{"data":{"id":"us-ky/krs-286.3-180","jurisdiction":"us-ky","citation":"KRS 286.3-180","heading":"Banking business, where done -- Branch banks -- Application for change","body":"in principal office or branch location.\n(1) Except as provided in KRS 286.3 -820, state banks may exercise the following\npowers necessary to carry on the business of bank ing at their principal office or a\nbranch:\n(a) Discounting and negotiating notes, drafts, bills of exchange, and other\nevidences of debt;\n(b) Purchasing bonds, receiving deposits, and allowing interest on these items;\n(c) Buying and selling exchange, coin, and bullion; and\n(d) Lending money on personal or real security.\n(2) Subject to subsection (3) of this section and KRS 286.3 -920, a state bank may\nestablish or acquire a branch within any state, the District of Columbia, or a\nterritory of the United States.\n(3) (a) Except for a bank that the commissioner may designate by the promulgation\nof administrative regulations or as provided in subsections (4) and (5) of this\nsection, a state bank shall apply to the commissioner for permission to\nestablish or acquire a branch.\n(b) The commissioner shall approve an application made under this subsection if\nthe commissioner determines that:\n1. The public convenience and advantage will be served and promoted by\noperation of the branch; and\n2. There is reasonable probability of the successful operation of the branch\nbased upon the financial and managerial impact of the branch on the\nbank establishing or acquiring the branch.\n(c) The following conditions shall apply to applications for branches under this\nsubsection:\n1. Permission to open a branch shall lapse one (1) year after the\ncommissioner has rendered a final order, as defined in KRS 13B.010,\napproving the application. If, for reasons beyond the control of the\napplicant, the branch is not opened and business is not actually begun in\ngood faith within this time period, permission to open the branch may,\nwith the approval of the commissioner, be extended for any period of\ntime the commissioner deems to be necessary; and\n2. An application to establish or acquire a branch shall be approved or\ndisapproved by the commissioner based upon the facts existing on the\ndate the application is filed, except f or the financial condition of the\nbank proposing to establish a branch, which condition shall be subject to\nreview until a final order ruling on the application is made.\n(4) Any corporation which on January 1, 1966, was engaged in operating a branch bank\nmay continue to retain and operate the branch bank under the general banking laws,\nand the requirements set forth in this section in respect to capital shall not apply to\nany existing branch bank but only as to those branch banks which may be\nestablished in the future in accordance with the terms of this section.\n(5) Except as otherwise expressly provided in this subtitle, the provisions of subsection\n(3) of this section shall not apply to the conversion, merger, consolidation,\nacquisition, or combination of  any bank or branch that is authorized under another\nprovision of this subtitle.\n(6) Any national banking association whose principal office is located in this state may\ndo all things and perform all acts that state banks are permitted to do or perform\nunder this section, subject to the conditions and restrictions provided for state banks\nas to exercise of these powers.\n(7) Except as provided in subsection (9) of this section, when a branch has been\nestablished, any operation of the branch shall not be discontinued or closed unless:\n(a) The bank provides at least ninety (90) days' notice of the branch's\ndiscontinuance or closure in writing to the commissioner; and\n(b) If requested by the commissioner, the bank provides the commissioner notice\nof the date when the branch will be discontinued or closed.\n(8) (a) Except as provided in subsection (9) of this section, a state bank shall apply to\nthe commissioner for permission to change the location of its principal office\nor a branch.\n(b) The commissioner shall ap prove a change of location if the commissioner\ndetermines that:\n1. The public convenience and advantage will be served and promoted by\nthe proposed change of location; and\n2. There is a reasonable probability of the successful operation of the\nprincipal office or branch at the new location.\n(9) (a) The commissioner may exempt a bank from compliance with subsection (7)\nor (8) of this section, or both, through the promulgation of administrative\nregulations.\n(b) The consolidation of two (2) or more branches in to a single location, or the\nrelocation of a branch, within the same vicinity or immediate neighborhood\nshall not be considered a branch closure or change of location subject to the\nprovisions of subsection (7) or (8) of this section if the consolidation o r\nrelocation does not substantially affect the nature of the business or customers\nserved.\n(10) (a) Except as provided in paragraph (b) of this subsection, a state bank, out -of-\nstate bank, or national bank shall use at all times the same name for all of it s\nbranches in Kentucky.\n(b) Upon written request, the commissioner shall permit the limited use of a\ndifferent name at one (1) or more branches when necessary to avoid customer\nconfusion.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55155","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"9def060f8ccd256828293966855f665618c46d3338b3410faa268f4b84464585","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-174","next":"us-ky/krs-286.3-183"},"notice":"GroundRules: Original legal text. Not legal advice."}