Kansas Administrative Code

Directors’ meetings. (a) Min- utes shall be made of each directors’ meeting of a bank or trust company. The minutes shall show any action taken by the directors. (b) In addition to any other actions the board may take, the following specific actions shall be taken by the board of…

Loans; records. Each bank or trust company shall maintain a central listing which shows the following: (a) the indebtedness of each borrower; (b) the note number; (c) the origination date of the loan; (d) the amount; and (e) the maturity date. (Authorized by K.S.A. 9-1713; implem…

Bonds; records. (a) Each bank or trust company shall maintain a central listing showing the following for each bond: (1) par value; (2) cost; (3) interest rate; (4) purchase date; (5) maturity date; and (6) name of the issuer. (b) In addition, each bank or trust company shall mai…

Bank-owned real estate; rec- ords. (a) Each bank or trust company shall main- tain the following records for real estate owned by the bank or trust company: (1) the insurance coverage on the real estate, including the amount of insurance and the expi- ration date; (2) the legal d…

Loans; documentation re- quirements. (a) Except as specified in this sub- section, each bank shall maintain complete and current credit information, not older than 15 months, for each borrower for whom the total amount of the following exceeds $100,000: (1) All loans made to the …

Charged-off assets; records. (a) Each bank or trust company shall maintain a cen- trallistingofanyassetschargedoffthebooksofthe bank or trust company. The central listing shall in- clude a subsidiary ledger for each debtor, showing the date of charge-off, the description of the a…

(Authorized by K.S.A. 9-1101, K.S.A. 1965 Supp. 9-1713; effective Jan. 1, 1966; revoked Aug. 9, 1996.)

Appraisals and evaluations. (a) Except for those transactions that meet the re- quirements of subsection (b) or (c), an accurate appraisal of all real estate mortgaged to secure principal debt of $25,000 or more to a bank shall be made by an appraiser who is licensed or certi- fi…

Insurance on bank property. The insurable tangible property of a bank or trust company shall be insured for at least seventy per cent of its actual value against loss from fire, wind- storm and tornado. (Authorized by L. 1965, ch. 81; effective Jan. 1, 1966.)

Other assets; records. Each bank or trust company shall maintain a central listing showing the following on any personal property taken in payment of a debt: (a) a com- plete description of the property; (b) the date of acquisition; (c) the name of the original debtor; (d) the to…

(Authorized by K.S.A. 9-1713 and implementing K.S.A. 9-1101 and 9-1131; effec- tive Jan. 1, 1966; amended May 1, 1978; amend- ed, T-84-14, July 1, 1983; amended May 1, 1984; revoked Aug. 9, 1996.) 17-11-10 to 17-11-12. (Authorized by K.S.A. 9-1101, K.S.A. 1965 Supp. 9-1713; effec…

Daily transactions.(a)Eachtrans- action affecting the assets, liabilities, or fiduciary assets held by the bank or trust company shall be shown in detail. (b) The books and records shall be designed to allow the tracing of any transaction from origin to final entry. (c) Books and…

Daily statement. A summary of all transactions showing the assets, liabilities and net worth of the bank or trust company shall be prepared daily for each bookkeeping day and kept on file at the bank or trust company. Additionally, a summary of all transactions relating to fiduci…

Revenue bonds; approval. The commissioner may approve, as security for the de- positofpublicfundspursuanttoK.S.A.9-1402,rev- enue bonds of any municipal corporation or quasi- municipal corporation, except for bonds issued under K.S.A. 12-1740 to 12-1749 and bonds se- cured by rev…

Records; retention period. Each bank or trust company shall retain the following records for the periods indicated: TYPE OF RECORD RETENTION RECORD ADMINISTRATIVE Attachments and/or garnishments................ 2 years after close NOTE: Legal documents and copies of returns and c…

Application; filing. (a) An applica- tion for a certificate of authority and any supple- mental information shall be filed by submitting an original and nine copies to the office of the state bank commissioner. (b) The application shall be filed at least 14 calendar days before t…

Application; contents. Each ap- plication for a certificate of authority shall contain the following information: (a) The name and ad- dress of the proposed bank or trust company; (b) the names and addresses of the organizers, proposed officers, proposed directors, and share- hol…

(Authorized by K.S.A. 9-1713; ef- fective, E-77-18, March 19, 1976; effective, E-78- 12, April 27, 1977; effective May 1, 1978; amend- ed Jan. 27, 1992; revoked Aug. 9, 1996.)

