16-308.   Same; administration of funds; payment into trust fund;investment; payment of administrative costs and taxes; prior existingtrusts to comply.Any contract not providing for administration of payments thereunder inaccordance with K.S.A. 16-302 and 16-303,and amendments thereto,shall provide for payment of all money received by the seller to acorporate trustee designated in a trust indenture or indentures referredto in such contract. All money so paid to and held by such corporatetrustee, as well as all interest and earnings thereon, shall be held bysuch corporate trustee for the benefit of the purchaser in a separateaccount in the name of the purchaser,except that suchtrust indenture may provide that the funds in such account and in allother separate accounts covered by the same trust indenture may beinvested collectively in a fund maintained by such corporate trustee inits capacity as such, if such fund is administered as required by theprovisions of K.S.A. 58-1201 et seq. and amendments thereto; that allparticipationsin the collective investment fund shall be on the basis of aproportionate interest in all of the assets in the fund; that not lessfrequently than once during each period of six months the corporatetrustee shall determine the value of the assets in the fund; and thetrust indenture may authorize the corporate trustee to charge thereasonable expenses of administering the trust against the income fromthe fund, including taxes imposed upon the fund or its income, theexpenses of audits performed by independent public accountants and thereasonable expenses incurred in servicing mortgages held by the fund,but no compensation shall be paid for services performed for thecorporate trustee by the seller or by anyone affiliated or connectedwith the sellerwhich exceeds an annual fee of 1% of the current fair market value of thetrust to be computed and distributed on either an annual, quarterly or monthlybasis. Any seller who haspresently established any trust for the purpose of complying with K.S.A.16-301 to 16-307, inclusive, and amendments thereto, which does notcomply with the applicable provisions of this act, is hereby given aperiod of one year after the effective date of this act within whichto amend the trust indenture applicable thereto, to alter its portfolioof investments and to consummate any other changes necessary to complywith this act.

      History:   L. 1973, ch. 86, § 4;L. 1993, ch. 131, § 1; July 1.