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A
Good
morning
and
welcome
to
the
first
interim
meeting
of
the
interim
joint
committee
on
banking
and
insurance,
we
do
have
a
full
agenda
this
morning,
we'll
be
getting
our
financial
institutions
update
from
the
department
of
financial
institutions,
kentucky
credit
union
league
bluegrass,
the
bankers,
association
and
the
kentucky
bankers
association.
At
this
time
we
will
have
the
secretary
call
the
roll,
and
if
the
members
would
please
indicate
whether
you're
president,
in
the
room
in
your
annex
office
or
back
in
your
district,
madam
secretary.
B
A
Present
here
in
the
room,
we
do
have
a
quorum,
but
since
this
is
our
first
interim
meeting,
we
do
not
have
any
prior
minutes
to
approve.
So
at
this
time
are
there
any
members
on
the
committee
that
would
like
to
seek
recognition
for
a
potential
guest
in
the
room,
probably
not
happening
today.
A
So
if
with
that,
we'll
move
right
on
into
our
agenda
and
we'll
start
with
an
update
from
the
kentucky
department
of
financial
institutions,
commissioner,
charles
vice,
will
be
joining
us
remotely.
A
H
Okay,
so
you
can
hear
me
now
all
right
well,
first,
I
want
to
thank
chairman
roland
and
chairman
carpenter
and
the
members
of
the
committee
for
letting
me
testify
today.
Thank
you
also
for
working
with
me
on
allowing
me
to
testify
remotely.
I
am
working
from
two
screens.
So
if
you
see
me
looking
up,
that
means
one
of
two
things:
I'm
either
referencing
my
slides
or
I'm
praying
one
or
the
other,
but
I
am
charles
weiss.
H
And
the
discussion
topics
for
today
I'm
going
to
talk
about
dfi
operations
a
little
bit
as
we
work
through
the
pandemic
and
I'll
give
you
divisional
updates.
We
have
three
divisions
within
the
department,
the
depository
division,
non-depository
division
and
the
securities
division
when
I
get
to
each
division.
H
Also,
if
you
have
any
questions
that
weren't
that
you
didn't
have
ability
to
ask
during
the
meeting
today
be
glad
to
ask
anything
after
the
meeting
or
answer
any
questions
after
the
meeting
is
as
well.
You
can
either
just
email
me
or
let
the
lrc
staff
know
so
dfi
operations
we
during
the
pandemic.
We
did
issue
four
guidances
to
the
industry.
H
Each
one
was
industry
specific
and
the
guidance
was
tied
to
the
state
of
emergency,
which
means
once
the
state
of
emergency
ends.
The
guidance
ends
as
well.
Most
of
the
guidance
had
to
deal
with
operations
and
having
entities
and
regulated
entities
work
with
their
customers,
trying
to
ensure
safe
access
to
services.
H
Looking
at
social
distancing,
a
few
of
these
few
of
this
guidance
also
dressed
healthy
at
home
initiatives,
giving
some
relief
to
the
industries
relative
to
that
that
topic
and
overall,
though
the
message
was
please
work
with
your
customers
provide
them.
Some
extensions
modification
loan
modifications
if
possible,
reduce
fees,
those
were
not
mandates.
Instead,
they
were
just
asking
the
industry
to
work
with
their
customers
if
they
could
and
I'm
very
pleased
to
report,
a
lot
of
industries
did
take
a
lot
of
actions
and
initiatives
to
help
customers.
H
They
come
up
with
some
very
inventive
ways
to
offer
services
and
provide
services
while
also
meeting
social
distancing
requirements
and
mask
mandates
from
examination
procedures.
We
are
mandated
to
continue
examinations.
We
did
not
do
a
pause.
Some
federal
agency
paused
their
examination
activities
during
the
pandemic.
We
did
not.
H
We
have
conducted
some
on-site
procedures,
but
those
were
extremely
limited
during
the
pandemic,
meaning
that
we
would
go
on
site
very
infrequently
to
some
entities
just
to
obtain
information
and
collect
information
that
could
not
be
transferred
to
us
electronically.
Then
we
took
them
back
to
work
locations
to
do
the
examination.
H
However,
future
examinations
will
use
we're,
calling
a
hybrid
model
and
we
are
conducting
as
much
as
we
possibly
can
off-site
and
when
we
go
on-site
to
a
regulated
entity
to
do
an
examination
we
try
to
take
a
minimal
team
and
and
be
on
site
for
just
a
minimal
amount
of
time.
Whatever
we
whatever
time,
we
need
just
to
collect
information
and
conduct
the
examination
of
our
remainder
of
the
examination
off-site
so
for
divisional
updates
I'll
start
with
a
depository
division.
This
would
include
kentucky
state
chartered
banks
and
kentucky
state
chartered
credit
unions.
H
H
Financial
institutions
as
I'll
get
into
a
little
bit
are,
are
ready
to
lend.
They
do
have
a
lot
of
liquidity
on
their
balance
sheets
and
we're
in
a
very
low
rate
environment.
So
banks
and
and
credit
unions
are
are
in
a
mode
where
they
can
lend
rates
are
low
and
they
have
a
lot
of
excess
liquidity
at
this
time.
H
This
liquidity
is
is
shown
in
this
chart
right
here.
There
has
been
a
significant
surge
in
deposits
during
the
pandemics
during
the
pandemic,
and
the
black
lines
on
the
chart
represent
actions
that
were
taken
by
the
u.s
congress
to
provide
stimulus
and
stimulus
funds,
and
so
after
each
one
of
those
were
passed,
you
could
see
some
pretty
significant
growth,
both
in
the
kentucky
credit
union
deposits
and
bank
deposits
in
the
tune
of
15
percent
20
and
up
to
25.
So
we've
seen
some
pretty
significant
dollars
flow
into
into
our
insured
depository
institutions.
H
H
And
again
this
will
bear
out
what
I
was
talking
about
earlier.
We've
seen
a
pretty
significant
surge
in
growth
in
total
assets,
not
so
much
in
total
loans,
but
a
pretty
significant
surge
in
total
assets
during
this
time
frame
as
well.
So
right
now
in
kentucky
we
have
108
state
chartered
banks.
H
H
So
at
the
end
of
19,
in
kentucky
banks
it
was
53
billion
dollars
on
in
total
assets
at
the
end
of
20
that
increased
about
15
percent
to
61.4
billion
and
in
the
first
quarter
of
this
year
that's
also
they've
also
grown
another
3
billion
to
64
billion
total
loans.
Over
that
same
time
frame
went
from
38
billion.
They
grew
nine
percent
in
20
to
end
that
year
at
41
billion,
and
it
remains
pretty
much
steady.
So
there's
still
a
lot
of
liquidity
at
the
banks.
H
So
looking
at
the
overall
performance,
there's
a
couple
metrics
that
I
look
at
each
quarter
and
I
compare
our
state
to
national
and
also
the
states
that
are
around
us-
I'm
not
going
to
read
each
number
on
this
chart.
This
is
really
provided
for
your
information,
but
I
will
go
over
the
kentucky
line.
H
I
would
have
you
keep
in
mind
that
when
you
see
national
up
there,
that's
all
the
state
chartered
banks
in
the
united
states.
That
does
not
include
the
occ
chartered
banks,
so
that
is
just
the
state
chartered
banks
in
the
u.s,
because
I
wanted
to
compare
apples
to
apples
in
our
department.
Just
overseas
kentucky
state
chartered
banks,
so
kentucky
banks
have
employed
about
11,
11
300
people,
the
net
interest
margin,
which
is
basically
the
result
of
what
is
the?
H
H
That
is
number
one
compared
to
the
states
that
around
us
and
the
in
state
charter
banks
nationwide,
the
return
on
average
assets
is
a
measure
of
overall
profitability.
H
Historically,
a
one
percent
or
better
is
considered
a
really
a
good
return
on
average
assets.
Right
now
for
march
31st,
the
first
quarter
kentucky
banks
earned
1.45
as
a
return
on
average
assets.
That's
number
three,
with
indiana
coming
in
at
number
one
at
1.56
the
return
on
equity,
which
is
the
rate
that
the
shareholders
earned
based
on
that
return
on
average
assets
was
13.44
that
was
number
three
as
well
with
indiana
again
leading
the
way
at
14.39
and
the
final
measure
or
ratio
I
have
on
this.
H
That's
at
10.47
percent,
that's
a
very
strong
capital
ratio
and
it's
number
one
compared
to
the
states
around
us
and
the
nation
as
a
whole,
so
again,
a
very
strong
performance
for
banks
through
the
first
quarter
of
this
year,
credit
unions
again
very
similar
information.
Looking
at
the
states
that
are
around
us
and
looking
at
the
state
chart
state
chartered
credit
unions
on
a
nationwide
scale.
H
H
That's
number
three!
