9-1111.Branch banking;
transactions by remote service units authorized; conditions and restrictions;
remote service unit defined.
The general business of every bank shall be transacted at the place of business
specified in its certificate of authority and at one or more branch
banks established and operated as provided in this section. Except for the
establishment or operation of a trust branch bank or the relocation of an
existing trust branch bank pursuant to K.S.A. 9-1135, and
amendments
thereto, it shall be unlawful for
any bank to establish and operate any branch bank
or relocate an existing branch bank except as hereinafter provided.
Notwithstanding the provisions of this section, any location at which a
depository institution, as defined by K.S.A. 9-701, and amendments
thereto, receives deposits, renews time deposits, closes loans, services loans
or receives payments on loans or other obligations, as agent, for a bank
pursuant to subsection (25) of K.S.A. 9-1101, and amendments
thereto, or other applicable state or federal law, or is authorized to
open accounts or receive deposits under subsection (28) of K.S.A. 9-1101, and
amendments thereto, shall not be deemed to be a branch bank:
(a) For the purposes of this section, the term "branch bank" means any
office, agency or other place of business located within this state, other
than the place of business specified in the bank's certificate of
authority, at which deposits are received, checks paid, money lent or trust
authority exercised, if approval has been granted by the state bank
commissioner, under K.S.A. 9-1602, and amendments thereto;
(b) establishment of a new branch or relocation of an existing branch for
eligible banks:
(1) After first applying for and obtaining the approval of the commissioner,
an eligible bank incorporated under the laws of this state, may establish and
operate one or more branch banks or relocate an existing branch bank, anywhere
within this state;
(2) the application shall include the nature of the banking business to be
conducted at the proposed branch bank, the primary geographical area to
be served by it, the personnel and office facilities to be provided at the
proposed branch bank and other information the commissioner may require;
(3) the application shall include the name selected for the proposed branch
bank. The name selected for the proposed branch bank shall not be the name of
any other bank or branch bank doing business within a 15 mile radius of the
same city or town, nor shall the name selected be required to contain the name
of the applicant bank. If the name selected for the proposed branch bank does
not contain the name of the applicant bank, the branch bank shall provide in
the public lobby of such branch bank, a public notice that it is a branch bank
of the applicant bank;
(4) the application shall include proof of publication of notice that the
applicant bank intends to file or has filed an application to establish a
branch bank or relocate an existing branch bank. The notice shall be published
in a newspaper of general circulation in the county where the applicant bank
proposes to locate the branch bank. The notice shall be in the form prescribed
by the commissioner and at a minimum shall contain the name and address of the
applicant bank, the location of the proposed branch and a solicitation for
written comments. The notice shall be published on the same day for two
consecutive weeks and provide for a comment period of not less than 10 days
after the date of the second publication;
(5) upon receipt of the application, and following expiration of the comment
period, the commissioner may hold a hearing in the county in which the
applicant bank seeks to operate the branch bank. The applicant shall publish
notice of the time, date and place of such hearing in a newspaper of general
circulation in the county where the applicant bank proposes to locate the
branch bank, not less than 10 nor more than 30 days prior to the date of the
hearing, and proof of publication shall be filed with the commissioner. At any
such hearing, all interested persons shall be allowed to present written and
oral evidence to the commissioner, or the commissioner's designee, in support
of or in opposition to the branch bank. Upon completion of a transcript of the
testimony given at any such hearing, the transcript shall be filed in the
office of the commissioner;
(6) if the commissioner determines a public hearing is not warranted, the
commissioner shall approve or disapprove the application within 15 days after
receipt of a complete application but not prior to the end of the comment
period. If a public hearing is held, the commissioner shall approve or
disapprove the application within 60 days after consideration of the complete
application and the evidence gathered during the commissioner's investigation.
