9-1804.   Place of business; change of; application, investigation andapproval; expenses of examination and investigation; payment; use anddisposition of moneys received.(a) No bank or trust company incorporated under the laws of this stateshall change its placeof business, from one city or town to another or from one location toanother within the same city or town, without prior approval. Any such bank ortrust company desiring to changeits place of business shall file written application with the office of thestate bank commissioner in such form and containing suchinformation as the board and the commissioner shall require.Notice of the proposed relocation shall be published in a newspaper ofgeneral circulation in the county where the main bank or trust company iscurrently located andin the county to which the bank or trust company proposes to relocate. Thenotice shall be inthe form prescribed by the commissioner and at a minimum shall contain the nameand address of the applicant bank or trust company, the address of the proposednew locationand a solicitation for written comments. The notice shall be published on thesame day for two consecutive weeks and provide for a comment period of not lessthan 10 calendar days after the date of the second publication. The applicantshall provide proof of publication to the commissioner.

      (b)   If the applicant is an eligible bank or an eligible trust company, thecommissioner shall examine andinvestigate the application. If the commissioner determines:

      (1)   There is a reasonable probability of usefulness and success of the bankor trust companyin the proposed location; and

      (2)   the applicant bank's or trust company's financial history and conditionis sound, theapplication shall be approved, otherwise, it shall be denied.

      (c)   Within 15 days after any final action of the commissioner approving ordisapproving an application, the applicant, or any adversely affected oraggrieved person who provided written comments during the specified commentperiod, may request a hearing with the state banking board. Upon receipt of atimely request, the board shall conduct a hearing in accordance with theprovisions of the Kansas administrative procedure act. Any decision of thestate banking board is subject to review in accordance with the act forjudicial review and civil enforcement of agency actions.

      (d)   If a bank does not meet the definition of an eligible bank or a trustcompany does not meet the definition of an eligible trust company,the state banking board shall examine and investigate theapplication. If the board determines:

      (1)   There is a reasonable probability of usefulness and success of the bankor trust company in the proposed location; and

      (2)   the applicant bank's or trust company's financial history and conditionis sound, theapplication shall be approved, otherwise, it shall be denied.

      (e)   Any final action of the board approving or disapproving an applicationshall be subject to review in accordance with the act for judicial review andcivil enforcement of agency actions upon the petition of the applicant, or anyadversely affected or aggrieved person who provided written comments during thespecified comment period.

      (f)   The expenses of such examination and investigationshall be paid by the bank or trust company which shalldeposit with the commissioner a fee in an amount established by rules andregulations adoptedby the commissioner.Thecommissioner shall remit all amounts received under this section to thestate treasurer in accordance with theprovisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of eachsuch remittance, the state treasurer shall deposit the entire amount in thestate treasury to the credit of a separate special account inthe state treasury for each application. The moneys in each such accountshall be used only to pay the expenses of the examination and investigationto which it relates, and any unused portion of such deposit shall betransferred to the bankcommissioner fee fund.

      (g)   For purposes of this section:

      (1)   "Eligible bank" means a state bank thatmeets the following criteria:

      (A)   Received a composite rating of 1 or 2 under the uniform financialinstitutions rating system as a result of its most recent federal or stateexamination;

      (B)   meets the following three criteria for a well capitalized bank:

      (i)   Has a total risk based capital ratio of 10% or greater;

      (ii)   has a tier one risk based capital ratio of 6% or greater; and

      (iii)   has a leverage ratio of 5% or greater; and

      (C)   is not subject to a cease and desist order, consent order, promptcorrective action directive, written agreement, memorandum of understanding orother administrative agreement with its primary federal regulator or the officeof the state bank commissioner; and

      (2)   "eligible trust company" means a state chartered trust company that meetsthe following criteria:

      (A)   Received a composite rating of 1 or 2 under the uniform interagency trustrating system as a result of its most recent state examination; and

      (B)   is not subject to a cease and desist order, consent order, writtenagreement, memorandum of understanding or other administrative agreement withthe office of the state bank commissioner.

      History:   L. 1947, ch. 102, § 106;L. 1973, ch. 52, § 1;L. 1975, ch. 44, § 39;L. 1989, ch. 48, § 48;L. 1992, ch. 62, § 7;L. 2001, ch. 87, § 14;L. 2001, ch. 167, § 2; July 1.