Compared
to
the
states
that
are
around
us
return
on
average
assets
was
0.867,
that's
number,
seven
with
illinois
being
number
one
and
the
net
interest
margin
kentucky's
at
2.61,
and
that's
number
five
compared
to
the
states
around
us
with
west
virginia,
leading
that
at
2.94
so
again,
very
sound,
very
solid
performance
for
our
state
chartered
credit
unions
as
well
with
a
very
strong
capital
ratio.
H
H
These
are
the
particular
things
that
we
license
our
register,
so
it
consists
of
mortgage
companies
and
brokers.
Mortgage
loan,
originators
consumer
loan
companies,
industrial
loan
companies
check
cashers
in
deferred,
deposit
licensees,
limited
check,
cashers
and
money
transmitters.
So
these
are
the
number
of
individuals
and
companies
within
those
categories
and
where
we've
seen
a
lot
of
growth
in
the
mortgage
market
is
very
strong.
H
Right
now
is
in
the
mortgage
space,
where
we've
had
a
pretty
significant
increase
in
the
number
of
licensees,
our
mortgage
companies
that
we
licensed
in
2020,
that
was
a
17
growth
in
mortgage
companies
and
brokers
and
a
34
growth
in
the
number
of
mortgage
loan
originators
and
through
june
25th
2021
we've
seen
a
13
increase
in
mortgage
companies
licensed
in
kentucky
and
an
11
increase
in
the
number
of
mortgage
loan
originators.
Those
would
be
individuals
individual
mortgage
loan
officers.
H
Like
I
said,
the
mortgage
industry
is
really
going
strong
right
now
in
kentucky
home,
prices
are
up
significantly
and
a
lot
of
this
has
to
do
with
supply
and
demand.
The
housing
demand
is
very
low
right
now,
but
I'm
sorry
housing
supply
housing
supply
is
very
low
right
now
and
demand
is
really
high.
H
So
we're
just
running
into
some
supply
and
demand
forces
here,
but
from
a
nationwide
perspective,
the
median
home
prices
went
from
322
000
back
in
2020
and
right
now
it's
at
350
8
700
for
a
median
home
price
throughout
the
nation.
In
kentucky
that's
a
little
bit
lower.
I
believe
right
now,
the
median
home
prices
increase
from
about
175
000
to
about
196..
H
Last
year,
the
median
home
price
in
kentucky
alone
increased
10
percent,
and
so
far
year
to
date
this
year
it's
increased
another
10,
so
home
prices
are
up
over
the
past
year
and
a
half
at
about
20
percent.
H
The
monthly
payment
is
four
hundred
and
twenty
two
dollars,
so
this
very
low
rate
environment
again
it
creates
this
housing
demand
and
it
also
provides
access
to
people
to
be
able
to
afford
more
homes.
This
is
looking
at
mortgage
origination.
Compare
comparison
and
again
this
is
just
non-depository
mortgage
companies
only
operating
in
kentucky,
so
this
does
not
include
banks
or
credit
unions.
This
is
just
non-depository
mortgage
companies,
so
looking
at
2019
compared
to
2020
in
2019,
there
was
7.8
billion
in
mortgages
originated
in
2020
that
increased
to
14.9
billion.
H
The
number
of
loans
went
from
right
at
44,
000
to
right
little
over
75
000.,
75
000
loans
originated
just
last
year
and
the
average
loan
size
you
can
see
there,
which
kind
of
mirrors
the
median
home
price,
went
from
178
000
to
196
000
and
again,
that's
the
average
loan
size,
comparing
2019
to
2020.
H
H
money.
Transmitters,
many
of
those
locations
did,
we
did
work
remotely,
but
still
provided
services
and
the
number
of
licensees
and
the
volume
of
activity
that
we're
seeing
in
many
transmitters
has
remained
pretty
stable
throughout
this
time
frame.
H
Finally,
for
the
final
divisional
updates,
look
at
the
securities
division
and
and
the
securities
division
they
oversee,
broker-dealers
investment,
advisors
and
issuers.
This
chart
gives
you
some
information
about
how
many
licensees
and
individuals
that
we
have
licensed
and
registered
under
the
securities
area.
H
We
have
seen
a
little
bit
of
increase
in
broker
dealer
agents
and
issuers
they're
up
about
six
percent
in
2021
and
the
rest
of
the
categories
have
remained
relatively
stable,
but
still
seeing
some
pretty
pretty
good
growth,
pretty
sound
growth
and
broker-dealer
agents
and
issuer
agents
that
are
registered
with
kentucky.
H
Some
of
the
effects
on
the
securities
industry
are
similar
to
the
other
industries.
You
regulate,
broker,
dealer
and
investment
advisors
had
have
closed
some
offices,
physical
locations
and
the
reason
being
is
a
lot
of
those
services
have
went
to
an
electronic
delivery
format,
and
so,
even
though
some
offices
have
been
closed
again,
there
is
still
high
demand
for
securities
services
and
just
those
have
gone
to
an
electronic
format,
and
this
has
caused
some
some
clients
to
read
that
resisted.
H
Online
services
have
adapted
to
that
simply
because
the
ability
to
meet
in
person
has
been
diminished
over
over
the
past
years.
As
we've
been
dealing
with
the
pandemic,
the
demand
for
services
have
caused
an
increase
in
representatives
which
we
saw
on
the
last
slide,
and
uncertainty
in
the
markets
have
caused
some
some
individuals
and
some
investors
to
move
to
non-traditional
investments
with
increased
risk
and
fraud
and
I'll
talk
about
those
a
little
bit
on
the
next
slide.
H
Some
market
concerns
we're
seeing
right
now
in
the
security
space
social
media
posts,
platf
social
media
platforms
are
being
used
to
promote
agenda-based
trading
as
opposed
to
fundamental
based
trading.
So,
instead
of
looking
at
a
company's
viability
and
its
financial
strength,
some
social
media
platforms
have
been
used
to.
If
you
will
market
or
pump
up
demand
for
some
stock
once
it's
brunch,
it
reaches
a
high
or
a
certain
value.
H
The
players
that
are
trying
to
do
this
then
basically
pump
and
dump
the
stock.
They
sell
the
stock
while
it's
at
a
high
level
and
make
a
profit
from
it.
That
way,
we've
also
seen
a
significant
amount
of
activity
in
the
cryptocurrency
space.
A
lot
of
individuals
are
looking
at
that
as
an
alternative
investment
these
days
and
with
cryptocurrencies,
it
is
higher
risk
and
more
volatile.
One
of
the
risks
associated
with
it
is
cryptocurrencies
are
typically
not
backed
by
any
fiat
currencies.
H
There
are
some
exceptions
to
that
relative
to
stable
coins,
but
just
a
typical
cryptocurrency
is
not
backed
by
a
fiat
currency
and
there's
extreme
price
volatility
with
it.
We've
also
seen
some
investors
as
typical
when
you
have
some
uncertainties
in
the
market,
go
to
precious
metals,
I.e,
gold
and
silver,
and
in
some
cases
we've
been
dealing.
We've
been
seeing
an
uptick
in
some
fraud
associated
with
gold
and
silver
selling.
H
H
So
on
the
first
line
it
says,
approve
through
august
8,
2020
and
the
reason
it
says
that
is,
the
initial
paycheck
protection
program
was
initiated
in
the
cares
act
and
that
funding
ended
on
august
8th.
So
that's
why
we
have
this
date
here.
The
number
of
loans
originated
in
kentucky
was
fifty
thousand
six
hundred.
Fifty
five.
H
H
During
that
funding
period
there
were
80,
225
loans
originated
in
kentucky
and
that
totaled
2.
2.6
billion
and
the
average
loan
size
during
that
funding
period
was
30
30
right
at
32
000,
currently,
loans
outstanding
in
kentucky.
So
these
are
paycheck
protection
programs
that
have
not
either
the
loans
that
have
not
been
paid
off
or
forgiven,
total
right
at
32,
000
loans
and
the
total
dollar
amounts
2.5
billion
and
the
average
size
of
that
is
78
000..
H
So
the
last
slide
I
have
here-
and
this
really
is
an
indicator
of
how
important
the
financial
services
industry
was
in
getting
out
this.
This
stimulus
funds
through
the
paycheck
protection
program
and
again
I've
got
this
broken
down
to
the
original,
cares
act
and
the
extension
act,
and
these
are
the
percentages
that
of
this
of
those
funds
that
we
just
talked
about
in
con.
H
This
is
the
looking
at
the
us
in
total,
though,
of
how
much
flowed
through
banks
and
savings
and
loans,
thin
tech
companies,
small
business
lending,
credit
unions
and
other.
So,
as
you
can
see,
this
was
the
financial
service
industry
was
really
integral
in
administering
this
program
and
getting
this
relief
to
companies
and
getting
the
funds
to
companies
so
chairman.
I
will
end
my
presentation
there
and
be
glad
to
take
any
questions
that
you
may
have.
A
Thank
you,
commissioner.
We
always
appreciate
your
presentations
to
our
committee
and
working
with
us
throughout
session
on
issues
that
impact
our
community
banks
and
credit
unions
throughout
the
state.
