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HB 264 (BR 942) - W. Coursey

     AN ACT relating to financial institutions.
     Create a new section of KRS Chapter 134 to authorize a person who holds a recorded mortgage on real property or a perfected security interest in real or personal property, which is subject to state property taxes, to register the mortgage or security interest with the Department of Revenue, require the department to notify the sheriff of the appropriate taxing jurisdiction, and if the taxpayer fails to pay the taxes when due after the registration, require the sheriff to mail notice to the registrant mortgagee or holder of a perfected security interest of the right to pay the taxes as a as a transferee in accordance with KRS 134.121; amend KRS 160.570 to authorize a depository appointed by a local board of education to provide collateral in accordance with KRS 41.240, rather than execute a performance bond; create a new section of Subtitle 2 of KRS Chapter 286 to authorize that a fee be paid to a financial institution by state or local governments when the financial institution is required to assemble or provide financial records pertaining to a customer, except records required by the department to administer and enforce KRS Chapters 286 and 292; require the executive director of the Office of Financial Institutions to promulgate regulations to establish the purposes for which the fee may be charged and the reasonable and necessary amount of the fee; amend KRS 283.3-030 to authorize the executive director to allow a state or national bank to use a different name for a branch bank to avoid customer confusion; amend KRS 382.270 to delete the date restriction prior to July 12, 2006 for recording a deed or mortgages to constitute constructive notice of the contents if the instrument is not acknowledged or proved according to law; amend KRS 382.430 to clarify that the no note or other evidence of indebtedness lodged for record with a county clerk shall be recorded unless the address of the person or the address of the principal place of business of a corporation that owns or holds the evidence of indebtedness is contained in the note or other evidence of indebtedness; amend KRS 425.126 to update terms to include security entitlement and securities intermediary, in addition to security, in accordance with KRS 355.8-102(1) and 355.8-201, and specify the requirements to be contained in the order relating to a security, an option or right to acquire a security and a security entitlement to be valid against any securities intermediary or nominee or agent of either, and to establish the requirements for a good faith written request for information regarding possession, custody or control of a security, option or right to acquire a security or entitlement and to require provision of the statement within ten (10) days of the request; amend KRS 427.150 to limit the exemption of retirement funds as property from an estate for the purposes of 11 U.S.C. sec. 522(b)(3) in a federal bankruptcy proceeding to the extent allowed by applicable federal law, to disallow the exemption for amounts contributed to a retirement account within 120 days of filing for bankruptcy or before the entry of judgment or other ruling against the debtor or the issuance of a levy, attachment, garnishment, or other execution or order if the exemption is being applied in other than a federal bankruptcy proceeding; amend KRS 427.160 to limit the $1,000 general real or personal property exemption to federal bankruptcy proceedings to the extent allowed by federal law; and amend KRS 427.170 to limit the exemptions provided by the 11 U.S.C. sec. 522(b)(2) for debtors domiciled in Kentucky to property of the debtor's bankruptcy estate in a federal bankruptcy proceeding.


     HCS - Retain original provisions except delete Section 1 which would allow a holder of a recorded mortgage or a perfected security interest to register the interest with the Department of Revenue and would require the sheriff to notify the registrant if the taxpayer fails to pay the taxes; delete Section 4 which would have authorized a state or national bank to use a different name for a branch office or offices to avoid customer confusion in a community; and, clarify that failure to include the county of residence as part of the address of a mortgagee in a mortgage recorded with a county clerk does not affect the validity of the recording as constructive notice for purposes of KRS Chapter 382.

     SCS - Retain original provisions, except delete Section 2 in its entirety; amend KRS 355.9-518 to specify that a correction statement filed by a bank, or subsidiary or affiliate thereof, shall affect the effectiveness of the record if an officer of the entity filing the statement provides the information required by KRS 355.9-218(2) in a written statement, if the officer's written statement provides his or her title and information identifying how the filer qualifies as a bank, or subsidiary or affiliate thereof, the officer's written statement is acknowledged before a notary public, and the record to which the corrections statement relates was originally filed by or refers to a record filed by the entity filing the correction statement; amend KRS 355.9-510 to conform.

     Jan 14-introduced in House
     Jan 19-to Banking & Insurance (H)
     Feb 1-posted in committee
     Feb 24-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
     Feb 25-2nd reading, to Rules; posted for passage in the Consent Orders of the Day for Wednesday, March 3, 2010
     Mar 3-3rd reading, passed 98-1 with Committee Substitute
     Mar 4-received in Senate
     Mar 8-to Banking & Insurance (S)
     Mar 16-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
     Mar 17-2nd reading, to Rules
     Mar 24-posted for passage in the Consent Orders of the Day for Thursday, March 25, 2010
     Mar 25-3rd reading, passed 37-0 with Committee Substitute ; received in House; to Rules (H)
     Mar 26-posted for passage for concurrence in Senate Committee Substitute for Monday, March 29, 2010
     Apr 1-House concurred in Senate Committee Substitute ; passed 98-1; enrolled, signed by each presiding officer; delivered to Governor
     Apr 13-signed by Governor (Acts ch. 155)

Vote History
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