KRS 286.3-290: Exceptions to maximum debt to banks.

In the case of obligations to banks and trust companies, the limitations and restrictions of

KRS 286.3-280 shall not apply to:

(1) Obligations of the United States or of the State of Kentucky;

(2) Obligations guaranteed as to principal and interest by the United States or the State

of Kentucky; or all obligations to the extent secured or covered by guarantees or by

commitments or agreements to take over or to purchase the same made by any

federal reserve bank or by the United States or by any department, bu reau, board,

commission or establishment of the United States, including any corporation wholly

owned directly or indirectly by the United States; or consolidated bonds issued by or

for federal land banks or consolidated debentures issued by or for federal

intermediate credit banks under the Act of Congress known as the "Federal Farm

Loan Act," and amendments thereto; or consolidated debentures issued by or for

banks for cooperatives under the Act of Congress known as the "Farm Credit Act of

1933," and amen dments thereto; or obligations issued by the federal home loan

banks; or obligations which are insured by the federal housing administrator

pursuant to Title 12, Section 12, Section 1713, United States Code, if the

debentures to be issued in payment of suc h insured obligations are guaranteed as to

the principal and interest by the United States; or obligations of national mortgage

associations; except that the commissioner may make, alter and repeal regulations

respecting the total liabilities of any person which:

(a) Are secured by direct obligations of the United States or the State of

Kentucky, and

(b) Have a face value at least equal to the amount of such liabilities, and

(c) Will mature within five (5) years from the date such liabilities were incurred;

(3) Obligations of Kentucky counties and school districts incurred through borrowing

in anticipation of the current year's tax receipts as authorized by KRS 68.320 and

160.540; and

(4) Loans secured by a segregated deposit account in the lending bank if t he lending

bank has a perfected security interest in the segregated deposit account and if the

security interest is clearly documented in the bank's books and records.