808 KAR 1:020. Excess funds transactions

Link to law: http://www.lrc.ky.gov/kar/808/001/020.htm
Published: 2015

      808 KAR 1:020.

Excess funds transactions.

 

      RELATES TO: KRS 286.3-280,

286.3-290, 286.3-300

      STATUTORY AUTHORITY:

KRS 286.1-011, 286.1-020

      NECESSITY, FUNCTION,

AND CONFORMITY: To establish the status of excess funds (federal funds)

transactions so as to insure the maintenance of competitive equality between

state and national banks in Kentucky.

 

      Section 1. For

purposes of this regulation, the term "excess funds transactions"

(federal funds transactions) shall be defined as transactions between

commercial banks involving the adjustment of their legal reserve positions

through the short term transfer of reserve deposits.

 

      Section 2. Excess

funds transactions between state banks and between state and national banks

shall be regarded as the interbank transfer of reserve deposits and, as such,

are not in the nature of interbank loans or lending activities.

 

      Section 3.

State-chartered banks may sell and purchase unlimited amounts of excess funds,

and such excess funds transactions shall not be subject to the maximum lending

provisions of KRS 286.3-280.

 

      Section 4. The

reserve requirements and other provisions of KRS 286.3-300 do not apply to

excess funds transactions. (BR-73-1; 1 Ky.R. 885; eff. 5-14-75; TAm eff.

4-17-2007.)
Read Entire Law on www.lrc.ky.gov