9-1102.   Holding of real estate and personalproperty; limitations.(a) Any bank or trust company may own, purchase, lease, hold, encumberor convey real propertyand certain personal property subject to the following:

      (1)   Own suitable building, furniture and fixtures, stock in a singletrust company organized under the laws of the state ofKansas, and stock in a safe deposit company organized under the laws of thestate of Kansas, and stock in a corporation organized under the laws ofthis state owning real estate all or a partof which is occupied or to be occupied by the bank or trust company;

      (2)   purchase, hold, encumber and convey real estate or lease, as lessoror lessee, any building or buildings. Any real estate not necessary for thebank's or trust company's accommodation in the transaction of itsbusiness shall be disposed of or charged off its books by the bank ortrust company not later thanseven years after its intended use for banking purposesends, unless the state bank commissionerauthorizes the bank or trust company to retain such real estate on itsbooks for a period not to exceed an additional three years;

      (3)   a bank's or trust company's total investment or ownership at alltimes in any one or more of the following shall not exceed 1/2 of itsunimpaired capital stock, surplus, undivided profits and capital notes anddebentures, and any such excess shall be removed from the bank's or trustcompany's books unless approval is granted by the state bank commissioner:

      (A)   The book value of real estate plus all encumbrances thereon;

      (B)   the book value of furniture and fixtures;

      (C)   the book value of stock in a safe deposit company;

      (D)   the book value of stock in a trust company; or

      (E)   the book value of stock in a corporation organized under the lawsof this state owning real estate occupied by the bank or trust companyand advances to such corporation acquired or made after July 1, 1973.Except that any real estate not necessary for the accommodation of thebank's or trust company's business shall be disposed of or charged offits books according to paragraph (2).

      (b)   Any bank or trust company may acquire real estate in satisfaction ofany debts due it and may purchase real estate in satisfaction of any debtsdue it, and may purchase real estate at judicial sales, but no bank ortrust company shall bid at any judicial sale a larger amount than isnecessary to protect its debts and costs. No real estateor interest in oil and gas leasehold acquired in the satisfaction of debtsor upon judicial sales shall becarried as a book asset of the bank or trust company for more than10 years. At the termination of the 10 years such real estateshall becharged off. The commissioner may grantan extensionnot to exceed four years, if in thecommissioner's judgment it will be to the advantageof the bank or trust company to carry the real estateas an asset for such extended period.Any such extensions issued shall be reviewed by the commissioner on an annualbasis.

      History:   L. 1947, ch. 102, § 31; L. 1971, ch. 32, § 2; L. 1973,ch. 45, § 2; L. 1975, ch. 44, § 13; L. 1977, ch. 46, § 1; L. 1986,ch. 56, § 1; L. 1987, ch. 54, § 6; L. 1988, ch. 61, § 2; L. 1989,ch. 48, § 25;L. 1990, ch. 56, § 1;L. 1994, ch. 78, § 1;L. 2000, ch. 45, § 1; July 1.