The period for consideration of the application may be extended if the
commissioner determines the application presents a significant supervisory
concern. If the commissioner finds that:
(A) There is a reasonable probability of usefulness and success of the
proposed branch bank; and
(B) the applicant bank's financial history and condition is sound, the new
branch or relocation shall be granted, otherwise, it shall be denied;
(7) within 15 days after any final action of the commissioner approving or
disapproving an application, the applicant, or any adversely affected or
aggrieved person who provided written comments during the specified comment
period, may request a hearing with the state banking board. Upon receipt of a
timely request, the board shall conduct a hearing in accordance with the
provisions of the Kansas administrative procedure act. Any decision of the
state banking board is subject to review in accordance with the act for
judicial review and civil enforcement of agency actions;
(c) establishment of a new branch or relocation of an existing branch for
banks which do not meet the definition of "eligible bank":
(1) After first applying for and obtaining the approval of the state banking
board, a bank incorporated under the laws of this state, which does not meet
the definition of "eligible bank," may establish and operate one or more branch
banks, or relocate an existing branch bank, anywhere within this state;
(2) an application under paragraph (1) of this
subsection, to establish and operate a branch bank or to relocate an
existing branch bank shall be in such form and contain such information as the
rules and regulations of the state bank commissioner, adopted pursuant to
K.S.A. 9-1713, and amendments thereto, shall provide;
(3) the application shall include estimates of the annual
income and expenses of the proposed branch bank, the annual volume of business
to be transacted by it, the nature of the banking business to be conducted at
the proposed branch bank, the primary geographical area to be served by it and
the personnel and office facilities to be provided at the proposed branch bank;
(4) the application shall include the name selected for the
proposed branch bank. The name selected for the proposed branch bank shall not
be the name of any other bank or branch bank doing business within
a 15 mile radius of the same city or town, nor shall the name
selected be required to contain the name of the applicant bank. If the name
selected for the proposed bank does not contain the name of the applicant bank,
the branch bank shall provide in the public lobby of such branch bank, a public
notice that it is a branch bank of the applicant bank;
(5) the application shall include
proof of publication of notice that applicant bank intends to file an
application to establish a branch bank or relocate an existing branch bank. The
notice shall be published in a newspaper of general circulation in the county
where the applicant bank proposes to locate the branch bank. The notice shall
be in the form prescribed by the state banking board and at a minimum shall
contain the name and address of the applicant bank, the location of the
proposed branch and a solicitation for written comments. The notice shall be
published
on the same day for two consecutive weeks and provide for a comment period of
not less than 10 days after the date of the second publication;
(6) upon receipt of an application meeting the above
requirements, and following the expiration of the comment period,
within 60 days the state banking board
may hold a hearing in the county in which the applicant
bank seeks to establish and operate a branch bank. Notice of the time, date and
place of such hearing if one is to be
held shall be published in a newspaper of general circulation in the county
where the
applicant bank proposes to locate the branch bank not less than 10 or more
than 30 days prior to the date of the hearing, and
proof of publication shall be filed with the
commissioner. At
any such hearing, all interested persons shall be allowed to present written
and oral evidence to the board in support of or in opposition to the
application. Upon completion of a transcript of the testimony given at any such
hearing, the transcript shall be filed in the office of the commissioner and
copies shall be furnished to the members of the state banking board not less
than 10 days prior to the meeting of the board at which the
application will be considered;
(7) the state banking board shall approve or disapprove the
application within 90 days after consideration of the application and
the evidence gathered during the board's investigation. If the board finds
that:
(A) There is a reasonable probability of usefulness and
success of the proposed branch bank; and
(B) the applicant bank's financial history and condition is
sound, the
application shall be granted, otherwise, the application shall be denied;
(8) any final action of the board approving or disapproving
an application shall be subject to review in accordance with the act for
judicial review and civil enforcement of agency actions upon the petition of
the applicant or any adversely affected or aggrieved person who
provided written comments during the specified comment period;
(d) any branch bank lawfully established and operating on
the effective date of this act may continue to be operated by the bank then
operating the branch bank and by any successor bank;
(e) branch banks which have been established and are being
maintained by a bank at the time of its merger into or consolidation with
another bank or at the time its assets are purchased and its liabilities are
assumed by another bank may continue to be operated by the surviving, resulting
or purchasing and assuming bank. The surviving, resulting or purchasing and
