{"data":{"id":"us-ky/krs-154.20-530","jurisdiction":"us-ky","citation":"KRS 154.20-530","heading":"Mortgage insurance corporation -- Trust account.","body":"The authority may cause to be established, by any number of natural persons not in excess\nof fifteen (15), a Kentucky nonprofit corporation which shall have as its purpose the\ninsurance of mortgage loans entered into by and between lenders and persons or\ncorporations located in Kentucky and offering gainful employment to the inhabitants of\nthe Commonwealth. The mortgage insurance corporation shall not be deemed to have\nbeen established for the purposes of this chapter unless and until its articles of\nincorporation shall have been approved by the authority, and if so approved, no approval\nby the Department of Insurance shall be required. Such articles of incorporation, in order\nto secure such approval, shall contain, inter alia, the following provisions:\n(1) The corporation shall be designated \"Kentucky Mortgage Insurance and Guarantee\nCorporation;\"\n(2) No member of the board of directors of the insurance corporation shall receive any\nemoluments for his services thereon, except that he may be reimbursed for\nexpenditures incurred by him in the performance of duties for the insurance\ncorporation;\n(3) All assistance fees received by the insurance corporation shall be held in a trust\naccount in one or more banks and trust companies having a principal place of\nbusiness in the Commonwealth;\n(4) The trust account shall be held for the security of the holders of mortgage loans or\nbonds guaranteed by the insurance corporation, except that provision may be made\nfor the payment of expenses of the insurance corporation from the trust account or a\nsegregated portion thereof;\n(5) The trust account shall be governed by a trust agreement entered into by and\nbetween the insurance corporation and the trustee or trustees. Said trust agreement\nshall contain such lawful provisions an d limitations as may be deemed appropriate,\nand may include a pledge of premiums and other moneys deposited in the fund to\nthe payment of the obligations insured by the insurance corporation; and\n(6) The trust agreement shall make appropriate provisions fo r the investment by the\ntrustee or trustees of funds in the trust account for the benefit of the insurance\ncorporation and of any claimants against the trust account. The moneys so pledged\nand thereafter received by the trust account shall be subject to th e lien of such\npledge without any further act, and the lien of such pledge shall be valid and\nbinding against all parties in accordance with the terms of the trust agreement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2736","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:54Z","sha256":"7583ff8d28b93836f88ffb608a723ee859e2c76f736c603c2d8bd51b66877c2d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-520","next":"us-ky/krs-154.20-540"},"notice":"GroundRules: Original legal text. Not legal advice."}