KRS 286.3-180: Banking business, where done -- Branch banks -- Application for change

in principal office or branch location.

(1) Except as provided in KRS 286.3 -820, state banks may exercise the following

powers necessary to carry on the business of bank ing at their principal office or a

branch:

(a) Discounting and negotiating notes, drafts, bills of exchange, and other

evidences of debt;

(b) Purchasing bonds, receiving deposits, and allowing interest on these items;

(c) Buying and selling exchange, coin, and bullion; and

(d) Lending money on personal or real security.

(2) Subject to subsection (3) of this section and KRS 286.3 -920, a state bank may

establish or acquire a branch within any state, the District of Columbia, or a

territory of the United States.

(3) (a) Except for a bank that the commissioner may designate by the promulgation

of administrative regulations or as provided in subsections (4) and (5) of this

section, a state bank shall apply to the commissioner for permission to

establish or acquire a branch.

(b) The commissioner shall approve an application made under this subsection if

the commissioner determines that:

1. The public convenience and advantage will be served and promoted by

operation of the branch; and

2. There is reasonable probability of the successful operation of the branch

based upon the financial and managerial impact of the branch on the

bank establishing or acquiring the branch.

(c) The following conditions shall apply to applications for branches under this

subsection:

1. Permission to open a branch shall lapse one (1) year after the

commissioner has rendered a final order, as defined in KRS 13B.010,

approving the application. If, for reasons beyond the control of the

applicant, the branch is not opened and business is not actually begun in

good faith within this time period, permission to open the branch may,

with the approval of the commissioner, be extended for any period of

time the commissioner deems to be necessary; and

2. An application to establish or acquire a branch shall be approved or

disapproved by the commissioner based upon the facts existing on the

date the application is filed, except f or the financial condition of the

bank proposing to establish a branch, which condition shall be subject to

review until a final order ruling on the application is made.

(4) Any corporation which on January 1, 1966, was engaged in operating a branch bank

may continue to retain and operate the branch bank under the general banking laws,

and the requirements set forth in this section in respect to capital shall not apply to

any existing branch bank but only as to those branch banks which may be

established in the future in accordance with the terms of this section.

(5) Except as otherwise expressly provided in this subtitle, the provisions of subsection

(3) of this section shall not apply to the conversion, merger, consolidation,

acquisition, or combination of any bank or branch that is authorized under another

provision of this subtitle.

(6) Any national banking association whose principal office is located in this state may

do all things and perform all acts that state banks are permitted to do or perform

under this section, subject to the conditions and restrictions provided for state banks

as to exercise of these powers.

(7) Except as provided in subsection (9) of this section, when a branch has been

established, any operation of the branch shall not be discontinued or closed unless:

(a) The bank provides at least ninety (90) days' notice of the branch's

discontinuance or closure in writing to the commissioner; and

(b) If requested by the commissioner, the bank provides the commissioner notice

of the date when the branch will be discontinued or closed.

(8) (a) Except as provided in subsection (9) of this section, a state bank shall apply to

the commissioner for permission to change the location of its principal office

or a branch.

(b) The commissioner shall ap prove a change of location if the commissioner

determines that:

1. The public convenience and advantage will be served and promoted by

the proposed change of location; and

2. There is a reasonable probability of the successful operation of the

principal office or branch at the new location.

(9) (a) The commissioner may exempt a bank from compliance with subsection (7)

or (8) of this section, or both, through the promulgation of administrative

regulations.

(b) The consolidation of two (2) or more branches in to a single location, or the

relocation of a branch, within the same vicinity or immediate neighborhood

shall not be considered a branch closure or change of location subject to the

provisions of subsection (7) or (8) of this section if the consolidation o r

relocation does not substantially affect the nature of the business or customers

served.

(10) (a) Except as provided in paragraph (b) of this subsection, a state bank, out -of-

state bank, or national bank shall use at all times the same name for all of it s

branches in Kentucky.

(b) Upon written request, the commissioner shall permit the limited use of a

different name at one (1) or more branches when necessary to avoid customer

confusion.