(1) Notwithstanding any other provisions of law, any bank doing business in the Commonwealth, whether state or nationally chartered, may purchase for its own account shares of a bank or bank holding company which owns or controls such a bank provided:
(a) The stock of such bank or bank holding company is owned exclusively (except to the extent director‘s qualifying shares are required by law) by depository institutions; and

Terms Used In Kentucky Statutes 286.3-135

  • Capital stock: shall mean , at any particular time, the sum of:
    (a) The par value of all shares of the corporation having a par value that have been issued. See Kentucky Statutes 286.3-010
  • Commissioner: means the commissioner of financial institutions. See Kentucky Statutes 286.3-010
  • Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
  • Director: means a member of the board of directors. See Kentucky Statutes 286.3-010
  • Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
  • State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
  • Statute: A law passed by a legislature.
  • Stock: means the corporation's shares. See Kentucky Statutes 286.3-010
  • Surplus: means the amount of consideration received by the corporation for all shares issued without par value that has not been allocated to capital stock or the amount of consideration received by the corporation in excess of par value for all shares with a par value, or both. See Kentucky Statutes 286.3-010

(b) Such bank or bank holding company and all subsidiaries thereof are engaged exclusively in providing services for depository institutions, their parent companies, their subsidiaries, the officers, directors, and employees of each.
(2) In no event shall the total amount of stock held by a bank in any bank or bank holding company described in subsection (1) above exceed at any time ten percent (10%) of a bank’s capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in a bank acquiring more than five percent (5%) of any class of voting securities of such bank or bank holding company.
(3) The commissioner is authorized to receive applications, hold hearings on such applications, and issue charters for a banker’s bank.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 625, effective July 15, 2010. — Created
1984 Ky. Acts ch. 309, sec. 1, effective July 13, 1984.
Formerly codified as KRS § 287.135.
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.