KRS 286.3-020: Approval of application for charter -- Prerequisites to financial

institution doing business under its charter -- Waiver in cases of merger or

consolidation.

(1) (a) The commissioner shall approve an application for a bank, trust company, o r

combined bank and trust company charter upon a finding that the public

convenience and advantage will be served by opening the proposed

institution.

(b) To determine whether public convenience and advantage will be served, the

commissioner shall consider whether:

1. Conditions in the community indicate reasonable assurance of

successful operation for the proposed institution;

2. The proposed institution's organizational and capital structure and

amount of capitalization is adequate for the business plan; and

3. The officers and directors of the proposed institution have sufficient

experience, ability, standing, and reputation to provide reasonable

assurance of successful operation and of compliance with the law.

(2) Before any bank, trust company, or combi ned bank and trust company commences

business, except business which is incidental or preliminarily necessary to its

organization or as otherwise provided in subsection (3) of this section, it shall:

(a) Obtain from the commissioner a charter authorizing i t to commence doing

business;

(b) Ensure that the oaths of all directors have been taken in accordance with KRS

286.3-060; and

(c) Provide satisfactory proof to the commissioner that:

1. The accounts of the institution's depositors will be insured by the

Federal Deposit Insurance Corporation;

2. The institution has subscribed and paid in the required capital; and

3. The institution has otherwise fully complied with all pertinent laws and

administrative regulations.

(3) In the event that an institution for which a charter under this subtitle is sought is to

be created solely for the purpose of effectuating a merger or consolidation to

facilitate the formation of a bank holding company, the c ommissioner may waive

all or any part of the requirements of this subtitle.