16-214. Interest rate on advance made for purchase or carrying of securities; advance not subject to uniform consumer credit code.
16-214
16-214. Interest rate on advance made for purchase
or carrying of
securities; advance not subject to uniform consumer credit code.
Whenever advances of money, repayable on demand, are made upon any
securities, as defined in K.S.A. 84-8-102(1)(a), and amendments thereto,
pledged as
collateral for repayment of such advances and in which such advances are
used by the borrower only for the purpose of the purchasing or the
carrying of such securities, it shall be lawful for a broker-dealer, as
defined by
K.S.A.
17-12a102, and amendments thereto, to
charge, receive or contract to
receive and collect, as compensation for making such advances, a rate of
interest not to exceed the higher of 10% per
annum, or the
rate of interest last obtained from a commercial lender by the
broker-dealer plus an annual percentage rate of not to exceed 1 1/2%,
which rate shall be
established by written
notification to the borrower. Any such advances shall not be subject to
any of the provisions of articles 1 through 9, inclusive, of chapter 16a
of the Kansas Statutes Annotated, and amendments thereto.
History: L. 1977, ch. 69, § 1;
L. 2004, ch. 154, § 56; July 1, 2005.