or a receiver shall be appointed as provided in KRS 286.5-760. (4) If the commissioner, or examiner, is appointed conservator he or she shall receive no additional compensation, but if another person is appointed, then the
compensation of the conservator, as determined by the court, shall be paid by the
association. (5) A certified copy of the order of the court discharging the conservator and returning such association to its directors shall be sufficient evidence thereof. (6) Any conservator appointed shall have all the rights, powers, and privileges possessed by the officers, board of directors, and members of the association. (7) The conservator shall not retain special counsel or other experts, incur any expense other than normal operating expenses, or liquidate assets except in the ordinary
course of operations. (8) The directors and officers shall remain in office and the employees shall remain in their respective positions, but the conservator may remove any director, officer, or
employee, if the order of removal of a director or officer is approved in writing by
the commissioner. (9) While the association is in the charge of a conservator, members of such association shall continue to make payments to the association in accordance with the terms and
conditions of their contracts, and the conservator, in his discretion, may permit
savings account members to withdraw their accounts, from the association pursuant
to the provisions of this subtitle or under such rules and regulations as the
commissioner may prescribe. The conservator shall have power to accept savings
accounts and additions to savings accounts, but any amounts received by the
conservator may be segregated if the commissioner so orders in writing; if so ordered, such amounts shall not be subject to offset and shall not be used to
liquidate any indebtedness of such association existing at the time the conservator
was appointed for it or any subsequent indebtedness incurred for the purposes of
liquidating the indebtedness of any such association existing at the time such
conservator was appointed. All expenses of the association during such
conservatorship shall be paid by the association. Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 707, effective July 15, 2010. -- Amended 1966 Ky. Acts ch. 255, sec. 233, effective June 16, 1966. -- Created 1964 Ky. Acts
ch. 138, sec. 54(2) to (10), effective June 18, 1964. Formerly codified as KRS 289.750.
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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