{"data":{"id":"us-ky/krs-286.3-199","jurisdiction":"us-ky","citation":"KRS 286.3-199","heading":"Closing of banks -- Emergency.","body":"(1) As used in this section, unless the context requires otherwise:\n(a) \"Commissioner\" means the commissioner of financial institutions and any\nother person lawfully exercising the powers of the commissioner.\n(b) \"Officers\" means the person or persons designated by the board of directors of\na bank to act for the bank in carrying out the provisions of this section.\n(c) \"Emergency\" means any condition which interferes with the conduct of\nnormal business operations at one (1) or more or all offices of a bank or\nbanks, or which poses an imminent or existing threat to the safety and security\nof persons or property, or both. Without limiting the generality of the\nforegoing an emergency may arise as a result of any one (1) or more of the\nfollowing: fire, flood, wind, r ain or snowstorms, labor disputes, power\nfailures, transportation failures, war and riots, civil commotions, and other\nacts of lawlessness or violence.\n(d) \"Office\" means any place at which a bank transacts business or conducts\noperations related to the transaction of business.\n(e) \"Person\" includes natural persons, corporations, partnerships and associations.\n(2) Whenever the commissioner is of the opinion that an emergency exists in this state\nor in any part or parts of this state, the commissioner shall,  by proclamation,\nauthorize those banks which, in the opinion of their officers, are directly or\nindirectly affected by such emergency to close one (1) or more or all their offices.\n(3) Whenever the officers of a bank are of the opinion that an emergency e xists which\naffects one (1) or more or all the bank's offices, they shall have authority to close\none (1) or more or all such offices even though the commissioner has not issued a\nproclamation of emergency, and they may provide that the business normally\ntransacted at a closed office will be transacted at another office designated by the\nbank until further notice. The office or offices so closed shall remain closed until\nthe commissioner proclaims that the emergency has ended, or until such earlier time\nas the officers of the bank determine that one (1) or more offices, theretofore closed\nbecause of the emergency, should reopen, or, if the commissioner has issued no\nproclamation of emergency, until the officers of the bank determine that such office\nor offic es should reopen. The discretion of the officers in acting pursuant to this\nsection, when exercised in good faith, shall not be questioned in any court or place.\n(4) A bank closing an office or offices pursuant to this section shall give prompt notice\nto the commissioner as conditions will permit.\n(5) No bank and no director, officer or employee of a bank shall be liable to any person\nfor any direct or indirect loss suffered by reason of the bank's failure or inability to\nmake access to the bank's premises and facilities available to such person or by\nreason of the bank's failure or delay in performing any contractual, statutory or other\nduty assumed by or imposed upon the bank in any capacity when such failure,\ninability or delay is caused by an emergency a s defined by this section. The\nimmunity from liability provided for herein shall endure during the period of such\nemergency and for such time thereafter as may reasonably be necessary to afford\nsuch access or perform such duty.\n(6) The provisions of this section shall be construed and applied as being in addition to\nany other law of this state or United States excusing delays by banks in the\nperformance of duties or obligations, or authorizing the closing of banks because of\nemergencies or conditions beyond the bank's control, or otherwise.\n(7) The commissioner may make such orders and regulations, not inconsistent with this\nsection, as he or she shall deem necessary during an emergency to provide for the\nuninterrupted continuance of business by banks to the  extent consistent with the\nsafety and security of persons and property.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14553","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"6266785acc1277a67c99d385e854d0301009e7a96f29360b22b9ebfaee790364","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-193","next":"us-ky/krs-286.3-200"},"notice":"GroundRules: Original legal text. Not legal advice."}