reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 15 - Banking Code; Safe Deposit Box Rental › 9-1502 Legal relationship between renter and bank.

9-1502. Legal relationship between renter and bank.
The relationship between any such bank, trust company or safe deposit company having and maintaining safe deposit boxes for public use and the user or users of such boxes shall be that of lessor and lessee, respectively. In the absence of a written contract to the contrary, the lessee shall be deemed by law to be in possession of such box and the contents thereof. The lessor shall not be charged with knowledge of the contents of any such box. The lessor may limit its liability to the lessee by provisions contained within a lease agreement, but the lessor shall be liable for the acts of its officers and employees for failure to exercise ordinary care.
History:
L. 1947, ch. 102, § 71; L. 2015, ch. 38, § 84; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 15 - Banking Code; Safe Deposit Box Rental › 9-1503 Joint tenancy of safe deposit box; liability.

9-1503. Joint tenancy of safe deposit box; liability.
Joint tenancy in and to a safe deposit box may be created by contract, with two or more persons named as lessees. The terms of the contract may provide that any one or more of the lessees, or the survivor or survivors of such lessee or lessees, shall have access and entry to the safe deposit box and the right to remove the contents from such box whether the other lessee or lessees be living, incompetent or dead. If the contents are removed as provided by the contract, the lessor shall not be liable for the removal of the contents.
History:
L. 1947, ch. 102, § 72; L. 2015, ch. 38, § 85; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 15 - Banking Code; Safe Deposit Box Rental › 9-1504 Death of lessee or lessees in joint tenancy; opening of box; disposition of contents.

9-1504. Death of lessee or lessees in joint tenancy; opening of box; disposition of contents.
(a) In the event the sole lessee or all lessees in joint tenancy named in the lease agreement covering a safe deposit box rental shall die, the safe deposit box may be opened, forcibly if necessary, at any time thereafter, in the presence of persons holding a legal or beneficial interest relating to the lessee, by two employees of the lessor, one of whom shall be an officer of the lessor. The contents shall be disposed of as follows:
(1) Instruments of a testamentary nature may be removed by the named executor. If no executor is named or if the named executor fails to act within 60 days after the date of death of the lessee, such employees may remove all instruments of a testamentary nature and deposit the same with the district court.
(2) The employees in their discretion may deliver life insurance policies therein contained to the beneficiaries named in such policies, and any deed to a cemetery lot and any burial instructions found therein to the appropriate parties.
(3) Any and all other contents of such box so opened shall be kept and retained by the bank, trust company or safe deposit company and shall be delivered only to the parties legally entitled to the same.
(b) In the event no person claims to be interested in the contents of such box within 60 days after the death of the lessee, the lessor may open the box by forcible entry and remove all instruments of a testamentary nature and deposit the same with the district court, subject to payment of rentals, expenses and repairs. Any and all other contents of such box so opened shall be kept and retained by the bank or trust company and shall be delivered only to the parties legally entitled to the same.
History:
L. 1947, ch. 102, § 73; L. 1975, ch. 44, § 25; L. 1976, ch. 145, § 35; L. 1994, ch. 192, § 1; L. 1997, ch. 7, § 1; L. 2015, ch. 38, § 86; L. 2016, ch. 54, § 38; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 15 - Banking Code; Safe Deposit Box Rental › 9-1505 Lessor to give information to public authority.

9-1505. Lessor to give information to public authority.
Upon the death of any lessee of a safe deposit box and upon the request of the district court or the county clerk or the director of taxation for the state of Kansas, the lessor shall disclose whether a designated person was the lessee of a safe deposit box at the time of death.
History:
L. 1947, ch. 102, § 74; L. 1976, ch. 145, § 36; L. 2015, ch. 38, § 87; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 15 - Banking Code; Safe Deposit Box Rental › 9-1506 Default of lessee; notice; disposition of contents.

9-1506. Default of lessee; notice; disposition of contents.
(a) The lessor shall have a lien upon the contents of any safe deposit box for the rental thereon.
(b) The lessor may, after giving not less than 60 days' written notice to the lessee of such lessor's intention to enter the box, remove the contents and sell the same for the payment of rent due or other expenses incurred by the bank in keeping the contents, open the box forcibly and remove the contents in the presence of two of the lessor's employees, one of whom shall be an officer, when:
(1) The lessee has not paid the rent within 30 days after the same is due; or
(2) the lessee has failed to surrender possession of any box within 30 days from the date of the termination of the lease.
(c) The lessor shall retain such contents for at least 90 days after opening the box. The lessor then may sell any part or all of the contents at public sale pursuant to the requirements for a commercially reasonable sale under article 9 of the Kansas uniform commercial code and retain from the proceeds of sale the rent due, the costs of opening and repairing the box, the costs of sale and any other amounts due to the lessor.
(d) Any article, item or document without apparent market value may be destroyed after two years from the date of giving or mailing the required notice.
(e) Any notice required by this section shall be delivered either personally or by registered or certified mail, or electronically pursuant to the uniform electronic transactions act, K.S.A. 16-1601 et seq., and amendments thereto, delivered to the latest address shown on the safe deposit records of the lessor.
History:
L. 1947, ch. 102, § 75; L. 1975, ch. 44, § 26; L. 2015, ch. 38, § 88; L. 2016, ch. 54, § 39; L. 2019, ch. 25, § 4; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1602 Revoking trust authority.