Any
any
members
have
any
questions
or
comments
regarding
the
commissioner's
presentation
this
morning.
E
H
One
of
the
things
that
I've
been
very
pleased
with,
and
actually
surprised
with,
I
should
say,
is
that
the
past,
due
rates
and
the
loss
rates
at
our
institutions
have
been
relatively
low
to
this
point
now,
one
of
the
things
that's
going
into
this
as
well
is
that
these
deferment
periods
and
rental
deferments
and
mortgage
deferments
are
recently
ending.
So
we
may
not
see
the
impact
of
that
for
a
while,
but
as
of
right
now,
we
have
not
seen
a
significant
increase
in
either
past
due
foreclosure
or
defaults.
As
of
as
of
right
now,.
H
E
Thank
you,
mr
chairman,
commissioner,
just
a
quick
topic
on
the
crypto
has:
do
you
have
any
kind
of
vision
in
the
future
of
any
kind
of
regulations,
insight
on
what
advice
you're
going
to
give
banks
on
dealing
with
the
crypto
and
also
are
you
waiting
for
the
federal
to
take
a
lead
in
it
before
you
look
at
it
as
a
state
issue.
H
A
great
question-
and
this
is
such
an
emerging
industry-
I
do
know
some
states
have
taken-
I
have
passed
statutes
really
regarding
special
purpose.
Depository
institutions.
Wyoming
was
the
first
one
to
do
that.
I
believe
nebraska
passed
it
last
year.
This
is
definitely
a
topic
that
we're
looking
at,
and
one
of
the
challenges
with
cryptocurrency
is
one
it's
so
new.
H
It's
so
innovative
and
people
are
using
them
for
such
a
wide
variety
of
things,
and
it
doesn't
really
fit
into
one
of
the
boxes
that
we
have
right
now,
I.e
depository
non-depository
or
securities,
and
so
one
of
the
challenges
there
is
taking
the
right
approach
to
this,
but
we
are
definitely
looking
at
it.
We're
definitely
engaging
some
companies
with
this
we're
talking
to
other
states
about
this
and
we're
trying
to
develop.
E
Quick
quick
follow-up,
mr
chairman,
are
you
aware
of
the
machines
that
are
being
placed
in
businesses
right
now
with
bitcoin
bitcoin.
H
I'm
not
aware
of
any
being
play.
I
think
there
may
be
one
in
louisville,
I
don't
think
they're
widespread
throughout
kentucky.
Yet,
but
yes,
I
am
aware
of
these
types
of
machines
that
are
encouraging
people
to
invest
in
bitcoin
and
other
types
of
cryptocurrencies.
E
Is
it
my
understanding,
these
machines
can
do
a
transaction
on
conversion
american
dollars
to
bitcoin
on
site
is
that
is
that
your
interpretation
of
it.
H
Yes,
usually
it's
you're,
making
some
type
of
payment
either
a
currency
or
some
type
of
electronic
payment
via
debit
card
or
credit
card,
and
you're
purchasing
the
cryptocurrency
with
it
I.e,
you're,
getting
a
wallet
that
has
the
public
and
private
key
associated
with
the
cryptocurrency
that
you're
buying
and
you
do
own
it
from
that
point
forward.
Yes,.
E
Is
there
anything
in
the
future
that
you're
going
to
be
bringing
to
the
legislation
as
far
as
legislation
to
to
our
committee?
This
is
going
to
do
an
immediate.
You
know
the
last
session
we
did
pass
some
legislation
and
dealt
with
some
crypto
and
the
reason
I'm
asking
is
when
you
have
someone
coming
to
you
for
making
a
recommendation
on
whether
they
should
be
entering
that
that
type
of
investment,
I'm
not
an
investment
banker
or
anything
like
that,
and
I
don't
give
that
type
of
advice.
But
what
they're
looking
for
is
regulation?
E
Are
you
being
hit
with
the
same
type
of
questions,
the
correspondence
from
the
public
reaching
out
to
find
some
sort
of
regulation
on
these
crypto
coins
and
what
I'm
reading
about
them
is.
That
is
what
the
biggest
fear
is
right
now,
but
there
is-
and
you
can
correct
me-
there
is
institutions
that
are
invested
in
it
now.
Banking
institutions
that
are
starting
to
invest
in
crypto
is
that
correct.
E
Is
that
at
your
understanding,
that
is
on
national
level,
I'm
not
talking
about
a
kentucky
bank
particular
but
they're
starting
to
be
institutional
investments,
so
is
there
a
guidance
in
your
office
or
that
you're,
seeing
from
the
governor's
office
or
from
leadership
somewhere?
That's
telling
you
to
be
looking
at
some
sort
of
guidelines
for
us
to
be
considering
or
again
are
you
waiting
on
the
sideline
to
see
what
the
federals
do.
H
H
A
Thank
you.
We
have
two
final
questions
on
this
presentation
and
then
we'll
move
on
to
our
next
presenter
representative.
Flannery
is
first
two
questions.
Please.
H
Right
right
right
now,
we
are
definitely
looking
at
this
issue.
We
do
know
that
there
is
a
potential
for
some
activity
to
resume
relative
to
foreclosures
and
evictions,
and
things
of
that
nature,
with
the
moratorium
ending,
we
have
always
encouraged
our
financial
institutions
to
work
with
their
borrowers
as
much
as
possible.
H
That's
one
of
the
strong
messages
that
we
sent
through
our
guidance-
and
I
I
know
this
probably
is
not
the
answer
you're
looking
for,
but
one
of
the
things
that
I've
always
enjoyed
and
just
think
it's
a
strength
of
kentucky
is
that
our
financial
institutions
do
the
right
thing
so
they're
going
to
work
with
their
customers,
as
I
have
faith
that
they'll
work
with
their
customers
as
much
as
possible,
whether
that
be
a
landlord
situation
or
whether
that
be
a
tenant
that
is
struggling
and
has
financial
needs.
So
we
are
looking
at
this.
H
We
are
in
contact
with
the
industry
about
it,
but
I
do
have
a
strong
faith
in
our
financial
institutions
that
they
will
do
the
right
thing
relative
to
the
companies
that
they're
dealing
with
that
serve
as
landlords,
but
also
as
the
tenants
and
or
borrowers
themselves.
That
may
be
in
a
tough
financial
situation.
E
Second
unrelated
question:
I've
had
several
merchants
and
business
people
that
still
actually
that
still
receive
checks
for
payment
have
indicated.
There's
been
a
surge
of
cold
check
fees,
any
indication
as
to
how
many
cold
checks,
if
that's
on
the
rise
or
what
the
fee
amounts.
If
they've
increased.
H
I
have
not
seen
an
increase
in
fees,
yet
I
do
know
several
institutions
have
actually
either
reduced
their
fee
or
me
even
put
it
on
hold
for
a
while.
But
I
don't
have
any
information
relative
to
this
that
I
could
share
with
you
at
this
time.
H
E
Thank
you.
Thank
you,
commissioner.
My
questions
are
around
the
ppp
loans.
Two
part
questions
so
I'll
smack
it
together
for
you
in
the
interest
of
time.
The
first
is
the
first
draw
versus
the
second
draw
amounts
is
the
second
draw
amount,
is
appreciably
lower
we're
going
from
104
average
to
31
000
dollar
average
on
the
loan.
So
could
you
talk
a
little
bit
about
any
ideas
you
may
have
for
why?
E
That's
so
much
less,
especially
since
the
second
round
allowed
for
more
vendor
payments,
broader
payments
usage
for
that
second
round
of
draw,
so
I'm
confused
as
to
why
it
might
be
lower,
and
it's
concerning
to
me
that
perhaps
it's
a
sign
that
we
have
some
can.
We
should
have
some
concerns
with
our
small
businesses,
especially
and
then
second,
just
looking
at
the
crush
of
these
loans.
E
So
I'm-
assuming
we
add
this
fifty
thousand
plus
this
eighty
thousand
so
we're
looking
at
131
000
loans
that
your
institutions
have
processed
plus
an
uptick
of
more
than
30
000,
more
mortgage
loans
this
year.
Can
you
just
talk
about
how
your
institutions
are
handling
that
that
kind
of
crush
of
applications?
H
Yeah-
and
I
think
that
I'm
hoping
that
the
kba
addresses
this
and
has
more
stories
with
you
will
about
how
the
institutions
were
able
to
handle
this
because
you're
right,
this
did
create
a
pretty
significant
disruption
in
operations.
There
were
many
stories
that
I've
heard
where
institutions
were
trying
to
get
applications
online
and
through
the
sba
and
actually
had
employees
sleeping
on
cots
to
one
two
o'clock
in
the
morning
trying
to
get
applications
through.
H
One
of
the
things
to
keep
in
mind
with
the
ppp
loans,
though,
is
that
there
is
the
forgiveness
piece
of
them.
So
a
lot
of
these
are
going
to
be
dealt
with
paid
off
through
a
forgiveness
piece.
