{"data":{"id":"us-ky/krs-286.2-040","jurisdiction":"us-ky","citation":"KRS 286.2-040","heading":"Examination of service provider by commissioner  or other state or","body":"federal regulatory agency  -- Confidentiality and  evidentiary value of\nreport -- Examination fees -- Cooperative agreements.\n(1) As used in this section:\n(a) \"Covered service\" means:\n1. Data processing;\n2. Any activity that supports financial services, including but not limited\nto lending, funds transfer, fiduciary activity, trading activity, and\ndeposit taking; and\n3. Internet-related services, including but not limited to Web  services\nand  electronic bill payments, mobile applications, system  and\nsoftware development and maintenance, and security monitoring;\n(b) \"Depository institution\" means any:\n1. State bank as defined in KRS 286.3-010;\n2. Branch of an out-of-state bank as defined in KRS  286.3-010 that is\ndoing business under the laws of this state;\n3. Trust company as defined in KRS 286.3-010; or\n4. Credit union as defined in KRS 286.6-005; and\n(c) \"Service provider\" means  any person that provides a covered service\nlisted in paragraph (a) of this subsection to a depository institution, except\nany:\n1. Bank  service company  that is examined  and regulated by the\nappropriate federal banking agency. For the purposes of this\nsubparagraph, \"bank service company\"  and \"appropriate federal\nbanking agency\" have the meanings set forth in the Bank Service\nCompany  Act, 12 U.S.C. sec. 1861, as amended, or any successor\nstatute;\n2. Depository institution, holding company of a depository institution, or\nsubsidiary of that holding company; and\n3. Federally chartered depository institution, holding company  of a\nfederally chartered depository institution, or subsidiary of that\nholding company. For the purposes of this subparagraph, \"federally\nchartered depository institution\" means a bank, savings association,\nor credit union organized pursuant to the laws of the United States.\n(2) The commissioner may examine a service provider for any covered service it\nprovides to a  depository institution if the examination is conducted in\nconjunction with an examination conducted by a properly authorized federal\nregulatory agency.\n(3) The  commissioner may  accept an examination made  by other properly\nauthorized state or federal regulatory agencies that have concurrent jurisdiction\nover a service provider in lieu of any examination authorized or required under\nthe laws of this state.\n(4) A  report of examination and related correspondence shall be considered\nconfidential information. No person shall release any information contained in\nthe  examination unless required by  court order. Notwithstanding this\nsubsection, the department may furnish:\n(a) A copy of a report of examination performed by the commissioner of the\ncondition and affairs of any service provider to the depository institutions\nserviced by the service provider; and\n(b) To  and exchange information and reports of examinations with officials\nand  examiners of other properly authorized state or federal regulatory\nagencies.\n(5) Every  official report concerning a service provider, and  every report of\nexamination, shall be prima facie evidence of the facts contained in the report\nfor any purpose in any action in which the department or service provider is a\nparty.\n(6) The  commissioner shall fix a scale of examination fees to be paid by service\nproviders. The fees shall be:\n(a) Sufficient to cover the cost of the examination based  upon  a fair\ncompensation for time and actual expense;\n(b) Assessed and paid by service providers promptly after completion of the\nexamination; and\n(c) Set by administrative regulation.\n(7) The commissioner may enter into cooperative agreements with other properly\nauthorized state or federal regulatory agencies that have concurrent jurisdiction\nover a service provider to facilitate the examination process, including joint\nexamination, scheduling, resources, fee collection and  sharing, report of\nexamination processing, and enforcement actions.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=46463","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"11bcdc0e5ca1c27d5615c08b109088c3c4c9ed2efe74124e2150b03b7342fd70","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.2-030","next":"us-ky/krs-286.2-100"},"notice":"GroundRules: Original legal text. Not legal advice."}