9-1602. Revoking trust authority.
(a) The commissioner may revoke trust authority for any bank or trust company upon finding a failure to adhere to sound fiduciary practices.
(b) If the commissioner revokes the trust authority of a bank, the bank shall have the right to a hearing to be conducted in accordance with the Kansas administrative procedure act. Any final order of the commissioner pursuant to this section is subject to review in accordance with the Kansas judicial review act.
History:
L. 1947, ch. 102, § 78; L. 1990, ch. 61, § 1; L. 2015, ch. 38, § 90; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1603 Assets held in fiduciary capacity segregated; records; security of funds.

9-1603.
Assets held in fiduciary capacity segregated; records; security of funds.
(a) As soon as any bank shall exercise any trust authority, it shall segregate all assets held in any fiduciary capacity and shall keep a separate set of books and records showing in proper detail all fiduciary transactions. Such books and records shall at all times be subject to inspection and supervision of the commissioner.
(b) Funds held by such bank in trust that are awaiting investment or distribution, less the amount which is insured by the federal deposit insurance corporation, shall have United States bonds or other securities approved by the commissioner pledged to such funds in an equal sum.
History:
L. 1947, ch. 102, § 79; L. 1963, ch. 63, § 1; L. 2015, ch. 38, § 91; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1604 Liquidation, termination of trust business.

9-1604. Liquidation, termination of trust business.
Upon the affirmative vote of a majority of the outstanding voting stock, any bank having trust authority may terminate the bank's trust business. The termination of trust services shall be done in accordance with the Kansas uniform trust code and with the contracting trustee provisions of K.S.A. 9-2107, and amendments thereto. Any bank terminating the bank's trust business may surrender such bank's special permit for trust authority or be granted inactive status pursuant to K.S.A. 9-1703, and amendments thereto.
History:
L. 1947, ch. 102, § 80; L. 1951, ch. 120, § 3; L. 1996, ch. 175, § 16; L. 2015, ch. 38, § 92; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1607 Appointment of nominee when acting as fiduciary; records.

9-1607. Appointment of nominee when acting as fiduciary; records.
(a) Any bank or trust company, when acting as a fiduciary or a co-fiduciary with others and with the consent of its co-fiduciary or co-fiduciaries, if any, that are hereby authorized to give such consent, may cause any investment held in any such capacity to be registered and held in the name of a nominee or nominees of such bank or trust company. Such bank or trust company shall be liable for the acts of any such nominee with respect to any investment so registered.
(b) The records of the bank or trust company shall at all times show the ownership of any investment registered and held in the name of a nominee, which investment shall be in the control of the bank or trust company and be kept separate and apart from the assets of the bank or trust company.
History:
L. 1951, ch. 122, § 1; L. 2015, ch. 38, § 93; L. 2016, ch. 54, § 41; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1609 Fiduciary may establish collective investment funds.

9-1609. Fiduciary may establish collective investment funds.
(a) Any bank or trust company authorized to act as fiduciary may establish collective investment funds for the purpose of furnishing investments to:
(1) Such bank or trust company as fiduciary;
(2) such bank or trust company and others, as co-fiduciaries;
(3) another state or national bank or trust company, as fiduciary, which is a subsidiary of the same bank holding company of which the bank or trust company is a subsidiary, as such terms are defined in K.S.A. 9-519, and amendments thereto; or
(4) another state or national bank or trust company with which the bank or trust company is affiliated through common control, as defined in K.S.A. 9-1612, and amendments thereto.
(b) Any bank or trust company authorized to act as fiduciary may, as such fiduciary or co-fiduciary, invest funds which it lawfully holds for investment in interests in such collective investment funds, if such investment is not prohibited by the instrument, judgment, decree or order creating such fiduciary relationship, and if, in the case of co-fiduciaries, the bank or trust company procures the consent of its co-fiduciaries to such investment.
History:
L. 1951, ch. 123, § 1; L. 1986, ch. 56, § 3; L. 2015, ch. 38, § 94; L. 2016, ch. 54, § 42; L. 2018, ch. 4, § 1; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1611 Bank or trust company acting as fiduciary may deal in manner authorized by instrument with company having control of bank or trust company.

