9-1137.   Compliance review committees; functions; confidentiality ofcertain documents; definitions; exceptions.(a) For the purposes of this section:

      (1)   "Bank" means a state chartered or federally chartered bank, trustcompany or bank holding company as defined in K.S.A. 9-519, and amendmentsthereto, located in this state;

      (2)   "compliance review committee" means:

      (A)   An audit, loan review or compliance committee appointed by the board ofdirectors of a bank; or

      (B)   any other person to the extent the person acts in an investigatorycapacity at the direction of a compliance review committee;

      (3)   "compliance review documents" means documents prepared for or created bya compliance review committee;

      (4)   "loan review committee" means a person or group of persons who, onbehalf of a bank, reviews loans held by the institution for the purpose ofassessing the credit quality of the loans, compliance with the institution'sloan policies and compliance with applicable laws and regulations; or

      (5)   "person" means an individual, group of individuals, board, committee,partnership, firm, association, corporation or other entity.

      (b)   This section applies to a compliance review committee whose functionsare to evaluate and seek to improve loan underwriting standards, asset quality,financial reporting to federal or state regulatory agencies or compliance withfederal or state statutory or regulatory requirements.

      (c)   Except as provided in subsection (d):

      (1)   Compliance review documents are confidential and are not discoverable oradmissible in evidencein any civil action arising out of matters evaluated by the compliance reviewcommittee; and

      (2)   compliance review documents delivered to a federal or state governmentalagency remain confidential and are not discoverable or admissible in evidencein any civil action arising out of matters evaluated by the compliance reviewcommittee.

      (d)   Subsection (c) does not apply to any information required by statute orrules and regulations to be maintained by or provided to a governmental agencywhile the information is in the possession of the governmental agency to theextent applicable law expressly authorizes its disclosure.

      (e)   This section may not be construed to limit the discovery oradmissibility in any civil action of any documents that are not compliancereview documents.

      History:   L. 1995, ch. 35, § 1; July 1.