17-2206.Supervision by administrator; reports,
plans and programs;
penalties; examination, fees.
(a) Credit unions shall be subject to the exclusive supervision of the
administrator and shall make
and keep current such books and records, prepare reports and establish plans
and programs concerning the safety and soundness of the credit union as
may be required by rules and regulations adopted by the administrator
and
shall make
a report of condition to the administrator
at least semiannually, on blank forms to be supplied by the
administrator, notice of which reports
shall be sent out by the administrator. Returns shall be verified under
oath of the president or chairperson of the board, whichever has been elected
by the board of directors pursuant to K.S.A. 17-2209, and amendments
thereto, and treasurer, and additional reports may be
required by the administrator. Copies of a current balance sheet shall
be furnished without charge by the administrator to any person upon
request. Any credit union which neglects to make the above reports shall
forfeit to the treasurer of the state up to $50 for each
day of such neglect at the discretion of the administrator.
(b) Each credit union shall be examined at least once
every 18 months by the
administrator or the administrator's duly authorized deputy or agent.
In lieu of any particular examination, the administrator may
accept an examination report made by or under the authority of the
national credit union administration or its successor or successors, by
any such other appropriate federal agency or by an independent auditor
or certified public accountant licensed to do business in the state of
Kansas if such audit and report meet the standards which the
administrator may by regulation promulgate. The administrator may
order other examinations, and the administrator's agents shall at all
times be given free access to all books, papers, securities and other
sources of information in respect to the credit union. The administrator shall
have the power
to subpoena witnesses, compel their attendance, require the production of
evidence, administer oaths and
examine any person under oath in connection with any subject relating to a
duty imposed upon or a power vested in the administrator. If a credit union
neglects to make the
required reports or to pay the charges required, including
charges for delay in filing reports, for 15 days, the
administrator shall notify the credit union of the administrator's
intention to revoke the certificate of approval. If the neglect or
failure continues for another 15 days, the administrator may
revoke the certificate of approval and shall cause one of the
administrator's agents to take possession of the business of such credit
union and retain possession until such time as the administrator may
permit such credit union to resume business or its affairs are finally
liquidated.
(c) The administrator may issue cease and desist orders or orders for
corrective action or both, made over the
administrator's official signature, having determined
that a credit union is engaged, has engaged, or is
about to engage, in an unsafe or unsound practice, or is violating, has
violated, or is about to violate, any law, rules
and regulations or any condition imposed in writing by the administrator or
any written agreement made with the administrator.
(d) If the administrator determines that a credit union is insolvent,
is in a deteriorating condition, as defined in rules and regulations
promulgated by the administrator, or, within a reasonable
time, has failed to comply with any order mailed to the last address filed
by the credit union with the administrator, the administrator, as conservator
or liquidating agent, pursuant to any order shall
immediately, or within a reasonable time thereafter, take possession of
or appoint an agent to take possession of the business and property of
the credit union and retain possession, as conservator or as liquidating
agent, until such time as the
administrator may permit it to resume business or its affairs are
finally liquidated.
(e) The administrator may approve an emergency merger in accordance
with
K.S.A. 17-2228, and amendments thereto, without regard to field of membership
or other legal
restraints. The credit
union to be merged shall have a current CAMEL rating of 4 or 5, or the
recognized regulatory
equivalent thereof as defined in rules and regulations promulgated by the
administrator, and be
determined to be undercapitalized in accordance with regulatory standards as
determined by the
administrator by rules and regulations. The field of membership of the merged
credit union will
be retained by the continuing credit union resulting from the merger.
(f) Each credit union shall pay to the administrator a fee
for
examination, established in accordance with this subsection. Prior to June
1 of each year, the administrator, after advising
the credit union
council,
shall establish such annual fees as the administrator determines to be
sufficient
to meet the budget requirements of the department of credit unions for the
fiscal year beginning July 1. Such fees shall be due and payable 30
days after receipt of billing from the department of credit unions.