9-1611. Bank or trust company acting as fiduciary may deal in manner authorized by instrument with company having control of bank or trust company.
Whenever the governing instrument of any trust authorizes a bank or trust company acting as fiduciary to engage in any of the following activities, such instrument shall also be deemed to authorize the bank or trust company to engage in the following activities, with any company which has or acquires control of such bank or trust company:
(a) Hold as a trust investment the bank's or trust company's own stock or obligations, or property acquired from the bank or trust company; or
(b) sell or transfer, by loan or otherwise, property held as fiduciary to the bank or trust company; or
(c) purchase for investment the stock or obligations of, or property from, the bank or trust company.
History:
L. 1973, ch. 49, § 1; L. 2015, ch. 38, § 95; L. 2016, ch. 54, § 43; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 16 - Banking Code; Trust Authority › 9-1612 Company having control over a bank or trust company defined.

9-1612. Company having control over a bank or trust company defined.
For the purposes of K.S.A. 9-1601 through 9-1611, and amendments thereto, any company has control over a bank or trust company if the company directly or indirectly, or acting through one or more persons:
(a) Owns, controls or has power to vote 25% or more of any class of voting securities of the bank or trust company;
(b) controls, in any manner, the election of a majority of the directors or trustees of the bank or trust company; or
(c) has the power to direct the management or policies of the bank or trust company.
History:
L. 1973, ch. 49, § 2; L. 2015, ch. 38, § 96; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1701 Examination of banks and trust companies; other reports.

9-1701. Examination of banks and trust companies; other reports.
(a) The commissioner or the commissioner's staff shall visit each bank and trust company at least once every 18 months, and may visit any bank or trust company at any time the commissioner deems necessary for the purpose of making an examination or inquiry into the condition of the affairs of such bank or trust company. For such purpose, the commissioner and the commissioner's staff are authorized to administer oaths and to examine under oath the directors, officers, employees and agents of any bank or trust company.
(b) The results of any examination pursuant to this section shall be reduced to writing by the commissioner or the commissioner's staff. The commissioner shall provide to the board of directors of the bank or trust company a copy of the examination report. No person shall personally examine a bank or trust company if that person is a stockholder of, indebted to or otherwise financially interested in that bank or trust company.
(c) The examination team may conduct an exit review meeting with the board of directors of a bank or trust company following the examination of such bank or trust company as provided in subsection (a).
(d) The commissioner is hereby authorized to accept any examination report or any other report on a state bank or trust company made by the:
(1) Federal deposit insurance corporation or its successor;
(2) federal reserve bank; or
(3) consumer financial protection bureau.
History:
L. 1947, ch. 102, § 87; L. 1965, ch. 78, § 1; L. 1975, ch. 44, § 29; L. 1976, ch. 59, § 1; L. 1984, ch. 48, § 13; L. 1991, ch. 47, § 1; L. 2015, ch. 38, § 97; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1702 Examination of fiduciaries and affiliated organizations and their officers and employees.

9-1702. Examination of fiduciaries and affiliated organizations and their officers and employees.
(a) The commissioner or the commissioner's staff is hereby authorized to examine the fiduciary affairs of any officer or employee of any bank or trust company when such officer or employee is serving in any fiduciary capacity that may affect the safety and soundness of such bank or trust company.
(b) The commissioner or the commissioner's staff is hereby authorized to examine any investment company, holding company, corporation or any other form of business entity which is affiliated with any bank or trust company to fully ascertain:
(1) The relationship between such bank or trust company and any such affiliate; and
(2) the effect of such relationship on the bank or trust company.
(c) For the purposes of this section, "affiliate" shall have the meaning ascribed to it in section 2 of the bank holding act of 1956, 12 U.S.C. § 1841.
History:
L. 1947, ch. 102, § 88; L. 1975, ch. 44, § 30; L. 2005, ch. 6, § 1; L. 2015, ch. 38, § 98; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1704 Reports to commissioner; publication, when.

