17-5401.   Capital; shares; obligations; negotiable order of withdrawalaccounts; demand accounts.(a) Except as otherwise provided in K.S.A. 17-5413 and 17-5501, and amendmentsthereto, the capital accumulatedmay be divided into units of equal value which shall be called shares.Shares may be issued in installments, full paid, prepaid, optional,reserve stock shares or other plans as may be prescribed in the bylaws.

      (b) (1)   An association may raise capital in the form of suchsavings deposits, shares or other accounts, for fixed, minimum orindefinite periods of time, all of which are referred to in this sectionas savings accounts. An association may issue such passbooks, time certificates ofdeposit or other evidence of savings accounts as are so authorized.

      (2)   An association may also accept demand accounts. Holders of savings and demandaccounts and obligors of an association shall, tosuch extent as may be provided by its bylaws or by rules and regulations of thecommissioner, be members of the association, and shall have votingrights and such other rights as are provided.

      (3)   Accounts may be subject to check or to withdrawal ortransfer on negotiableor transferable or other order or authorization to the association, as thecommissioner may provide by rules and regulations.

      (4)   To such extent as the commissioner may authorize byrules and regulations or advice in writing, an association may borrow,may give security, maybe surety as defined by the commissioner andmay issue such notes, bonds, debentures or other obligations, or othersecurities, including capital stock, as the commissioner may so authorize.

      (5) (A)   An association whose accounts are insured in accordance withthe provisions of K.S.A. 17-5824, and amendments thereto, may permitthe owner of a deposit or account on which interest or dividends are paidto make withdrawals by negotiable or transferable instruments forthe purpose of making transfers to third parties.

      (B)   Such accounts shall be called negotiable order of withdrawal accounts.

      (C)   Such accounts shall be subject to such prohibitions, limitations andconditions as the commissioner may prescribe by rulesand regulations.

      (6) (A)   Subject to the terms of its certificate of incorporation,bylaws and rules and regulations of the commissioner, an association may:

      (i)   Raise funds through such deposit, share, or other accounts,including demand deposit accounts referred to in this paragraph as accounts;and

      (ii)   issue passbooks, certificates, or other evidence of accounts.

      (B)   An association may not:

      (i)   Pay interest on a demand account; or

      (ii)   permit any overdraft, including an intraday overdraft, on behalfof an affiliate, or incur any such overdraft in such association's accountat a federal reserve bank or federal home loan bank on behalf of an affiliate.

      All savings accounts and demand accounts shall have the same priorityupon liquidation. Holders of accounts and obligors of an association, tosuch extent as may be provided by its certificate of incorporation, bylawsor by rules and regulations of the commissioner, shall be members of theassociation and shall have such voting rights and such other rights as are provided.

      (C)   An association may require not less than 14 days' notice prior topayment of savings accounts if the certificate of incorporation or bylawsof the association or the rules and regulations of the commissioner so provide.

      (D)   If an association does not pay all withdrawals in full, subject tothe right of the association, where applicable, to require notice, thepayment of withdrawals from accounts shall be subject to such rules andprocedures as may be prescribed by the association's certificate ofincorporation or bylaws or by rules and regulations of the commissioner.Except as authorized in writing by the commissioner, any association thatfails to make full payment of any withdrawal when due shall be deemed to bein an unsafe or unsound condition.

      (E)   Accounts may be subject to check or to withdrawal or transfer onnegotiable, transferable or other order or authorization to the association,as the commissioner may by rules and regulations provide.

      History:   L. 1943, ch. 133, § 59; L. 1969, ch. 131, § 1; L. 1981,ch. 105, § 2; L. 1983, ch. 86, § 2;L. 1990, ch. 86, § 1; April 12.