(b) If upon the dissolution, insolvency or appointment of a receiver of any bank, trust company, national bank association, savings and loan association, savings bank or credit union, it is the opinion of the commissioner that by reason of the loss of services in the community, an emergency exists which may result in serious inconvenience or losses to the depositors or the public interest in the community, the commissioner may accept and approve an application for incorporation and application for authority to do business from applicants for the organization and establishment of a successor bank or trust company.
History: L. 1947, ch. 102, § 103; L. 1977, ch. 45, § 3; L. 1980, ch. 49, § 1; L. 1989, ch. 48, § 46; L. 1990, ch. 54, § 1; L. 1993, ch. 7, § 2; L. 1994, ch. 51, § 6; L. 2001, ch. 87, § 13; July 1.
In the event two or more applications for incorporation and authority to do business seeking to serve the same general territory are pending before the board, and the board determines all of such matters favorably in two or more such applications, the board may approve the application of the proposed bank or trust company which it determines will best serve the needs of the territory sought to be served. If one or more such applications seeking to serve a territory are pending before the board, and the board has determined all of such matters favorably in one or more of such applications, and there also is pending before the board an application of an existing bank or trust company to change its place of business to serve the same territory which the board determines should be approved, and the board determines that there is public need for only one bank or trust company to serve the territory, the board may approve the application of the existing bank or trust company to change its place of business and disapprove the application or applications for incorporation and authority to do business.
History: L. 1947, ch. 102, § 104; L. 1975, ch. 44, § 37; L. 1977, ch. 45, § 4; L. 1989, ch. 48, § 47; July 1.
History: L. 1947, ch. 102, § 105; L. 1971, ch. 34, § 1; L. 1973, ch. 51, § 1; L. 1975, ch. 44, § 38; L. 1992, ch. 62, § 6; L. 2001, ch. 5, § 44; July 1.
(b) If the applicant is an eligible bank or an eligible trust company, the commissioner shall examine and investigate the application. If the commissioner determines:
(1) There is a reasonable probability of usefulness and success of the bank or trust company in the proposed location; and
(2) the applicant bank's or trust company's financial history and condition is sound, the application shall be approved, otherwise, it shall be denied.
(c) Within 15 days after any final action of the commissioner approving or disapproving an application, the applicant, or any adversely affected or aggrieved person who provided written comments during the specified comment period, may request a hearing with the state banking board. Upon receipt of a timely request, the board shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act. Any decision of the state banking board is subject to review in accordance with the act for judicial review and civil enforcement of agency actions.
(d) If a bank does not meet the definition of an eligible bank or a trust company does not meet the definition of an eligible trust company, the state banking board shall examine and investigate the application. If the board determines:
(1) There is a reasonable probability of usefulness and success of the bank or trust company in the proposed location; and
(2) the applicant bank's or trust company's financial history and condition is sound, the application shall be approved, otherwise, it shall be denied.
(e) Any final action of the board approving or disapproving an application shall be subject to review in accordance with the act for judicial review and civil enforcement of agency actions upon the petition of the applicant, or any adversely affected or aggrieved person who provided written comments during the specified comment period.
(f) The expenses of such examination and investigation shall be paid by the bank or trust company which shall deposit with the commissioner a fee in an amount established by rules and regulations adopted by the commissioner. The commissioner shall remit all amounts received under this section to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of a separate special account in the state treasury for each application. The moneys in each such account shall be used only to pay the expenses of the examination and investigation to which it relates, and any unused portion of such deposit shall be transferred to the bank commissioner fee fund.
(g) For purposes of this section:
(1) "Eligible bank" means a state bank that meets the following criteria:
(A) Received a composite rating of 1 or 2 under the uniform financial institutions rating system as a result of its most recent federal or state examination;
(B) meets the following three criteria for a well capitalized bank:
(i) Has a total risk based capital ratio of 10% or greater;
(ii) has a tier one risk based capital ratio of 6% or greater; and
(iii) has a leverage ratio of 5% or greater; and
(C) is not subject to a cease and desist order, consent order, prompt corrective action directive, written agreement, memorandum of understanding or other administrative agreement with its primary federal regulator or the office of the state bank commissioner; and
(2) "eligible trust company" means a state chartered trust company that meets the following criteria:
(A) Received a composite rating of 1 or 2 under the uniform interagency trust rating system as a result of its most recent state examination; and
(B) is not subject to a cease and desist order, consent order, written agreement, memorandum of understanding or other administrative agreement with the office of the state bank commissioner.
History: L. 1947, ch. 102, § 106; L. 1973, ch. 52, § 1; L. 1975, ch. 44, § 39; L. 1989, ch. 48, § 48; L. 1992, ch. 62, § 7; L. 2001, ch. 87, § 14; L. 2001, ch. 167, § 2; July 1.
(1) Remove such officer or director; and
(2) prohibit such officer's or director's further participation in any manner in the conduct of the affairs of any state bank or trust company in Kansas.
(b) Prior to removing such officer or director, or prohibiting such officer's or director's participation in the conduct of the affairs of any state bank or trust company in Kansas, the board shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act.
