Chapter 9 — BANKS AND BANKING; TRUST COMPANIES

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…

9-2229. Additional charges allowed. (a) In addition to the finance charge permitted by K.S.A. 2025 Supp. 9-2223 through 9-2234, and amendments thereto, for covered transactions, a mortgage company may contract for and receive the following additional charges for such covered tran…

9-2230. Late fees authorized; limitation. (a) The parties to a covered transaction may contract for a late fee on any installment not paid in full within 10 calendar days after its scheduled or deferred due date in an amount not to exceed 5% of the unpaid amount of the installmen…

9-2231. Loans secured by mortgages on consumer's principal residence; negative amortization and balloon payments prohibited. (a) A covered transaction shall not provide for the negative amortization of principal or a balloon payment when the loan-to-value ratio at the time such c…

9-2232. Appraisals required; notice to consumer of high loan-to-value mortgage; refund of certain fees after consumer withdrawals from covered transaction. (a) The provisions of this section shall not apply to a mortgage company that is exempt pursuant to K.S.A. 9-2202(a), and am…

9-2233. Enforcement of default provision in agreement. (a) An agreement of the parties to a covered transaction with respect to default on the part of the consumer shall be enforceable only to the extent that the: (1) Consumer fails to make a payment as required by agreement; or …

9-2234. Cure of default and notice of right to cure; surrender of collateral by consumer; possession of collateral by mortgage company. (a) After a consumer has been in default for 10 days for failure to make a required payment in a covered transaction payable in installments, a …

9-2301. Citation of act; definitions. (a) The provisions of K.S.A. 9-2301 through 9-2327, and amendments thereto, shall be known and may be cited as the technology-enabled fiduciary financial institutions act. The technology-enabled fiduciary financial institutions act shall be a…

9-2302. Organization; application for certificate of authority; out-of-state banks and trust companies criteria for approval; fingerprinting; applicable distribution. (a) No fiduciary financial institution shall be organized under the laws of this state nor engage in fidfin trans…

9-2303. Fees and assessments; examination expenses; remittance of moneys. (a) An application for a fiduciary financial institution charter shall include a nonrefundable fee to be remitted in a manner prescribed by the commissioner. Until July 1, 2025, the application fee shall be…

9-2304. Provisions of state banking code applicable; exceptions; conflict of law. (a) To the extent a conflict does not exist between this act and chapter 9 of the Kansas Statutes Annotated, and amendments thereto, except as provided in subsections (b), (c) and (e), the provision…

9-2305. Capitalization requirements. (a) For purposes of this section, "capital" means the total of the aggregate par value of a fiduciary financial institution's outstanding membership units, its surplus and its undivided profits. (b) (1) The required capital for fiduciary finan…

9-2306. Board of directors; membership; annual meeting; oath; notification of commissioner. (a) The business of any fiduciary financial institution shall be managed and controlled by such fiduciary financial institution's board of directors. (b) The board shall consist of not les…

9-2307. Report to commissioner; examinations; requirements. (a) A fiduciary financial institution shall make a report to the commissioner pursuant to the provisions of K.S.A. 9-1704, and amendments thereto. In making such a report, a fiduciary financial institution shall: (1) Rep…

9-2308. Name of institution; advertising; restrictions. A fiduciary financial institution may use in such fiduciary financial institution's business name or advertising the words "fiduciary financial institution" or any similar term or phrase, but may not use in such institution'…

9-2309. Maintaining suitable office space; requirements; staffing; maintenance of records. (a) A fiduciary financial institution shall: (1) Maintain suitable office space in an economic growth zone, as defined in K.S.A. 9-2301, and amendments thereto, for fidfin transactions, cus…

9-2310. General powers. Any fiduciary financial institution is hereby authorized to exercise by its board of directors or duly authorized officers or agents, subject to law, the following powers: (a) To engage in fidfin transactions in accordance with K.S.A. 9-2311, and amendment…

9-2311. Financing; required distribution amount; schedules; remittance of moneys; disclosure to customers. (a) If authorized by the terms of an instrument as such term is defined in K.S.A. 9-2301, and amendments thereto, a fiduciary financial institution may: (1) Extend financing…

9-2312. Authorized functions; parties engaged by an institution; services to residents of other states. (a) Subject to the requirements of K.S.A. 9-2309(d), and amendments thereto, a fiduciary financial institution may: (1) Employ attorneys, accountants, investment advisors, agen…

9-2313. Custodial services; requirements. (a) A fiduciary financial institution may serve as a custodian, which may include serving as a qualified custodian, as defined by the United States securities and exchange commission in 17 C.F.R. § 275.206(4)-2, of an asset custody accoun…

9-2314. Trust advisor; rights, powers, immunities and liabilities. Any instrument providing for a trust advisor may also provide such trust advisor with some, none or all of the rights, powers, privileges, benefits, immunities or authorities available to a trustee under Kansas la…

9-2315. Excluded fiduciary; actions not liable for; relieved of certain duties; deemed administrative actions. (a) An excluded fiduciary is not liable, either individually or as a fiduciary, for any of the following: (1) Any loss that results from compliance with a direction of t…

9-2316. Trust advisor; presumed fiduciary; jurisdiction; appointment. (a) A trust advisor shall be presumed to be a fiduciary when exercising such trust advisor's authority under this act. (b) By accepting an appointment to serve as a trust advisor of a fidfin trust or an alterna…

9-2317. Entity as trust advisor; requirements. (a) If an entity is appointed as a trust advisor, the provisions of article 8 of chapter 9 of the Kansas Statutes Annotated, and amendments thereto, shall not apply to such entity, if the entity: (1) Is established for the exclusive …

9-2318. Indemnification of trust advisor; exceptions. An instrument may relieve and indemnify a trust advisor and a fiduciary financial institution that serves as trustee of a fidfin trust or alternative asset custody account from liability for a breach of fiduciary duty. Any suc…

9-2319. Trustee compensation. (a) Notwithstanding the provisions of K.S.A. 58a-708, and amendments thereto, if the terms of a fidfin trust specify the trustee's compensation, such trustee is entitled to be compensated as provided in such terms, except that compensation may be inc…

9-2320. Privacy; protection in court proceedings; exception. The privacy of those who have established a fidfin trust or alternative asset custody account shall be protected in any court proceeding concerning such trust if the acting trustee, custodian, trustor or any beneficiary…

9-2321. Forms; definition; request for review; review not approval or endorsement. (a) For purposes of this section, "form" includes: (1) An instrument as defined in K.S.A. 9-2301, and amendments thereto; (2) a transaction agreement between a fiduciary financial institution and a…

9-2322. Adoption of rules and regulations by the commissioner; contracts for technical assistance. (a) Pursuant to K.S.A. 9-1713, and amendments thereto, the commissioner shall adopt rules and regulations on or before January 1, 2022, as are necessary to administer this act. (b) …

9-2323. No maximum interest rate or charge. Notwithstanding the provisions of chapter 16 of the Kansas Statutes Annotated, and amendments thereto, to the contrary, or any other statute, there is no maximum interest rate or charge or usury rate restriction between or among a fiduc…

9-2324. Technology-enabled fiduciary financial institutions development and expansion fund; administration by secretary of commerce; purpose; interest earnings. (a) There is hereby established in the state treasury the technology-enabled fiduciary financial institutions developme…