808 KAR 7:040. Acquisition of savings and loan associations.

 

      RELATES TO: KRS 286.5-905, 286.5-910

      STATUTORY AUTHORITY: KRS 286.5-702

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 286.5-905, 286.5-910 set forth the statutory procedures which must be followed to acquire control of a Kentucky savings and loan association or a savings and loan association holding company which includes a Kentucky savings and loan association. This administrative regulation is to ensure uniformity in the procedures which apply to such acquisitions.

 

      Section 1. (1) Fifteen (15) percent deposit limitation. The deposit limitation shall be based upon the year-end reports made by the savings and loan associations to their respective supervisory authorities.

      (2) Savings and loan association or savings and loan association holding company acquisitions under consideration by the office shall be based upon the latest year-end reports available to the office at the time of the acquisition application.

 

      Section 2. (1) Acquisition period. The twelve (12) month period during which individuals or corporations may not, directly or indirectly, acquire control of more than three (3) Kentucky savings and loan associations shall commence on the date that the individual or corporation acquires the first savings and loan association. An individual or corporation is deemed to have acquired a savings and loan association on the day the transaction is consummated.

      (2) Effective July 15, 1993, the limitation on the number of savings and loan association acquisitions is removed, and individuals and corporations may acquire an unlimited number of savings and loan associations so long as the acquisitions do not exceed the fifteen (15) percent deposit limitation.

 

      Section 3. Fees. Each acquisition application shall include a nonrefundable investigation fee of $2,500. This fee shall be paid prior to approval of the application.

 

      Section 4. Filings. An original document and four (4) copies of the acquisition application shall be filed with the executive director concurrently with the application filed with the applicable federal supervisory authority, and shall be on the same form used by the applicable federal supervisory authority. All subsequent information furnished by the applicant to the applicable federal supervisory authority shall be concurrently filed with the office. The commissioner may require additional information necessary to make a decision on whether or not to approve the acquisition application.

 

      Section 5. Coordination with Federal Agencies. The executive director shall coordinate the application process for acquisition of a Kentucky savings and loan association or a savings and loan association holding company which controls a Kentucky savings and loan association with the applicable federal regulatory authority to ensure that no unreasonable delays occur in the approval process. (19 Ky.R. 1272; eff. 1-4-93; TAm eff. 5-2-2007.)