In the case of obligations to banks and trust companies, the limitations and restrictions
of KRS 286.3-280 shall not apply to:
(1) Obligations of the United States or of the State of Kentucky;
(2) Obligations guaranteed as to principal and interest by the United States or the
State of Kentucky; or all obligations to the extent secured or covered by guarantees
or by commitments or agreements to take over or to purchase the same made by any federal
reserve bank or by the United States or by any department, bureau, board, commission
or establishment of the United States, including any corporation wholly owned directly
or indirectly by the United States; or consolidated bonds issued by or for federal
land banks or consolidated debentures issued by or for federal intermediate credit
banks under the Act of Congress known as the “Federal Farm Loan Act,” 1 and amendments thereto; or consolidated debentures issued by or for banks for cooperatives
under the Act of Congress known as the “Farm Credit Act of 1933,” 2 and amendments thereto; or obligations issued by the federal home loan banks; or
obligations which are insured by the federal housing administrator pursuant to Title 12, Section 12, Section 1713, United States Code, if the debentures to be issued in payment of such insured obligations are guaranteed
as to the principal and interest by the United States; or obligations of national
mortgage associations; except that the commissioner may make, alter and repeal regulations
respecting the total liabilities of any person which:
(a) Are secured by direct obligations of the United States or the State of Kentucky,
(b) Have a face value at least equal to the amount of such liabilities, and
(c) Will mature within five (5) years from the date such liabilities were incurred;
(3) Obligations of Kentucky counties and school districts incurred through borrowing
in anticipation of the current year's tax receipts as authorized by KRS 68.320 and 160.540; and
(4) Loans secured by a segregated deposit account in the lending bank if the lending
bank has a perfected security interest in the segregated deposit account and if the
security interest is clearly documented in the bank's books and records.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.