KRS 41.220: Designation of banks as state depositories -- Minimum capital stock

requirement -- Use of banks if state depositories not designated.

(1) Not less than three (3) solvent banks shall be designated as state depositories for

state funds. Each ban k designated shall have not less than the minimum capital

stock as required by the primary state or federal regulator of the bank. Banks shall

be designated as state depositories for state funds upon agreement of the State

Treasurer and the secretary of the Finance and Administration Cabinet. Those banks

designated shall be entered in the executive journal. If at any time it appears that the

capital of any state depository has become impaired, the state's deposits shall be

withdrawn and deposited with another state depository.

(2) The State Treasurer and the secretary of the Finance and Administration Cabinet

shall determine the needs for moving state funds from one (1) designated depository

to another.

(3) If no banks are designated as state depositories in accordance with this section, all

banks as defined in KRS 41.010 shall be considered eligible state depositories.