9-1716. Powers of commissioner; order restricting declaration and payment of dividends; appeal from order to state banking board, notice and hearing.
9-1716
9-1716. Powers of commissioner; order restricting declaration and
payment of dividends; appeal from order to state banking board, notice and hearing.
If the state bank commissioner shall determine that the condition of any
bank is such that dividends should not be declared and paid upon its
capital stock or that such dividends should be declared and paid only
subject to certain conditions, the commissioner shall render an order in
accordance with the provisions of K.S.A. 77-536 and amendments thereto that
no such dividends be declared and paid or that such dividends be declared
and paid only subject to certain conditions. The board of directors of the
bank shall comply with such order until such time as it is rescinded or
modified by the commissioner by subsequent order served upon the bank or by
the state banking board upon appeal. Within 15 days after receiving notice
of the order, the bank shall have the right to appeal in writing to the
board from the commissioner's determination and order by filing a notice of
appeal with the commissioner, and thereupon the board shall fix a date for
a hearing, which hearing shall be held within 30 days from the date such
notice of appeal is filed. The board shall conduct the hearing in
accordance with the provisions of the Kansas administrative procedure act
and render its order affirming, modifying or rescinding the order of the
commissioner, and the order of the board shall be final and conclusive and
shall be complied with by the board of directors of the bank.
History: L. 1975, ch. 44, § 2; L. 1988, ch. 356, § 41; July 1, 1989.