200 KAR 14:200. Linked Deposit Investment Program.
RELATES
TO: KRS 41.600-41.620
STATUTORY
AUTHORITY: KRS 41.606(1), (2), (5)- (7), 42.510(3), 42.525
NECESSITY,
FUNCTION, AND CONFORMITY: This administrative regulation established the
conditions for which small businesses and agribusiness are eligible for loans
made available through the Linked Deposit Investment Program and provides for
agency review of the information provided by the lending institution as part of
the loan package. The Linked Deposit Investment Program, as it pertains to
agribusiness, will be monitored by the Department of Agriculture and as it
pertains to small businesses, will be monitored by the Cabinet for Economic
Development.
Section
1. (1) The amount of funds available for Linked Deposit Investment Program
loans shall be the amount of cash in the state's Unclaimed and Abandoned
Property Program.
(2)
Approval for a new application for a linked deposit investment shall be denied
or an existing investment revoked by the State Investment Commission for
failure of the financial institution to meet and maintain the eligibility
requirements prescribed in KRS 42.500 and 200 KAR Chapter 14 for each
investment type.
Section
2. Repayments. The eligible lending institution shall remit to the State
Investment Commission by June 30 of each year all loan principal repayments for
the preceding year beginning June 1 and ending May 31.
Section
3. Reporting Requirements. The State Investment Commission shall submit to
either the Cabinet for Economic Development's Small and Minority Business
Division or the Department of Agriculture a copy of the letter confirming each
approved linked deposit investment with the eligible lending institution no
later than thirty (30) days after the date the linked deposit investment
program has been funded.
Section
4. Investment Policies. (1) Linked deposit investments in aggregate of less
than $100,000 for any institution may be in the form of a Certificate of
Deposit. Aggregate investments between $100,000 and $250,000 may be in the form
of a collateralized certificate of deposit with collateral meeting the
requirements established by 200 KAR 14:081, Section 8, for the Kentucky Bank
Repurchase Program. Any institution with linked deposit loans greater than $250,000
shall be in the form of a repurchase agreement subject to the terms and
conditions established by 200 KAR 14:081, Section 8, for the Kentucky Bank
Repurchase Program.
(2)
The yield on link deposit investments shall be as prescribed in KRS 41.610. (24
Ky.R. 1422; Am. 1649; eff. 2-10-98.)