808 KAR 11:010. Acquisitions.


      RELATES TO: KRS 286.3-900


      NECESSITY, FUNCTION, AND CONFORMITY: KRS 286.3-900 permits the formation of multibank holding companies and multiple bank ownership by individuals in Kentucky. This administrative regulation is to insure uniformity in the interpretation of those provisions which apply to the acquisition of banks by individuals and bank holding companies.


      Section 1. (1) Fifteen (15) percent deposit limitation. Once every calendar year, the office shall prepare a deposit summary which lists the total deposits in all banks in this state based upon the year-end reports made by the banks to their respective supervisory authorities. The office's deposit summary shall be prepared as soon as practical following compilation of the data contained in the year-end reports.

      (2) The year-end reports to be used by the office are the December 31, Report of Condition filed by the respective banks with the appropriate federal regulatory agencies to include the Federal Deposit Insurance Corporation for state nonmember banks, the Federal Reserve Board for state member banks and the Comptroller of the Currency for national banks.

      (3) Bank acquisitions under consideration by the office shall be based upon the office's deposit summary available at the time of the acquisition application.

      (4) In calculating the total deposits for the acquiring individual or company and the bank being acquired, the deposits for the year the office's deposit summary is available shall be used.


      Section 2. Acquisition Period. (1) The five (5), twelve (12) month periods after the effective date of KRS 286.3-900 during which individuals or companies may not acquire, directly or indirectly, control of more than three (3) banks in this state shall commence on the date that the individual or bank holding company acquires the first bank. An individual or bank holding company is deemed to have acquired a bank on the day the transaction is consummated.

      (2) Effective July 13, 1989, the limitation on the number of bank acquisitions is removed, and individuals and companies may acquire an unlimited number of banks so long as the acquisitions do not exceed the fifteen (15) percent deposit limitation.


      Section 3. Emergency Acquisitions. If the executive director or the Comptroller of the Currency determines that an emergency exists in regard to a state-chartered or national bank respectively, an individual or company may acquire control of the failing bank or bank holding company without being restricted by the three (3) bank acquisition limitation, the fifteen (15) percent deposit limitation or the time limitations for filing for change of control. Approval of the acquisition shall be based on the financial condition, the competence, experience and integrity of the individual or acquiring company or its principals. (10 Ky.R. 1223; Am. 11 Ky.R. 168; eff. 6-28-84; 12 Ky.R. 45; eff. 8-13-85; TAm eff. 5-2-2007.)