KRS § 386.030 — KY Code / Title XXXIII / Chapter 386 / Section 386.030
386.030 Investment of funds of financial institutions and funds in hands of public officials
Status: in_force

386.030 Investment of funds of financial institutions and funds in hands of

public officials.

(1) Banks, trust companies, insurance companies, savings and loan associations,

executors, administrators, trustees or others acting in a fiduciary capacity, trust

funds, and other financial institutions, originating mortgagee institutions, and

other institutions approved as mortgagees and meeting otherwise the

requirements of the secretary of housing and urban development, the Federal

Housing Administration or Department of Veterans Affairs to act as mortgagees

under that agency's approval program, subject to the laws of this state, may:

(a) Make such loans and advances of credit and purchases of obligations

representing loans and advances of credit as are eligible for credit

insurance or guaranty by the secretary of housing and urban

development, the federal housing administrator or administrator of

veterans' affairs, and may obtain such insurance, guaranty or other

approval;

(b) Make such loans secured by real property or leasehold, as the secretary

of housing and urban development, the federal housing administrator or

administrator of veterans' affairs insures or issues a guaranty or makes a

commitment to insure, or guaranty, and may obtain such insurance, or

guaranty;

(c) Invest their funds, eligible for investment, in notes or bonds secured by

mortgage or trust deed insured by the secretary of housing and urban

development, the federal housing administrator or administrator of

veterans' affairs, and in debentures issued by the secretary of housing

and urban development, the federal housing administrator or

administrator of veterans' affairs, and also in securities issued by national

mortgage associations; and

(d) Invest their funds in real estate mortgage notes, bonds and other

interest-bearing or dividend-paying securities (including securities of any

open-end or closed-end management type investment company or

investment trust registered under the Federal Investment Company Act of

1940) which would be regarded by prudent businessmen as a safe

investment. The fact that the persons listed in this subsection are

providing services to the foregoing investment company or trust as

investment advisor, custodian, transfer agent, registrar or otherwise shall

not preclude such persons from investing in the securities of such

investment company or trust.

(2) This state and any of its political subdivisions, or any agency or instrumentality

thereof may invest its funds and the moneys in its custody or possession,

eligible for investment, in notes or bonds described in paragraph (c) of

subsection (1) of this section.

(3) No law of this state requiring security upon which loans or investments may be

made, or prescribing the nature, amount or form of the security, or prescribing

or limiting interest rates upon loans or investments, or limiting investments of

capital or deposits, or prescribing or limiting the period for which loans or

investments may be made, shall apply to loans or investments made pursuant

to this section.