9-1704. Reports to commissioner; publication, when.
(a) Each bank or trust company shall be required to make a report to the commissioner at any time upon the commissioner's request. Such reports shall be in a form and manner prescribed by the commissioner and shall be verified by the president, chief executive officer or cashier and attested to by at least three directors of the bank or trust company, none of whom shall have verified the report. The report shall show in detail the assets and liabilities of the bank or trust company at the close of business upon the date determined by the commissioner. The commissioner may require a copy of the report, or a portion thereof, to be published in a newspaper, published in or having a general circulation in the place where the bank or trust company is located, within 10 days after the report is forwarded to the commissioner. The expense of publication shall be paid by the bank or trust company.
(b) Each trust company shall report to the commissioner all assets held by the trust company in a fiduciary capacity as of December 31 of each year. The report shall be in the form and manner prescribed by the commissioner and shall be filed with the commissioner by January 30 of each year. The commissioner may require the report to be filed using an electronic means.
(c) Each trust department of a bank shall report to the commissioner all assets held by the trust department in a fiduciary capacity at any time upon the commissioner's request. The report shall be in the form prescribed by the commissioner. The commissioner may require the report to be filed using an electronic means.
(d) A request for information made pursuant to this section shall be made in writing and mailed to each bank and trust company. The request shall be deemed to be legal notice to each bank and trust company. The request may include the requirement for the filing of information by the bank or trust company using electronic means.
History:
L. 1947, ch. 102, § 90; L. 1975, ch. 44, § 32; L. 1984, ch. 48, § 14; L. 1995, ch. 158, § 1; L. 2006, ch. 89, § 4; L. 2015, ch. 38, § 100; L. 2016, ch. 54, § 44; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1708 Refusal to be examined; remedy.

9-1708. Refusal to be examined; remedy.
No officer, director, employee or agent of any bank or trust company shall refuse the examination and inspection of the bank or trust company by the commissioner or in any manner obstruct or interfere with the examination and investigation of such bank or trust company or refuse to be examined under oath concerning any of the affairs of such bank or trust company. The commissioner may take such action as available pursuant to K.S.A. 9-1714, 9-1805, 9-1807 or 9-1809, and amendments thereto, to remedy any violation of the provisions of this section.
History:
L. 1947, ch. 102, § 95; L. 2015, ch. 38, § 101; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1709 Failure to respond to a lawful request of the commissioner.

9-1709. Failure to respond to a lawful request of the commissioner.
(a) No bank or trust company shall refuse or neglect for more than 60 days to comply with or respond to a written, lawful request of the commissioner. If the bank or trust company does not comply with or respond to any such request, the commissioner may issue an order notifying the bank or trust company that continued failure to comply with the request shall result in the forfeiture of the authority to transact business. Any bank or trust company receiving notice of such order shall have the right to a hearing to be conducted in accordance with the Kansas administrative procedure act. Any final order of the commissioner is subject to review in accordance with the Kansas judicial review act.
(b) If any request or requirement made pursuant to an order issued under subsection (a) remains unsatisfied after a period of time as provided in the order, the commissioner shall appoint a receiver pursuant to article 19 of chapter 9 of the Kansas Statutes Annotated, and amendments thereto. The order appointing the receiver shall not be subject to the Kansas administrative procedure act or the Kansas judicial review act.
(c) The commissioner may take such additional action as available pursuant to K.S.A. 9-1714, 9-1805, 9-1807 or 9-1809, and amendments thereto, to protect the depositors and creditors of the bank or trust company.
History:
L. 1947, ch. 102, § 96; L. 1981, ch. 324, § 7; L. 2015, ch. 38, § 102; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1713 Adoption of rules and regulations; approval of board.

9-1713. Adoption of rules and regulations; approval of board.
Except as otherwise provided by law, in order to promote safe and sound practices for entities regulated by the commissioner, the commissioner shall promulgate such rules and regulations as shall be necessary to implement the provisions of K.S.A. 9-542, and amendments thereto, commonly known as the state banking code. All rules and regulations shall first be submitted to the state banking board for the state banking board's approval and upon approval shall be filed as provided by article 4 of chapter 77 of the Kansas Statutes Annotated, and amendments thereto.
History:
L. 1965, ch. 81, § 1; L. 1984, ch. 48, § 15; L. 2000, ch. 106, § 3; L. 2003, ch. 57, § 2; L. 2015, ch. 38, § 104; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1714 Appointment of special deputy bank commissioner.

9-1714. Appointment of special deputy bank commissioner.
(a) Whenever the commissioner shall determine that the business of any bank or trust company is being conducted in an unlawful or unsound manner, the commissioner may appoint a special deputy bank commissioner who shall immediately take charge of the operation of such bank or trust company for the purpose of resolving any unlawful or unsound condition or operation.
(b) After appointment, the special deputy bank commissioner shall continue to serve under the direction of the commissioner for such period of time as may be deemed reasonable and necessary by the commissioner and, during such period, such special deputy bank commissioner's salary, which shall be determined by the commissioner, and expenses shall be borne by the bank or trust company under supervision.
(c) After such appointment, any such bank or trust company shall have the right to a hearing to be conducted in accordance with the Kansas administrative procedure act. Any final order of the commissioner pursuant to this section is subject to review in accordance with the Kansas judicial review act.
History:
L. 1965, ch. 82, § 1; L. 1975, ch. 44, § 35; L. 1988, ch. 356, § 40; L. 2001, ch. 87, § 12; L. 2015, ch. 38, § 105; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1716 Powers of commissioner; order restricting declaration and payment of dividends.

