200 KAR 14:200. Linked Deposit Investment Program

Link to law: http://www.lrc.ky.gov/kar/200/014/200.htm
Published: 2015

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      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.)