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155.080 Membership -- Duty of members -- Loan limit formula.
(1)
(2)
Any financial institution may request membership in the corporation by making
application to the board of directors on such form and in such manner as said
board of directors may require, and membership shall become effective upon
acceptance of such application by said board.
Except for short term loans which members may make at their discretion, each
member of the corporation shall make loans to the corporation as and when
called upon by it to do so on such terms and other conditions as shall be
approved from time to time by the board of directors, subject to the following
conditions:
(a) All loan limits shall be established at the thousand dollar ($1,000) amount
nearest to the amount computed in accordance with the provisions of this
section;
(b) No loan to the corporation shall be made if immediately thereafter the
total amount of the obligations of the corporation would exceed twenty
(20) times the amount then paid in on the outstanding capital stock of the
corporation; and
(c) The total amount outstanding on loan to the corporation made by any
member at any one (1) time when added to the amount of the investment
in the capital stock of the corporation then held by such member shall not
exceed the following limit, to be determined as of the time such member
becomes a member on the basis of the audited balance sheet of such
member at the close of its fiscal year immediately preceding its
application for membership, or, in the case of an insurance company, its
last annual statement to the commissioner of insurance:
1.
Two percent (2%) of the capital and surplus of commercial banks
and trust companies;
2.
One percent (1%) of the total outstanding loans made by a building
and loan association: provided, however, that any business
development corporation created pursuant to this section, KRS
155.010 and 155.090 may in its articles of incorporation, or by
appropriate amendment thereto, provide that the loan limit of a
building and loan association member shall be only one-half of one
percent (0.5%) of the total outstanding loans made by such building
and loan association member;
3.
One percent (1%) of the capital and unassigned surplus of stock
insurance companies, except fire insurance writing companies;
4.
One percent (1%) of the unassigned surplus of mutual insurance
companies, except fire insurance writing companies;
5.
One-tenth of one percent (0.1%) of the assets of fire insurance
writing companies; and
6.
Such limits as may be approved by the board of directors of the
corporation for other financial institutions.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 208, effective July 15, 2010. -Amended 1976 Ky. Acts ch. 214, sec. 9. -- Amended 1966 Ky. Acts ch. 212,
ch. 2 -- Amended 1962 Ky. Acts ch. 197, sec. 1 -- Created 1960 Ky. Acts ch. 73,
sec. 8.
Legislative Research Commission Note (7/15/2010). The Reviser of Statutes has
restructured subsection (2)(c) under the authority of KRS 7.136. No substantive
change has been made.
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