Kansas Statutes

Chapter 9: Banks And Banking; Trust Companies

Article 16: Banking Code; Trust Authority

Statutes:

• 9-1601: Application for trust authority; exercise upon approval; action as trustee or custodian without special permit, when; corporate name.
• 9-1602: Granting of application; revoking trust authority; hearing.
• 9-1603: Assets held in fiduciary capacity segregated; records; use.
• 9-1604: Liquidation, consolidation or merger.
• 9-1605: Mode of transfer of property.
• 9-1606: Authority of consolidated bank or trust company to act as fiduciary.
• 9-1607: Appointment of nominee when acting as fiduciary; liability.
• 9-1608: Same; records.
• 9-1609: Fiduciary may establish trust funds; rules and regulations.
• 9-1610: Same; court accountings.
• 9-1611: Bank or trust company acting as fiduciary may deal in manner authorized by instrument with company having control of bank or trust company.
• 9-1612: Company having control over a bank or trust company defined.

• 9-1601: Application for trust authority; exercise upon approval; action as trustee or custodian without special permit, when; corporate name. (a) Any bank, upon the affirmative vote of at least 2/3 of the voting stock, may apply to the commissioner for approval to conduct trust business. If approval is granted by the commissioner, a special permit shall be issued and the bank shall be authorized and empowered, subject to such conditions as the commissioner may require, to act in one or more fiduciary capacities as agent, trustee, executor, administrator, registrar of stocks and bonds, conservator, assignee, receiver, custodian, transfer agent, corporate trustee, corporate agent or in any other fiduciary capacity in the same manner in which trust companies incorporated under the laws of this state are permitted to act, including but not limited to the right of succession to individuals, corporations, associations, national bank associations or others, with or without reappointment, in any such office or capacities.

        (b) (1)   If the governing instrument limits investment of funds to deposit in time or savings deposits in the bank, any bank may act as trustee or custodian for any of the following without being issued a special permit:

        (A)   Individual retirement accounts established pursuant to section 408 of the federal internal revenue code of 1986, and amendments thereto;

        (B)   trusts established pursuant to section 401 of the federal internal revenue code of 1986, and amendments thereto; and

        (C)   medical savings accounts established pursuant to section 220 of the federal internal revenue code of 1986, and amendments thereto.

        (2)   If the governing instrument limits investment of funds to deposit in time, savings or demand deposits in the bank, any bank may act as a trustee or custodian for any health savings accounts established pursuant to section 223 of the federal internal revenue code of 1986, and amendments thereto, without being issued a special permit.

        (c)   Any state bank having been granted trust authority by the bank commissioner of the state of Kansas may add "and trust company" to its corporate name.

        History:   L. 1947, ch. 102, § 77; L. 1965, ch. 77, § 1; L. 1967, ch. 72, § 2; L. 1975, ch. 44, § 28; L. 2005, ch. 20, § 1; L. 2005, ch. 133, § 2; Apr. 21.

• 9-1602: Granting of application; revoking trust authority; hearing. (a) The commissioner has the discretion to grant or reject the application of any bank to acquire trust authority. The commissioner shall take into consideration the amount of capital and surplus of such bank, the needs of the community to be served and any other facts and circumstances that the commissioner shall deem proper.

        (b)   The commissioner may revoke trust authority for any bank or trust company upon finding a failure to adhere to sound fiduciary practices.

        (c)   A bank or trust company subject to revocation of trust authority shall be afforded the right to a hearing in accordance with the provisions of the Kansas administrative procedure act.

        History:   L. 1947, ch. 102, § 78; L. 1990, ch. 61, § 1; July 1.

• 9-1603: Assets held in fiduciary capacity segregated; records; use. As soon as any bank shall exercise any trust authority it shall segregate all assets held in any fiduciary capacity and shall keep a separate set of books and records showing in proper detail all transactions had in any fiduciary capacity. Such books and records at all times shall be open to the inspection of, and subject to the supervision of, the commissioner. Funds held by such bank in trust less the amount of insurance carried in the federal deposit insurance corporation shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it first shall set aside in the trust department, United States bonds or other securities approved by the commissioner in an equal sum.

        History:   L. 1947, ch. 102, § 79; L. 1963, ch. 63, § 1; June 30.

