Kentucky Statutes 286.5-461 – Compliance with federal law or regulations required for property improvement loans or mobile home loans
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(1) Savings and loan associations are authorized to make loans secured by a first lien on real estate and at a rate or rates not in excess of that provided by KRS § 360.010 and
360.025.
(2) Savings and loan associations are authorized to make property improvement loans and loans to finance the purchase of mobile homes, provided that said loans comply with the “Rules and Regulations for the Federal Savings and Loan System” Subchapter C of Title 12, Code of Federal Regulations. A property improvement loan or a mobile home loan may be made, with or without a first mortgage lien on real estate as security, for such a period of time and under such contract provisions as are authorized by the above federal regulations. Where there are no interest rate limitations established under the applicable federal law or regulations, savings and loan associations making such loans shall be subject to the same interest rate limitations on loans as any bank, trust company, or combined bank and trust company under the provisions of KRS § 286.3-215. A savings and loan association making such loans is authorized to charge and receive interest in advance, with service charges, delinquency charges, and rebate computations being identical to those authorized for a bank, trust company or combined bank and trust company under KRS § 286.3-215.
Effective: July 15, 1980
History: Amended 1980 Ky. Acts ch. 346, sec. 1, effective July 15, 1980. — Amended
1972 Ky. Acts ch. 267, sec. 2. — Created 1964 Ky. Acts ch. 138, sec. 27, effective
June 18, 1964.
Formerly codified as KRS § 289.461.
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, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.
360.025.
Terms Used In Kentucky Statutes 286.5-461
- Association: means a savings and loan association subject to the provisions of this subtitle and as used in KRS §. See Kentucky Statutes 286.5-011
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Contract: A legal written agreement that becomes binding when signed.
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Home: means a dwelling or dwellings for not more than four (4) families, the principal use of which is for residential purposes. See Kentucky Statutes 286.5-011
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- real estate: includes lands, tenements, and hereditaments and all rights thereto and interest therein, other than a chattel interest. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
(2) Savings and loan associations are authorized to make property improvement loans and loans to finance the purchase of mobile homes, provided that said loans comply with the “Rules and Regulations for the Federal Savings and Loan System” Subchapter C of Title 12, Code of Federal Regulations. A property improvement loan or a mobile home loan may be made, with or without a first mortgage lien on real estate as security, for such a period of time and under such contract provisions as are authorized by the above federal regulations. Where there are no interest rate limitations established under the applicable federal law or regulations, savings and loan associations making such loans shall be subject to the same interest rate limitations on loans as any bank, trust company, or combined bank and trust company under the provisions of KRS § 286.3-215. A savings and loan association making such loans is authorized to charge and receive interest in advance, with service charges, delinquency charges, and rebate computations being identical to those authorized for a bank, trust company or combined bank and trust company under KRS § 286.3-215.
Effective: July 15, 1980
History: Amended 1980 Ky. Acts ch. 346, sec. 1, effective July 15, 1980. — Amended
1972 Ky. Acts ch. 267, sec. 2. — Created 1964 Ky. Acts ch. 138, sec. 27, effective
June 18, 1964.
Formerly codified as KRS § 289.461.
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, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.