Kansas SB 139: Changing certain registration and title fees on vehicles and disposition of funds.

Bill Text

SENATE BILL No. 139
AN ACT concerning banks and trust companies; relating to the state banking code;
updating certain definitions, terms and conditions therein; specifying that certain
hearings be held in accordance with the Kansas administrative procedure act;
updating certain internal references; requiring immediate notification of changes in
board members; specifying that the charter of certain banks be deemed void on the
effective date of a merger; establishing conditions under which it would be lawful to
engage in banking without first obtaining authority from the commissioner;
amending K.S.A. 9-519, 9-1111, 9-1114, 9-1724, 9-1807, 9-2011, 9-2108 and 9-2111
and K.S.A. 2024 Supp. 9-2107 and repealing the existing sections; also repealing
K.S.A. 9-2101 and 16-842.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 9-519 is hereby amended to read as follows: 9-
519. For the purposes of K.S.A. 9-520 through 9-524, and amendments
thereto, 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) except the term shall. "Bank" does not include a national bank
that:
(1) Engages only in credit card operations;
(2) does not accept demand deposits or deposits that the depositor
may withdraw by check or similar means for payment to third parties or
others;
(3) does not accept any savings or time deposits of less than
$100,000;
(4) maintains only one office that accepts deposits; and
(5) does not engage in the business of making commercial loans.
(b) (1) "Bank holding company" means any company that:
(A) Directly or indirectly owns, controls, or has power to vote
25% or more of any class of the voting shares of a bank or 25% or
more of any class of the voting shares of a company that is or becomes
a bank holding company by virtue of this act;
(B) controls in any manner the election of a majority of the
directors of a bank or of a company that is or becomes a bank holding
company by virtue of this act;
(C) the commissioner determines, after notice and opportunity for
a hearing to be conducted in accordance with the Kansas
administrative procedure act, directly or indirectly exercises a
controlling influence over the management or policies of the bank or
company.
(2) Notwithstanding paragraph (1), no company:
(A) Shall be deemed to be a bank holding company by virtue of
the company's ownership or control of shares acquired by the company
in connection with such company's underwriting of securities if such
shares are held only for such period of time as will permit the sale
thereof on a reasonable basis;
(B) formed for the sole purpose of participating in a proxy
solicitation shall be deemed to be a bank holding company by virtue of
the company's control of voting rights of shares acquired in the course
of such solicitation;
(C) shall be deemed to be a bank holding company by virtue of the
company's ownership or control of shares acquired in securing or
collecting a debt previously contracted in good faith, provided such
shares are disposed of within a period of two years from the date on
which such shares could have been disposed of by such company; or
(D) owning or controlling voting shares of a bank shall be deemed
to be a bank holding company by virtue of the company's ownership or
control of shares held in a fiduciary capacity except where such shares
are held for the benefit of such company or the company's shareholders.
(c) "Company" means any corporation, limited liability company,
trust, partnership, association or similar organization, including a bank,

SENATE BILL No. 139—page 2
but shall does not include any corporation, the majority of the shares of
which are owned by the United States or by any state, or include any
individual, partnership or qualified family partnership upon the
determination by the commissioner that a general or limited partnership
qualifies under the definition in 12 U.S.C. § 1841(o)(10).
(d) "Foreign bank" means any company organized under the laws
of a foreign country, a territory of the United States, Puerto Rico,
Guam, American Samoa or the Virgin Islands or any subsidiary or
affiliate organized under such laws, which that engages in the business
of banking.
(e) "Kansas bank" means any bank, as defined by subsection (a),
that, in the case of a state chartered bank, is a bank chartered under the
authority of the state of Kansas, and, in the case of a national banking
association, a bank with its charter location in Kansas.
(f) "Kansas bank holding company" means a bank holding
company, as defined by subsection (b), with total subsidiary bank
deposits in Kansas that exceed the bank holding company's subsidiary
bank deposits in any other state.
(g) "Out-of-state bank holding company" means any holding
company that is not a Kansas bank holding company as defined in
subsection (f).
(h) "Subsidiary" means, with respect to a specified bank holding
company:
(