{"data":{"id":"us-ky/krs-286.3-070","jurisdiction":"us-ky","citation":"KRS 286.3-070","heading":"Minimum capital stock required -- Reduction in capital stock --","body":"Preferred capital stock.\n(1) (a) The minimum capital stock of any newly chartered state bank or trust\ncompany shall be five million dollars ($5,000,000). Additional capital may  be\nrequired depending upon an investigation of the application, at the discretion\nof the commissioner.\n(b) The minimum capital required under paragraph (a) of this subsection shall:\n1. Be paid in full in money;\n2. Be in the custody of the directors before  the institution commences\nbusiness; and\n3. Not be designated as undivided profits.\n(c) Not less than fifty percent (50%) of the minimum capital required under\nparagraph (a) of this subsection shall be designated as surplus.\n(2) (a) A reduction in the capi tal stock of a state bank or trust company shall not be\nmade until it has been approved by the commissioner. Any reduction made in\nviolation of this paragraph shall be invalid.\n(b) The commissioner shall not approve a reduction in capital stock unless he o r\nshe finds that:\n1. The interest of the state bank's or trust company's creditors will not be\nprejudiced by the reduction; and\n2. The reduction results in capital stock that is not less than the greater of\nthe following:\na. An amount that is not less than the amount that was required for\norganization; or\nb. Two million five hundred thousand dollars ($2,500,000).\n(3) (a) Any state bank or trust company may issue preferred capital stock of one (1)\nor more classes.\n(b) Preferred capital stock may be considered as part of the minimum capital\nstock required under this section, and in the case of existing corporations,\nshall be issued in the manner provided for increasing capital stock.\n(c) Unless expressly provided otherwise in this subtitle, the following shall be\ngoverned by KRS Chapter 271B:\n1. The manner in which preferred capital stock is issued; and\n2. The rights and preferences of preferred capital stockholders.\n(d) The issue of preferred capital stock shall not be valid until the stated value of\nthe issued stock has been paid in.\n(e) If any part of the capital stock of a state bank or trust company consists of\npreferred capital stock , the determination of whether or not the capital of the\ncorporation is impaired, and the amount of the impairment, shall be based\nupon the stated value of the state bank's or trust company's stock, even though\nthe amount that the preferred capital stockholders are entitled to receive in the\nevent of retirement or liquidation is in excess of the stated value of the\npreferred capital stock.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55147","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"d05bc91fadd9f7968f45051eecdd46abf00d34975061a8f4b9904020e800a8f4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-065","next":"us-ky/krs-286.3-080"},"notice":"GroundRules: Original legal text. Not legal advice."}