Initially
that
was
capped
at
150,
000
automatic
forgiveness,
and
just
this
week
the
the
sba
opened
up
a
portal
to
allow
borrowers
themselves
to
go
in
and
ask
for
forgiveness
and
do
an
automatic
forgiveness
of
150
000..
So
I
do
think,
as
time
goes
on.
H
A
lot
of
these
will
be
removed
from
balance
sheets
via
the
forgiveness
piece
and
their
payment
piece
and
regarding
the
mortgages,
the
mortgage
industry
today
pretty
much
functions
as
a
originate
to
sell
model.
So
a
lot
of
these
mortgages,
even
though
there's
been
a
significant
uptick
through
our
financial
institutions,
are
basically
not
being
held
on
the
balance
sheets
of
our
credit
unions
and
banks,
but
instead,
usually
finding
their
way
into
the
the
secondary
market
via
a
mortgage
investment
vehicle.
H
And
oh
yeah,
I
didn't
talk
about
the
average
size,
the
average
size,
one
of
the
big
differences
there
is
that
on
the
second
extension
piece
of
it,
it
was
specifically
geared
toward
trying
to
make
sure
that
smaller
businesses
have
access
to
it.
That's
why
you
see
this
average
size
go
down
quite
a
bit,
and
I
think,
because
of
the
focus
being
on
the
smaller
businesses,
you
weren't
getting
the
three
four
five
and
six
million
dollar
loans.
Instead,
it
was
going
more,
loans
are
going
out
and
smaller
dollar
amounts
to
smaller
businesses.
H
A
Thank
you,
commissioner.
We
again,
we
appreciate
your
time
this
morning
and
thanks
for
kind
of
adjusting
on
the
fly
and
joining
us
remotely.
A
A
J
I
am
honored
today
to
tell
you
a
little
bit
about
credit
unions.
The
commissioner
did
a
great
job
at
going
over
like
the
kind
of
the
financial
update.
So
what
I'd
like
to
do,
even
though
there's
some
slides
in
there
on
on
our
financials
I'd
like
to
just
talk
to
you
about
credit
unions,
I
will
tell
you
I
am
technology
technologically
challenged,
so
if
I
fall
behind
on
my
screens,
don't
worry
about
just
you
can
just
listen
and
not
have
to
read.
J
J
J
In
germany
we
had
a
group
of
farmers
who
were
having
problems
getting
loans,
and
so
they
decided
to
just
pool
their
dollars
together
and
just
lend
to
each
other.
So
that's
actually,
where
credit
unions
began,
they
didn't
get
to
the
united
states
until
the
early
1900s,
but
our
board
of
directors
are
all
volunteers
and
they're
all
elected
from
the
membership.
J
Credit
unions
can
be
federally
chartered
and
they
can
be
state
chartered
and,
as
you
heard
from
the
commissioner,
we
have
20
state
chartered
credit
unions.
My
slides
will
show
that
there's
21,
but
we've
had
one
since
convert
from
from
state
over
to
a
federally
chartered
credit
union,
but
the
kentucky
became
the
13th
state
to
enact
a
state
credit
union
law,
and
that
was
in
march
of
1922
and
it
actually
predates
federal
credit
union
law.
By
like
12
years,
it
was
passed
in
congress
in
1934..
J
The
second
credit
union
that
was
chartered
is
louisville,
federal
credit
union
and
even
though
it
has
the
word
federal
in
its
name,
it
is
actually
a
state
chartered
credit
union.
It
was
established
in
1924
and
I'm
glad
to
say
that
it
is
still
in
existence
today,
very
strong,
very
healthy,
small
credit
union
who
is
serving
federal
employees.
J
Then
the
first
credit
union
in
existence
which
again
came
in
1908,
which
is
saint
mary's
bank,
and
I
know
it's
kind
of
odd-
to
have
a
credit
union
with
the
name
bank
in
it,
but
back
over
in
germany,
when
credit
unions
were
first
organ
and
not
organized,
they
were
actually
called
people's
bank
or
people's
association
before
they
became
known
as
credit
unions.
At
our
peak
in
kentucky,
we
had
around
280
credit
unions
across
the
state
nationally
we
had
a
little
over
22
000
credit
unions.
J
J
All
credit
unions
are
federally
insured
up
to
250
000
under
the
national
credit
union
share
insurance
fund.
This
share
insurance
fund,
unlike
the
fdic,
is
self-funded
by
credit
unions.
Credit
unions
are
accessed
one
percent
of
their
deposits,
that's
paid
into
the
insurance
fund
so
that
there
will
never
ever
be
a
tax
payer
bailout
for
a
credit
union.
We
will
pay
any
credit.
Union
losses
are
paid
by
credit
unions.
J
There
are
no
privately
insured
credit
unions
in
the
state
of
kentucky.
There
are
some
smattered
across
the
country,
but
none
in
kentucky.
The
smallest
credit
union
in
existence
today,
as
you
can
see,
is
less
than
a
million
dollars
in
assets.
It
is
a
small
credit
union
located
in
russellville.
It
is
inside
their
primary
sponsor,
which
is
a
factory.
J
J
The
other
thing
I'd
like
to
bring
to
your
attention
is
that
credit
unions
employ
about
2300
employees
across
the
state,
and
we
have
right
at
915,
000
credit
union
members,
which
sounds
like
a
lot,
but
we're
in
a
state
that
has
over
4
million
citizens,
so
915
is
actually
a
relatively
small
number
compared
to
other
states,
so
credit
unions
are
going
strong
in
kentucky
they're
doing
well.
The
commissioner
talked
about
the
fact
that
we
are
just
shy
of
11
in
net
worth
state
charter.
J
Credit
unions
tend
to
be
a
little
more
well
capitalized
than
federally
charted,
and
credit
unions
in
kentucky
tend
to
be
more
well
capitalized
than
those
across
the
nation.
So
we
have
a
higher
net
worth
capital
net
worth
than
those
others
outside
of
our
state.
So
again,
we're
a
strong
state,
we're
small
and
unfortunately,
we
this
time
next
year
may
be
even
a
little
smaller
than
we
are
today.
But
even
though
we
are
decreasing
in
numbers,
our
assets
are
growing
and
our
members
are
being
served
like.
J
I
think,
you'll
find
when
mr
cassidy
comes
up
and
talks
about
the
banking
industry.
We
are
faced
with
some
challenges,
and
mainly
I
listed
four
down
here
for
you,
as
the
commissioner
alluded
to
you
know,
with
all
the
stimulus
payments.
J
Credit
unions,
just
like
the
banks,
have
an
influx
of
dollars
in
in
their
accounts
where
members
and
customers
are
hanging
on
to
those
dollars
and
aren't
spending
those
dollar
dollars
and
aren't
borrowing
those
dollars
yet
so
we
have
some
artificial
growth
out
there
and,
as
the
commissioner
alluded
to
credit
unions
are
ready
to
lend
credit
unions,
bread
and
butter.
As
far
as
lending
goes.
Is
consumer
lending,
the
auto
loans
new
and
used
signature
loans
that
type
of
thing
occasionally
recreational
vehicles?
J
So
we
are
ready
to
lend
we
have
the
dollars
to
lend
and
if
we
could
ever
get
some
chips
in
the
vehicles
we'll
be
ready
to
roll.
So,
but
cyber
security
continues
to
be
a
big
issue.
I
think
you'll
find
that
across
most
financial
indus
industries,
that
that
tends
to
be
a
big
big
challenge.
J
We
are
working
hard
to
prevent
fraud,
prevent
any
cybersecurity
breaches
in
the
financial
industry.
Probably
the
biggest
thing
right
now
is
talent,
retention
and
recruitment.
You
know
credit
unions
and
community
banks
are
up
against
the
sonics
and
the
mcdonald's
that
are
all
of
a
sudden,
offering
13
to
18
an
hour.
That
is
hard
for
credit
unions,
small
credit
unions
in
this
state
to
be
able
to
pay
18
an
hour
for
an
entry-level
employee.
J
So
just
think
about
the
fact
that
you
could
work
at
sonic
and
almost
make
40
000
a
year.
So
and
it's
it's
a
struggle
right
now
to
figure
out
what
people
want.
What
do
employees
come
in
on
board
want?
Do
they
want
a
higher
salary?
Do
they
want
vacation
time?
Do
they
want
benefits?
It's
kind
of
all
over
the
board
right
now,
so
again,
talent,
recruitment,
talent,
talent,
retention
and
the
rising
costs
are
something
that
I
think
all
financial
institutions
are
facing.
J
What
I
want
to
leave
you
with
before
I
open
it
up
for
any
questions
is
to
let
you
know
what
credit
unions
are
focused
on.
You
know,
credit
unions
again
are
member
owned
and
at
the
core
mission
of
a
credit
union
is
to
be
able
to
maximize
the
financial
well-being
of
all
of
its
members,
and
financial
well-being
means
more
than
just
financial
literacy
or
financial
education.
