808 KAR 3:030. Conduct of examination of records.


      RELATES TO: KRS 290.100


      NECESSITY, FUNCTION, AND CONFORMITY: KRS 290.100 requires the Department of Financial Institutions to examine each state-chartered credit union. This administrative regulation is to assure the proper conduct of examinations and the availability of books and records of the credit union.


      Section 1. Examination of credit unions under the supervision of the department may be performed without prior notification to the subject credit union. To this end books and records of the credit union must be kept in a place accessible to the examiner so that prior notification is not necessary.

      (1) If books and records are kept outside the place of work or business (example: at home), access to these must be on a daily or continuous basis within the normal five (5) day work week. Those credit unions (where books and records are kept at home) can inform this department of days and/or hours which will be convenient for them and the examiners will take this into consideration when schedules are being made for examinations.

      (2) If books and records of the credit union are kept at the place of work or business this may require that management maintain a dual control system in order that these books and records will be readily accessible to the examiners.


      Section 2. All books and records of the subject credit union shall be posted to date, at the close of every month. Books and records must be posted to date, on or before the 16th of the following month. The daily work shall be posted in the journal and be kept up to date within a week of the time of any examination, so that the examiners may examine the subject credit union on a current basis.


      Section 3. In order to facilitate examinations conducted by the department, all deposits received by the credit union must be deposited in the credit union's bank within two (2) working days after receipt. (1 Ky.R. 1270; eff. 7-2-75; Am. 8 Ky.R. 20; eff. 8-5-81; 202; eff. 11-5-81.)