16-214.   Interest rate on advance made for purchaseor carrying ofsecurities; advance not subject to uniform consumer credit code.Whenever advances of money, repayable on demand, are made upon anysecurities, as defined in K.S.A. 84-8-102(1)(a), and amendments thereto,pledged ascollateral for repayment of such advances and in which such advances areused by the borrower only for the purpose of the purchasing or thecarrying of such securities, it shall be lawful for a broker-dealer, asdefined byK.S.A.17-12a102, and amendments thereto, tocharge, receive or contract toreceive and collect, as compensation for making such advances, a rate ofinterest not to exceed the higher of 10% perannum, or therate of interest last obtained from a commercial lender by thebroker-dealer plus an annual percentage rate of not to exceed 1 1/2%,which rate shall beestablished by writtennotification to the borrower. Any such advances shall not be subject toany of the provisions of articles 1 through 9, inclusive, of chapter 16aof the Kansas Statutes Annotated, and amendments thereto.

      History:   L. 1977, ch. 69, § 1;L. 2004, ch. 154, § 56; July 1, 2005.