9-1805.   Removal of officer or director; hearing;judicial review.(a) If the board finds in accordance with this section that any current orformer officer ordirector of any bank or trust company has been dishonest, reckless orincompetent in performing duties as such officer or director or willfullyor continuously fails to observe any legally made order of the commissioneror board, the board may take one ormore of the following actions:

      (1)   Remove such officer or director; and

      (2)   prohibit such officer's or director's further participation in any mannerin the conduct of the affairs of any state bank or trust company in Kansas.

      (b)   Prior to removing such officer or director, or prohibiting suchofficer's or director's participation in the conduct of the affairs of anystate bank or trust company in Kansas, the board shall conducta hearing in accordance with the provisions of the Kansas administrativeprocedure act.

      (c)   The board may recess or continue any hearing from time to time. If uponthe conclusion of such hearing the board determines that the officer ordirector has been dishonest, reckless or incompetent in performing dutiesas such an officer or director, or has willfully or continuously failed tocomply with any legally made order of the commissioner or board, the boardmay order the officer's or director's office forfeited and vacated andprohibit such officer's or director's further participation in the conductof the affairs of any state bank or trust company in Kansas.Theboard shall mail a copy of its removal order to the bank or trustcompany whichsuch officer or director was serving.If the order prohibits such officer's or director's further participation inthe conduct of the affairs of any state bank or trust company in Kansas, suchorder shall be published in the Kansas register within 30 days after suchorder becomes final.

      (d)   During the time from and after anylegally made order by the commissioner and upheld by the board, or ordermade by the board, and not complied with by any officer or director theboard may place a special deputy in the bank up to and until the finaldisposition of the order by compliance or final disposition by order of thedistrict court.

      (e)   Any action of the board pursuant to this section issubject toreview in accordance with the act for judicial review and civil enforcementof agency actions. If on review the court upholds an order of the boardremoving an officer or director or if review of such an order is not soughtwithin the time allowed by law, the office of the officer or director shallbe forfeited and vacated by law and such office shall then be filled inaccordance with existing statutes and bylaws by another person or persons.

      History:   L. 1947, ch. 102, § 107; L. 1975, ch. 44, § 40; L.1976, ch. 145, § 37; L. 1986, ch. 318, § 18; L. 1988, ch. 356, §43;L. 2005, ch. 29, § 1; July 1.