J
Those
are
big
components
of
it,
but
when
you
look
at
financial
well-being
for
for
an
individual
you're,
looking
at
food
security,
you're
looking
at
housing
security,
job
security,
do
you
have
enough
in
your
account
to
to
be
able
to
handle
a
financial
shock?
You
know
if
your?
If
your
washer
stops
working
or
you
need
new
tires
for
your
vehicle,
can
you
handle
that
expense?
J
It's
also.
Financial
well-being
is
also
about
being
able
and
being
confident
to
make
the
right
choices
with
your
dollars,
and
and
how
do
you
feel
about
your
income
and
about
your
savings
and
about
your
your
life
and
your
family
well-being?
So
credit
unions
are
really
focused
on
helping
each
and
every
member
achieve
their
financial
well-being.
I
want
to
encourage
you.
If
you
have
time
and
like
you
know,
you
have
nothing
else
to
do,
which
I'm
pretty
sure
most
folks
on
this
panel
have
enough
to
do.
J
But
if
you
find
yourself
wondering
about
a
little
bit
more
about
it,
you
can
go
to.
J
J
So,
for
three
years
the
credit
unions
have
committed
350
000
per
year
to
help
fund
this
commission
and
we're
very
proud
to
be
a
part
of
that
and
again,
financial
literacy
and
financial
education
is
just
a
part
of
of
a
credit
union's
mission
and
just
a
part
of
helping
people
achieve
financial
well-being.
So
I'm
very
proud
to
represent
this
industry
and
we
are
a
unique
industry.
J
A
E
Thank
you,
mr
chairman.
Debbie.
It's
good
to
see
you
again.
Thank
you
for
your
compelling
testimony
and
I
just
want
to
offer
a
little
bit
of
testimony
about
credit
unions
when
I
was
in
the
first
grade.
My
mother
would
always
give
me
a
quarter
for
lunch
money,
but
on
wednesday
she'd
give
me
an
extra
quarter.
E
I
remember
the
first
time
I
did
that
going
down
there
with
her
in
the
first
grade
and
mrs
moran
was
in
this
little
room
and
she
was
puffing
off
a
cigarette,
and
I
love
the
smell
of
that
cigarette
smoke,
his
little
boy.
So
I
was
lean
over
there
and
she
had
her
glasses
down
on
her
nose
like
I
do
and
she'd
enter
that
quarter
in
there
and
enter
it
in
there
by
hand
and
she'd
give
me
back
his
book
and
by
the
time
I
was
in
eighth
grade.
E
E
A
J
A
A
A
G
G
My
name
is
christy
carpenter
and
I'm
I'm
pretty
homemade.
I
grew
up
back
a
country,
road
called
tick
creek
like
a
creek
of
ticks.
G
I
was
a
daughter
of
a
sharecropper
who
raised
cattle
and
tobacco
and
corn
and
pretty
much
all
of
our
food.
We
we
lived
on
the
farm
and
it
provided
everything
for
us.
My
grandmother
made
all
my
clothes
until
I
was
about
14
years
old
and
I
demanded
that
we
get
to
go
to
the
mall,
buy
something
for
high
school.
G
It
was
a
wonderful
life
and
we
lived
off
the
land
and
we
were
happy
and
just
like
my
dad,
I
did
not
attend
college
except
for
taking
a
few
night
classes
in
computer
programming
and
I
really
wanted
to
be
a
missionary,
but
instead
I
hired.
I
married
my
high
school
sweetheart
and
had
a
couple
of
kids
and
I
took
a
job
at
the
best
place
in
town
to
work
springfield
state
bank.
G
One
day,
a
few
weeks
after
I
was
working
there,
one
of
the
officers
overheard
me
telling
a
customer
on
the
phone
about
what's
special
about
my
bank,
what's
special
about
community
banks,
and
he
said
you
know,
I
want
you
to
right
now-
go
to
the
radio
station
and
record
that
and
we're
going
to
make
that
the
bank's
commercial.
G
G
G
So,
while
that
fee
income
was
great,
we're
looking
now
into
2022
and
wondering
where's,
the
next
pot
of
gold
going
to
be,
you
know:
where
are
we
going
to
get
this
income?
Our
margins
are
shrinking,
it's
like
staring
into
a
mysterious
abyss
and
we
don't
know,
what's
going
to
happen
next
and
as
we
visit
with
our
customers,
we're
finding
that
to
be
the
new
normal
fear.
What
does
the
future
hold?
We
hear
it
in
every
single
industry
that
builders
can't
get
materials
which
have
tripled
in
price.
G
G
So
we
hear
story
after
story
from
our
customers
of
just
fear
and
wondering
what
does
future
hold.
Our
response
to
this
fear
is
pivotal
to
how
the
community
banking
industry
will
be
seen
for
years
to
come.
As
we
balance
empathy
with
sound
business
decisions
and
regulatory
alignment,
it's
our
job
to
keep
our
communities
economy
flourishing.
G
G
A
couple
of
sundays
ago,
my
preacher
was
talking
about
miracles,
he's
experienced,
he
shared
about
the
journey
of
our
church
river
of
life,
which
started
21
years
ago
with
80
people,
and
these
were
not
80.
Wealthy
people,
just
80
people
and
all
we
had-
was
a
extension
court.
That
was
our
only
property.
G
G
G
I
kind
of
think
he
knew
from
the
get-go
that
examiners
would
scrutinize
this
loan
and
they
did,
but
he
did
it
anyway
because
he
knew
us
and
he
believed
in
us-
and
I
it's
not
something
that
you
know
my
bank
would
boast
about,
but
I'm
proud
of
it,
I'm
proud
of
my
bank
that
this
is
the
way
we
do
business.
You
know
my
president
will,
from
time
to
time,
pull
out
that
loan
and
say
you
know.
I
think
we
can
lower
this
rate
again
and
who
does
that
community
banks?
That's
who
we
are.
G
G
G
They
don't
have
the
same
regulatory
requirements
that
we
do
or
pay
the
same
taxes
that
we
do
so
we
struggle
to
compete
with
their
rates
deposits.
We
have
plenty,
but
the
pressure
to
pay
more
to
keep
them
is
relentless
when
people
take
their
deposit
somewhere
else.
They
usually
take
the
relationship
as
well,
so
we
have
all
this
money
and
nothing
to
do
with
it.
G
G
Keeping
employees
healthy
and
safe
is
another
challenge.
You
know
we
used
to
be
a
bank
where
employees
came
to
work
as
long
as
they
had
a
pulse,
and
today
we
call
in
sick
at
the
sign
of
any
symptom.
Just
so
we
can
be
extremely
careful.
G
Third-Party
vendors
is
another
area
of
concern.
Our
bank
is
different
than
most
because
we
do
all
of
our
processing
and
house.
We
stuff
our
own
statements.
We
do
our
own
work
and
we
don't
hire
a
third
party
unless
there's
no
other
way
to
get
the
job
done,
but
recently
one
of
our
third
party
vendors
casia.
G
They
provide
patch
management
for
our
system
and
they
have
about
40
000
businesses
globally,
that
they
do
this,
for
they
were
hit
with
ransomware,
and
you
know
I
don't
really
think
of
ransomware
coming
from
a
company
that
is
supposed
to
specialize
in
computer
security
and
network
security.
But
this
is
who
hackers
are
out
to
get,
because
it's
like
dominoes.
G
If
they
take
that
third-party
vendor
out,
then
we
all
fall
down,
so
they
had
about
200
customers
to
get
hit
with
ransomware,
and
it
made
us
take
a
step
back
and
realize
that
more
and
more
we
are
going
to
have
to
do
our
own
work
and
we're
not
going
to
be
able
to
trust
the
third
party
vendors.
Even
though
they've
checked
off
all
the
boxes
and
they've
done
their
due
diligence.
G
G
We
do
our
the
work
on
our
own
and
going
to
continue
to
focus
inward
and
just
take
care
of
our
small
space
in
springfield,
and
then
you
know
that
leads
into
the
cost:
the
cost
of
technology
and
compliance
community
banks
don't
have
the
extensive
staff
and
the
budgets
of
the
larger
banks,
but
we
still
have
to
go
by
the
same
requirements
and
have
the
same
expectations
and
that
that's
a
struggle.
G
The
competition
that
we're
facing
with
the
non-bank
banks,
such
as
insurance
companies,
credit
unions,
ag
agencies,
mortgage
brokers,
online
lenders
they
easily
undercut
our
rates
and
again
don't
have
to
comply
with
the
same
regulations
and
restrictions
that
we
do
and
speaking
of
regulations.
This
is
not
an
issue.
G
The
regulatory
agencies
have
been
nothing
but
wonderful
during
this
pandemic,
and
I
want
to
take
a
minute
just
to
applaud
them.