9-1716. Powers of commissioner; order restricting declaration and payment of dividends.
If the commissioner shall determine that the condition of any bank is such that dividends should not be declared and paid from capital or that such dividends should be declared and paid only subject to certain conditions, the commissioner shall render an order prohibiting or limiting the declaration and payment of dividends. Upon receiving notice of the order, the bank shall have the right to a hearing to be conducted in accordance with the Kansas administrative procedure act. Any final order of the commissioner pursuant to this section is subject to review in accordance with the Kansas judicial review act.
History:
L. 1975, ch. 44, § 2; L. 1988, ch. 356, § 41; L. 2015, ch. 38, § 107; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1717 Prohibition against felon from serving as director, officer or employee.

9-1717. Prohibition against felon from serving as director, officer or employee.
(a) Except with the written consent of the commissioner, no person shall serve as a director, officer or employee of a state bank or state trust company who has been convicted, or who is hereafter convicted, of any felony or any crime involving dishonesty or a breach of trust.
(b) Any state bank or state trust company that willfully violates subsection (a), shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine of $1,000 for each day the violation continues.
History:
L. 1984, ch. 48, § 1; L. 2015, ch. 38, § 108; L. 2021, ch. 78, § 4; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1719 Change of control; definitions.

9-1719. Change of control; definitions.
As used in K.S.A. 9-1719 to 9-1722, inclusive, and amendments thereto:
(a) "Control" means the power to:
(1) Vote 25% or more of any class of voting shares;
(2) direct, in any manner, the election of a majority of the directors; or
(3) direct or exercise a controlling influence over the management or policies.
(b) "Person" means an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed in this subsection.
History:
L. 1984, ch. 47, § 1; L. 1987, ch. 54, § 9; L. 2015, ch. 38, § 109; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1720 Change of control; approval.

9-1720. Change of control; approval.
(a) Except with the prior written approval of the commissioner, or as otherwise permitted by the state banking code, it shall be unlawful for:
(1) A person acting directly, indirectly or in concert with one or more persons, either directly or indirectly, to engage in any activity that may result or results in acquiring control of any bank, bank holding company as defined in K.S.A. 9-519, and amendments thereto, or trust company without notifying the commissioner at least 30 days prior to acquiring control. The commissioner may determine if an activity may result or results in a change of control under this paragraph;
(2) a bank to merge or consolidate with any bank or institution, or either directly or indirectly acquire the assets of, or assume the liability to pay any deposit made in any other bank or institution, referred to hereinafter as a merger transaction; or
(3) a trust company to merge or consolidate with any trust company, or either directly or indirectly acquire the assets of any other trust company, referred to hereinafter as a merger transaction.
(b) The board of directors of any privately held bank, bank holding company or trust company shall notify the commissioner of any change of control of the bank, bank holding company or trust company at least 30 days prior to the date the change of control becomes effective.
(c) A trust company may merge or consolidate with a trust company, with the prior written approval of the commissioner chartered by:
(1) The comptroller of the currency; or
(2) another state. An application filed pursuant to this subsection shall be subject to the provisions of K.S.A. 9-1721, 9-1722 and 9-1724, and amendments thereto.
History:
L. 1984, ch. 47, § 2; L. 2015, ch. 38, § 110; L. 2016, ch. 54, § 47; L. 2018, ch. 4, § 2; March 8.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1721 Application process; approval factors and criteria; time frame.

