98RS HB516


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HB 516 (BR 1915) - R. Thomas, J. Bruce

     AN ACT relating to banking.
     Amend various statutes in KRS Chapter pertaining to banking to include savings and loan association in the definition of national bank; change the membership of the Financial Institutions Board; permit the commissioner to designate certain employees to sign documents under his instructions; require any bank with branches to use the same name for all branches in Kentucky; delete the requirement that each bank director own a minimum of capital stock; delete requirement that minimum capital stock be based on population of city and require capital stock in the amount of $2,500,000; provide that not less than 50 percent of the minimum capital stock be designated as surplus; delete provision that allows investment in real property when all or a portion of the improvements for use as its home office or for branch offices so long as the real estate is used for carrying on its legitimate business as permitted by the Constitution; delete requirement that net profits be computed by deducting bad or suspended debts; authorize the commissioner to call at any time, rather than at least twice a year, for publication of a financial statement; require that the assessment schedule be set by regulation rather than the statute; the report required of banks to be made to the commissioner must specify any information the commissioner requires; delete from definition of revolving credit plan purchases by check or other device; require board of directors of any combined bank that operates as a branch of the surviving bank to meet quarterly rather than monthly; permit a Kentucky bank to acquire a branch in another state if that state permits the acquisition; permit banks to rely conclusively on the form and terms of account in transferring or releasing joint account funds subsequent to the date of death of one or more named joint account holders; establish a 5 year statute of limitations for an action for an injury by a trustee to the rights of a beneficiary of a trust; provide that KRS Chapter 413 shall not apply to an express trust that is both continuing and subsisting; amend KRS 41.220, 287.820, 287.990, and 413.130 to conform; repeal KRS 287.061 which pertains to publication of an application for approval of a bank or branch and repeal KRS 287.205 that provides when a national bank may act as fiduciary.


     HCS - Amend KRS 287.235 to establish that no gain or loss shall be recognized for Kentucky income tax purposes by a common trust fund under certain circumstances.

     Feb 5-introduced in House
     Feb 6-to Banking and Insurance (H)
     Feb 9-posted in committee
     Feb 12-reported favorably, 1st reading, to Calendar with Committee Substitute
     Feb 17-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for February 18, 1998
     Feb 23-3rd reading, passed 89-1 with Committee Substitute
     Feb 24-received in Senate
     Feb 25-to Banking and Insurance (S)
     Mar 11-reported favorably, 1st reading, to Consent Calendar
     Mar 12-2nd reading, to Rules
     Mar 13-posted for passage in the Consent Orders of the Day for March 17, 1998
     Mar 17-3rd reading, passed 27-9
     Mar 18-received in House
     Mar 19-enrolled, signed by each presiding officer, delivered to Governor
     Mar 27-signed by Governor

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