17-5830.Trust powers; generally.
The commissioner is authorized and empowered to grant by special permit
to any savings and loan association organized under the laws of this state
whose principal office is located in the state of Kansas, the right to act
as trustee, corporate agent or in any other fiduciary capacity in which
trust companies and banks incorporated under the laws of Kansas are permitted
to act. The commissioner may approve and issue a special permit to such
state savings and loan association to act in one or more of such fiduciary
capacities. Any state savings and loan association having been granted
trust authority by the commissioner may add "and trust company" to its corporate
name. Such trust powers shall be subject to the following:
(a) The association exercising any or all of the powers enumerated in
this section shall segregate all assets held in any fiduciary capacity from
general assets of the association, and shall keep a separate set of books
and records showing in proper detail all transactions engaged in under authority
of this section. Such books and records shall be open to the inspection
of, and subject to the supervision of, the commissioner;
(b) the Kansas bank commissioner, may have access to examination reports
made by the savings and loan commissioner insofar as such reports relate
to the trust department of such association but nothing in this section
shall be construed as authorizing such state banking authority to examine
the books, records and assets of such associations;
(c) no association shall receive in its trust department deposits of current
funds subject to check or the deposit of checks, drafts, bills of exchange,
or other items for collection or exchange purposes. Funds deposited or
held in trust by the association awaiting investment shall be carried in
a separate account and shall not be used by the association in the conduct
of its business unless it shall first set aside in the trust department,
United States bonds or other securities approved by the commissioner;
(d) in the event of the failure of such association, the owners of the
funds held in trust for investment shall have a lien on the bonds or other
securities so set apart in addition to their claim against the assets of
the association;
(e) if at any time Kansas law requires trustees to deposit securities
with the state for the protection of private or court trusts, associations
so acting shall be required to make similar deposits, and securities so
deposited shall be held for the protection of private or court trusts, as
provided by Kansas law. Associations in such cases shall not be required
to execute the bond usually required of individuals if corporate trustees
under similar circumstances are exempt from this requirement. Associations
shall have the power to execute such bond when so required of corporate
trustees by the laws of the state of Kansas;
(f) in the event the laws of Kansas require a corporation acting as trustee,
executor, administrator, guardian or conservator, to take an oath or make
an affidavit, the president, any vice president, or trust officer of such
association may take the necessary oath or execute the necessary affidavit;
(g) it shall be unlawful for any association to lend any officer, director,
or employee any funds held in trust under the powers conferred by this section.
Any officer, director, or employee making such loan, or to whom such loan
is made, may be fined not more than $5,000, or imprisoned not more than
five years, or may be both fined and imprisoned, in the discretion of the court;
(h) in passing upon applications for permission to exercise the powers
enumerated in this section, the commissioner may take into consideration
the amount of capital and surplus of the applying association, whether or
not such capital and surplus is sufficient under the circumstances of the
case, the needs of the community to be served, and any other facts and circumstances
that seem to the commissioner proper, and may grant or refuse the application
accordingly. In any event no trust authority permit shall be issued to
any association having a capital and surplus less than the capital and surplus
required by Kansas law applicable to Kansas banks and trust companies;
(i) any association desiring to surrender its right to exercise the powers
granted under this section, in order to relieve itself of the necessity
of complying with the requirements of this section, or to have returned
to it any securities which it may have deposited with the state authorities
for the protection of private or court trusts, or for any other purpose,
may file with the commissioner a certified copy of a resolution of its board
of directors signifying such desire. Upon receipt of such resolution, the
commissioner may issue to such association a certificate certifying that
such association is no longer authorized to exercise the powers granted
by this section, subject to compliance with all reasonable terms and conditions
set forth by the commissioner as a condition to being relieved. Upon the
issuance of such a certificate, the association shall no longer be subject
to the provisions of this section and shall be entitled to have returned
to the association any securities which it may have deposited;
(j) in addition to the authority conferred by this section and all other
applicable laws and regulations, if, in the opinion of the commissioner,
an association is unlawfully or unsoundly exercising or has unlawfully or
unsoundly exercised, or has failed for a period of five consecutive years
to exercise, the powers granted by this section or otherwise fails or has
failed to comply with the requirements of this section, the commissioner
may conduct a hearing in accordance with the provisions of the Kansas
administrative procedure act to determine whether an order revoking
authority to exercise such powers should issue against the association. In
the event the commissioner finds that grounds for revocation have been
established, the commissioner may issue and serve upon the association an
order prohibiting it from accepting any new or additional trust accounts
and revoking authority to exercise any and all powers granted by this
section, except that such order shall permit the association to continue to
service all previously accepted trust accounts pending the expeditious
divestiture or termination.
The revocation order shall become effective not earlier than the expiration
of 30 days after service of such order upon the association so served and
shall remain effective and enforceable except to such extent as it is stayed,
modified, terminated, or set aside by action of the commissioner or a reviewing court.
History: L. 1981, ch. 105, § 6; L. 1988, ch. 356, § 64; July 1, 1989.
