{"data":{"id":"us-ky/krs-155.080","jurisdiction":"us-ky","citation":"KRS 155.080","heading":"Membership -- Duty of members -- Loan limit formula.","body":"(1) Any financial institution may request membership in the corporation by making\napplication to the board of directors on such form and in such manner as said board\nof directors may require, and membership shall become effective upon acceptance\nof such application by said board.\n(2) Except for short term loans which members may make at their discretion, each\nmember of the corporation shall make loans to the corporation as and when called\nupon by it to do so on such terms and other conditions as shall be approv ed from\ntime to time by the board of directors, subject to the following conditions:\n(a) All loan limits shall be established at the thousand dollar ($1,000) amount\nnearest to the amount computed in accordance with the provisions of this\nsection;\n(b) No lo an to the corporation shall be made if immediately thereafter the total\namount of the obligations of the corporation would exceed twenty (20) times\nthe amount then paid in on the outstanding capital stock of the corporation;\nand\n(c) The total amount outstanding on loan to the corporation made by any member\nat any one (1) time when added to the amount of the investment in the capital\nstock of the corporation then held by such member shall not exceed the\nfollowing limit, to be determined as of the time such m ember becomes a\nmember on the basis of the audited balance sheet of such member at the close\nof its fiscal year immediately preceding its application for membership, or, in\nthe case of an insurance company, its last annual statement to the\ncommissioner of insurance:\n1. Two percent (2%) of the capital and surplus of commercial banks and\ntrust companies;\n2. One percent (1%) of the total outstanding loans made by a building and\nloan association: provided, however, that any business development\ncorporation created pursuant to this section, KRS 155.010 and 155.090\nmay in its articles of incorporation, or by appropriate amendment\nthereto, provide that the loan limit of a building and loan association\nmember shall be only one -half of one percent (0.5%) of the total\noutstanding loans made by such building and loan association member;\n3. One percent (1%) of the capital and unassigned surplus of stock\ninsurance companies, except fire insurance writing companies;\n4. One percent (1%) of the unassigned surplus of mutual i nsurance\ncompanies, except fire insurance writing companies;\n5. One-tenth of one percent (0.1%) of the assets of fire insurance writing\ncompanies; and\n6. Such limits as may be approved by the board of directors of the\ncorporation for other financial institutions.","path":["KRS Chapter 155"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3061","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:58Z","sha256":"e72c5631efbce8afab4fe7e9ff925e289829733301fe60c5de52de6715d330ea","source_id":"us-ky","stale":false,"prev":"us-ky/krs-155.070","next":"us-ky/krs-155.090"},"notice":"GroundRules: Original legal text. Not legal advice."}