(c) The board may recess or continue any hearing from time to time. If upon the conclusion of such hearing the board determines that the officer or director has been dishonest, reckless or incompetent in performing duties as such an officer or director, or has willfully or continuously failed to comply with any legally made order of the commissioner or board, the board may order the officer's or director's office forfeited and vacated and prohibit such officer's or director's further participation in the conduct of the affairs of any state bank or trust company in Kansas. The board shall mail a copy of its removal order to the bank or trust company which such officer or director was serving. If the order prohibits such officer's or director's further participation in the conduct of the affairs of any state bank or trust company in Kansas, such order shall be published in the Kansas register within 30 days after such order becomes final.
(d) During the time from and after any legally made order by the commissioner and upheld by the board, or order made by the board, and not complied with by any officer or director the board may place a special deputy in the bank up to and until the final disposition of the order by compliance or final disposition by order of the district court.
(e) Any action of the board pursuant to this section is subject to review in accordance with the act for judicial review and civil enforcement of agency actions. If on review the court upholds an order of the board removing an officer or director or if review of such an order is not sought within the time allowed by law, the office of the officer or director shall be forfeited and vacated by law and such office shall then be filled in accordance with existing statutes and bylaws by another person or persons.
History: L. 1947, ch. 102, § 107; L. 1975, ch. 44, § 40; L. 1976, ch. 145, § 37; L. 1986, ch. 318, § 18; L. 1988, ch. 356, § 43; L. 2005, ch. 29, § 1; July 1.
History: L. 1947, ch. 102, § 108; L. 1949, ch. 110, § 4; L. 1965, ch. 80, § 1; L. 1988, ch. 356, § 44; L. 1989, ch. 48, § 49; Repealed, L. 2001, ch. 87, § 16; July 1.
Unless the bank or trust company shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the cease and desist order. In the event of such consent, or if upon the record made at any such hearing, the board shall find that any unsafe or unsound practice or violation specified in the notice of charges has been established, the board may issue and serve upon the bank or trust company an order to cease and desist from any such practice or violation. Such order may, by provisions which may be mandatory or otherwise, require the bank or trust company and its directors, officers, employees and agents to cease and desist from the same, and, further, to take affirmative action to correct the conditions resulting from any such practice or violation. A cease and desist order shall become effective at the time specified therein, and shall remain effective and enforceable as provided therein, except to such extent as it is stayed, modified, terminated or set aside by action of the board.
Whenever the commissioner shall determine that the unsafe or unsound practice or practices or the violation or violations specified in the notice of charges served upon the bank or trust company, or the continuation thereof, is likely to cause insolvency or substantial dissipation of assets or earnings of the bank or trust company, or is likely to otherwise seriously prejudice the interests of its depositors, the commissioner may issue a temporary order requiring the bank or trust company to cease and desist from any such practice or practices or violation or violations. Such order shall be effective upon service thereof upon the bank or trust company, and shall remain effective and enforceable pending the completion of the proceedings pursuant to such notice and until such time as the board shall dismiss the charges specified in such notice, or if a cease and desist order is issued against the bank or trust company, until the effective date of any such order.
History: L. 1975, ch. 44, § 1; July 1.
(b) The state banking board may approve the application for the organization of a state bankers' bank under the provisions of K.S.A. 9-1801 et seq., and amendments thereto.
History: L. 1988, ch. 60, § 2; L. 1988, ch. 56, § 1; July 1.
(1) Engages or participates in any unsafe or unsound practice in connection with a bank or trust company; or
(2) violates or knowingly permits any person to violate any of the provisions of:
(A) The state banking code;
(B) any rule or regulation promulgated pursuant to the state banking code; or
(C) any lawful order of the commissioner or the state banking board.
(b) The civil money penalty shall not exceed $1,000 per day for each day such violation continues. No civil money penalty shall be assessed for the same act or practice if another government agency has taken similar action against the bank, trust company or person to be assessed such civil money penalty. In determining the amount of the civil money penalty to be assessed, the commissioner shall consider:
(1) The good faith of the bank, trust company or person to be assessed with such civil money penalty;
(2) the gravity of the violation;
(3) any previous violations by the bank, trust company or person to be assessed with such civil money penalty;
(4) the nature and extent of any past violations; and
(5) such other matters as the commissioner may deem appropriate.
(c) Upon waiver by the respondent of the right to a public hearing concerning an assessment of a civil money penalty, the hearing or portions thereof may be closed to the public when concern arises about prompt withdrawal of moneys from or the safety and soundness of the bank or trust company.
(d) For the purposes of this section, a violation shall include, but is not limited to, any action, by any person alone or with another person, that causes, brings about, or results in the participation in, counseling of, or aiding or abetting of a violation.
(e) The commissioner, with approval of the state banking board, may modify or set aside any order assessing a civil money penalty. Any civil money penalty collected pursuant to this section shall be transmitted to the state treasurer, who shall credit it to the bank commissioner fee fund.
(f) Notwithstanding any other provision of law, no bank or trust company shall indemnify or insure any executive officer, director, employee, agent or person participating in the conduct of affairs of such bank or trust company against civil money penalties.
History: L. 2005, ch. 7, § 1; July 1.