| Pending Kentucky Legislation |
| Posted: January 25, 2010 |
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Kentucky’s annual 60 day legislative period began January 2010. Proposed legislation of interest to the banking industry includes the following:
Senate Bill 39 proposes that any business that assesses late penalties against a consumer is now required when issuing a refund to that consumer to make the refund within the same time parameter used in assessing a penalty. Otherwise, the business must pay the consumer a penalty or fee in the same amount otherwise assessed the consumer. For example, if a payment is due in ten (10) days or a $25 penalty will be assessed, then a refund must be made in ten (10) days or a $25 penalty must be paid to the consumer.
House Bill 264 proposes a new statute authorizing persons holding mortgages or security interests in real or personal property subject to state property taxes to register the mortgage or security interest with the Kentucky Department of Revenue. The Department of Revenue must then notify the appropriate county sheriff of the recorded mortgage. If a taxpayer then fails to pay taxes when due after the registration, the sheriff must notify the registered mortgagee or holder of the perfected security interest of the non-payment of the taxes. The mortgage holder or holder of the security interest can then pay the taxes as a transferee in accordance with KRS 134.121.
House Bill 264 also proposes amending KRS 283.3-030 to authorize the executive director of the Kentucky Office of Financial Institutions to allow a state or national bank to use a different name for a branch bank to avoid consumer confusion.
House Bill 188 proposes increasing to $50,000 the cap on the size of a trust which can be terminated and distributed upon a court order. It also proposes amending KRS 386.454 to add additional considerations for a fiduciary to examine when making potential adjustments between principal and income.
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