9-811. Prohibition against nonbank banks; allowing certain credit card banks.
9-811
9-811. Prohibition against nonbank banks; allowing certain credit card
banks.
No financial institution whose deposits are insured by the
federal deposit insurance corporation shall conduct business in this state
unless such institution (a) has the legal right to accept deposits that the
depositor has the legal right to withdraw on demand and to engage in the
business of making commercial loans or, (b) is a
national bank which engages only
in credit card operations, does not accept demand deposits or deposits that the
depositor may withdraw by check or similar means for payment to third parties
or 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 voting
shares of
the bank holding company or its parent corporation, as defined by K.S.A.
9-519, and amendments thereto, of which the bank engaging only in credit card
operations is a subsidiary, as defined by K.S.A. 9-519, and
amendments thereto, maintains
only one office that accepts deposits, and does not engage in the business of
making commercial loans.
History: L. 1985, ch. 84, § 1;
L. 1991, ch. 46, § 2; July 1.