HB726: AN ACT relating to the regulation of financial institutions.

Legislative Summary

Amends sections of Subtitles 1, 2, and 3 of KRS Chapter 286 to consolidate statutes, to make technical corrections, and to make revisions to the required banking experience of the financial institutions commissioner, the Financial Institutions Board, prohibited practices of financial institution examiners, application of financial services code to national bank or federal savings association operating subsidiaries, examination of safe deposit boxes, transaction of business by foreign financial institutions, banking definitions, the transaction of banking or trust business in this state, state bank and trust company charter requirements, and state bank investment powers; amends sections of Subtitle 3 of KRS Chapter 286 relating to the definition of a receivership court for an insolvent bank, national bank to state bank conversions, state bank branching powers, bank holidays, pledges of bank assets, bank dividends, bank acquisitions, bank concentration limits, interstate merger transactions, out-of-state bank powers, and banking code penalties; creates new sections of Subtitles 2 and 3 of KRS Chapter 286 to establish rules of application and interpretation, to establish national bank parity regulatory authority of the commissioner, and to amend various sections to conform; repeals sections within Subtitles 1, 2, and 3 of KRS Chapter 286 relating to financial institution commissioner appointments, improperly influencing real estate appraisals, financial institution definitions, foreign financial institutions, banking business powers, bank officers and directors, capital requirements for banks and trust companies, bank branch requirements, installment loans, educational loans to minors, and revolving credit plans; amends KRS 286.3-095 to require reporting for changes in control of bank holding companies that own a state bank; amends KRS 286.3-145 to modify the requirements for state trust companies doing business outside of Kentucky; amends KRS 286.3-146 to modify the requirements for out-of-state trust companies to do business in Kentucky; amends KRS 286.3-690 to permit the commissioner of financial institutions to remove a bank employee from office; repeals Subtitle 5 of KRS Chapter 286, relating to the chartering and regulation of state savings and loan associations, except provision relating to transacting of business by out-of-state savings and loan associations; repeals Subtitles 7 and 10 of KRS Chapter 286, relating to the licensing and regulation of industrial loan corporations and title pledge lending; amends KRS 286.8-034 to modify application fees and annual assessment fees for mortgage loan companies and mortgage loan brokers; repeals KRS 365.205, relating to printing requirements for personal checks; and provides for the initial and staggered appointments to the Financial Institutions Board.