Chapter 9, BANKS AND BANKING; TRUST COMPANIES

9-519. Bank holding companies; definitions. For the purposes of K.S.A. 9-520 through 9-524 and K.S.A. 9-532 through 9-541, and amendments thereto, unless otherwise required by the context: (a) "Bank" means an insured bank as defined in 12 U.S.C. § 1813(h). "Bank" does not include…

9-520. Same; ownership limitations; exceptions. (a) Excluding shares held under the circumstances set out in K.S.A. 9-519(b)(2), and amendments thereto, no bank holding company or any subsidiary thereof shall directly or indirectly acquire ownership or control of, or power to vot…

9-532. Same; authority; fee. (a) With prior approval of the commissioner: (1) Any company by virtue of acquisition of ownership or control of, or the power to vote the voting shares of, a bank or another company, may become a bank holding company; (2) any bank holding company may…

9-533. Same; application; required information. An application filed pursuant to K.S.A. 9-532, and amendments thereto, shall provide the following information and include the following documents: (a) A copy of any application by an applicant seeking approval by a federal agency o…

9-534. Same; application; approval; factors. In determining whether to approve an application filed pursuant to K.S.A. 9-532, and amendments thereto, the commissioner shall consider the following factors: (a) Whether the subsidiary banks of the applicant are operated in a safe, s…

9-535. Bank holding companies; approval of application; applicant right to appeal. (a) The commissioner shall approve the application if the commissioner determines that the application favorably meets each and every factor prescribed in K.S.A. 9-534, and amendments thereto, the …

9-536. Same; subject to change of control provisions. An applicant filing an application pursuant to K.S.A. 9-532, and amendments thereto, may be required to the extent applicable to supplement the application with such information as may be required pursuant to K.S.A. 9-1719 et …

9-537. Same; review of operations by commissioner; additional information. The commissioner at any time may review the activities of any bank holding company with a subsidiary bank in Kansas and its subsidiary banks to determine if the proposals of the company as stated in the in…

9-540. Foreign bank prohibited from having branch bank in state. No foreign bank shall establish or maintain any branch, agency, office or other place of business in this state. History: L. 1995, ch. 79, § 11; April 6.

9-541. Acquisition of bank by out-of-state bank holding company; age limitation; exceptions. (a) No out-of-state bank holding company or any subsidiary thereof shall directly or indirectly acquire ownership or control of, or power to vote, more than 5% of any class of the voting …

9-542. Citation of code; statutes comprising. Articles 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 of chapter 9 of the Kansas Statutes Annotated, K.S.A. 74-3004, 74-3005, 74-3006, 75-1304, 75-1305 and 75-1306, and 75-1308, and K.S.A. 9-814, 9-815, 9-816, 9-1141,…

9-550. Certificate of existence and authority. (a) For any deposit account, loan account or other banking relationship hereinafter referred to as "account," that is opened by one or more persons acting or purporting to act for or on behalf of an entity with any financial institut…

9-551. Applicability of act. (a) K.S.A. 2025 Supp. 9-551 through 9-554, and amendments thereto, shall be known and may be cited as the Kansas financial institutions information security act. (b) The purpose of the Kansas financial institutions information security act is to estab…

9-552. Definitions. As used in the Kansas financial institutions information security act: (a) "Commissioner" means the state bank commissioner or the commissioner's designee. (b) "Covered entity" means each person, applicant, registrant or licensee subject to regulation by the o…

9-553. Information security requirements. A covered entity shall: (a) Set forth standards for developing, implementing and maintaining reasonable safeguards to protect the security, confidentiality and integrity of customer information pursuant to 16 C.F.R. § 314, as in effect on…

9-554. Powers and duties of the commissioner; enforcement and review. (a) The Kansas financial institutions information security act shall be implemented, administered and enforced by the commissioner. (b) (1) The commissioner may conduct: (A) Routine examinations of the operatio…

9-555. Citation of act; definitions. (a) K.S.A. 2025 Supp. 9-555 through 9-596, and amendments thereto, shall be known and may be cited as the Kansas money transmission act. (b) As used in the Kansas money transmission act: (1) "Act" means the Kansas money transmission act. (2) "…

9-556. Inapplicability of act to certain entities and persons. (a) This act does not apply to: (1) An operator of a payment system to the extent that such operator provides processing, clearing or settlement services between persons exempted under this subsection or licensees in …

9-557. Powers of the commissioner; rules and regulations. (a) To carry out the purposes of this act, the commissioner may: (1) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations to improve ef…

9-558. Confidentiality of information, exceptions. (a) (1) Except as otherwise provided in subsection (b), all information or reports obtained by the commissioner from an applicant, licensee or authorized delegate and all information contained in or related to an examination, inv…

9-559. Examinations; access to records; costs incurred. (a) The commissioner may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this act or by any rules and regulations adopted or an order issued und…

9-560. Commissioner authorized to participate in multistate supervisory processes. (a) To administer and enforce the provisions of this act and minimize the regulatory burden, the commissioner is hereby authorized to participate in multistate supervisory processes established bet…

9-561. Federal law controls when inconsistent with this act; interpretive guidance provided by commissioner. (a) If the jurisdiction of state money transmission is conditioned on federal law, any inconsistencies between a provision of this act and such federal law governing money…

9-562. License required to provide money transmission, exceptions. (a) A person may not engage in the business of money transmission or advertise, solicit or hold itself out as providing money transmission unless the person is licensed under this act. (b) Subsection (a) shall not…

