808 KAR 7:030. State-chartered savings and loan associations; operating parity.

 

      RELATES TO: KRS 286.5-081, 286.5-441, 286.5-451

      STATUTORY AUTHORITY: KRS 286.5-705

      NECESSITY, FUNCTION, AND CONFORMITY: In order that the dual system of savings associations may be preserved, the following administrative regulation authorizing state-chartered savings and loan associations to make adjustable mortgage loans (AMLs) and consumer loans and to offer NOW accounts is necessary to place said state-chartered associations on a substantial, competitive, operating parity with federal savings and loan associations.

 

      Section 1. State-chartered savings and loan associations are hereby authorized to make, purchase or otherwise deal in adjustable mortgage loan instruments subject only to the limitations imposed on such instruments under sec. 545.6 of the Federal Home Loan Bank Board's regulations as amended effective June 30, 1981, including the disclosure requirements therein.

 

      Section 2. State-chartered savings and loan associations are hereby authorized to make secured or unsecured loans for personal, family or household purposes, but assets acquired pursuant to this section shall not exceed such percentage of total assets of the association as permitted for federal associations by the Federal Home Loan Bank Board.

 

      Section 3. State-chartered savings and loan associations are hereby authorized to offer interest-bearing instruments with third party transfer features (NOW Accounts) subject to any interest-rate ceilings imposed by federal law or regulation. (8 Ky.R. 183; eff. 10-7-81; TAm eff. 5-2-2007.)