• 9-1604: Liquidation, consolidation or merger. Upon the affirmative vote of a majority of the outstanding voting stock any bank having trust authority may liquidate, or may consolidate or merge its trust department with any other bank having trust authority or with any trust company, and any trust company may liquidate, or may consolidate or merge with any other trust company or with any bank having trust authority, except that such liquidation, consolidation or merger shall not be effective until the commissioner has approved the same in writing after the terms have been submitted to the commissioner for examination and approval.

        History:   L. 1947, ch. 102, § 80; L. 1951, ch. 120, § 3; L. 1996, ch. 175, § 16; Apr. 25.

• 9-1605: Mode of transfer of property. In the event of the merger or consolidation of any bank or trust company the successor consolidated bank or trust company shall become the owner of, and entitled to the possession of all rights, franchises, and interests, real estate and personal property as is covered by the merger or consolidation agreement without the necessity of the execution or delivery of a deed or other form of transfer. Such successor corporation thereafter shall have authority to act as trustee, executor, administrator, or in any fiduciary capacity in which any merging or consolidating bank or trust company was acting at the time of such merger or consolidation.

        History:   L. 1947, ch. 102, § 81; June 30.

• 9-1606: Authority of consolidated bank or trust company to act as fiduciary. Upon and after the merger or consolidation of any bank or trust company as hereinbefore provided the successor bank or trust company upon acquiring trust authority shall be entitled to be appointed and to act as trustee, executor, administrator, conservator or any other fiduciary capacity to the same extent and with the same authority as the bank or trust company which it succeeds.

        History:   L. 1947, ch. 102, § 82; L. 1965, ch. 77, § 2; Jan. 1, 1966.

• 9-1607: Appointment of nominee when acting as fiduciary; liability. Any state or national bank or trust company, when acting in this state as a fiduciary or a co-fiduciary with others, may with the consent of its co-fiduciary or co-fiduciaries, if any, who are hereby authorized to give such consent, cause any investment held in any such capacity, to be registered and held in the name of a nominee or nominees of such bank or trust company. Such bank or trust company shall be liable for the acts of any such nominee with respect to any investment so registered.

        History:   L. 1951, ch. 122, § 1; June 30.

• 9-1608: Same; records. The records of such bank or trust company shall at all times show the ownership of any such investment, which investment shall be in the possession and control of such bank or trust company and be kept separate and apart from the assets of such bank or trust company.

        History:   L. 1951, ch. 122, § 2; June 30.

• 9-1609: Fiduciary may establish trust funds; rules and regulations. Any state or national bank or trust company qualified to act as fiduciary in this state may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others, as cofiduciaries or to another state or national bank or trust company, as fiduciary, which is a subsidiary of the same bank holding company of which it is a subsidiary, as such terms are defined in K.S.A. 9-519, and amendments thereto; and any state or national bank or trust company qualified to act as fiduciary in this state may, as such fiduciary or cofiduciary, invest funds which it lawfully holds for investment in interests in such common trust funds, if such investment is not prohibited by the instrument, judgment, decree or order creating such fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciaries to such investment. The state banking board is hereby authorized to adopt rules and regulations for a plan of operation for the management of funds for state banks and trust companies.

        History:   L. 1951, ch. 123, § 1; L. 1986, ch. 56, § 3; May 22.

• 9-1610: Same; court accountings. Unless ordered by a court of competent jurisdiction the bank or trust company operating such common trust funds is not required to render a court accounting with regard to such funds.

        History:   L. 1951, ch. 123, § 2; June 30.

• 9-1611: Bank or trust company acting as fiduciary may deal in manner authorized by instrument with company having control of bank or trust company. Whenever the governing instrument of any trust authorizes a bank or trust company acting as fiduciary to either:

        (a)   Hold as a trust investment its own stock or obligations, or property acquired from itself; or

        (b)   sell or transfer, by loan or otherwise, property held as fiduciary to itself; or

        (c)   purchase for investment the stock or obligations of, or property from, itself; such instrument shall also be deemed to authorize such bank or trust company to deal in any manner described above, with any company which has or acquires control of such bank or trust company.

        History:   L. 1973, ch. 49, § 1; July 1.

• 9-1612: Company having control over a bank or trust company defined. For the purposes of this act, any company has control over a bank or trust company if:

        (a)   The company directly or indirectly, or acting through one or more persons, owns, controls or has power to vote twenty-five percent (25%) or more of any class of voting securities of the bank or trust company; or

        (b)   the company controls in any manner the election of a majority of the directors or trustees of the bank or trust company.

        History:   L. 1973, ch. 49, § 2; July 1.