Session Law

Identifying Information:L. 2001 ch. 036
Other Identifying Information:2001 House Bill 2147
Tax Type:Other
Brief Description:An Act relating to banks and banking; concerning unlawful transactions; amendingK.S.A. 2000 Supp. 9-1112 and repealing the existing section.
Keywords:


Body:

CHAPTER 36

HOUSE BILL No. 2147


An Act relating to banks and banking; concerning unlawful transactions; amending

K.S.A. 2000 Supp. 9-1112 and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2000 Supp. 9-1112 is hereby amended to read as

follows: 9-1112. (a) No bank shall buy, sell or trade tangible property as

a business or invest in the stock of another bank or corporation, except

as specifically authorized.

(b) No bank shall sell, give or purchase any instrument, contract, se-

curity or other asset to or from any employee or to or from the bank's

parent company or a subsidiary of the bank's parent company without

prior approval of the commissioner. Approval of the commissioner need

not be obtained for an assignment of third party loans and security for

the payment thereof to or from a subsidiary of the bank's parent company.

(c) No bank shall acquire or make a loan on its own shares of stock,

or the stock of the bank's parent company or a subsidiary of the bank's

parent company except as provided in subsection (d) or except as provided

in subsection (26) of K.S.A. 9-1101, and amendments thereto.

(d) A bank may hold or sell any property coming into its ownership

in the collection of debts. All such property except legal investments, shall

be sold within six months one year of acquisition, provided a commercially

reasonable sale can occur.

(e) If a commercially reasonable sale cannot occur within six months

one year, the bank shall not carry such property as a book asset, except

that the commissioner may authorize a bank to carry such property as a

book asset for a longer period.

Sec. 2. K.S.A. 2000 Supp. 9-1112 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the statute book.

Approved March 27, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001