KRS 286.3-199: Closing of banks -- Emergency.

(1) As used in this section, unless the context requires otherwise:

(a) "Commissioner" means the commissioner of financial institutions and any

other person lawfully exercising the powers of the commissioner.

(b) "Officers" means the person or persons designated by the board of directors of

a bank to act for the bank in carrying out the provisions of this section.

(c) "Emergency" means any condition which interferes with the conduct of

normal business operations at one (1) or more or all offices of a bank or

banks, or which poses an imminent or existing threat to the safety and security

of persons or property, or both. Without limiting the generality of the

foregoing an emergency may arise as a result of any one (1) or more of the

following: fire, flood, wind, r ain or snowstorms, labor disputes, power

failures, transportation failures, war and riots, civil commotions, and other

acts of lawlessness or violence.

(d) "Office" means any place at which a bank transacts business or conducts

operations related to the transaction of business.

(e) "Person" includes natural persons, corporations, partnerships and associations.

(2) Whenever the commissioner is of the opinion that an emergency exists in this state

or in any part or parts of this state, the commissioner shall, by proclamation,

authorize those banks which, in the opinion of their officers, are directly or

indirectly affected by such emergency to close one (1) or more or all their offices.

(3) Whenever the officers of a bank are of the opinion that an emergency e xists which

affects one (1) or more or all the bank's offices, they shall have authority to close

one (1) or more or all such offices even though the commissioner has not issued a

proclamation of emergency, and they may provide that the business normally

transacted at a closed office will be transacted at another office designated by the

bank until further notice. The office or offices so closed shall remain closed until

the commissioner proclaims that the emergency has ended, or until such earlier time

as the officers of the bank determine that one (1) or more offices, theretofore closed

because of the emergency, should reopen, or, if the commissioner has issued no

proclamation of emergency, until the officers of the bank determine that such office

or offic es should reopen. The discretion of the officers in acting pursuant to this

section, when exercised in good faith, shall not be questioned in any court or place.

(4) A bank closing an office or offices pursuant to this section shall give prompt notice

to the commissioner as conditions will permit.

(5) No bank and no director, officer or employee of a bank shall be liable to any person

for any direct or indirect loss suffered by reason of the bank's failure or inability to

make access to the bank's premises and facilities available to such person or by

reason of the bank's failure or delay in performing any contractual, statutory or other

duty assumed by or imposed upon the bank in any capacity when such failure,

inability or delay is caused by an emergency a s defined by this section. The

immunity from liability provided for herein shall endure during the period of such

emergency and for such time thereafter as may reasonably be necessary to afford

such access or perform such duty.

(6) The provisions of this section shall be construed and applied as being in addition to

any other law of this state or United States excusing delays by banks in the

performance of duties or obligations, or authorizing the closing of banks because of

emergencies or conditions beyond the bank's control, or otherwise.

(7) The commissioner may make such orders and regulations, not inconsistent with this

section, as he or she shall deem necessary during an emergency to provide for the

uninterrupted continuance of business by banks to the extent consistent with the

safety and security of persons and property.