9-1721. Application process; approval factors and criteria; time frame.
(a) The person proposing to acquire control or a bank or trust company undertaking a merger transaction, hereinafter referred to as the applicant, shall file an application with the commissioner at least 60 days prior to the proposed change of control or merger transaction. If the commissioner does not act on the application within the 60-day time period, the application shall stand approved. The commissioner may, for any reason, extend the time period to act on an application for an additional 30 days. The time period to act on an application may be further extended if the commissioner determines that the applicant has not furnished all the information required under K.S.A. 9-1722, and amendments thereto, or that, in the commissioner's judgment, any material information submitted is substantially inaccurate. The commissioner may waive the 60-day prior notice requirement if the acquired bank or trust company is under a formal corrective action.
(b) Upon the filing of an application, the commissioner shall make an investigation of the applicant for the change of control or merger transaction. The commissioner may deny the application if the commissioner finds the:
(1) Proposed change of control or merger transaction would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking or trust services in any part of this state;
(2) financial condition of the applicant might jeopardize the financial stability of the bank or trust company or prejudice the interests of the depositors of a bank;
(3) competence, experience or integrity of the applicant or of any of the proposed management personnel of the bank or trust company or resulting bank or trust company indicates it would not be in the interest of the depositors of the bank, the clients of trust services, or in the interest of the public; or
(4) applicant neglects, fails or refuses to furnish the commissioner with all of the information required by the commissioner.
(c) Upon service of an order denying an application, the applicant shall have the right to a hearing to be conducted in accordance with the Kansas administrative procedure act before the state banking board. Any final order of the commissioner pursuant to this section is subject to review in accordance with the Kansas judicial review act.
History:
L. 1984, ch. 47, § 3; L. 1986, ch. 318, § 17; L. 1988, ch. 356, § 42; L. 2010, ch. 17, § 28; L. 2015, ch. 38, § 111; L. 2016, ch. 54, § 48; L. 2018, ch. 4, § 3; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1724 Exception for mergers resulting in a national bank.

9-1724. Exception for mergers resulting in a national bank.
(a) The provisions of K.S.A. 9-1720 through 9-1724, and amendments thereto, shall not apply to the merger transaction of a bank or trust company when the surviving entity is a national banking association or other state or federally chartered financial institution or a trust company, except that the bank or trust company shall provide written notification to the commissioner of such a merger, consolidation or transfer of assets and liabilities at least 10 days prior to the consummation of any such transaction.
(b) Not more than 15 days following any merger transaction, any bank or trust company that will cease to exist shall surrender such bank's or trust company's state certificate of authority or charter and shall certify in writing that the proper instruments have been executed and filed in accordance with K.S.A. 17-6003, and amendments thereto.
(c) Notice of the merger transaction shall be published twice in a newspaper of general circulation in each city or county in which the bank or trust company is located, or the newspaper nearest such city or county and a certified copy of each notice shall be filed with the commissioner. The first publication shall be no later than five days after an application is filed. The second publication shall be on the 14th day after the date of the first publication or, if the newspaper does not publish on the 14th day, then the date that is the closest to the 14th day. The notice shall be in the form prescribed by the commissioner and shall provide for a comment period of not less than 10 days after the date of the second publication.
History:
L. 1984, ch. 47, § 6; L. 1987, ch. 54, § 10; L. 1992, ch. 62, § 5; L. 1993, ch. 156, § 1; L. 1994, ch. 28, § 1; L. 1995, ch. 19, § 2; L. 2015, ch. 38, § 113; L. 2016, ch. 54, § 50; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1725 Powers of the commissioner during existence of an emergency.

9-1725. Powers of the commissioner during existence of an emergency.
(a) Whenever the commissioner is of the opinion that an emergency, as defined by K.S.A. 9-1122, and amendments thereto, exists or is impending in this state which affects, or may affect, a particular bank, trust company, multiple banks or multiple trust companies, the commissioner may, by proclamation, temporarily close the particular institutions located in the affected area. The banks or trust companies so closed shall remain closed until the commissioner proclaims that the emergency has ended.
(b) The commissioner may approve a request for an emergency temporary closing and subsequent reopening of a particular bank or trust company by the officers of such bank or trust company pursuant to K.S.A. 9-1122, and amendments thereto.
(c) Whenever the commissioner is of the opinion that an emergency, as defined by K.S.A. 9-1122, and amendments thereto, affects, or may affect, a particular bank, branch bank, trust company or trust service office, the commissioner may approve a temporary relocation of the bank, branch bank, trust company or trust service office. The temporary relocation shall be as close as the commissioner determines is safely possible to the bank, branch bank, trust company or trust service office's approved place of business.
(d) Every day that any bank, branch bank, trust company, or trust service office thereof, remains closed pursuant to this section shall be deemed a holiday for all of the purposes of chapter 84 of the Kansas Statutes Annotated, and amendments thereto, and with respect to any banking business of any character. No bank, branch bank, trust company or trust service office shall be required to permit access to such bank's, branch bank's or trust company's safe deposit vault or vaults on any such day. If the terms of a contract require the payment of money or the performance of a condition on any such day by, through, with or at any bank, branch bank, trust company or trust service office, then the payment may be made or condition performed on the next business day with the same force and effect as if made or performed in accordance with the terms of the contract. No liability or loss of rights of any kind shall result from the delay.
(e) Any bank, branch bank, trust company or trust service office temporarily closed or relocated pursuant to this section shall post notice of such closing in a conspicuous place at each closed location. Such notice shall serve as official notification to everyone of the temporary closing or relocation of the bank, branch bank, trust company or trust service office and thereafter no liability shall be incurred by the bank or trust company by reason of the temporary closing or relocation pursuant to this section.
History:
L. 2015, ch. 38, § 2; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 17 - Banking Code; Supervision; Commissioner › 9-1726 Fees; rules and regulations.

