Kansas Statutes

Chapter 9: Banks And Banking; Trust Companies

Article 12: Banking Code; Transactions

Statutes:

• 9-1201: Application of 9-1204 to 9-1207, 9-1213 and 9-1214.
• 9-1202, 9-1203:
• 9-1204: Deposits of minors.
• 9-1205: Joint accounts.
• 9-1206: Set off.
• 9-1207: Adverse claim to deposit.
• 9-1208:
• 9-1209:
• 9-1210:
• 9-1211:
• 9-1212:
• 9-1213: Payment of certain drafts of failed or closed banks.
• 9-1214: Same; release from liability.
• 9-1215: Contracts for payment to beneficiaries upon deposit account owners' deaths; rights of owner during lifetime; change of beneficiary.
• 9-1216: Same; duties of bank; release and discharge thereof.

• 9-1201: Application of 9-1204 to 9-1207, 9-1213 and 9-1214. All of the provisions contained within K.S.A. 9-1204, 9-1205, 9-1206, 9-1207, 9-1213 and 9-1214, and amendments thereto, shall extend and apply to national banks organized under federal laws and state organized banks.

        History:   L. 1947, ch. 102, § 50; L. 1975, ch. 44, § 22; L. 1989, ch. 48, § 34; July 1.

• 9-1202, 9-1203:

        History:   L. 1947, ch. 102, §§ 51, 52; Repealed, L. 1965, ch. 564, § 416; Jan. 1, 1966.

• 9-1204: Deposits of minors. Any bank may receive deposits from minors or in the name of minors and pay the same upon the order of such minors whether or not said minors are emancipated until receiving certified copy of the appointment of a guardian. Payments so made shall discharge the bank forever from any further liability on account of such deposits or the money so paid by the bank.

        History:   L. 1947, ch. 102, § 53; June 30.

• 9-1205: Joint accounts. Deposits may be made in the names of two or more persons, including minors, payable to either or any of them, or payable to either or any of the survivors or the sole survivors, and such deposits or any part thereof or any interest thereon, may be paid to or on order of any of said persons whether the other or others be living or not; and the receipt, order, or acquittance of the person so paid shall be valid and sufficient release and discharge to the bank for any payment so made.

        History:   L. 1947, ch. 102, § 54; June 30.

• 9-1206: Set off. Any bank shall have the right to set off any obligation or claim which it has, when the same is matured against any depositor.

        History:   L. 1947, ch. 102, § 55; June 30.

• 9-1207: Adverse claim to deposit. Notice to any bank of an adverse claim to a deposit with such bank need not be recognized, and shall not be deemed effective, unless and until either the person making the claim supplies indemnity deemed adequate by the bank or the bank is served with process or order issued by a court of competent jurisdiction in an action in which the adverse claimant and the person or persons nominally entitled to the deposit are parties.

        History:   L. 1947, ch. 102, § 56; L. 1965, ch. 564, § 400; Jan. 1, 1966.

• 9-1208:

        History:   L. 1947, ch. 102, § 57; Repealed, L. 1965, ch. 564, § 416; Jan. 1, 1966.

• 9-1209:

        History:   L. 1947, ch. 102, § 58; Repealed, L. 1965, ch. 564, § 416; Jan. 1, 1966.

• 9-1210:

        History:   L. 1949, ch. 111, § 1; Repealed, L. 1965, ch. 564, § 416; Jan. 1, 1966.

• 9-1211:

        History:   L. 1949, ch. 111, § 2; L. 1953, ch. 53, § 1; Repealed, L. 1965, ch. 564, § 416; Jan. 1, 1966.

• 9-1212:

        History:   L. 1949, ch. 111, § 3; Repealed, L. 1965, ch. 564, § 416; Jan. 1, 1966.

• 9-1213: Payment of certain drafts of failed or closed banks. If any bank shall be presented in the usual course of business with a draft drawn on it by any bank in the state of Kansas, after said drawer bank has failed or been closed for business by law or by other proper legal action, which said draft was issued prior to the failure or closing of said bank and has on deposit to the credit of said failed or closed bank sufficient funds with which to pay said draft, said bank shall, upon receiving proof that said draft represents payment of cash letters covering checks which had been charged to the individual accounts of the said failed or closed bank prior to the failure or closing of said bank, honor and pay said draft regardless of its having received notice, constructive or otherwise, of the failure or closing of such bank.

