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Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 286.3-854.Closing of bank by commissioner; written statement of grounds; appointment of receiver

Current as of January 01, 2024 | Updated by FindLaw Staff

(1) The commissioner may take possession and close a bank for purposes of liquidation in any case in which the commissioner finds that the bank:

(a) Is insolvent;

(b) Has permitted capital to become impaired to a level which does not permit the bank to operate in a safe and sound manner;

(c) Has had insurance of depositors' accounts terminated by the FDIC; or

(d) Has requested through its board of directors that the commissioner take possession for the benefit of depositors, other creditors and shareholders.

(2) If the commissioner has taken possession of and closed a bank for purpose of liquidation, the commissioner shall forthwith issue a written finding of one (1) or more of the grounds for closing provided in this section and shall appoint a receiver for the bank. The commissioner shall immediately thereafter apply to the receivership court for confirmation of the appointment of a receiver. The court shall act upon the application forthwith and may proceed without notice to any person.

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Cite this article: FindLaw.com - Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 286.3-854.Closing of bank by commissioner; written statement of grounds; appointment of receiver - last updated January 01, 2024 | https://codes.findlaw.com/ky/title-xxv-business-and-financial-institutions/ky-rev-st-sect-286-3-854/

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