They've
been
so
supportive
during
this
uncertain
time,
they've
been
proactive
in
finding
ways
to
make
our
jobs
doable
and
at
a
time
when
we
all
felt
quarantined
and
isolated,
they
went
the
extra
mile
to
make
sure
they
were
very
present
in
our
bank
and
commissioner,
vice
actually
set
in
on
our
last
exit
meeting.
G
G
G
I
hope
that
day
never
comes
so
this
is
my
state
of
community
banking
address
and
I
guess
somebody
overheard
me
talking
about
community
banks
and
thought
I'd
do
okay
at
this.
So
it's
something
I
definitely
believe
in
and
I
hope
I've
shed
some
light
on
the
challenges
we
face,
but
also
the
rewards
that
we
experience
in
helping
our
communities
thrive,
and
I
just
thank
you
for
your
attention
and
invite
any
questions
you
might
have.
A
K
K
My
entire
life,
our
community
bank,
just
recently
sold
to
a
much
larger
banking
institution,
and
so
I
just
encourage
the
legislation
to
support
what
your
needs
are.
Secondly,
I've
been
a
member
of
a
credit
union
for
35
years
and
I'm
a
big
supporter
of
credit
unions.
I
have
some
concerns
with
the
global
banking
institutions.
That's
taking
over
that
that
it
gives
me
some
great
concerns.
K
My
husband
grew
up
in
banking.
My
mother-in-law
was
a
vice
president
of
a
larger
bank
at
home
and
he
literally
grew
up
playing
in
the
vault
and
he's
also
a
member
of
the
nomastic
association
he's
big
into
the
coin
silver
and
gold,
and
I
constantly
hear
from
him
what's
taking
place
because
he
works
the
big
conferences
in
domestics
and
he's
out
there
and
he
hears
all
that's
going
on
from
the
mints.
K
All
the
way
down
to
your
local
collectors
and
vendors
that
sell
so
big
concern
that
if
we
get
away
from
our
smaller
banking
institutions
that
we're
heading
towards
globalization
in
our
banking
and
do
we
want
them
to
have
control
of
our
money
and,
as
you
say,
I
don't
feel
secure
with
large
deposits
anything
over
what
is
insured
by
the
banking
institution,
and
nobody
really
should
because
of,
as
you
say,
the
cyber
attacks,
so
the
banks
can
only
handle
so
much
and
you're
only
insured
to
certain
amounts.
K
G
I
would
like
to
respond
to
representative
robert's
question
about
the
ppp
loans
being
a.
We
had
more
loans,
but
a
smaller
dollar
amount.
Having
worked
with
those
firsthand
in
the
first
round,
self-employed
individuals
and
farmers,
they
were
told,
you
know,
use
your
schedule
c
and
your
schedule
f
and
use
the
net
income
to
calculate
your
benefit.
Well,
not
many
of
them
had
a
net
income
because
they
deduct
their
expenses
in
the
second
round.
They
use
their
gross.
G
A
A
D
Mr
chairman,
members
of
the
committee
good
afternoon,
it's
a
pleasure
to
be
here
as
always
to
talk
to
the
banking
insurance
committee.
My
name
is
ballard
cassidy,
I'm
the
president
of
the
kentucky
bankers
association.
D
I
want
to
make
that
up
front,
but
no,
I'm
just
again
we're
glad
to
be
here
rather
than
for
us
to
sit
up
here
and
repeat
the
information
that
we
knew
was
coming
today
from
commissioner
vice
and
from
debbie
and
and
from
christie.
I
knew
they
would
do
it
an
excellent
job
of
telling
you
all
what
was
going
on
the
banking
industry.
D
The
combined
efforts
of
all
those
people
I
mentioned
earlier
have
resulted
in
in
some
progress.
Kentucky
has
now
passed
the
revised
uniform
law
on
notorious
or
rulona.
If
you
like,
acronyms,
which
everybody
does
these
days,
that
allows
documents
to
be
notarized,
electronically
and
or
remotely
county
clerks
have
have
also
also
already
already
been
given
the
authority
to
voluntarily
accept
electronically
recorded
documents
and
this
legislature
increased
fees
to
help
the
county
clerks
with
those
efforts.
D
D
D
D
The
clerks
did
what
they
could
to
maintain
some
level
of
functioning,
some
allowing
drop-offs
outside
which
they
would
then
retrieve
and
file
later
others
would
have
boxes
or
baskets
on
the
sidewalks,
which
would
accumulate
documents
to
be
filed
at
some
undetermined
point
in
the
future,
and
some
offices
were
allowing
no
in-person
access
to
title
searches.
Some
were
scheduling,
limited
appointments
each
day
and
some
were
even
charging
for
access
to
those
files.
D
So
you
may
also
recall
that
during
covet,
the
shutdown
was
a
time
of
record
low
interest
rates
and
prompted
record
high
levels
of
refinancing
that
made
filling
prior
that
made
filing
priority
and
clean
titles.
Uncertain
uncertainty
in
the
recording
business
is
nothing
more
than
a
disaster
waiting
to
happen.
D
D
D
Right
now
there
are
a
number
of
vendors
working
with
a
smaller
number
of
county
clerks
in
kentucky
who
can
provide
the
capability
for
safe
and
secure
online
searches.
Although
the
users
pay
for
access
to
the
system,
the
clerks
must
find
the
initial
creation
must
fund
the
initial
creation
of
the
database.
D
More
importantly,
they
must
also
establish
a
reliable
indexing
system,
which
is
the
basis
for
any
usable
title
search
as
well
as
maintain
the
documents
management
system.
The
clerks
receive
no
part
of
these
users
fees
and
the
cost
to
the
county.
Clerk
is
usually
a
setup
fee
and
an
annual
per
person
licensing
fee
depart
determined
by
the
number
of
clerk
staff
that
have
excuse
me.
They
have
access
to
the
system.
D
Third,
is
we
need
a
completion
of
the
avis
to
cavis
system?
We
talked
about
earlier
to
allow
registration,
renewal
and
transfer
of
motor
vehicles
electronically
by
authorized
users.
Although
we
have
been
involved
in
discussions
to
achieve
this,
we
are
not
aware
of
any
expected
deadline
or
any
other
specifics
of
the
final
product.
D
As
such,
our
clerks
cannot
get
these
three
things
done
without
money
and
we
would
propose
some
sources
for
consideration.
First,
certain
certain
county
clerk
fees
were
raised
significantly
two
years
ago.
Those
are
the
fees
we
talked
about
earlier,
the
specific
purpose
of
updating
needed
for
the
specific
purpose
of
updating
needed
systems
and
software.
D
D
D
However,
the
application
process
is
complicated
and
the
money,
even
though
collected
only
by
the
county
clerks,
is
also
granted
to
other
agencies
for
unrelated
projects
to
the
filing.
These
grants
would
be
prior.
These
grants
should
be
prioritized
for
county
clerks,
which
need
them.
The
smallest
counties
to
complete
these
technology
projects
and
third
funds
have
been
provided
by
the
state
to
the
state
by
the
federal
government
for
a
variety
of
allowable
uses,
including
enhancement
of
and
implementation
of,
necessary
infrastructure
projects.
D
D
D
Our
county
clerks
must
be
empowered
with
funding
and
reasonable
deadlines
for
getting
the
necessary
software
and
systems
in
place,
and
they
will
need
your
help,
which
may
require
legislation
to
get
it
done.
I
want
to
thank
you
all
for
your
time
this
morning.
We'll
also
be
glad
to
answer
any
questions
on
ppp,
or
this
or
banking
or
anything
you
want
to
talk
about
we'd
be
glad
to
cyber
security.
A
Thank
you
ballard.
We
appreciate
you
all
being
here
this
morning
and
and
educating
the
members
of
the
committee
on
that
issue.
That
I
know
is
important
to
you
and
a
lot
of
folks.
We
do
have
a
comment
or
question
from
representative
meredith.
F
I'm
not
going
to
rehash
the
clerk's
issue,
we're
going
to
be
knee-deep
in
that
for
several
months
still
going
forward
and
we've
got
a
lot
of
work
to
do,
but
I
think
we're
making
some
progress
in
that
realm,
certainly
with
with
some
of
the
meetings
that
we've
had
and
some
of
the
discussions
that
are
being
had
over
that
issue,
I
want
to
go
back
to
a
comment
that
has
kind
of
been
a
thread
through
some
of
the
others.
F
Debbie
mentioned
it
in
her
presentation,
and
it
was
mentioned
as
well
in
christie's
presentation
to
some
degree
about-
and
commissioner
vice
mentioned
it
in
his
comments
too,
about
the
influx
of
deposits
that
are
coming
in
right
now
and
what
a
challenge
that
is
obviously
for
banks
in
managing
interest
margins
with
that
kind
of
money
coming
in
and
not
having
a
huge
increase
in
loan
demand
as
well.
F
F
Or
is
this
going
to
be
a
long-term
growth
in
the
monetary
supply
nationally
and
not
just
in
kentucky-
and
I
don't
know
the
answer
to
that-
I
can't
project
or
predict
that
I
don't
have
a
crystal
ball,
and
so
I
wonder
what
everybody's
thoughts
are
on.