9-563. Commissioner authorized to establish consistent licensing practices with other states and utilize the nationwide multistate licensing system and registry. (a) To establish consistent licensing practices between Kansas and other states, the commissioner is hereby authorized…

9-564. License application; requirements; fee. (a) Applicants for a license shall submit a completed application in a form and manner as prescribed by the commissioner. Each such application shall contain content as set forth by rules and regulations, instruction or procedure of …

9-565. Items to be provided with license application; criminal history record check and fingerprinting; investigative background report. (a) As a part of any original application, any individual in control of a licensee, any applicant in control of a licensee and each key individ…

9-566. Controlling influence, presumption. (a) A person is presumed to exercise a controlling influence when such person holds the power to vote, directly or indirectly, at least 10% of the outstanding voting shares or voting interests of a licensee or person in control of a lice…

9-567. Application; completeness; approval or denial by the commissioner. (a) (1) When an application for an original license under this act appears to include all the items and addresses all of the matters that are required, the application shall be deemed complete, and the comm…

9-568. License; renewal; fee. (a) (1) A license issued under this act shall be renewed annually. (2) An annual renewal fee set by the commissioner shall be paid not more than 60 days before the license expiration. (3) The renewal term shall be for a period of one year and shall b…

9-569. License; suspension or revocation by the commissioner. (a) If a licensee does not continue to meet the qualifications or satisfy the requirements of an applicant for a new money transmission license, the commissioner may suspend or revoke the licensee's license in accordan…

9-570. Application for licensure; complete or abandoned, when. (a) The commissioner shall have the discretion to determine the completeness of any application submitted pursuant to this act. In making such a determination, the commissioner shall consider the applicant's complianc…

9-571. Change of control of license; application; approval or denial by the commissioner. (a) When any person or group of persons acting in concert are seeking to acquire control of a licensee, the licensee shall obtain the written approval of the commissioner prior to the change…

9-572. Adding or replacing a key individual by licensee; requirements. (a) A licensee adding or replacing a key individual shall provide: (1) Notice in the manner prescribed by the commissioner within 15 days after the effective date of the appointment of the new key individual; …

9-573. Report of condition; information included. (a) Every licensee shall submit a report of condition within 45 days of the end of the calendar quarter or within any extended time as the commissioner may prescribe. (b) The report of condition shall include: (1) Financial inform…

9-574. Audited financial statement; requirements. (a) Within 90 days after the end of each fiscal year or within any extended time as the commissioner may prescribe through rules and regulations, every licensee shall file with the commissioner: (1) An audited financial statement …

9-575. Authorized delegate report; information included. (a) Each licensee shall submit a report of authorized delegates within 45 days of the end of each calendar quarter. The commissioner is authorized to utilize the nationwide multistate licensing system and registry for the s…

9-576. Report required upon occurrence of certain administrative or legal proceedings. (a) A licensee shall file a report with the commissioner within one business day after the licensee has reason to know of the: (1) Filing of a bankruptcy or reorganization petition by or agains…

9-577. Federal reporting requirements. (a) A licensee and an authorized delegate shall file all reports required by federal currency reporting, recordkeeping and suspicious activity reporting requirements as set forth in federal and state laws pertaining to money laundering. The …

9-578. Records retention; open inspection by the commissioner. (a) Every licensee shall maintain the following records for at least three years: (1) A record of each outstanding money transmission obligation sold; (2) a general ledger posted at least monthly containing all assets…

9-579. Authorized delegate; requirements and limitations. (a) As used in this section, "remit" means to make direct payments of money to a licensee or the licensee's representative authorized to receive money or to deposit money in a bank in an account specified by the licensee. …

9-580. Liability when conducting money transmission on behalf of an unlicensed person. (a) No person shall engage in the business of money transmission on behalf of a person who is not licensed or exempt from licensing under this act. If a person engages in such activity, such pe…

9-581. Forwarding moneys received for transmission, excption; failure to forward. (a) Every licensee shall forward all moneys received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee reasonably believes or has…

9-582. Refunds; requirements. (a) This section does not apply to moneys received for transmission: (1) Subject to 12 C.F.R. §§ 1005.30 through 1005.36; or (2) pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the …

9-583. Receipts for money received for transmission; contents. (a) This section shall not apply to: (1) Money received for transmission subject to 12 C.F.R. §§ 1005.30 through 1005.36; (2) money received for transmission that is not primarily for personal, family or household pur…

9-584. Statement regarding questions or complaints required. (a) Every licensee or authorized delegate shall include on a receipt or disclose on the licensee's website or mobile application the name of the office of the state bank commissioner and a statement that the licensee's …

9-585. Licensee providing payroll processing services; requirements. (a) A licensee that provides payroll processing services shall: (1) Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and (2) make avai…

9-586. Net worth requirements of licensee; exemption by the commissioner. (a) Every licensee shall maintain at all times a tangible net worth of: (1) The greater of $100,000 or 3% of such licensee's total assets up to $100,000,000; (2) 2% of such licensee's additional assets of $…

9-587. Surety bond or other required security. (a) An applicant for a money transmission license shall provide and a licensee at all times shall maintain security consisting of a surety bond in a form satisfactory to the commissioner or, with the commissioner's approval, a deposi…

9-588. Permissible investments; trust required. (a) A licensee shall maintain permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of the total of the licensee's o…