KRS 286.3-900: Definitions of terms used in this section and KRS 286.3 -905 --

Acquisition of in -state banks -- Limitations -- In-county merger or

consolidation.

(1) As used in this section and KRS 286.3-905:

(a) "Bank" means:

1. Any institution organized under this subtitle, the banking laws of

another state, or the National Bank Act, as amended, to do a banking

business; or

2. A bank as defined in 12 U.S.C. sec. 1841, as amended;

(b) "Bank holding company" has the same meaning as in 12 U.S.C. sec. 1841, a s

in effect on July 15, 2024, or as amended;

(c) "Company" means:

1. Any corporation, partnership, business trust, association, or similar

organization, or any other trust unless by its terms it must terminate

within twenty-five (25) years or not later than twenty-one (21) years and

ten (10) months after the death of individuals living on the effective date

of the trust, but shall not include:

a. Any corporation the majority of the shares of which are owned by

the United States or by any state; or

b. A qualified family partnership; or

2. A company as defined in 12 U.S.C. sec. 1841, as amended;

(d) "Control":

1. Has the same meaning as in 12 U.S.C. sec. 1841(a)(2) and (3), as in

effect on July 15, 2024, or as amended; and

2. May be acquired by acquisiti on of voting securities, by purchase of

assets, by merger or consolidation, by contract, or otherwise;

(e) "Deposit":

1. Except as provided in subparagraph 2. of this paragraph, has the same

meaning as in 12 U.S.C. sec. 1813, as in effect on July 15, 2024, or as

amended; and

2. Does not include interbank deposits and deposits in foreign branches

and international banking facilities, as shown in the reports made by

federally insured depository institutions to their respective supervisory

authorities; and

(f) "Individual":

1. Means a natural person, partnership, association, business trust, voting

trust, or similar organization; and

2. Does not include a corporation.

(2) Except as provided in subsections (3) and (4) of this section, no individual or bank

holding company, wherever located, may acquire control of any bank or bank

holding company if, upon the acquisition, the individual or bank holding company

would control banks in this state holding more than fifteen percent (15%) of the

total deposits and member accounts in the offices of all federally insured depository

institutions in this state as reported in the most recent June 30 quarterly report made

by the institutions to their respective supervisory authorities that are available at the

time of the acquisition.

(3) (a) The limitations set forth in this section or any other provision of this subtitle

or any administrative regulation promulgated thereunder shall not apply to the

acquisition of a bank if:

1. An emergency exists; and

2. The acquisition is appropriate in order to prevent the probable failure of

the bank which is closed or is in danger of closing.

(b) The determinations referenced in paragraph (a) of this subsection shall be

made by the:

1. Commissioner, in his or her discretion, if the bank is organized under

the laws of this state; or

2. Comptroller of the currency, in his or her discretion, if the bank is a

national bank.

(4) The provisions of this section shall not apply to the following, if the commissioner

determines that the public conven ience and necessity will be served by the merger,

consolidation, or sale:

(a) The merger or consolidation of banks or bank holding companies having their

principal places of business in the same county and the operation by the

merged or consolidated corporation of the banks; or

(b) The sale of any bank or bank holding company to, and the purchase thereof

by, any other bank or bank holding company with its principal place of

business in the same county and the operation of the bank as a branch.