9-519.   Bank holding companies; definitions.For the purposes of K.S.A. 9-520 through 9-524, andamendments thereto, andK.S.A. 9-532 through 9-541, and amendments thereto, unlessotherwise required by the context:

      (a) (1)   "Bank holding company" means any company:

      (A)   Which directly or indirectly owns, controls, or has power to vote 25% or more of any class of the voting shares of a bankor 25% or moreof any class of the voting shares of a company which is or becomes a bankholding company by virtue of this act;

      (B)   which controls in any manner the election of a majority of thedirectors of a bank or of a company which isor becomesa bank holding company by virtue of this act;

      (C)   for the benefit of whose shareholders or members 25% or more of anyclass of the voting shares of a bankor 25% or more of any classof the voting shares of a company which is or becomes a bank holdingcompany by virtue of this act, is held by trustees; or

      (D)   which, by virtue of acquisition of ownership or control of, or thepower to vote the voting shares of, a bank or another company, becomes abank holding company under this act.

      (2)   Notwithstanding paragraph (1), no company:

      (A)   Shall be deemed to be a bank holding company by virtue ofits ownership or control of shares acquired by it in connection with itsunderwriting of securities if such shares are held only for such period oftime as will permit the sale thereof on a reasonable basis;

      (B)   formed for the sole purpose of participating in a proxysolicitation shall be deemed to be a bank holding company by virtue of itscontrol of voting rights of shares acquired in the course of such solicitation;

      (C)   shall be deemed to be a bank holding company by virtue ofits ownership or control of shares acquired in securing or collecting adebt previously contracted in good faith, provided such shares are disposedof within a period of two years from the date on which such shares couldhave been disposed of by such company;

      (D)   owning or controlling voting shares of a bank shall bedeemed to be a bank holding company by virtue of its ownership or controlof shares held in a fiduciary capacity except where such shares are heldfor the benefit of such company or its shareholders.

      (b)   "Company" means any corporation, trust, limited partnership,association or similar organization including a bank but shall not includeany corporation the majority of the shares of which are owned by the UnitedStates or by any state, or include any individual or partnership.

      (c)   "Bank" means an insured bankas defined in section 3(h) of the federal deposit insurance act, 12 U.S.C.1813(h), except the term shall not include a national bank which engages onlyin credit card operations, does not accept demand deposits or deposits that thedepositor may withdraw by check or similar means for payment to third partiesor others, does not accept any savings or time deposits of less than $100,000,accepts deposits only from corporations which own 51% or more of the votingshares ofthe bank holding company or its parent corporation of which the bank engagingonly in credit card operations is a subsidiary, maintainsonly one office that accepts deposits, and does not engage in the business ofmaking commercial loans.

      (d)   "Subsidiary" with respect to a specified bank holding company means:

      (1)   Any company more than 5% of the voting shares of which, excludingshares owned by the United States or by any company wholly owned by theUnited States, is directly or indirectly owned or controlled by such bankholding company or is held by it with power to vote;

      (2)   any company the election of a majority of the directors of which iscontrolled in any manner by such bank holding company; or

      (3)   any company more than 5% of the voting shares of which is held bytrustees for the benefit of such bank holding company or its shareholders.

      (e)   "Commissioner" means the Kansas state bank commissioner.

      (f)   "Kansas bank" means any bank, as defined by subsection (c), which, inthe case of a state chartered bank, is a bank chartered under the authority ofthe state of Kansas, and in the case of a national banking association, a bankwith its main office located in Kansas.

      (g)   "Kansas bank holding company" means a bank holding company, as definedby subsection (a), with total subsidiary bank deposits in Kansas which exceedthe bank holding company's subsidiary bank deposits in any other state.

      (h)   "Out-of-state bank holding company" means any holding company which isnot a Kansas bank holding company as defined in subsection (g).

      (i)   "Foreign bank" means any company organized under the laws of a foreigncountry, a territory of the United States, Puerto Rico, Guam, American Samoa orthe Virgin Islands, which engages in the business of banking, or any subsidiaryor affiliate, organized under such laws, of any such company.

      History:   L. 1985, ch. 55, § 2;L. 1991, ch. 45, § 1; L. 1991, ch. 46, § 1;L. 1995, ch. 79, § 1;L. 1996, ch. 175, § 17; Apr. 25.