(g) For a corporate credit
union, the administrator may accept an audit report by
a certified public accountant in lieu of the credit union departmental
examination of such credit union. If the administrator accepts
a certified public accountant audit in lieu of the administrator's
examination of
such corporate credit union, the administrator may assess
such corporate
credit union a fee
established in accordance with subsection (f).
(h) All administrative proceedings instituted or conducted
by the
administrator pursuant to this act shall be conducted in accordance with the
Kansas administrative procedure act, K.S.A. 77-501 et seq., and
amendments thereto.
(i) The administrator, as conservator or liquidating agent:
(1) By operation of law, shall succeed to all rights, titles, powers and
privileges of the credit union, and of any member, account holder, officer or
director of such credit union with respect to the credit union and the assets
of the credit union;
(2) shall take over the assets of and operate the credit union with all
the powers of the members or shareholders, the directors and the officers of
the credit union and shall be authorized to conduct all business of the credit
union;
(3) may collect all obligations and money due the credit union;
(4) may perform all functions of the credit union in the name of the
credit union which is consistent with the appointment as conservator or
liquidating agent;
(5) shall preserve and conserve the assets and property of such credit
union;
(6) may fix a reasonable amount for compensation of the conservator or
liquidating agent as an expense of operation or liquidation of the credit
union;
(7) may take such actions as may be necessary to put the credit union in a
sound and solvent condition;
(8) may take such action as may be appropriate to carry on the business of
the credit union and preserve and conserve the assets and property of the
credit union; and
(9) as liquidating agent, place the credit union in liquidation and
proceed to realize upon the assets of the credit union and liquidate such
credit union in accordance with the provisions of K.S.A. 17-2230, and
amendments thereto.
(j) A credit union
approved to do business in this state under K.S.A.
17-2223a, and amendments thereto,
shall pay to the administrator the same fees
for examination that a state-chartered credit union is required to pay under
the provisions of subsection (f). Such fees shall be paid in
accordance with the provisions of subsection (f).
History: L. 1929, ch. 141, § 6; L. 1933, ch. 154, § 1; L.
1949, ch. 190, § 1; L. 1955, ch. 138, § 2; L. 1957, ch. 152, § 1; L.
1959, ch. 118, § 1; L. 1963, ch. 140, § 1; L. 1966, ch. 33, § 1
(Budget Session); L. 1968, ch. 160, § 4; L. 1972, ch. 59, § 1; L.
1975, ch. 136, § 5; L. 1976, ch. 106, § 1; L. 1977, ch. 76, § 1;
L. 1980, ch. 79, § 1; L. 1980, ch. 270, § 3; L. 1982, ch. 102, § 2;
L. 1987, ch. 86, § 1;
L. 1992, ch. 225, § 2;
L. 1995, ch. 128, § 2;
L. 2005, ch. 36, § 1;
L. 2008, ch. 81, § 3; July 1.
17-2206.Supervision by administrator; reports,
plans and programs;
penalties; examination, fees.
(a) Credit unions shall be subject to the exclusive supervision of the
administrator and shall make
and keep current such books and records, prepare reports and establish plans
and programs concerning the safety and soundness of the credit union as
may be required by rules and regulations adopted by the administrator
and
shall make
a report of condition to the administrator
at least semiannually, on blank forms to be supplied by the
administrator, notice of which reports
shall be sent out by the administrator. Returns shall be verified under
oath of the president or chairperson of the board, whichever has been elected
by the board of directors pursuant to K.S.A. 17-2209, and amendments
thereto, and treasurer, and additional reports may be
required by the administrator. Copies of a current balance sheet shall
be furnished without charge by the administrator to any person upon
request. Any credit union which neglects to make the above reports shall
forfeit to the treasurer of the state up to $50 for each
day of such neglect at the discretion of the administrator.
(b) Each credit union shall be examined at least once
every 18 months by the
administrator or the administrator's duly authorized deputy or agent.
