KRS 286.3-920: Definitions for section -- Interstate merger transactions -- Restrictions --

Combinations of commonly controlled banks -- Scope of activities of branch

outside home state.

(1) As used in this section:

(a) "Bank" includes:

1. An out-of-state bank; and

2. A national bank;

(b) "Interstate merger transaction" means:

1. The merger or consolidation of banks with different home states,

including the conversion of branches of any bank involved in the merger

or consolidation into branches of the resulting bank; or

2. The acquisition of a bank's branch or branches by a bank with a different

home state without acquisition of the bank; and

(c) "Resulting bank" means the bank that has resulted from a merger or

consolidation.

(2) (a) A Kentucky state bank may:

1. Establish, maintain, and operate one (1) or more branches in a state

other than Kentucky in accordance with an interstate merger transaction

in which the Kentucky state bank is the resulting bank; or

2. If the other state per mits, acquire a bank's branch or branches in a state

other than Kentucky in accordance with an interstate merger transaction

in which the Kentucky state bank does not acquire the bank.

(b) Not later than the date on which the required application for the i nterstate

merger transaction is filed with the responsible federal bank supervisory

agency, the applicant shall:

1. File an application on a form prescribed by the commissioner;

2. Pay any fee prescribed by KRS 286.3-480; and

3. Comply with the applicable provisions of KRS 286.3 -180(3) for the

establishment or acquisition of branches by Kentucky state banks.

(c) The commissioner shall base his or her approval or disapproval of the

interstate merger transaction on the requirements of this subtitle and the

factors prescribed in KRS 286.3-180(3)(b).

(3) (a) An out -of-state bank may establish, maintain, and operate one (1) or more

branches in Kentucky in accordance with an interstate merger transaction in

which the out-of-state bank is the resulting bank.

(b) If the laws of the home state of the out -of-state bank place more restrictive

terms or requirements on Kentucky state banks seeking to merge or

consolidate with a bank in that state, the interstate merger transaction of the

out-of-state bank may be allowed only under substantially the same terms and

conditions as applicable to Kentucky state banks seeking to merge or

consolidate with a bank in the home state of the out-of-state bank.

(c) Not later than the date on which the required application for the inter state

merger transaction is filed with the responsible federal bank supervisory

agency, the applicant shall:

1. File an application on a form prescribed by the commissioner;

2. Pay any fee prescribed by KRS 286.3-480;

3. Agree in writing to comply with the laws of this state applicable to its

operation of branches in Kentucky; and

4. Comply with the applicable provisions of KRS 286.3 -180(3) for the

establishment or acquisition of branches by Kentucky state banks.

(d) The commissioner shall base his or her a pproval or disapproval of the

interstate merger transaction on the requirements of this subtitle and the

factors prescribed in KRS 286.3-180(3)(b).

(4) No interstate merger transaction under subsection (2) or (3) of this section shall be

approved if the tr ansaction would result in a bank holding company having control

of banks or branches 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 transaction.

(5) A branch of an out-of-state bank located in Kentucky may conduct:

(a) Any activities in this state, other than fiduciary activities, that are authorized

under the laws of this state for Kentucky state banks;

(b) Fiduciary activities in this state that are authorized under the laws of this state

for Kentucky state banks if a bra nch of a Kentucky state bank located in the

out-of-state bank's home state is permitted to engage in substantially similar

activities under the laws of the out-of-state bank's home state; and

(c) Any activities in this state relating to the administration of trusts that are

authorized under, and conducted in conformity with, the laws of the out -of-

state bank's home state for the bank.

(6) A branch of a Kentucky state bank located in a host state may conduct any activities

that are:

(a) Authorized under the laws of the host state for banks chartered by the host

state; or

(b) Authorized for branches of national banks located in the host state, but whose

principal location is in a state other than the host state.