Comment letters; notification of the applicant. The applicant shall be notified of the receipt of any comment letters and furnished a copy of those letters. The applicant may provide a written response to the board regarding any comment letters within 10 calendar days following t…

(Authorized by K.S.A. 9-1713; ef- fective, E-77-18, March 19, 1976; effective, E-78- 12, April 27, 1977; effective May 1, 1978; revoked Aug. 9, 1996.)

(Authorized by K.S.A. 9-1713; im- plementing K.S.A. 9-1802; effective, E-77-18, March 19, 1976; effective, E-78-12, April 27, 1977; effective May 1, 1978; amended Jan. 27, 1992; amended April 19, 1993; revoked Aug. 9, 1996.)

Application; consideration by the board. (a) After considering the application, including any comment letters and the applicant’s response to comment letters, the board shall deter- mine whether to approve or deny the application. (b) The state banking board shall not be re- quir…

Limitation on engaging in fu- tures. A bank’s authority to engage in financial futures contracts, pursuant to K.S.A. 1995 Supp. 9-1101 shall be limited to using the contracts as a hedge. (Authorized by K.S.A. 9-1713; implement- ing K.S.A. 1995 Supp. 9-1101; effective, T-85-20, Ju…

Internal controls; reporting. To assure adherence to bank policy and prevent unauthorized trading and other abuses, each bank engaging in financial futures contracts shall estab- lish internal controls including monthly reports to management, segregation of duties, and internal a…

Definitions. As used in this article: (a) “contract” means a financial futures contract; and (b) “hedging” means a purchase or sale made as protection against a known risk and not pri- marily for income or profit. (Authorized by K.S.A. 9-1713; implementing K.S.A. 1995 Supp. 9-110…

Adoption of policy by bank. (a) The board of directors shall establish a written policy to engage in financial futures contracts. Policy objectives and limitations shall be specific enough to outline permissible contract strategies and their relationship to other banking activiti…

Notice to commissioner. A bank shall notify the commissioner of the bank’s inten- tion to engage in financial futures contracts before commencement of the activity. The bank shall in- clude the following information in the notice: (a) a copy of the written policy of the bank, est…

Monthly review of contracts. The board of directors, a duly authorized committee or the bank’s internal auditors shall review financial futures contract positions on a monthly basis to as- certain conformance with the bank’s written policy. (AuthorizedbyK.S.A.9-1713;implementingK…

Maintenance of ledger accounts or registers. (a) Each bank engaging in financial futures contracts shall maintain general ledger memorandum accounts or commitment registers to adequately identify and control all commit- ments to make or take delivery of securities. (b) The bank’s…

Review of contracts; market val- uation. (a) Except for financial futures contracts described in K.A.R. 17-17-8, the bank shall review each open position and shall determine the mar- ket value at least monthly, regardless of whether the bank is required to deposit margin in conne…

Hedging of mortgage banking operations. (a) The bank shall account for finan- cial futures contracts associated with bona fide hedging of mortgage banking operations in accor- dance with generally accepted accounting princi- ples applicable to the activity. (b) As used in this re…

Effect on bank’s financial condi- tion. The financial reports of any bank engaging in financial futures contracts shall disclose in an ex- planatorynoteanyfinancialfuturescontractactivity 764 OFFICE OF THE STATE BANK COMMISSIONER 17-17-10 thatmateriallyaffectsthebank’sfinancialco…

(Authorized by K.S.A. 9-1713; im- plementing K.S.A. 1984 Supp. 9-1101; effective, T-85-32, Dec. 19, 1984; effective May 1, 1985; amended Jan. 27, 1992; revoked Aug. 9, 1996.) ENGAGED IN SECURITIES ACTIVITIES