In lieu of any particular examination, the administrator may
accept an examination report made by or under the authority of the
national credit union administration or its successor or successors, by
any such other appropriate federal agency or by an independent auditor
or certified public accountant licensed to do business in the state of
Kansas if such audit and report meet the standards which the
administrator may by regulation promulgate. The administrator may
order other examinations, and the administrator's agents shall at all
times be given free access to all books, papers, securities and other
sources of information in respect to the credit union. The administrator shall
have the power
to subpoena witnesses, compel their attendance, require the production of
evidence, administer oaths and
examine any person under oath in connection with any subject relating to a
duty imposed upon or a power vested in the administrator. If a credit union
neglects to make the
required reports or to pay the charges required, including
charges for delay in filing reports, for 15 days, the
administrator shall notify the credit union of the administrator's
intention to revoke the certificate of approval. If the neglect or
failure continues for another 15 days, the administrator may
revoke the certificate of approval and shall cause one of the
administrator's agents to take possession of the business of such credit
union and retain possession until such time as the administrator may
permit such credit union to resume business or its affairs are finally
liquidated.
(c) The administrator may issue cease and desist orders or orders for
corrective action or both, made over the
administrator's official signature, having determined
that a credit union is engaged, has engaged, or is
about to engage, in an unsafe or unsound practice, or is violating, has
violated, or is about to violate, any law, rules
and regulations or any condition imposed in writing by the administrator or
any written agreement made with the administrator.
(d) If the administrator determines that a credit union is insolvent,
is in a deteriorating condition, as defined in rules and regulations
promulgated by the administrator, or, within a reasonable
time, has failed to comply with any order mailed to the last address filed
by the credit union with the administrator, the administrator, as conservator
or liquidating agent, pursuant to any order shall
immediately, or within a reasonable time thereafter, take possession of
or appoint an agent to take possession of the business and property of
the credit union and retain possession, as conservator or as liquidating
agent, until such time as the
administrator may permit it to resume business or its affairs are
finally liquidated.
(e) The administrator may approve an emergency merger in accordance
with
K.S.A. 17-2228, and amendments thereto, without regard to field of membership
or other legal
restraints. The credit
union to be merged shall have a current CAMEL rating of 4 or 5, or the
recognized regulatory
equivalent thereof as defined in rules and regulations promulgated by the
administrator, and be
determined to be undercapitalized in accordance with regulatory standards as
determined by the
administrator by rules and regulations. The field of membership of the merged
credit union will
be retained by the continuing credit union resulting from the merger.
(f) Each credit union shall pay to the administrator a fee
for
examination, established in accordance with this subsection. Prior to June
1 of each year, the administrator, after advising
the credit union
council,
shall establish such annual fees as the administrator determines to be
sufficient
to meet the budget requirements of the department of credit unions for the
fiscal year beginning July 1. Such fees shall be due and payable 30
days after receipt of billing from the department of credit unions.
(g) For a corporate credit
union, the administrator may accept an audit report by
a certified public accountant in lieu of the credit union departmental
examination of such credit union. If the administrator accepts
a certified public accountant audit in lieu of the administrator's
examination of
such corporate credit union, the administrator may assess
such corporate
credit union a fee
established in accordance with subsection (f).
(h) All administrative proceedings instituted or conducted
by the
administrator pursuant to this act shall be conducted in accordance with the
Kansas administrative procedure act, K.S.A. 77-501 et seq., and
amendments thereto.
(i) The administrator, as conservator or liquidating agent:
(1) By operation of law, shall succeed to all rights, titles, powers and
privileges of the credit union, and of any member, account holder, officer or
director of such credit union with respect to the credit union and the assets
of the credit union;
(2) shall take over the assets of and operate the credit union with all
the powers of the members or shareholders, the directors and the officers of
the credit union and shall be authorized to conduct all business of the credit
union;
(3) may collect all obligations and money due the credit union;
(4) may perform all functions of the credit union in the name of the
credit union which is consistent with the appointment as conservator or
liquidating agent;
(5) shall preserve and conserve the assets and property of such credit
union;
(6) may fix a reasonable amount for compensation of the conservator or
liquidating agent as an expense of operation or liquidation of the credit
union;
(7) may take such actions as may be necessary to put the credit union in a
sound and solvent condition;
(8) may take such action as may be appropriate to carry on the business of
the credit union and preserve and conserve the assets and property of the
credit union; and
(9) as liquidating agent, place the credit union in liquidation and
proceed to realize upon the assets of the credit union and liquidate such
credit union in accordance with the provisions of K.S.A. 17-2230, and
amendments thereto.