        History:   L. 1955, ch. 66, § 1; June 30.

• 9-1214: Same; release from liability. Any bank paying a draft under the circumstances set out in K.S.A. 9-1213 shall be released from any further liability thereon, and shall be fully protected and held harmless from any claim made by the receiver or other liquidating agent of said failed or closed bank for sums representing payments made on said draft.

        History:   L. 1955, ch. 66, § 2; June 30.

• 9-1215: Contracts for payment to beneficiaries upon deposit account owners' deaths; rights of owner during lifetime; change of beneficiary. Subject to the provisions of this section and K.S.A. 9-1216 and amendments thereto, an individual adult or minor, hereafter referred to as the owner, may enter into a written contract with any bank located in this state providing that the balance of the owner's deposit account, or the balance of the owner's legal share of a deposit account, at the time of death of the owner shall be made payable on the death of the owner to one or more persons or, if the persons predecease the owner, to another person or persons, hereafter referred to as the beneficiary or beneficiaries. If any beneficiary is a minor at the time the account, or any portion of the account, becomes payable to the beneficiary and the balance, or portion of the balance, exceeds the amount specified by K.S.A. 59-3053, and amendments thereto, the moneys shall be payable only to a conservator of the minor beneficiary.

        Transfers pursuant to this section shall not be considered testamentary or be invalidated due to nonconformity with the provisions of chapter 59 of the Kansas Statutes Annotated.

        Every contract authorized by this section shall be considered to contain a right on the part of the owner during the owner's lifetime both to withdraw funds on deposit in the account in the manner provided in the contract, in whole or in part, as though no beneficiary has been named, and to change the designation of beneficiary. The interest of the beneficiary shall be considered not to vest until the death of the owner and, if there is a claim pursuant to subsection (g) of K.S.A. 39-709 and amendments thereto, until such claim is satisfied.

        No change in the designation of the beneficiary shall be valid unless executed in the form and manner prescribed by the bank and delivered to the bank prior to the death of the owner.

        For the purposes of this section, the balance of the owner's deposit account or the balance of the owner's legal share of a deposit account shall not be construed to include any portion of the account which under the law of joint tenancy is the property of another joint tenant of the account upon the death of the owner.

        As used in this section, "person" means any individual, individual or corporate fiduciary or nonprofit religious or charitable organization as defined by K.S.A. 79-4701, and amendments thereto.

        History:   L. 1979, ch. 177, § 1; L. 1980, ch. 166, § 2; L. 1982, ch. 104, § 1; L. 1984, ch. 51, § 1; L. 1989, ch. 48, § 35; L. 1992, ch. 150, § 1; L. 2002, ch. 114, § 47; July 1.

• 9-1216: Same; duties of bank; release and discharge thereof. When the owner and the bank have entered into a contract authorized in K.S.A. 9-1215, and amendments thereto, the owner's deposit account subject to the contract or any part of or interest on the account shall be paid by the bank to the owner or pursuant to the owner's order during the owner's lifetime. On the owner's death, the deposit account or any part of or interest on the account shall be paid by the bank to the secretary of social and rehabilitation services for a claim pursuant to subsection (g) of K.S.A. 39-709 and amendments thereto or, if there is no such claim or if any portion of the account remains after such claim is satisfied, to the designated beneficiary or beneficiaries. If any designated beneficiary is a minor at the time the account, or any portion of the account, becomes payable to the beneficiary and the balance, or portion of the balance, exceeds the amount specified by K.S.A. 59-3053, and amendments thereto, the bank shall pay the moneys or any interest on them only to a conservator of the minor beneficiary. The receipt of the conservator shall release and discharge the bank for the payment.

        History:   L. 1979, ch. 177, § 2; L. 1984, ch. 51, § 2; L. 1989, ch. 48, § 36; L. 1992, ch. 150, § 2; L. 2002, ch. 114, § 48; July 1.