Chapter 9, BANKS AND BANKING; TRUST COMPANIES

9-2001. Failing to perform duty; penalty. Every officer, employee, director or agent of any bank or trust company who shall neglect to perform any duty required by the state banking code, or who shall fail to conform to any lawful requirement made by the commissioner, upon convic…

9-2002. Making false report, statement or entry in the books; penalty. Every officer, director, agent or employee of any bank or trust company doing business in the state of Kansas who willfully and knowingly subscribes to or makes any false report or any false statement or entry…

9-2004. Swear or affirm falsely as perjury; penalty. Every officer, director, agent or employee of a bank or trust company required by the state banking code to take an oath or affirmation, who shall willfully swear or affirm falsely, shall be guilty of perjury, and upon convicti…

9-2005. Neglect of commissioner or deputy; penalty. Any bank commissioner or deputy bank commissioner who shall willfully neglect to perform any duty provided for by the state banking code, or who shall knowingly and willfully permit the violation of any of the provisions of the …

9-2006. Receiving deposits after authority revoked; penalty. Any officer, director, employee or agent of any bank whose authority to transact a banking business has been revoked pursuant to the provisions of the state banking code, who shall receive or cause to be received any de…

9-2007. Violations by receiver; penalties. Any receiver of an insolvent bank or trust company, other than the federal deposit insurance corporation, or any successor, that fails to comply with the provisions of the state banking code, upon conviction shall be guilty of a class A,…

9-2008. Certified checks, drafts or orders in excess of amount on deposit. It shall be unlawful for any officer, director, employee or agent of any bank doing business pursuant to the provisions of the state banking code to certify any check, draft or order drawn upon the bank un…

9-2010. Insolvent bank receiving deposits; penalty. No bank shall accept or receive on deposit, with or without interest, any money, bank bills or notes or United States treasury notes, gold or silver certificates or currency or other notes, bills, checks or drafts, when such ban…

9-2011. Unlawfully engaging in the banking or trust company business; authorization of commissioner required before engaging in the banking or trust business; criminal penalty. (a) It shall be unlawful for any individual, firm or corporation to advertise, publish or otherwise pro…

9-2012. Intent to injure or defraud; penalty. (a) It shall be unlawful for any shareholder, director, officer, employee or agent of any bank or trust company, with the intent to injure, defraud or deceive a bank or trust company, any agent appointed to examine the affairs of such…

9-2013. Unlawful to offer or solicit anything of value; penalty. (a) Except as provided in subsection (c), it shall be unlawful for: (1) Any person or corporation to give, offer or promise anything of value to any person, with the intent to influence or reward an officer, directo…

9-2014. Violation of act; commissioner or deputy to inform county or district attorney. It shall be the duty of the commissioner to inform the county or district attorney of the county in which the bank or trust company is located of any violation of any of the provisions of the …

9-2016. Unlawfully transacting banking or trust business; penalty. It shall be unlawful to transact a banking business or trust business without having first received a certificate from the commissioner. Any person violating the provisions of this section, either individually or …

9-2018. Severability. If any provision of the state banking code, or the application thereof, to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the state banking code that can be given effect without the invalid pr…

9-2019. Unlawful to obstruct examination; penalty. It shall be unlawful for any director, officer, employee or agent of a bank or trust company to alter, destroy, shred, mutilate, conceal, cover up or falsify any record with the intent to impede, obstruct, impair or influence any…

9-2102. Applicability of act. All trust companies, regardless of when incorporated, shall be organized and governed pursuant to the state banking code. History: L. 1989, ch. 48, § 2; L. 2015, ch. 38, § 143; July 1.

9-2103. Powers of trust companies; limited purpose trust companies. (a) A trust company may exercise all powers necessary or incidental to carrying on a trust business, including, without limitation, all powers conferred upon a business corporation by the Kansas corporation code …

9-2104. Liability of holder of stock in a trust company. (a) No executor, administrator, conservator or trustee holding trust company stock shall be personally subject to any liability as stockholders in such trust company. (b) No person holding trust company stock as collateral …

9-2107. Authority for the contracting for trust services; definitions; notice filing; authority of commissioner; fees; examination; branches. (a) As used in this section: (1) "Contracting trustee" means any trust company, as defined in K.S.A. 9-701, and amendments thereto, any ba…

9-2108. Trust service office; establishment or relocation; application; exemptions. It is unlawful for any trust company to establish or operate a trust service office or relocate an existing trust service office except as provided herein. (a) As used in this section: "Trust serv…

9-2111. Prohibiting out-of-state entity to establish or operate trust facility; exceptions; requirements to do business. (a) Except as provided in K.S.A. 9-2107, and amendments thereto, no trust company, trust department of a bank, corporation or other business entity with a home…

9-2201. Definitions. As used in this act: (a) "Act" means the Kansas mortgage business act. (b) "Amount financed" means the net amount of credit provided to the consumer or on the consumer's behalf. The amount financed shall be calculated as provided in rules and regulations adop…

9-2202. Organizations, entities and individuals exempt from licensure. The following are exempt from the licensing requirements of this act: (a) Any bank, savings bank, trust company, savings and loan association, building and loan association, industrial loan company or credit u…

9-2203. License required to conduct mortgage business; mortgage business at remote locations, requirements; registration required for a loan originator; penalty; statute of limitations for prosecution. (a) Mortgage business shall only be conducted in this state by entities that a…

9-2204. Application for license for mortgage company; application for registration for loan originator; content; incomplete application. (a) Any person required to be licensed as a mortgage company pursuant to this act shall submit to the commissioner an application for the mortg…

