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SB 45 (BR 1047) - T. Buford
AN ACT relating to financial services.
Create a new section of KRS Chapter 287 to restrict a person who is not a financial institution from using the trade name, trademark, service mark, logo, or symbol of any financial institution; amend KRS 287.010 to define terms; amend KRS 287.040 to provide that the number of board of directors of a bank shall be no less than the required number of organizers rather than incorporators; amend KRS 287.050 to make technical change by deleting "incorporators" and inserting in lieu thereof "organizers"; allow articles of incorporation to be filed and recorded as provided in the limited liability company law; amend KRS 287.102 to provide that a bank receiving a CAMEL rating of 1 or 2 is exempt from any statutes or administrative regulations which would be preempted if it was operating as a national bank in any state, operating as a state bank, state thrift, or state savings bank in any state, or meets the qualified thrift lender test; amend KRS 287.103 to make a technical change; amend KRS 287.280 to permit a bank organized as a limited liability company to comply with the legal lending limits applicable to national banks; amend KRS 287.990 to conform; amend KRS 425.501 to provide for a processing fee of ten dollars with each order of garnishment; amend KRS 382.270 to provide that a deed or deed of trust or mortgage conveying a legal or equitable title to real property that is not so acknowledged or proved according to law, but has been otherwise legally lodged for record prior to the effective date of this Act, shall be deemed to be validly lodged for record for purposes of KRS Chapter 382 and all interested parties shall be on constructive notice of the contents thereof.
SB 45 - AMENDMENTS
SCS - Retain original provisions; define "financial institution"; delete provision on cease and desist and civil penalty; authorize the Attorney General, rather than the executive director of the Office of Financial Institutions, to institute actions when there has been illegal use of a financial institution's trade name, trademark, service mark, logo, or symbol; amend KRS 287.013 to authorize the chairman, rather than the board, to call meetings of the financial institution's board; delete requirement that the board meet at least quarterly; amend KRS 287.065 to delete requirement that a majority of a bank's board of directors must be Kentucky residents during their term of office; amend KRS 287.102 to provide that before a state bank can engage in activities in which it could engage if it were a national bank, the state bank must obtain a legal opinion specifying the conditions under which such activity is allowed; amend KRS 287.350 to delete requirement that before a dividend is declared, at least 10 percent of a bank's net profits must be carried to its surplus fund; amend KRS 287.450 to permit the executive director to enter into joint examinations or joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over any bank and bank holding company in addition to any branch of an out-of-state bank or branch of a state bank located in a host state; amend KRS 287.480 to permit the executive director to enter into joint cooperative agreements for the collection and sharing of fees with other bank supervisory agencies having concurrent jurisdiction over any bank and bank holding company in addition to any branch of an out-of-state bank or branch of a state bank located in a host state; amend KRS 287.820 to require a bank, other than a bank that the executive director may designate by administrative regulation, to apply to the executive director for permission to establish a loan production office; amend KRS 287.990(18) to make a technical change; amend KRS 382.270 to make technical changes; amend KRS 382.360 to require the clerk to cause the original deed of release to be delivered to the mortgagor or grantor or person entitled thereto; require the assignee of a mortgage to file the assignment with the county clerk within 30 days of the assignment; prohibit the delivering of an assignment to the assignee or a lien release to the mortgagor from substituting for filing the assignment with the county clerk; provide that nothing in KRS Chapter 382 requires the legal holder of any note secured by lien in any deed or mortgage to file a release of any mortgage when the mortgage securing the paid note also secures a note or other obligation with remains unpaid; specify that failure of an assignee to record a mortgage assignment shall not affect the validity or perfection, or invalidity or lack of perfection, of a mortgage lien under applicable law; amend KRS 382.365 to require the assignee of a lien on real property to record the assignment in the county clerk's office; provide that upon proof to the court of the lien being satisfied by payment in full to the final lienholder or assignee the court must enter a judgment noting the identity of the final lienholder or assignee and authorizing and directing the master commissioner of the court to execute and file with the county clerk the requisite release or assignments or both as appropriate; require the written notice to be properly addressed and sent by certified mail or delivered in person to an officer or agent for process of the final lienholder or final assignee at the lienholder's principal address; prohibit damages for failure to record an assignment from exceeding three times the actual damages, plus attorney's fees and court costs, but establishing minimum damages of $500.
SFA (1, E. Scorsone) - Amend KRS 287.102 to provide that a state bank with a CAMEL rating of 1 or 2 that is exempted from any statutes is not exempted from KRS 360.100, the statute prohibiting predatory lending.
HFA (1, R. Wilkey) - Delete in Section 1 the authority of the Attorney General to institute an action on wrongful use of a financial institution's trade name, trademark, service mark, logo, or symbol; permit certain state chartered banks to be exempt from Kentucky statutes and regulations from which it would be preempted if a national bank, state bank or thrift, or a federally chartered thrift in Kentucky rather than in any state; prohibit application of the exemption to laws regulating Kentucky banks pertaining to deferred deposit transactions and title pledge lending in KRS Chapter 368, high-cost home loans in KRS 360.100, visitorial or examination powers, and interest rates.
HFA (2, D. Owens) - Delete Section 7.
HFA (3, R. Wilkey) - Delete in subsection (4) of Section 1 the authority of the Attorney General to institute an action to enforce restrictions on use of a financial institution's trade name, trademark, service mark, logo, or symbol; permit certain state banks under Section 7 to engage in activities they could engage in if they were operating as a national bank in Kentucky rather than as a national bank in any state; clarify that Section 7 does not apply to exempt any laws which regulate Kentucky state banks pertaining to deferred deposit transactions in KRS Chapter 368, title pledge lending in KRS Chapter 368, high-cost home loans in KRS 360.100, visitorial or examination powers, and interest rates.