9-1726. Fees; rules and regulations.
(a) Except as provided in subsection (b), at the time of filing any application described below, the applicant shall remit to the commissioner a nonrefundable fee in the amount of:
(1)  Bank or trust company charter    $2,500
(2)  New branch bank    750
(3)  Relocation of a branch bank or main office    750
(4)  Merger, consolidation or transfer of assets and liabilities    1,000
(5)  Change of control:
(A)  General    1,000
(B)  Bona fide gift or inheritance    500
(C)  Formation of one-bank holding company and associatedexchange of stock    500
(6)  Conversion to state charter    500
(7)  Fiduciary activities:
(A)  Trust authority    500
(B)  Trust branch    500
(C)  Trust service office    500
(D)  Contracting trustee agreement    500
(E)  Out of state trust facility    500
(8)  Change of name    250
(9)  Revenue bond pledgibility    200
(10)  Letter of good standing    50
(b) The commissioner may adopt rules and regulations to change the amount of the fees established in subsection (a) to an amount not to exceed 150% of any such fee established in subsection (a).
(c) The commissioner may waive any fee established by this section.
(d) Any applicant may be required by the commissioner to pay any additional cost associated with any examination or investigation if the commissioner determines that an on-site examination of the financial institutions or trust companies that are parties to the application is necessary.
(e) Within two weeks of the beginning of each legislative session, the commissioner shall submit to the senate committee on ways and means, the appropriate senate budget subcommittee, the house of representatives committee on appropriations and the appropriate house of representatives budget committee, a written summary of any rules and regulations adopted to establish fees pursuant to subsection (b) during the preceding year.
(f) The commissioner may adopt rules and regulations necessary to administer the provisions of this section.
History:
L. 2015, ch. 38, § 12; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 18 - Banking Code; Supervision; Board › 9-1805 Removal of officer or director; hearing; judicial review.

9-1805. Removal of officer or director; hearing; judicial review.
(a) If the state banking board finds that any current or former officer or director of any bank or trust company has been dishonest, reckless or incompetent in performing duties as such officer or director or willfully or continuously fails to observe any legally made order of the commissioner or the state banking board, the state banking board may take one or more of the following actions:
(1) Remove such officer or director; and
(2) prohibit such officer's or director's further participation in any manner in the conduct of the affairs of any state bank or trust company in Kansas.
(b) The officer or director shall have the right to a hearing before the state banking board to be conducted in accordance with the Kansas administrative procedure act. Any action of the state banking board pursuant to this section is subject to review in accordance with the Kansas judicial review act.
(c) If upon the conclusion of such hearing, the state banking board determines that the officer or director has been dishonest, reckless or incompetent in performing duties as such an officer or director or has willfully or continuously failed to comply with any legally made order of the commissioner or state banking board, the state banking board may order the officer or director to vacate the office and prohibit such officer's or director's further participation in the conduct of the affairs of any state bank or trust company in Kansas. The state banking board shall mail a copy of its removal order to the bank or trust company where such officer or director was serving.
History:
L. 1947, ch. 102, § 107; L. 1975, ch. 44, § 40; L. 1976, ch. 145, § 37; L. 1986, ch. 318, § 18; L. 1988, ch. 356, § 43; L. 2005, ch. 29, § 1; L. 2010, ch. 17, § 30; L. 2015, ch. 38, § 114; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 18 - Banking Code; Supervision; Board › 9-1809 Civil penalties.

