{"data":{"id":"us-ky/krs-286.3-820","jurisdiction":"us-ky","citation":"KRS 286.3-820","heading":"Operation of loan production office by bank.","body":"(1) For the purpose of this section:\n(a) \"Loan production office\" means a bank office located at a place other than the\nprincipal or branch office, at which bank employees solicit and originate loans\nfor final approval and disbursement of funds at the principa l or branch office;\nand\n(b) \"Disbursement of funds\" is the process by which a bank officer in a principal\nor branch office issues a negotiable instrument at the principal or branch\noffice.\n(2) A bank, except for a bank that the commissioner may designate by the promulgation\nof administrative regulations, shall apply to the commissioner for permission to\nestablish a loan production office. The commissioner shall approve the application\nunless he or she finds that:\n(a) The proposed operation of the loan production office is not in accordance with\nthis section;\n(b) The financial standing, moral character, and capability of the bank and its\nmanagement which proposes to operate a loan production office will\njeopardize the financial stability of the bank;\n(c) There is no reasonable assurance of sufficient volume of business for the\nproposed loan production office to be successful; and\n(d) The public convenience and advantage will not be promoted by the opening of\nthe proposed loan production office.\n(3) All extensions of credit originated in a loan production office shall be in accordance\nwith disclosure provisions, usury rates, and other fees and charges authorized by\nlaw for banks.\n(4) Loan production offices shall not accept deposits or conduct any other banking\nfunctions except those enumerated in paragraph (a) of subsection (1) of this section.\n(5) The commissioner may examine the operations of any loan production office for the\npurpose of determining that the scope of its activities does not exceed that allowed\nin this section. Banks operating loan production offices shall maintain copies of\nrecords relating to extensions of credit originated in loan production offices at the\nprincipal office for examination purposes.\n(6) The application and appeal process set f orth in KRS Chapter 13B and the cease and\ndesist powers of the commissioner set forth in KRS 286.3 -690 shall apply to loan\nproduction offices.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14605","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:11Z","sha256":"b1545b65ea37a8b9a28b147b0437f79a6a94199a3a1509548f8221a4b7eb930a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-800","next":"us-ky/krs-286.3-850"},"notice":"GroundRules: Original legal text. Not legal advice."}