HFA (4, J. Barrows) - Change subsection (4) of Section 18 to clarify written notice of failure to release a lien on real property; create new sections of KRS Chapter 382 to allow a recorded mortgage to be amended by an affidavit prepared by an attorney to correct clerical errors or omitted information; prohibit the amendment from changing any term, dollar amount, or interest rate in the mortgage, unless signed by the mortgagor and secured party; permit the filing of an affidavit to correct or supplement information regarding marital status of any party to a deed or to supplement or correct information contained in or absent from the acknowledgment or notary portion of a deed.
HFA (5, R. Wilkey) - Delete in subsection (4) of Section 1 the authority of the Attorney General to institute an action to enforce restrictions on use of a financial institution's trade name, trademark, service mark, logo, or symbol; permit certain state banks under Section 7 to engage in activities it could engage in if it was operating as a national bank in Kentucky rather than as a national bank in any state; clarify that Section 7 does not apply to exempt any laws which regulate Kentucky state banks pertaining to deferred deposit transactions in KRS Chapter 368, title pledge lending in KRS Chapter 368, visitorial or examination powers, and interest rates.
HFA (6, T. Riner) - Create a new section of KRS Chapter 287 to permit any person having knowledge or believing that a violation of KRS Chapter 287 on banking or any other illegal act or practice is being or has been committed to provide the Executive Director of the Office of Financial Institutions or a bank examiner with the information; direct that if the information is given to a bank examiner, the bank examiner shall immediately provide the information to the Executive Director; deem such information as confidential and not subject to the Kentucky Open Records Act; provide that the information shall not be subject to subpoena, is not subject to discovery, and is not admissible in a civil action, unless after notice and a hearing, a court determines the Executive Director would not be unduly prejudiced; declare that the Executive Director, bank examiner, or person acting under authority of the Executive Director shall not be required to testify in a civil action concerning the information; authorize the Executive Director to use the information as part of regulatory or legal action brought as part of the Executive Director's official duties; permit the Executive Director to share the information with other state, federal, and international law enforcement agencies if the recipient agrees to maintain confidentiality; provide that in the absence of fraud, malice, or negligence, a person who provides the information shall not be subject to civil liability for libel , slander, or any other relevant tort.
CCR - Cannot agree.
FCCR - Adopt SB 45/GA and House floor amendment 5; amend Section 18 to include a party with an interest in the real property in addition to the owner of the real property; require the written notice of failure to release a lien on real property to be properly addressed and sent by certified mail or delivered in person to a corporation's officer at the lienholder's principal address or an agent for process in Kentucky; to a individual at the address shown on the mortgage, at the lienholder's place of residence or place of business, or at an address to which the lienholder has directed that correspondence or payoff be sent; to a fiduciary of a trust or estate at the address shown on the mortgage or at an address to which the lienholder has directed that correspondence or payoff be sent; or to any other entity to an officer, partner, or member at the entity's principal place of business or to an agent for process; add subsection (11) to provide that if more than one owner or party with an interest in the real property brings an action to recover damages, any statutory damages shall be allocated equally among recovering parties in the absence of agreement, otherwise among said parties; provide that a entry of a judgment awarding damages bars a subsequent action by any other person or entity to recover damages for the same violation; create new sections of KRS Chapter 382 to allow a recorded mortgage to be amended by an affidavit prepared by an attorney to correct clerical errors or omitted information; prohibit the amendment from changing any term, dollar amount, or interest rate in the mortgage, unless signed by the mortgagor and secured party; permit the filing of an affidavit to correct or supplement information regarding marital status of any party to a deed or to supplement or correct information contained in or absent from the acknowledgment or notary portion of a deed.
Jan 3-introduced in Senate
Jan 5-to Judiciary (S)
Jan 6-reassigned to Banking and Insurance (S)
Jan 27-reported favorably, 1st reading, to Calendar with Committee Substitute
Jan 30-2nd reading, to Rules
Feb 6-posted for passage in the Regular Orders of the Day for Tuesday, February 7, 2006
Feb 7-passed over and retained in the Orders of the Day
Feb 8-3rd reading, passed 30-7 with Committee Substitute ; floor amendment (1) filed ; floor amendment (1) ruled out of order ; received in House
Feb 13-to Banking and Insurance (H)
Feb 22-posted in committee
Mar 1-reported favorably, 1st reading, to Calendar
Mar 2-2nd reading, to Rules
Mar 8-posted for passage in the Regular Orders of the Day for Thursday, March 9, 2006; floor amendment (1) filed
Mar 10-floor amendments (2) and (3) filed
Mar 13-floor amendment (4) filed
Mar 14-floor amendment (5) filed
Mar 20-floor amendment (6) filed
Mar 22-3rd reading; floor amendments (2) and (4) rejected ; passed 79-16 with floor amendment (5) ; received in Senate; posted for passage for concurrence in House floor amendment (5) on Wednesday, March 22, 2006; Senate refused to concur in House floor amendment (5) ; received in House; posted for passage for receding from House floor amendment (5)
Mar 23-House refused to recede from floor amendment (5)
Mar 24-Conference Committee appointed in House and Senate; Conference Committee report filed in House and Senate; Conference Committee report adopted in House and Senate; Free Conference Committee appointed in House and Senate; Free Conference Committee report filed in House
Apr 10-Free Conference Committee report adopted in House; bill passed 92-7; received in Senate; posted for passage for consideration of Free Conference Report ; Free Conference Committee report filed in Senate; Free Conference Committee report adopted in Senate; bill passed 35-2; enrolled, signed by President of the Senate
Apr 11-enrolled, signed by Speaker of the House; delivered to Governor
Apr 21-signed by Governor (Acts ch. 183)
Vote History
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