{"data":{"id":"us-ky/krs-386.030","jurisdiction":"us-ky","citation":"KRS 386.030","heading":"Investment of funds of financial institutions and funds in hands of","body":"public officials.\n(1) Banks, trust companies, insurance companies, savings and loan associations,\nexecutors, administrators, trustees or others acting in a fiduciary capacity, trust\nfunds, and other financial institutions, originating mortgagee institutions, and\nother institutions approved  as  mortgagees  and  meeting otherwise the\nrequirements of the secretary of housing and urban development, the Federal\nHousing Administration or Department of Veterans Affairs to act as mortgagees\nunder that agency's approval program, subject to the laws of this state, may:\n(a) Make  such loans and advances of credit and purchases of obligations\nrepresenting loans and advances of credit as are eligible for credit\ninsurance  or  guaranty by  the secretary of housing  and  urban\ndevelopment,  the federal housing administrator or administrator of\nveterans' affairs, and may  obtain such insurance, guaranty or other\napproval;\n(b) Make  such loans secured by real property or leasehold, as the secretary\nof housing and urban development, the federal housing administrator or\nadministrator of veterans' affairs insures or issues a guaranty or makes a\ncommitment  to insure, or guaranty, and may obtain such insurance, or\nguaranty;\n(c) Invest their funds, eligible for investment, in notes or bonds secured by\nmortgage or trust deed insured by the secretary of housing and urban\ndevelopment,  the federal housing administrator or administrator of\nveterans' affairs, and in debentures issued by the secretary of housing\nand  urban  development,  the  federal housing  administrator or\nadministrator of veterans' affairs, and also in securities issued by national\nmortgage associations; and\n(d) Invest their funds in real estate mortgage notes, bonds  and  other\ninterest-bearing or dividend-paying securities (including securities of any\nopen-end  or closed-end management  type investment company  or\ninvestment trust registered under the Federal Investment Company  Act of\n1940)  which would be regarded by prudent businessmen as a safe\ninvestment. The  fact that the persons listed in this subsection are\nproviding services to the foregoing investment company  or trust as\ninvestment advisor, custodian, transfer agent, registrar or otherwise shall\nnot preclude such persons from investing in the securities of such\ninvestment company or trust.\n(2) This state and any of its political subdivisions, or any agency or instrumentality\nthereof may  invest its funds and the moneys  in its custody or possession,\neligible for investment, in notes or bonds described in paragraph (c) of\nsubsection (1) of this section.\n(3) No  law of this state requiring security upon which loans or investments may be\nmade, or prescribing the nature, amount or form of the security, or prescribing\nor limiting interest rates upon loans or investments, or limiting investments of\ncapital or deposits, or prescribing or limiting the period for which loans or\ninvestments may be made, shall apply to loans or investments made pursuant\nto this section.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=45845","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:15Z","sha256":"58de582e752c092ace9d52d8898a6803fa470a08026a6d2a184106215b608fa0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.025","next":"us-ky/krs-386.040"},"notice":"GroundRules: Original legal text. Not legal advice."}