9-1112.   Unlawful transactions.(a) No bank shall buy, sell or trade tangible property as a business orinvest in the stock of another bank or corporation, except as specificallyauthorized.

      (b)   No bank shall sell, give or purchase any instrument, contract,security or other asset to or from any employee or to or from the bank'sparentcompany or a subsidiary of the bank's parent company without prior approvalof the commissioner. Approval of the commissioner need not be obtained foran assignment of third party loans and security for the payment thereof toor from a subsidiary of the bank's parent company.

      (c)   No bank shall acquire or make a loan on its own shares of stock,or the stock of the bank's parent company or a subsidiary of the bank'sparent company except as provided in subsection (d) or except as provided insubsection (26) of K.S.A. 9-1101, and amendments thereto.

      (d)   A bank may hold or sell any property coming into its ownership inthe collection of debts. All such property except legal investments, shallbe sold within one year of acquisition, provided acommercially reasonable sale can occur.

      (e)   If a commercially reasonable sale cannot occur withinone year, the bank shall not carry such property as a book asset,except that the commissioner may authorize a bank to carry such property as abook asset for a longer period.

      History:   L. 1947, ch. 102, § 41; L. 1975, ch. 44, § 18; L. 1981,ch. 52, § 1;L. 1985, ch. 56, § 3;L. 1988, ch. 61, § 3;L. 1990, ch. 59, § 1;L. 1993, ch. 31, § 3;L. 2001, ch. 36, § 1; July 1.