That
is
this
going
to
be
a
short-term
blip
on
the
radar
or
with
most
of
the
time
that
we've
seen
monetary
supply
increases
over
the
years?
Is
this
here
to
stay.
D
That's
is
a
great
question:
it's
probably
the
50
000
question
in
the
banking
industry
today
you
know
I
would
refer
you
a
little
bit
to
the
fed
and
what
they
talk
about
inflation
and
transitory,
whether
these
are
just
short-term
problems
or
the
long-term
problems,
and
what's
your
definition
of
transitory?
Is
it
six
months
a
year
five
years
you
know.
What's
going
to
happen,
we
have
seen
a
huge
influx
of
deposits
that
you
talked
about
and
primarily
from
the
ppp
loan
business.
D
Those
funds,
I
think
at
one
point
75
of
those
funds
had
stayed
inside
the
banks
that
were
not
being
used
for
for
the
purpose
of
what
they
were
intended
to
be
used
for,
but
they
were
becoming
part
of
the
bank.
D
You
know
it
was
talked
about
earlier,
the
the
what
to
do
with
that
money
and
when
you
think
about
it,
the
banking
industry
just
got
through
loaning
all
of
their
businesses,
the
money
they
needed
to
to
do
what
they
were
wanting
to
do
so
you're
sitting
there
looking
at
who's
left
for
me
to
lend
money
to
so
most
everybody
in
the
communities
that
needed
the
money
had
gotten
the
money.
So
it's
it
is
a
problem.
F
If
it's
a
long-term
issue,
then
we're
going
to
have
to
grow
our
our
loan
demands
to
be
able
to
put
up
an
interest
margin
that
works
and
can
continue
to
make
our
our
banks
viable,
and
so
that,
like
you,
said
it's
the
fifty
thousand
dollar
question,
I
think
it's
something
we
all
in
the
industry
need
to
be
thinking
about
and
and
trying
to
figure
out
how
we
move
forward.
With
that.
D
You
you
hear
a
whole
lot
of
conversation
at
meetings
that
I
go
to
with
my
counterparts
about
this
about
this
very
issue
and
what
whether
or
not
the
time
has
come
to
quit,
offering
interest
on
deposits.
For
example,
you
know
if
you,
if
you
have
no
loan
demand,
you
don't
need
a
bigger
truck
when
you
take
deposits,
so
I
mean
there's
all
sorts
of
all
sorts
of
things
being
talked
about
in
the
banking
industry.
I
think,
as
commissioner
vice.
F
And
so,
if
you
look
at
this
was
really
targeted
to
a
lot
of
those
smaller
companies
who
were
really
really
struggling.
And
I
think
that's
one
of
the
reasons
that
you
saw.
The
smaller
dollar
amount,
because
some
of
those
large
companies
that
were
eligible
in
the
first
round
because
of
that
25
gross
revenue
reduction
were
not
eligible
in
the
second
round.
Yeah.
D
And
if
I
could
add
to
that
representative
roberts,
the
the
in
addition
to
that
the
banks
are
not
I'm
sorry,
the
businesses
were
finding
it.
There
was
a
formula
you
had
to
follow
and
it
had
to
do
with
employees.
It
had
to
do
with
revenue,
and
you
had
to
to
get.
I
think
it
was
75
of
of
all
that
money
had
to
go
to
your
employees.
D
Well,
they
couldn't
get
employees.
The
the
restaurants,
for
example,
that
thought
they
had
25
employees
when
they
went
back
and
said.
Okay,
I've
got
the
money
for
us
for
me
to
pay
you.
They
were
making
more
money
staying
at
home
and
they
basically
just
said
no
thank
you,
and
so
what
what
the
a
lot
of
those
small
businesses
found
out
was.
D
They
were
turning
the
money
back
in
right
because
they
did
not
want
to
be
stuck
with
the
loan,
even
though
it
was
only
a
one
percent
loan
which
I
would
take
most
days,
but
you
know
they
they
did
not
want
to
be
stuck
with
because
they
didn't
know.
If,
if
you
looked
at
ppp
in
its
entirety,
you
know
from
30
000
feet
at
what
happened
it
was,
it
was
like
building
a
plane
while
you're
flying
it.
D
The
banks
had
no
idea
the
businesses
had
no
idea,
there
were
no
rules,
there
were
guidelines
and
the
banks
were
throwing
all
those
billions
of
dollars
of
capital,
their
own
capital
out
on
a
promise.
Basically,
so
those
numbers
went
down
and-
and
I
think
christie
hit
on
it,
part
of
one
of
those
reasons
was
the
I
think
it
was
the
second
or
third
advancement
was
also
for
minority
businesses,
primarily
and
so
those
that
was
one
of
the
reasons
why
those
numbers
went
down
as
well.
E
E
E
So
the
reason
I
asked
the
commissioner
are
they
regulated
why
they're
sitting
in
businesses
so
there's
transfer
of
funds
again
on
the
banking
perspective?
What
is
your
association
discus
internal
discussions?
If
you,
if
you're
privy
to
tell
them
and
is
there
banking
institutions
in
kentucky
investing
in
it.
D
Representative
smith
ought
to
make
him
answer
that
question
for
you,
but
the
if
you
don't
mind
I'll
I'll,
give
it
a
shot.
D
One
thing
to
you:
okay,
there's
a
ton
of
discussion
on
cryptocurrency.
The
volatility
of
that
not
of
all
cryptocurrencies
is
right
now,
a
problem.
You
can
wake
up
one
morning
and
lose
15
in
value.
D
D
The
fed
has
come
out
with
the
guidelines
on
what
it's
going
to
take
for
them
to
accept
cryptocurrency,
to
have
access
to
the
payment
system,
and
that's
that's
what
cryptocurrency
is,
after
they
have
to
have
access
to
the
payment
system
in
order
to
become
a
viable,
long-term,
viable
transaction
coin,
for
from
lack
of
a
better
phrase,
the
the
fed
in
in
those
guidelines.
D
One
of
the
primary
points
they
wanted
to
make
was
that
the
that
you
could
not
have
that
kind
of
volatility
and
be
part
of
the
payment
system
purely
because
of
the
protection
of
depositors
and
protection
of
the
of
the
public,
which
is
what
the
fed
is
interested
in.
The
fed
is
currently
working
on.
As
you
know,
a
crypto
coin,
and
you
alluded
to
that
earlier
as
well.
D
I'm
like
you,
I
don't
really
know.
What's
going
to
happen.
I
know
there's
a
ton
of
conversation
around
just
left
a
meeting
the
other
day
where
that
was
probably
took
a
two-hour
conversation
on
cryptocurrency,
the
the
interesting
thing
to
me
just
personally,
not
not
not
representing
the
banks,
but
for
me
personally,
I
don't.
D
What
they'll
be
doing
the
fed
fights
tooth
and
nail
to
keep
access
to
that
payment
system,
and
so
it'll
it'll
be
interesting
to
see
and
because
what
you
alluded
to
earlier
is
happening
you're,
starting
to
see
people
take
it
for
in
exchange
for
different
things
and
atm
machines
for
crypto
and
so
forth.
It's
it's
all.
It's
all
sort
of
working
behind
the
scenes
you've
got
people
who
are
really
pushing
it
and
really
trying
to
get
it
there.
D
On
the
other
hand,
you've
got
the
fed
who
is
responsible
for
the
safety
soundness
and
that
kind
of
stuff
of
the
system
of
the
payment
system
and
they're
going
to
clash
eventually
and
the
the
question
is
going
to
be
whether
or
not
the
fed
will
let
them
have
access
to
the
payment
system.
Or
will
the
fed
come
out
with
their
own
crypto
coin
and.
E
And
my
point
and
ballard
ballard
said
it.
My
point
is
that
the
fed's
going
to
have
to
lead
on
this
I
mean
you,
you
can't.
I
think
the
thing
that
worries
me,
the
most
is
a
patchwork
of
state
laws
relating
to
a
payment
system
that
is
international.
I
just
think
the
fed
has
to
lead
on
this.
I
I
it's
dangerous.
K
And
the
regulators
would
never
because
of
the
volatility
that
ballard
mentioned.
Regulators
would
never
accept
investment
in
crypto
coin.
They
we
have
arguments
with
regulators
all
the
time
on
whether
we've
valued
and
whether
the
banks
have
valued
a
piece
of
commercial
property
properly
and
so
to
look
at
at
bitcoin
or
any
other
cryptocurrency
and
see
if
that's
valued
properly.
If
they
accept
that
in
a
transaction
would
be
a
red
flag
for
the
regulators,
it
would
be
very
difficult
for
a
community
bank
to
get
involved.
The
largest
banks
can
get
involved.
E
You're
answering
my
question,
then,
mr
chairman,
there
you
there's
a
there
is
no
investment
from
the
the
banking
industry
in
kentucky
into
crypto.
