17-2221a. Credit union branches; procedure.
17-2221a
17-2221a. Credit union branches; procedure.
(a) After first applying for and obtaining the approval
of the
administrator, a
credit union incorporated under the laws of this state, may establish
and operate one or more
branches or relocate an existing branch, in accordance with its stated field of
membership as
approved by the administrator. The application shall include proof of
publication of notice that
the applicant credit union intends to file or has filed an application to
establish a branch or
relocate an existing branch. The notice shall be published in a newspaper of
general circulation in
the county where the applicant credit union proposes to locate the branch. The
notice shall be in
the form prescribed by the administrator and at a minimum shall contain the
name and address of
the applicant credit union and the location of the proposed branch. The notice
shall be published
on the same day for two consecutive weeks.
(b) (1) If the credit union has a current CAMEL rating of 3, 4 or 5, or the
recognized regulatory
equivalent thereof as defined in rules and regulations promulgated by the
administrator, the
application shall also contain a solicitation for written comments and provide
for a comment
period of not less than 10 days after the date of the second publication.
Upon receipt of the
application and following expiration of the comment period, the administrator
may hold a
hearing in the county in which the applicant credit union seeks to operate the
branch. The
applicant shall publish notice of the time, date and place of such hearing in a
newspaper of
general circulation in the county where the applicant credit union proposes to
locate the branch,
not less than 10 nor more than 30 days prior to the date of the hearing, and
proof of publication
shall be filed with the administrator. At any such hearing, all interested
persons shall be allowed
to present written and oral evidence to the administrator, or the
administrator's designee, in
support of or in opposition to the branch. Upon completion of a transcript of
the testimony given
at any such hearing, the transcript shall be filed in the office of the
administrator.
(2) If the administrator determines a public hearing is not
warranted, the administrator
shall approve or disapprove the application within 15 days after receipt of a
complete
application but not prior to the end of the comment period. If a public hearing
is held, the
administrator shall approve or disapprove the application within 60 days after
consideration of the complete application and the evidence gathered during the
administrator's investigation. The period for consideration of the application
may be
extended if the administrator determines the application presents a significant
supervisory
concern. If the administrator finds that:
(A) There is a reasonable probability of usefulness and success of
the proposed
branch;
(B) the proposed branch is in accordance with the applicant's field
of membership
approved by the administrator as set forth in K.S.A. 17-2205 and amendments
thereto; and
(C) the applicant credit union's financial condition is sound, including an
analysis
of the loan portfolio to ensure that the applicant credit union is not
exceeding the
limitation on member business loans provided in 12 U.S.C. Section 1757a, and
amendments thereto, the new branch or relocation shall be granted, otherwise,
it
shall be denied.
(3) Within 15 days after any final action of the administrator 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
administrator. Upon receipt of a timely request, the administrator may conduct
a hearing
in accordance with the provisions of the Kansas administrative procedure act.
Any
decision of the administrator is subject to review in accordance with the act
for judicial
review and civil enforcement of agency actions.
(c) For purposes of this section:
(1) "Administrator" shall have the meaning ascribed to it in K.S.A. 17-2233
and
amendments thereto.
(2) "Branch" means any office, agency or other place of business located
within this
state, other than the place of business specified in the credit union's
certificate of
organization, at which deposits are received, checks paid, or money lent.
(d) The administrator may adopt rules and regulations necessary to implement
this section.
History: L. 2008, ch. 81, § 1; July 1.