Organization; application ap- proval. (a) Prior to its organization to engage in securities activities in this state, each bank subsid- iary shall make application to and obtain approval from the state bank commissioner and the state banking board. Each application shall contain …

Registration and licensing; vio- lations; examination. (a) Prior to engaging in se- curities activities, each bank subsidiary shall com- ply with registration and licensing requirements of the appropriate federal and state securities reg- ulatory agencies. Each bank subsidiary sh…

Wholly-owned subsidiary; leas- ing; employees; office location. (a) Each bank subsidiary engaged in securities activities shall be a wholly-owned subsidiary of the parent bank. (b) Any parent bank may lease or sell office space to its subsidiary engaged in securities activ- ities…

Capital; lending limit. The aggre- gate of unsecured loans and capital investments to eachbanksubsidiarybyeachparentbankshallnot exceed 15 percent of the total amount of capital stock paid in and unimpaired and the unimpaired surplus fund of the parent bank. (Authorized by and im…

Employment; security back- ground check. (a) Each Deputy Commissioner, Special Assistant or other employee necessary to properly discharge the duties of the office shall submit to a security background check prior to being employed in such position. (b) Upon the commencement of t…

Definitions. For purposes of this article, the terms used shall have the meanings at- tributed to them by K.S.A. 1995 Supp. 9-519 and K.S.A. 1995 Supp. 9-701. (Authorized by K.S.A. 1995 Supp. 9-539; implementing K.S.A. 1995 Supp. 9-532; effective Aug. 10, 1992; amended April 19, …

Application. (a) With the approval of the commissioner, any bank holding company may acquire control of one or more Kansas banks or Kansas bank holding companies. (b) A bank holding company shall be deemed to be acquiring control of a Kansas bank or Kansas bank holding company if…

Contents of application. (a) Each applicant shall respond accurately and fully to all questions contained in the application form pro- vided by the commissioner. (b) Upon submitting an application, each appli- cant shall provide the commissioner with the fol- lowing additional in…

Filing of application. (a) Within 14 calendar days of the date any agreement to purchase a bank or bank holding company is en- tered into, a notice of intent to submit an applica- tion pursuant to K.S.A. 1995 Supp. 9-532 shall be filed with the commissioner. (b) The application s…

When complete. An application filed pursuant to K.S.A. 9-532 shall be complete when: (a) the materials described in K.S.A. 1995 Supp. 9-533, K.S.A. 1995 Supp. 9-536 and K.A.R. 17-21-3havebeenfiledwiththecommissioner;and (b) the board of governors of the federal re- serve system o…

Concurrent jurisdiction. (a) Ex- aminations of the applicant, its subsidiaries and its affiliates may be conducted by the commis- sioner. The applicant shall bear the cost of any examination. (b) The applicant’s state and federal regulators may be provided with copies of reports …

(Authorized by K.S.A. 9-1713; im- plementing K.S.A. 9-524; effective Aug. 10, 1992; revoked Aug. 9, 1996.)

Application; request for addi- tional information. An application filed pursuant to K.S.A. 1995 Supp. 9-532 may be returned by the commissioner if the applicant does not respond in 767 Trust Supervision 17-23-1 writing within 20 calendar days of a written request by the commissio…

Application fees. (a) At the time of filing any application described below, the ap- plicant shall remit to the office of the state bank commissioner the following nonrefundable fee: (1) Bank or trust company charter..............$2,500 (2) New branch bank........................…

Definitions. For the purposes of article 23, the following definitions shall apply. (a) “Account” means the trust, estate or other fidu- ciary relationship that has been established with a bank or trust company. (b) “Bank” means a corporation as defined in K.S.A. 9-701(a) and ame…

Surrender of fiduciary pow- ers. Any bank or trust company which has been granted the right to exercise fiduciary powers and which desires to surrender such right shall file with the state bank commissioner a certified copy of the resolution of its board of directors signify- ing…

Collective investment.(a)Funds heldbyabankortrustcompanyasfiduciarymaybe invested collectively in either of the following: (1) A common trust fund maintained by the bank or trust company exclusively for the col- lective investment and reinvestment of moneys contributed thereto by…