{"data":{"id":"us-ky/krs-304.7-463","jurisdiction":"us-ky","citation":"KRS 304.7-463","heading":"Tangible personal property or equity interests acquired through","body":"partnerships, joint ventures, trust certificates, and similar instruments.\n(1) (a) Subject to the limitations of KRS 304.7 -455, an insurer may acquire tangible\npersonal property or equi ty interests therein located or used wholly or in part\nwithin a domestic jurisdiction either directly or indirectly through limited\npartnership interests and general partnership interests not otherwise prohibited\nby KRS 304.7 -363(4), joint ventures, stock of an investment subsidiary or\nmembership interests in a limited liability company, trust certificates, or other\nsimilar instruments.\n(b) Investments acquired under paragraph (a) of this subsection shall be eligible\nonly if:\n1. The property is subject to a  lease or other agreement with a person\nwhose rated credit instruments in the amount of the purchase price of the\npersonal property the insurer could then acquire under KRS 304.7 -457;\nand\n2. The lease or other agreement provides the insurer the right to re ceive\nrental, purchase, or other fixed payments for the use or purchase of the\nproperty, and the aggregate value of the payments, together with the\nestimated residual value of the property at the end of its useful life and\nthe estimated tax benefits to the  insurer resulting from ownership of the\nproperty, shall be adequate to return the cost of the insurer's investment\nin the property, plus a return deemed adequate by the insurer.\n(2) The insurer shall compute the amount of each investment under this sectio n on the\nbasis of the out -of-pocket purchase price and applicable related expenses paid by\nthe insurer for the investment, net of each borrowing made to finance the purchase\nprice and expenses, to the extent the borrowing is without recourse to the insurer.\n(3) An insurer shall not acquire an investment under this section if, as a result of and\nafter giving effect to the investment, the aggregate amount of all investments then\nheld by the insurer under this section would exceed;\n(a) Two percent (2%) of its admitted assets; or\n(b) One-half of one percent (0.5%) of its admitted assets as to any single item of\ntangible personal property.\n(4) For purposes of determining compliance with the limitations of KRS 304.7 -455,\ninvestments acquired by an insurer under this section shall be aggregated with those\nacquired under KRS 304.7 -457, and each lessee of the property under a lease\nreferred to in this section shall be deemed the issuer of an obligation in the amount\nof the investment of the insurer in the property det ermined as provided in\nsubsection (2) of this section.\n(5) Nothing in this section is applicable to tangible personal property lease\narrangements between an insurer and its subsidiaries and affiliates under a cost -\nsharing arrangement or agreement permitted under KRS 304.37-030.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16858","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"6443fa895d71bbc61fc85f5ed30db109bcdde098a41193dfb67aad776724633e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-461","next":"us-ky/krs-304.7-465"},"notice":"GroundRules: Original legal text. Not legal advice."}