KRS 286.3-450: Examination -- Procedure -- Agreement to examine and supervise

branches -- Joint examination and enforcement actions.

(1) Every state bank, branch of an out -of-state state bank, or trust company doing

business under the laws of this state shall be s ubject to inspection by the

commissioner or by an examiner appointed by the commissioner. Examination shall

be made of each institution at least once every twenty -four (24) months, unless

other examinations are accepted as provided in subsections (3), (4), and (5) of this

section, and not more than twice unless it appears from examination or from the

reports of the institution that it has failed to comply with laws or regulations relating

to banks or trust companies, or has engaged in unsafe or unsound banking practices.

(2) The commissioner, deputy commissioner, and each examiner may compel the

appearance of any person for the purpose of the examination, which shall be made

in the presence of one (1) of the officers of the institution being examined.

(3) Any bank that becomes a member of a Federal Reserve Bank shall be subject to the

examination required by the Federal Reserve Act, (38 Stat. 251) as amended, and

the commissioner may, in his discretion, accept examinations made by the Federal

Reserve authorit ies in lieu of examinations made under state laws. The

commissioner shall furnish to the Federal Reserve agent of the district in which the

member bank is situated, copies of reports and examinations made of the member

bank.

(4) The commissioner may, in hi s discretion, accept examinations made by the Federal

Deposit Insurance Corporation in lieu of examinations made under state laws.

(5) The commissioner may, in his discretion, enter into cooperative, coordinating, and

information-sharing agreements with an y other bank supervisory agencies or any

organization affiliated with or representing one (1) or more bank supervisory

agencies with respect to the periodic examination or other supervision of any branch

of an out- of- state state bank, any branch of a sta te bank in any host state, any trust

office or trust representative office of an out -of-state trust company, or any trust

office or trust representative office of a Kentucky state trust company in any host

state. The commissioner may accept reports of exam inations and reports of

investigation from other bank supervisory agencies and home state regulators in lieu

of examinations made under state law. The commissioner may enter into joint

examinations or joint enforcement actions with other bank supervisory a gencies

having concurrent jurisdiction over any bank, bank holding company, branch of an

out- of- state state bank, any branch of a state bank located in any host state, any

trust office or trust representative office of an out -of-state trust company, or a ny

trust office or trust representative office of a Kentucky state trust company in any

host state. Information produced or provided under this section shall be considered

confidential as provided in KRS 286.3-470.