(j) A credit union
approved to do business in this state under K.S.A.
17-2223a, and amendments thereto,
shall pay to the administrator the same fees
for examination that a state-chartered credit union is required to pay under
the provisions of subsection (f). Such fees shall be paid in
accordance with the provisions of subsection (f).
History: L. 1929, ch. 141, § 6; L. 1933, ch. 154, § 1; L.
1949, ch. 190, § 1; L. 1955, ch. 138, § 2; L. 1957, ch. 152, § 1; L.
1959, ch. 118, § 1; L. 1963, ch. 140, § 1; L. 1966, ch. 33, § 1
(Budget Session); L. 1968, ch. 160, § 4; L. 1972, ch. 59, § 1; L.
1975, ch. 136, § 5; L. 1976, ch. 106, § 1; L. 1977, ch. 76, § 1;
L. 1980, ch. 79, § 1; L. 1980, ch. 270, § 3; L. 1982, ch. 102, § 2;
L. 1987, ch. 86, § 1;
L. 1992, ch. 225, § 2;
L. 1995, ch. 128, § 2;
L. 2005, ch. 36, § 1;
L. 2008, ch. 81, § 3; July 1.
17-2206.Supervision by administrator; reports,
plans and programs;
penalties; examination, fees.
(a) Credit unions shall be subject to the exclusive supervision of the
administrator and shall make
and keep current such books and records, prepare reports and establish plans
and programs concerning the safety and soundness of the credit union as
may be required by rules and regulations adopted by the administrator
and
shall make
a report of condition to the administrator
at least semiannually, on blank forms to be supplied by the
administrator, notice of which reports
shall be sent out by the administrator. Returns shall be verified under
oath of the president or chairperson of the board, whichever has been elected
by the board of directors pursuant to K.S.A. 17-2209, and amendments
thereto, and treasurer, and additional reports may be
required by the administrator. Copies of a current balance sheet shall
be furnished without charge by the administrator to any person upon
request. Any credit union which neglects to make the above reports shall
forfeit to the treasurer of the state up to $50 for each
day of such neglect at the discretion of the administrator.
(b) Each credit union shall be examined at least once
every 18 months by the
administrator or the administrator's duly authorized deputy or agent.
In lieu of any particular examination, the administrator may
accept an examination report made by or under the authority of the
national credit union administration or its successor or successors, by
any such other appropriate federal agency or by an independent auditor
or certified public accountant licensed to do business in the state of
Kansas if such audit and report meet the standards which the
administrator may by regulation promulgate. The administrator may
order other examinations, and the administrator's agents shall at all
times be given free access to all books, papers, securities and other
sources of information in respect to the credit union. The administrator shall
have the power
to subpoena witnesses, compel their attendance, require the production of
evidence, administer oaths and
examine any person under oath in connection with any subject relating to a
duty imposed upon or a power vested in the administrator. If a credit union
neglects to make the
required reports or to pay the charges required, including
charges for delay in filing reports, for 15 days, the
administrator shall notify the credit union of the administrator's
intention to revoke the certificate of approval. If the neglect or
failure continues for another 15 days, the administrator may
revoke the certificate of approval and shall cause one of the
administrator's agents to take possession of the business of such credit
union and retain possession until such time as the administrator may
permit such credit union to resume business or its affairs are finally
liquidated.
(c) The administrator may issue cease and desist orders or orders for
corrective action or both, made over the
administrator's official signature, having determined
that a credit union is engaged, has engaged, or is
about to engage, in an unsafe or unsound practice, or is violating, has
violated, or is about to violate, any law, rules
and regulations or any condition imposed in writing by the administrator or
any written agreement made with the administrator.
