Kentucky Statutes 286.3-854 – Closing of bank by commissioner — Written statement of grounds — Appointment of receiver
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(1) The commissioner may take possession and close a bank for purposes of liquidation in any case in which the commissioner finds that the bank:
(a) Is insolvent;
(b) Has permitted capital to become impaired to a level which does not permit the bank to operate in a safe and sound manner;
(c) Has had insurance of depositors’ accounts terminated by the FDIC; or
(d) Has requested through its board of directors that the commissioner take possession for the benefit of depositors, other creditors and shareholders.
(2) If the commissioner has taken possession of and closed a bank for purpose of liquidation, the commissioner shall forthwith issue a written finding of one (1) or more of the grounds for closing provided in this section and shall appoint a receiver for the bank. The commissioner shall immediately thereafter apply to the receivership court for confirmation of the appointment of a receiver. The court shall act upon the application forthwith and may proceed without notice to any person.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 648, effective July 15, 2010. — Created
1984 Ky. Acts ch. 324, sec. 43, effective July 13, 1984.
Formerly codified as KRS § 287.854.
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.
(a) Is insolvent;
Terms Used In Kentucky Statutes 286.3-854
- Commissioner: means the commissioner of financial institutions. See Kentucky Statutes 286.3-010
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
- Statute: A law passed by a legislature.
(b) Has permitted capital to become impaired to a level which does not permit the bank to operate in a safe and sound manner;
(c) Has had insurance of depositors’ accounts terminated by the FDIC; or
(d) Has requested through its board of directors that the commissioner take possession for the benefit of depositors, other creditors and shareholders.
(2) If the commissioner has taken possession of and closed a bank for purpose of liquidation, the commissioner shall forthwith issue a written finding of one (1) or more of the grounds for closing provided in this section and shall appoint a receiver for the bank. The commissioner shall immediately thereafter apply to the receivership court for confirmation of the appointment of a receiver. The court shall act upon the application forthwith and may proceed without notice to any person.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 648, effective July 15, 2010. — Created
1984 Ky. Acts ch. 324, sec. 43, effective July 13, 1984.
Formerly codified as KRS § 287.854.
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.