9-2205. License or registration; renewal; fees, late fees, uses. (a) A license or registration shall become effective as of the date specified in writing by the commissioner. (b) Each license and registration shall expire on December 31 of each year. A license or registration sha…

9-2206. Application denied; application abandoned; appeal. (a) If the commissioner fails to issue a license or registration within 60 days or grant a renewal within 30 days after an application is deemed complete by the commissioner, the applicant may make written request for a h…

9-2207. Denial, suspension or revocation of license or registration; notice; disciplinary proceedings. (a) The commissioner may deny, suspend, revoke, or refuse to renew a license or registration issued pursuant to this act, if the commissioner finds, after notice and opportunity…

9-2208. Availability of evidence of licensure; providing notice of certain information to consumer; contents; advertising or solicitation disclosures. (a) Each licensee shall make available evidence of licensure in a way that reasonably assures recognition by consumers and member…

9-2209. Powers and duties of state bank commissioner; orders to appear before commissioner; other remedies available to consumers. (a) The commissioner may exercise the following powers: (1) Adopt rules and regulations as necessary to carry out the intent and purpose of this act …

9-2210. Fees; disposition. All fees collected by the commissioner pursuant to this act shall be subject to the provisions of K.S.A. 75-1308, and amendments thereto. History: L. 1996, ch. 175, § 10; April 25. Attorney General's Opinions: Authority of legislature to transfer money …

9-2211. Bonding requirements; positive net worth requirements. (a) Each applicant or licensee shall file with the commissioner a surety bond in the amount of not less than $100,000, in a form acceptable to the commissioner, issued by an insurance company authorized to conduct bus…

9-2212. Prohibited acts for persons licensed or registered under act. No person required to be licensed or registered under this act shall directly or indirectly: (a) Pay compensation to, contract with or employ in any manner any person engaged in mortgage business who is not pro…

9-2213. Time limit for deposit of escrow funds; records required. (a) Within three business days of receipt a licensee shall deposit all fees and money received from a borrower prior to the time a loan is consummated in an escrow account in a bank, savings bank, savings and loan …

9-2214. Ownership of documents. All original documents provided to the licensee by the borrower or at the expense of the borrower, including any appraisals, are the property of the borrower and at the borrower's request, shall be returned to the borrower without further expense i…

9-2215. Change in licensee's business; notice. (a) A licensee shall provide written notice to the commissioner within 10 business days of the occurrence of any of the following events: (1) The closing or relocation of the principal place of business or the addition or closing of …

9-2216. Retention of records; time period; inspection of records; security of records; preservation of records. (a) A licensee shall keep copies of all documents or correspondence received or prepared by the licensee or registrant in connection with a loan or loan application and…

9-2216a. Annual written report; penalty; consumer education fund; confidentiality of information in such report. (a) Each licensee shall annually, on or before April 1, file a written report with the commissioner containing the information that the commissioner may reasonably req…

9-2217. Confidentiality of examination reports; exceptions. Examination reports and correspondence regarding the reports made by the commissioner or the commissioner's examiners are confidential, except that the commissioner may release examination reports and correspondence rega…

9-2218. Cease and desist orders; civil fines. (a) If the commissioner determines after notice and opportunity for a hearing pursuant to the Kansas administrative procedure act that any person has engaged, is engaging or is about to engage in any act or practice constituting a vio…

9-2219. Injunction. Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this act or any rule and regulation or order hereunder, the commissioner may bring an action in any co…

9-2220. Citation of act; severability clause. (a) The provisions of K.S.A. 9-2201 et seq., and amendments thereto, and K.S.A. 2025 Supp. 9-2221 through 9-2234, and amendments thereto, shall be known and may be cited as the Kansas mortgage business act. (b) If any provision of thi…

9-2221. Computation of any period of time under act. (a) Calendar days shall be used in computing any period of time. The day of the act, event or default from which the designated period of time begins to run shall not be included in such computation. Saturdays, Sundays and lega…

9-2222. Electronic writings or signatures authorized. (a) Any writing or signature required by this act may be provided or executed in an electronic form under K.S.A. 16-1601 et seq., and amendments thereto. (b) If the consumer agrees in writing to the use of electronic methods i…

9-2223. Applicability of provisions to covered transactions. (a) K.S.A. 2025 Supp. 9-2223 through 9-2234, and amendments thereto, shall apply only to covered transactions, as defined in K.S.A. 9-2201, and amendments thereto. (b) K.S.A. 9-2203 through 9-2209, and amendments theret…

9-2224. Restrictions on interest in land as security; violation. (a) A mortgage company shall not make a covered transaction with an interest in land as security with an amount financed of $5,000 or less in which the annual percentage rate of the loan exceeds the code mortgage ra…

9-2225. Waiver or agreement to forego rights; settlement of claims; authorization to confess judgment prohibited; authorization in violation of section is void. (a) A consumer shall not waive or agree to forego rights or benefits under K.S.A. 2025 Supp. 9-2223 through 9-2234, and…

9-2226. Effect of violations on rights of parties; cause of action by consumer; correction of error by mortgage company; reimbursement of fees and costs. (a) Except as otherwise provided in K.S.A. 2025 Supp. 9-2223 through 9-2234, and amendments thereto, if a mortgage company has…

9-2227. Right to prepay unpaid balance of covered transaction. (a) The consumer may prepay in full the unpaid balance of a covered transaction at any time without penalty. (b) This section shall be a part of and supplemental to the Kansas mortgage business act. History: L. 2024, …

9-2228. Limitation on periodic finance charge for covered transactions and prepaid finance charges. (a) The periodic finance charge for a covered transaction shall not exceed 18% per annum, subject to the limitations on prepaid finance charges set forth in this subsection. This s…