9-1809.
Civil penalties.
(a) After providing a notice and an opportunity for a public hearing in accordance with the Kansas administrative procedure act, the commissioner may, with the approval of the state banking board, assess against and collect a civil money penalty from any bank or trust company that, or any executive officer, director, employee, agent, or other person participating in the conduct of the affairs of such bank or trust company who:
(1) Engages or participates in any unsafe or unsound practice in connection with a bank or trust company; or
(2) violates or knowingly permits any person to violate any of the provisions of:
(A) The state banking code;
(B) any rule or regulation promulgated pursuant to the state banking code; or
(C) any lawful order of the commissioner or the state banking board.
(b) The civil money penalty shall not exceed $1,000 per day for each day such violation continues. No civil money penalty shall be assessed for the same act or practice if another government agency has taken similar action against the bank, trust company or person to be assessed such civil money penalty. In determining the amount of the civil money penalty to be assessed, the commissioner shall consider:
(1) The good faith of the bank, trust company or person to be assessed with such civil money penalty;
(2) the gravity of the violation;
(3) any previous violations by the bank, trust company or person to be assessed with such civil money penalty;
(4) the nature and extent of any past violations; and
(5) such other matters as the commissioner may deem appropriate.
(c) Upon waiver by the respondent of the right to a public hearing concerning an assessment of a civil money penalty, the hearing or portions thereof may be closed to the public when concern arises about prompt withdrawal of moneys from or the safety and soundness of the bank or trust company.
(d) For the purposes of this section, a violation shall include, but is not limited to, any action, by any person alone or with another person, that causes, brings about, or results in the participation in, counseling of, or aiding or abetting of a violation.
(e) The commissioner, with approval of the state banking board, may modify or set aside any order assessing a civil money penalty. Any civil money penalty collected pursuant to this section shall be transmitted to the state treasurer, who shall credit it to the bank commissioner fee fund.
(f) Notwithstanding any other provision of law, no bank or trust company shall indemnify or insure any executive officer, director, employee, agent or person participating in the conduct of affairs of such bank or trust company against civil money penalties.
History:
L. 2005, ch. 7, § 1; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 18 - Banking Code; Supervision; Board › 9-1810 Informal agreements with commissioner; when; confidentiality.

9-1810. Informal agreements with commissioner; when; confidentiality.
(a) The commissioner may enter into any informal agreement with any bank or trust company for a plan of action to address possible safety or soundness concerns, violations of law or any weakness displayed by the bank or trust company if the commissioner determines that the bank or trust company displays:
(1) Possible safety and soundness concerns or is violating, has violated or is about to violate any law, rule and regulation or order of the commissioner or the state banking board resulting in a less than satisfactory condition, but not to a degree requiring formal administrative action; or
(2) any weakness that if not properly addressed and corrected would reasonably be expected to result in future safety and soundness concerns, violations of applicable laws, rules and regulations and further deterioration in the condition of the bank or trust company.
(b) The adoption of an informal agreement authorized by this section shall not be subject to the provisions of K.S.A. 77-501 et seq., and amendments thereto, or K.S.A. 77-601 et seq., and amendments thereto. Any informal agreement authorized by this section shall not be considered an order or other agency action and shall be considered confidential examination material pursuant to K.S.A. 9-1712, and amendments thereto.
History:
L. 2015, ch. 38, § 3; L. 2020, ch. 12, § 1; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 18 - Banking Code; Supervision; Board › 9-1811 Consent orders; when.

9-1811. Consent orders; when.
The commissioner may enter into a consent order at any time with a bank, trust company, any executive officer, director, employee, agent or other person to resolve a matter arising under the state banking code, rules and regulations adopted thereto or an order issued pursuant to the state banking code.
History:
L. 2015, ch. 38, § 4; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 19 - Banking Code; Dissolution; Insolvency › 9-1901 Dissolution.

9-1901. Dissolution.
Any corporation that is not insolvent or critically undercapitalized and otherwise transacting business under the state banking code may be dissolved by its board of directors in accordance with K.S.A. 17-6801 et seq., and amendments thereto, provided the bank has completed a liquidation to the satisfaction of the commissioner pursuant to K.S.A. 9-1919, and amendments thereto.
History:
L. 1947, ch. 102, § 109; L. 2015, ch. 38, § 116; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 19 - Banking Code; Dissolution; Insolvency › 9-1902 Definition of insolvency.

9-1902. Definition of insolvency.
A bank or trust company shall be deemed to be insolvent when: (a) The actual cash market value of a bank's or trust company's assets is insufficient to pay such bank's or trust company's creditor liabilities, except that for this purpose unconditional evidence of indebtedness of the United States of America may be valued, at the discretion of the commissioner, at par or cost whichever is the lesser; or (b) the bank or trust company is unable to meet the demands of its creditors in the usual and customary manner.
History:
L. 1947, ch. 102, § 110; L. 1980, ch. 49, § 2; L. 2015, ch. 38, § 117; L. 2016, ch. 54, § 52; July 1.
2023 Kansas Statutes › Chapter 9 - Banks And Banking; Trust Companies › Article 19 - Banking Code; Dissolution; Insolvency › 9-1902a Critical undercapitalization.

9-1902a. Critical undercapitalization.
A bank or trust company is critically undercapitalized when the ratio of its capital to total assets is equal to or less than 2.0%. For the purposes of this section, capital shall be the total of the institution's common stock, surplus, undivided profits, capital reserves, noncumulative perpetual preferred stock and outstanding cumulative perpetual preferred stock, including related surplus, but intangibles, such as goodwill, shall not be included in the capital calculation.
History:
L. 1993, ch. 7, § 1; L. 2015, ch. 38, § 118; July 1.