155.080 Membership -- Duty of members -- Loan limit formula.
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/ky/chapter-155/155-080A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Any financial institution may request membership in the corporation by making
application to the board of directors on such form and in such manner as said board
of directors may require, and membership shall become effective upon acceptance
of such application by said board.
(2)Except for short term loans which members may make at their discretion, each
member of the corporation shall make loans to the corporation as and when called
upon by it to do so on such terms and other conditions as shall be approved from
time to time by the board of directors, subject to the following conditions:
(a)All loan limits shall be established at the thousand dollar ($1,000) amount
nearest to the amount computed in accordance with the provisions of this
section;
(b)No loan to the corporation shall be made if immediately thereafter the total
amount of the obligations of the corporation would exceed twenty
(20)times
the amount then paid in on the outstanding capital stock of the corporation;
and
(c)The total amount outstanding on loan to the corporation made by any member
at any one
(1)time when added to the amount of the investment in the capital
stock of the corporation then held by such member shall not exceed the
following limit, to be determined as of the time such member becomes a
member on the basis of the audited balance sheet of such member at the close
of its fiscal year immediately preceding its application for membership, or, in
the case of an insurance company, its last annual statement to the
commissioner of insurance:
1. Two percent (2%) of the capital and surplus of commercial banks and
trust companies;
2. One percent (1%) of the total outstanding loans made by a building and
loan association: provided, however, that any business development
corporation created pursuant to this section, KRS 155.010 and 155.090
may in its articles of incorporation, or by appropriate amendment
thereto, provide that the loan limit of a building and loan association
member shall be only one-half of one percent (0.5%) of the total
outstanding loans made by such building and loan association member;
3. One percent (1%) of the capital and unassigned surplus of stock
insurance companies, except fire insurance writing companies;
4. One percent (1%) of the unassigned surplus of mutual insurance
companies, except fire insurance writing companies;
5. One-tenth of one percent (0.1%) of the assets of fire insurance writing
companies; and
6. Such limits as may be approved by the board of directors of the
corporation for other financial institutions.