17-2252.   Certificate required for guarantee corporation to guaranteecredit union shares; issuance, when; fee.(a) No guarantee corporation shall engage in the business of writingcontracts under this act without having first obtained a certificatefrom the administrator.

      (b)   Certificates shall be issued for one year and shall expire on May 31of each year, and may be renewed by the administrator upon payment of therenewal fee unless there is, after a hearing or an opportunity for ahearing has been given in accordance with the provisions of the Kansasadministrative procedure act, sufficient showing of cause that suchcertificate should not be renewed. Every certificate holder shall on orbefore the last day of May pay to the administrator the sum of $100 as acertificate renewal fee for the succeeding year. Failure to pay such feeshall automatically revoke such certificate but shall not operate torestrict or cancel any contracts made prior to such cancellation.

      (c)   The administrator shall issue a certificate to a guaranteecorporation after:

      (1)   It files with the administrator: (i) a formal application for thecertificate in such form as the administrator requires, executed by itspresident or other principal officer; (ii) a certified copy of itscharter or articles of incorporation and its bylaws; (iii) a verifiedstatement showing all assets, liabilities and surplus, which statementshall be subscribed and sworn to by the president or other principalofficer; (iv) the location of the guarantee corporation's office and thename of its legal agent; (v) a copy of the contract to be used; and (vi)any other relevant document that is requested by the administrator;

      (2)   It pays a certificate fee of $100 to the administrator;

      (3)   It complies with the deposit requirements set forth herein;

      (4)   It maintains funds to guarantee the shares of credit unionmembers in an amount at least equal to or approximately equal to (on apercentage basis) those provided by similar guarantee corporations thenin existence in this state or by any federal agency serving similarpurposes;

      (5)   It shall agree and pledge to deposit with the administrator 10%of its assets or $50,000, whichever is less; and

      (6)   The administrator is satisfied that the owners, board of directors,officers and employees of such guarantee corporation are of good reputation.

      History:   L. 1975, ch. 136, § 11; L. 1981, ch. 103, § 3;L. 1988, ch. 356, § 52; July 1, 1989.