(d) If the administrator determines that a credit union is insolvent,
is in a deteriorating condition, as defined in rules and regulations
promulgated by the administrator, or, within a reasonable
time, has failed to comply with any order mailed to the last address filed
by the credit union with the administrator, the administrator, as conservator
or liquidating agent, pursuant to any order shall
immediately, or within a reasonable time thereafter, take possession of
or appoint an agent to take possession of the business and property of
the credit union and retain possession, as conservator or as liquidating
agent, until such time as the
administrator may permit it to resume business or its affairs are
finally liquidated.
(e) The administrator may approve an emergency merger in accordance
with
K.S.A. 17-2228, and amendments thereto, without regard to field of membership
or other legal
restraints. The credit
union to be merged shall have a current CAMEL rating of 4 or 5, or the
recognized regulatory
equivalent thereof as defined in rules and regulations promulgated by the
administrator, and be
determined to be undercapitalized in accordance with regulatory standards as
determined by the
administrator by rules and regulations. The field of membership of the merged
credit union will
be retained by the continuing credit union resulting from the merger.
(f) Each credit union shall pay to the administrator a fee
for
examination, established in accordance with this subsection. Prior to June
1 of each year, the administrator, after advising
the credit union
council,
shall establish such annual fees as the administrator determines to be
sufficient
to meet the budget requirements of the department of credit unions for the
fiscal year beginning July 1. Such fees shall be due and payable 30
days after receipt of billing from the department of credit unions.
(g) For a corporate credit
union, the administrator may accept an audit report by
a certified public accountant in lieu of the credit union departmental
examination of such credit union. If the administrator accepts
a certified public accountant audit in lieu of the administrator's
examination of
such corporate credit union, the administrator may assess
such corporate
credit union a fee
established in accordance with subsection (f).
(h) All administrative proceedings instituted or conducted
by the
administrator pursuant to this act shall be conducted in accordance with the
Kansas administrative procedure act, K.S.A. 77-501 et seq., and
amendments thereto.
(i) The administrator, as conservator or liquidating agent:
(1) By operation of law, shall succeed to all rights, titles, powers and
privileges of the credit union, and of any member, account holder, officer or
director of such credit union with respect to the credit union and the assets
of the credit union;
(2) shall take over the assets of and operate the credit union with all
the powers of the members or shareholders, the directors and the officers of
the credit union and shall be authorized to conduct all business of the credit
union;
(3) may collect all obligations and money due the credit union;
(4) may perform all functions of the credit union in the name of the
credit union which is consistent with the appointment as conservator or
liquidating agent;
(5) shall preserve and conserve the assets and property of such credit
union;
(6) may fix a reasonable amount for compensation of the conservator or
liquidating agent as an expense of operation or liquidation of the credit
union;
(7) may take such actions as may be necessary to put the credit union in a
sound and solvent condition;
(8) may take such action as may be appropriate to carry on the business of
the credit union and preserve and conserve the assets and property of the
credit union; and
(9) as liquidating agent, place the credit union in liquidation and
proceed to realize upon the assets of the credit union and liquidate such
credit union in accordance with the provisions of K.S.A. 17-2230, and
amendments thereto.
(j) A credit union
approved to do business in this state under K.S.A.
17-2223a, and amendments thereto,
shall pay to the administrator the same fees
for examination that a state-chartered credit union is required to pay under
the provisions of subsection (f). Such fees shall be paid in
accordance with the provisions of subsection (f).
History: L. 1929, ch. 141, § 6; L. 1933, ch. 154, § 1; L.
1949, ch. 190, § 1; L. 1955, ch. 138, § 2; L. 1957, ch. 152, § 1; L.
1959, ch. 118, § 1; L. 1963, ch. 140, § 1; L. 1966, ch. 33, § 1
(Budget Session); L. 1968, ch. 160, § 4; L. 1972, ch. 59, § 1; L.
1975, ch. 136, § 5; L. 1976, ch. 106, § 1; L. 1977, ch. 76, § 1;
L. 1980, ch. 79, § 1; L. 1980, ch. 270, § 3; L. 1982, ch. 102, § 2;
L. 1987, ch. 86, § 1;
L. 1992, ch. 225, § 2;
L. 1995, ch. 128, § 2;
L. 2005, ch. 36, § 1;
L. 2008, ch. 81, § 3; July 1.