17-5830.Trust powers; generally.
The commissioner is authorized and empowered to grant by special permit
to any savings and loan association organized under the laws of this state
whose principal office is located in the state of Kansas, the right to act
as trustee, corporate agent or in any other fiduciary capacity in which
trust companies and banks incorporated under the laws of Kansas are permitted
to act. The commissioner may approve and issue a special permit to such
state savings and loan association to act in one or more of such fiduciary
capacities. Any state savings and loan association having been granted
trust authority by the commissioner may add "and trust company" to its corporate
name. Such trust powers shall be subject to the following:
(a) The association exercising any or all of the powers enumerated in
this section shall segregate all assets held in any fiduciary capacity from
general assets of the association, and shall keep a separate set of books
and records showing in proper detail all transactions engaged in under authority
of this section. Such books and records shall be open to the inspection
of, and subject to the supervision of, the commissioner;
(b) the Kansas bank commissioner, may have access to examination reports
made by the savings and loan commissioner insofar as such reports relate
to the trust department of such association but nothing in this section
shall be construed as authorizing such state banking authority to examine
the books, records and assets of such associations;
(c) no association shall receive in its trust department deposits of current
funds subject to check or the deposit of checks, drafts, bills of exchange,
or other items for collection or exchange purposes. Funds deposited or
held in trust by the association awaiting investment shall be carried in
a separate account and shall not be used by the association in the conduct
of its business unless it shall first set aside in the trust department,
United States bonds or other securities approved by the commissioner;
(d) in the event of the failure of such association, the owners of the
funds held in trust for investment shall have a lien on the bonds or other
securities so set apart in addition to their claim against the assets of
the association;
(e) if at any time Kansas law requires trustees to deposit securities
with the state for the protection of private or court trusts, associations
so acting shall be required to make similar deposits, and securities so
deposited shall be held for the protection of private or court trusts, as
provided by Kansas law. Associations in such cases shall not be required
to execute the bond usually required of individuals if corporate trustees
under similar circumstances are exempt from this requirement. Associations
shall have the power to execute such bond when so required of corporate
trustees by the laws of the state of Kansas;
(f) in the event the laws of Kansas require a corporation acting as trustee,
executor, administrator, guardian or conservator, to take an oath or make
an affidavit, the president, any vice president, or trust officer of such
association may take the necessary oath or execute the necessary affidavit;
(g) it shall be unlawful for any association to lend any officer, director,
or employee any funds held in trust under the powers conferred by this section.
Any officer, director, or employee making such loan, or to whom such loan
is made, may be fined not more than $5,000, or imprisoned not more than
five years, or may be both fined and imprisoned, in the discretion of the court;
(h) in passing upon applications for permission to exercise the powers
enumerated in this section, the commissioner may take into consideration
the amount of capital and surplus of the applying association, whether or
not such capital and surplus is sufficient under the circumstances of the
case, the needs of the community to be served, and any other facts and circumstances
that seem to the commissioner proper, and may grant or refuse the application
accordingly. In any event no trust authority permit shall be issued to
any association having a capital and surplus less than the capital and surplus
required by Kansas law applicable to Kansas banks and trust companies;
(i) any association desiring to surrender its right to exercise the powers
granted under this section, in order to relieve itself of the necessity
of complying with the requirements of this section, or to have returned
to it any securities which it may have deposited with the state authorities
for the protection of private or court trusts, or for any other purpose,
may file with the commissioner a certified copy of a resolution of its board
of directors signifying such desire. Upon receipt of such resolution, the
commissioner may issue to such association a certificate certifying that
such association is no longer authorized to exercise the powers granted
by this section, subject to compliance with all reasonable terms and conditions
set forth by the commissioner as a condition to being relieved. Upon the
issuance of such a certificate, the association shall no longer be subject
to the provisions of this section and shall be entitled to have returned
to the association any securities which it may have deposited;
(j) in addition to the authority conferred by this section and all other
applicable laws and regulations, if, in the opinion of the commissioner,
an association is unlawfully or unsoundly exercising or has unlawfully or
unsoundly exercised, or has failed for a period of five consecutive years
to exercise, the powers granted by this section or otherwise fails or has
failed to comply with the requirements of this section, the commissioner
may conduct a hearing in accordance with the provisions of the Kansas
administrative procedure act to determine whether an order revoking
authority to exercise such powers should issue against the association. In
the event the commissioner finds that grounds for revocation have been
established, the commissioner may issue and serve upon the association an
order prohibiting it from accepting any new or additional trust accounts
and revoking authority to exercise any and all powers granted by this
section, except that such order shall permit the association to continue to
service all previously accepted trust accounts pending the expeditious
divestiture or termination.
The revocation order shall become effective not earlier than the expiration
of 30 days after service of such order upon the association so served and
shall remain effective and enforceable except to such extent as it is stayed,
modified, terminated, or set aside by action of the commissioner or a reviewing court.
History: L. 1981, ch. 105, § 6; L. 1988, ch. 356, § 64; July 1, 1989.
