808 KAR 11:020. Procedures.
RELATES TO: KRS 286.3-095, 286.3-905
STATUTORY AUTHORITY: KRS 286.3-020
NECESSITY, FUNCTION, AND CONFORMITY: KRS 286.3-095
and 286.3-905 set forth the statutory procedures for filing applications by a
bank holding company or individual to acquire control of a state-chartered bank
or bank holding company which includes a state-chartered bank when either a
state-chartered bank or a bank holding company which includes a state-chartered
bank is involved in the transaction; the setting of filing and examination
fees; and the examination of any holding company that controls a
state-chartered bank. This administrative regulation is to insure uniformity in
the procedures to be used in the application and examination processes.
Section 1. (1) The provisions of KRS 286.3-095(1)
and (2) are not applicable to transactions involving applications filed with
the Federal Reserve Board for prior approval to become a one-bank holding company.
The application process for prior approval to become a one-bank holding company
is regulated by the Federal Reserve Board and such transactions are not subject
to KRS 286.3-905.
(2)(a) Applications by a bank holding
company to acquire control of a state-chartered bank or to acquire control of a
bank holding company which controls a state-chartered bank; and
(b) Applications by a bank holding
company which controls a state-chartered bank to acquire control of a national
bank or bank holding company which controls a national bank; and
(c) Applications by a bank holding
company which controls a state-chartered bank to acquire control of a bank or
bank holding company not having its principal place of business in this state;
and
(d) Applications by a bank holding
company not having its principal place of business in this state to acquire
control of a state-chartered bank or bank holding company which includes a
state-chartered bank, are subject to KRS 286.3-905.
(3) Whenever a proposed change occurs in
the outstanding voting stock of a state-chartered bank which is subject to KRS 286.3-095
or 286.3-905, in those cases where a bank holding company application or change
of control notice is required by federal regulatory agencies, the concurrent
filing of a copy of the application or notice submitted to the federal
regulatory agency with the executive director would fulfill the notice
requirement of KRS 286.3-095 or 286.3-905. Notice is required to be filed with
the commissioner in all cases where the change in ownership of voting stock
would result in direct or indirect ownership by a stockholder or an affiliated
group of stockholders of ten (10) percent or more of the outstanding voting
stock of the bank. The filing of notice with the commissioner on forms used by
federal regulatory agencies shall be treated as confidential information by the
commissioner as provided by federal law.
(4) The original document and four (4)
copies of the bank holding company application shall be filed with the executive
director concurrently with the application filed with the Federal Reserve Board
and shall be on the same application form used by the Federal Reserve Board.
All subsequent information furnished by the applicant to the Federal Reserve
Board shall be concurrently filed with the office.
(5) A complete application is one which
includes all information necessary for the executive director to make a
decision to approve or disapprove the application and has been accepted for
processing by the Federal Reserve Board.
Section 2. Filing Fee. Each application
shall include a nonrefundable investigation fee of $2,500. The fee assessed by
the executive director shall be paid prior to approval of the application by
the commissioner.
Section 3. Examination Fees. If the executive
director examines or elects to participate in a joint examination with the
applicable federal regulatory agency of any holding company that controls a
state-chartered bank, the examination fee assessed against the company examined
shall be based upon fair compensation for time and actual expenses.
Section 4. Publication of Notice.
Publication of notice of intention of a bank holding company to acquire control
of a state-chartered bank or to acquire control of a bank holding company which
controls a state-chartered bank shall be the responsibility of the applicant
pursuant to Regulation Y issued by the Federal Reserve Board (12 C.F.R. 225, as
revised effective February 3, 1984).
Section 5. Hearings. The office shall not
hold hearings on any application or notice. Hearings, if any, shall be
conducted by the Federal Reserve Board in accordance with Regulation Y issued
by the Federal Reserve Board (12 C.F.R. 225, as revised effective February 3,
1984) or by the appropriate federal banking agency pursuant to the federal Bank
Change in Control Act of 1978, as amended (12 U.S.C. 1817(j)).
Section 6. Nonbank Activities and
Acquisitions. Nonbank activities and acquisitions for bank holding companies
are regulated by the Federal Reserve Board in accordance with Regulation Y
issued by the Federal Reserve Board (12 C.F.R. 225, as revised effective
February 3, 1984).
Section 7. Coordination with Federal
Reserve Board. The executive director shall coordinate the application process
for acquisition of control of state-chartered banks and bank holding companies
which control a state-chartered bank with the Federal Reserve Board to insure
that no unreasonable delays occur in the approval process. (10 Ky.R. 1224; eff.
6-28-84; Am. 12 Ky.R. 46; eff. 8-13-85; 1169; eff. 2-4-86; TAm eff. 5-2-2007.)