State Codes and Statutes
Statutes > Kansas > Chapter40 > Article35 > Statutes_1809240-3514
40-3514. Maintaining funds on deposit with insurance company's own insuredprohibited; presumptions; other prohibited practices.(a) Except for commercial checking accounts and normal deposits in supportof an active bank line of credit, a mortgage guaranty insurance company,the holding company or any affiliate thereof is prohibited from maintainingfunds on deposit with the lender for which the mortgage guaranty insurancecompany has insured loans.
(b) Any deposit account bearing interest at rates less than what is currentlybeing paid other depositors on similar deposits or any deposit in excessof amounts insured by an agency of the federal government shall be presumedto be an account in violation of this section. Furthermore, a mortgageguaranty insurance company shall not use compensating balances, specialdeposit accounts or engage in any practice which unduly delays its receiptof moneys due or which involves the use of its financial resources for thebenefit of any owner, mortgagee of the real property or any interest thereinor any person who is acting as agent, representative, attorney or employeeof such owner, purchaser or mortgagee as a means of circumventing any partof this section.
History: L. 1977, ch. 154, § 14; Jan. 1, 1978.