17-5830.Trust powers; generally.
The commissioner is authorized and empowered to grant by special permit
to any savings and loan association organized under the laws of this state
whose principal office is located in the state of Kansas, the right to act
as trustee, corporate agent or in any other fiduciary capacity in which
trust companies and banks incorporated under the laws of Kansas are permitted
to act. The commissioner may approve and issue a special permit to such
state savings and loan association to act in one or more of such fiduciary
capacities. Any state savings and loan association having been granted
trust authority by the commissioner may add "and trust company" to its corporate
name. Such trust powers shall be subject to the following:
(a) The association exercising any or all of the powers enumerated in
this section shall segregate all assets held in any fiduciary capacity from
general assets of the association, and shall keep a separate set of books
and records showing in proper detail all transactions engaged in under authority
of this section. Such books and records shall be open to the inspection
of, and subject to the supervision of, the commissioner;
(b) the Kansas bank commissioner, may have access to examination reports
made by the savings and loan commissioner insofar as such reports relate
to the trust department of such association but nothing in this section
shall be construed as authorizing such state banking authority to examine
the books, records and assets of such associations;
(c) no association shall receive in its trust department deposits of current
funds subject to check or the deposit of checks, drafts, bills of exchange,
or other items for collection or exchange purposes. Funds deposited or
held in trust by the association awaiting investment shall be carried in
a separate account and shall not be used by the association in the conduct
of its business unless it shall first set aside in the trust department,
United States bonds or other securities approved by the commissioner;
(d) in the event of the failure of such association, the owners of the
funds held in trust for investment shall have a lien on the bonds or other
securities so set apart in addition to their claim against the assets of
the association;
(e) if at any time Kansas law requires trustees to deposit securities
with the state for the protection of private or court trusts, associations
so acting shall be required to make similar deposits, and securities so
deposited shall be held for the protection of private or court trusts, as
provided by Kansas law. Associations in such cases shall not be required
to execute the bond usually required of individuals if corporate trustees
under similar circumstances are exempt from this requirement. Associations
shall have the power to execute such bond when so required of corporate
trustees by the laws of the state of Kansas;
(f) in the event the laws of Kansas require a corporation acting as trustee,
executor, administrator, guardian or conservator, to take an oath or make
an affidavit, the president, any vice president, or trust officer of such
association may take the necessary oath or execute the necessary affidavit;
(g) it shall be unlawful for any association to lend any officer, director,
or employee any funds held in trust under the powers conferred by this section.
Any officer, director, or employee making such loan, or to whom such loan
is made, may be fined not more than $5,000, or imprisoned not more than
five years, or may be both fined and imprisoned, in the discretion of the court;
(h) in passing upon applications for permission to exercise the powers
enumerated in this section, the commissioner may take into consideration
the amount of capital and surplus of the applying association, whether or
not such capital and surplus is sufficient under the circumstances of the
case, the needs of the community to be served, and any other facts and circumstances
that seem to the commissioner proper, and may grant or refuse the application
accordingly. In any event no trust authority permit shall be issued to
any association having a capital and surplus less than the capital and surplus
required by Kansas law applicable to Kansas banks and trust companies;
(i) any association desiring to surrender its right to exercise the powers
granted under this section, in order to relieve itself of the necessity
of complying with the requirements of this section, or to have returned
to it any securities which it may have deposited with the state authorities
for the protection of private or court trusts, or for any other purpose,
may file with the commissioner a certified copy of a resolution of its board
of directors signifying such desire. Upon receipt of such resolution, the
commissioner may issue to such association a certificate certifying that
such association is no longer authorized to exercise the powers granted
by this section, subject to compliance with all reasonable terms and conditions
set forth by the commissioner as a condition to being relieved. Upon the
issuance of such a certificate, the association shall no longer be subject
to the provisions of this section and shall be entitled to have returned
to the association any securities which it may have deposited;
(j) in addition to the authority conferred by this section and all other
applicable laws and regulations, if, in the opinion of the commissioner,
an association is unlawfully or unsoundly exercising or has unlawfully or
unsoundly exercised, or has failed for a period of five consecutive years
to exercise, the powers granted by this section or otherwise fails or has
failed to comply with the requirements of this section, the commissioner
may conduct a hearing in accordance with the provisions of the Kansas
administrative procedure act to determine whether an order revoking
authority to exercise such powers should issue against the association. In
the event the commissioner finds that grounds for revocation have been
established, the commissioner may issue and serve upon the association an
order prohibiting it from accepting any new or additional trust accounts
and revoking authority to exercise any and all powers granted by this
section, except that such order shall permit the association to continue to
service all previously accepted trust accounts pending the expeditious
divestiture or termination.
The revocation order shall become effective not earlier than the expiration
of 30 days after service of such order upon the association so served and
shall remain effective and enforceable except to such extent as it is stayed,
modified, terminated, or set aside by action of the commissioner or a reviewing court.
History: L. 1981, ch. 105, § 6; L. 1988, ch. 356, § 64; July 1, 1989.