Not
not
that
I'm
aware
of
no
sir.
A
E
D
E
You
know
I'm
kind
of
like
that.
I
mean
we've
missed
that
the
the
the
trying
to
advocate
by
wire
is
difficult.
A
Definitely
is
we've
enjoyed
it
as
well.
Thank
you
all.
Thanks
we'll
move
on
to
the
last
agenda
this
morning
I
was
just
informed.
The
transportation
has
this
committee
room
starting
at
one.
A
At
this
time
we
will
introduce
a
resolution
adjourning
the
interim
joint
committee
and
banking
and
insurance,
an
honor
and
loving
memory
of
senator
tom
buford,
and
I'm
going
to
turn
it
over
to
my
co-chair
and
his
colleague
senator
carpenter,
for
some
comments.
C
Thank
you,
mr
chairman,
I'll,
ask
the
secretary
to
call
the
roll
and
then
we'll
have
opportunity
for
a
few,
I'm
not
to
call
the
roll,
but
just
read,
read
the
resolution
in
its
entirety
and
then
we'll
have
some
opportunity
for
comments.
B
B
And
whereas
senator
buford
also
served
in
a
number
of
other
roles.
As
a
member
of
the
kentucky
senate.
And
whereas
these
roles
included
serving
as
a
member
of
other
legislative
committees,
including
appropriations
in
revenue
and
licenses,
occupations
and
administrative
regulations
serving
as
minority
caucus
chair
from
1993
to
1996
and
serving
as
minority
whip
from
1991
to
1992..
B
His
tireless
work
on
behalf
of
his
constituents
is
justly
acknowledged
and
his
professionalism,
wit
and
leadership
is
deeply
appreciated
by
the
members
of
this
and
whereas
senator
tom
buford,
esteemed
member
of
the
kentucky
general
assembly
and
cherished
husband,
father
grandfather
friend
colleague
and
community
member
departed,
this
earthly
life
on
july,
6
2021,
leaving
all
those
whose
lives
he
touched
in
solemn
mourning.
Now,
therefore,
be
it
resolved
by
the
interim
joint
committee
on
banking
and
insurance
of
the
legislative
research
commission
of
the
commonwealth
of
kentucky.
B
The
members
of
the
interim
joint
committee
on
making
insurance,
both
individually
and
collectively,
hereby
express
their
most
profound
sympathy
upon
the
passing
of
kentucky
states
and
extend
heartfelt
condolences
to
his
family,
friends
and
community
in
this
time
of
loss.
When
the
interim
joint
committee
on
banking
insurance
adjourns
this
day
august
3rd
2021,
it
does
so
in
honor
and
loving
memory
of
senator
tom
buford.
C
Well,
thank
you
and
and
true
tom
buford
fashion,
he'd,
probably
vote
no
on
his
own
resolution.
You
know
tom
I've
been
here
11
years
now,
when
I
first
came
tom
was
on
this
board
on
this
committee
and
when
you
walked
in
the
room,
tom
looked
like
a
state
senator
and
he
used
that
and
anywhere
we
traveled
or
anytime.
I
was
with
tom.
C
He
had
a
personality
that
people
always
was
attracted
to
and
always
came
to,
and
and
that
I
was
on
a
piece
of
equipment
working
on
a
house
when
they
called
me
and
told
me
that
tom
had
passed
and-
and
it
really
hit
my
gut
and
I
had
to
stop
and
just
think
and
reflect
on
my
friendship
with
tom,
how
he
kind
of
been
a
mentor,
and
we
had
so
many
similarities.
We
both
are
always
in
the
back
corner,
talking
to
each
other,
the
entire
time
during
committees,
and
we
were
in
session.
C
They
had
us
on
the
back
row
on
the
senate,
floor
side
by
side
and
everybody's,
like
you,
two
have
to
be
side
by
side,
because
the
rest
of
us
can't
get
a
word
in
edgewise,
and
so
you
know
he
was
just
a
really
unique
guy
and
anybody
who
can
serve
up
here
for
30
years
and
went
through
all
the
things
that
he's
went
through
from
bop
trot
to
all
these
different
processes
that
went
through
the
legislative
body
and
still
come
through
with
honor.
And
you
know
he
was
just
a
really
good
friend
to
me.
C
C
And
tom
basically
said
that
he
didn't
want
to
be
honored
with
anything
other
than
you
know,
everybody
knowing
how
much
he
cared
for
him
and
his
appreciation
for
being
able
to
serve
his
constituents,
and
he
didn't
want
a
big
fancy
funeral
and
he
didn't
want
a
bunch
of
people
standing
in
line
and
he
just
wanted
to
pass
on
through
and
and
all
of
us
in
the
senate
have
talked
about
it
and
we,
you
know
people
have
been
friends
of
colleagues
of
tom's
30
years
up.
C
Here
is
a
really
long
time
he's
outlived
and
outserved
a
lot
of
people,
and
the
last
time
I
was
with
tom,
we
were
at
a
in-coil
conference
and
I
don't
travel
to
very
many
conferences
and
we
were
there-
and
this
is
just
a
few
months
ago.
This
was
in
may,
and
tom
was
in
a
great
spirit,
chairman
roland,
and
I
were
with
him
we
had
dinner
with
him.
C
We
went
to
a
function
with
him,
he
was
laughing
and
just
doing
truly
tom
things,
and
you
know
when
we
go
to
these
meetings
a
lot
of
times.
I
ask
the
chairman
to
stand
up
and
speak
and
I
always
have
to
carry
on
a
joke
that
tom
would
always
carry
on,
because
when
I
was
up
here,
he
always
made
sure
everybody
was
laughing,
and
so
I
just
wanted
to
honor
him
today.
We
wanted
to
order
him.
C
This
body
wanted
to
honor
him
for
his
service,
his
dedication,
his
friendship
and
and
truly
what
legacy
he
has
left
with
with
the
legislative
body
in
the
kentucky
senate
and
his
legacy
as
chairman
of
banking
and
insurance
and
he's
a
true
friend,
that's
going
to
be
missed,
because
any
time
I
saw
him
he
always
asked
about
my
family
asked
about
my
kids
and
that's
about
my
business
and
and
how
life
was
going,
and
so
I'm
going
to
miss
tom
on
the
back
row
when
session
starts
back,
it's
not
going
to
be
the
same
and
he's
a
true
friend.
C
That's
going
to
be
missed
and-
and
I
just
want
to
have
this
opportunity
to
honor
him
and
if
anybody
else
had
a
comment
or
question
or
a
statement
that
they'd
like
to
make
on
tom's
behalf.
I
know
it's
time
now.
Everybody
could
tell
a
story,
but
we
just
wanted
to
make
sure
that
we
we
served
our
first
committee
meeting
as
an
opportunity
to
honor
tom's
legacy
and
his
friendship
for
everything
he's
done
for
the
commonwealth.
I
Thank
you
so
much.
I
I
just
wanted
to
say
briefly
that
senator
buford
was
a
phenomenal
friend
of
mine.
He
is
one
of
the
reasons
why
I
even
ran
for
office.
I
He
was
my
state
senator
and
just
just
like
you
senator
when
I
heard
the
news
of
his
passing,
it
was
kind
of
like
a
big
punch
in
the
gut
and
I
reached
out
to
his
his
family
and
ex
express
to
them
really
what
tom
meant
to
me
this
this
past
session,
I
enjoyed
texting
back
and
forth
with
senator
buford,
and
he
would
tell
me
how
to
vote
on
certain
bills
and
what
to
vote
on.
Don't
now
matt
don't
vote
on
that
bill.
I
That's
not
a
good
one
for
you
to
vote
on
matt.
This
is
a
great
one
vote
on
that
one
and
I
I
just
appreciate
his
not
just
his
his
humor,
but
the
way
that
he
represented
jessamine
county
in
the
22nd
district.
He
was
a
stalwart
and
he
will.
He
will
certainly
be
missed
on
a
personal
level,
but
also
certainly
be
be
missed,
as
our
state
senator.
A
I
also
enjoyed
my
time
as
co-chair
with
tom
buford
and
getting
to
know
him
and
his
humorous
personality.
I
asked
him
in
2017
when
we
first
took
over
and
I
became
chairman
of
the
committee.
I
said
tom,
do
you
have
any
advice
for
me?
He
said
sure
just
you
over
in
the
house,
you
all
take
any
bill
that
you
want
to
pass
it
out
of
your
committee.
Send
it
to
me
and
we
probably
won't
do
anything
with
it
and
that
happened.
A
A
I
guess
we
have
a
I'll
entertain
a
motion
to
pass
the
resolution
motion
in
a
second
all
those
in
favor,
aye
and
the
resolution
is
adopted
and
we
will
communicate
that
to
his
family
and
make
sure
that
they
get
a
copy
of
that.
So,
thank
you
all
sorry
for
running
so
long
today.
At
this
time,
I'll
entertain
a
motion
for
adjournment,
we're.