9-1809.   Civil penalties.(a) After providing a notice and an opportunity for a publichearing inaccordancewith the Kansas administrative procedure act, the commissioner may, with theapproval of thestate banking board, assess against and collect a civil money penalty from anybank or trustcompany that, or any executive officer, director, employee, agent, or otherpersonparticipating in theconduct of the affairs of such bank or trust company who:

      (1)   Engages or participates in any unsafe or unsound practice in connectionwith a bank or trustcompany; or

      (2)   violates or knowingly permits any person to violate any of the provisionsof:

      (A)   The state banking code;

      (B)   any rule or regulation promulgated pursuant to the state banking code; or

      (C)   any lawful order of the commissioner or the state banking board.

      (b)   The civil money penalty shall not exceed $1,000 per day for each daysuch violationcontinues.No civil money penalty shall be assessed for the same act or practice ifanother government agency has taken similar action against the bank, trustcompany or person to be assessed such civil money penalty.In determining the amount of the civil money penalty to beassessed, thecommissioner shall consider:

      (1)   The good faith of the bank, trust company or person to be assessed withsuch civil money penalty;

      (2)   the gravity of the violation;

      (3)   any previous violations by the bank, trust company or person to beassessed with such civilmoney penalty;

      (4)   the nature and extent of any past violations; and

      (5)   such other matters as the commissioner may deem appropriate.

      (c)   Upon waiver by the respondent of the right to a public hearing concerningan assessment of acivil money penalty, the hearing or portions thereof may be closed to thepublic when concernarises about prompt withdrawal of moneys from or the safety and soundness ofthe bank or trustcompany.

      (d)   For the purposes of this section, a violation shall include, but is notlimited to, any action, byany person alone or with another person, that causes, brings about, or resultsin the participationin, counseling of, or aiding or abetting of a violation.

      (e)   The commissioner, with approval of the state banking board, may modify orset aside anyorder assessing a civil money penalty. Any civil money penalty collectedpursuant to thissection shall be transmitted to the state treasurer, who shall credit it to thebank commissionerfee fund.

      (f)   Notwithstanding any other provision of law, no bank or trust companyshall indemnify orinsure any executive officer, director, employee, agent or personparticipating in the conduct ofaffairs of such bank or trust company against civil money penalties.

      History:   L. 2005, ch. 7, § 1; July 1.