17-2221a.   Credit union branches; procedure.(a) After first applying for and obtaining the approvalof theadministrator, acredit union incorporated under the laws of this state, may establishand operate one or morebranches or relocate an existing branch, in accordance with its stated field ofmembership asapproved by the administrator. The application shall include proof ofpublication of notice thatthe applicant credit union intends to file or has filed an application toestablish a branch orrelocate an existing branch. The notice shall be published in a newspaper ofgeneral circulation inthe county where the applicant credit union proposes to locate the branch. Thenotice shall be inthe form prescribed by the administrator and at a minimum shall contain thename and address ofthe applicant credit union and the location of the proposed branch. The noticeshall be publishedon the same day for two consecutive weeks.

      (b) (1)   If the credit union has a current CAMEL rating of 3, 4 or 5, or therecognized regulatoryequivalent thereof as defined in rules and regulations promulgated by theadministrator, theapplication shall also contain a solicitation for written comments and providefor a commentperiod of not less than 10 days after the date of the second publication.Upon receipt of theapplication and following expiration of the comment period, the administratormay hold ahearing in the county in which the applicant credit union seeks to operate thebranch. Theapplicant shall publish notice of the time, date and place of such hearing in anewspaper ofgeneral circulation in the county where the applicant credit union proposes tolocate the branch,not less than 10 nor more than 30 days prior to the date of the hearing, andproof of publicationshall be filed with the administrator. At any such hearing, all interestedpersons shall be allowedto present written and oral evidence to the administrator, or theadministrator's designee, insupport of or in opposition to the branch. Upon completion of a transcript ofthe testimony givenat any such hearing, the transcript shall be filed in the office of theadministrator.

      (2)   If the administrator determines a public hearing is notwarranted, the administratorshall approve or disapprove the application within 15 days after receipt of acompleteapplication but not prior to the end of the comment period. If a public hearingis held, theadministrator shall approve or disapprove the application within 60 days afterconsideration of the complete application and the evidence gathered during theadministrator's investigation. The period for consideration of the applicationmay beextended if the administrator determines the application presents a significantsupervisoryconcern. If the administrator finds that:

      (A)   There is a reasonable probability of usefulness and success ofthe proposedbranch;

      (B)   the proposed branch is in accordance with the applicant's fieldof membershipapproved by the administrator as set forth in K.S.A. 17-2205 and amendmentsthereto; and

      (C)   the applicant credit union's financial condition is sound, including ananalysisof the loan portfolio to ensure that the applicant credit union is notexceeding thelimitation on member business loans provided in 12 U.S.C. Section 1757a, andamendments thereto, the new branch or relocation shall be granted, otherwise,itshall be denied.

      (3)   Within 15 days after any final action of the administrator approving ordisapprovingan application, the applicant, or any adversely affected or aggrieved personwho provided written comments during the specified comment period, may requesta hearing with theadministrator. Upon receipt of a timely request, the administrator may conducta hearingin accordance with the provisions of the Kansas administrative procedure act.Anydecision of the administrator is subject to review in accordance with the actfor judicialreview 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. 17-2233andamendments thereto.

      (2)   "Branch" means any office, agency or other place of business locatedwithin thisstate, other than the place of business specified in the credit union'scertificate oforganization, at which deposits are received, checks paid, or money lent.

      (d)   The administrator may adopt rules and regulations necessary to implementthis section.

      History:   L. 2008, ch. 81, § 1; July 1.