assuming bank, with approval of the state bank commissioner, may establish and
operate a branch bank or banks at the site or sites of the merged, constituent
or liquidated bank or banks;
(f) any state bank or national banking association
may
provide and engage in banking transactions by means of remote service units
wherever located, which remote service units shall not be considered to be
branch banks. Any banking transaction effected by use
of a remote service unit shall be deemed to be transacted at a bank and not at
a remote service unit;
(g) as a condition to the operation and use of any remote
service unit
in this state, a state bank or national banking association, each hereinafter
referred to as a bank, which desires to operate or enable its customers
to utilize a remote service unit must agree that such remote service unit
will be available for use by customers of any other bank or banks upon the
request of such bank or banks to share its use and the agreement of such
bank or banks to share all costs, including a reasonable return on capital
expenditures incurred in connection with its development, installation
and operation. The owner of the remote service unit, whether a bank or any
other person, shall make the remote service unit available for use by other
banks and their customers on a nondiscriminatory basis, conditioned upon
payment of a reasonable proportion of all costs, including a reasonable
return on capital expenditures incurred in connection with the development,
installation and operation of the remote service unit. Notwithstanding the
foregoing provisions of this subsection, a remote service unit located on
the property owned or leased by the bank where the principal place of business
of a bank, or an attached auxiliary teller facility or
branch bank of a bank, is located need not
be made available
for use by any other bank or banks or customers of any other bank or banks;
(h) for purposes of this section, "remote service unit"
means an electronic information processing device, including associated
equipment, structures and systems, through or by means of which information
relating to financial services rendered to the public is stored and
transmitted, whether instantaneously or otherwise, to a bank and which, for
activation and account access, is dependent upon the use of a machine-readable
instrument in the possession and control of the holder of an account with a
bank. The term shall include "online" computer terminals and "offline"
automated cash dispensing machines and automated teller machines, but shall not
include computer terminals or automated teller machines or automated cash
dispensing machines using systems in which account numbers are not machine read
and verified. Withdrawals by means of "offline" systems shall not exceed $300
per transaction and shall be restricted to individual not corporate or
commercial accounts;
(i) for purposes of this section, "eligible bank" means a state bank that
meets the following criteria:
(1) Received a composite rating of 1 or 2 under the uniform financial
institutions rating system as a result of its most recent federal or state
examination;
(2) meets the following three criteria for a well capitalized bank:
(A) Has a total risk based capital ratio of 10% or greater;
(B) has a tier one risk based capital ratio of 6% or greater; and
(C) has a leverage ratio of 5% or greater; and
(3) is not subject to a cease and desist order, consent order, prompt
corrective action directive, written agreement, memorandum of understanding or
other administrative agreement with its primary federal regulator or the office
of the state bank commissioner.
History: L. 1947, ch. 102, § 40; L. 1957, ch. 72, § 1; L. 1967,
ch. 70, § 1; L. 1973, ch. 46, § 1; L. 1975, ch. 43, § 1; L. 1975,
ch. 44, § 16; L. 1978, ch. 45, § 2; L. 1984, ch. 49, § 2; L. 1984, ch. 50,
§ 1; L. 1984, ch. 48, § 5;
L. 1986, ch. 57, § 8; L. 1986, ch. 58, § 1;
L. 1987, ch. 53, § 1;
L. 1990, ch. 58, § 1;
L. 1992, ch. 61, § 1;
L. 1994, ch. 51, § 5;
L. 1995, ch. 79, § 15;
L. 1997, ch. 180, § 12;
L. 2001, ch. 87, § 7; July 1.
9-1111.Branch banking;
transactions by remote service units authorized; conditions and restrictions;
remote service unit defined.
The general business of every bank shall be transacted at the place of business
specified in its certificate of authority and at one or more branch
banks established and operated as provided in this section. Except for the
establishment or operation of a trust branch bank or the relocation of an
existing trust branch bank pursuant to K.S.A. 9-1135, and
amendments
thereto, it shall be unlawful for
any bank to establish and operate any branch bank
or relocate an existing branch bank except as hereinafter provided.
Notwithstanding the provisions of this section, any location at which a
depository institution, as defined by K.S.A. 9-701, and amendments
thereto, receives deposits, renews time deposits, closes loans, services loans
or receives payments on loans or other obligations, as agent, for a bank
pursuant to subsection (25) of K.S.A. 9-1101, and amendments
thereto, or other applicable state or federal law, or is authorized to
open accounts or receive deposits under subsection (28) of K.S.A. 9-1101, and
amendments thereto, shall not be deemed to be a branch bank:
(a) For the purposes of this section, the term "branch bank" means any
office, agency or other place of business located within this state, other
than the place of business specified in the bank's certificate of
authority, at which deposits are received, checks paid, money lent or trust
authority exercised, if approval has been granted by the state bank
commissioner, under K.S.A. 9-1602, and amendments thereto;
(b) establishment of a new branch or relocation of an existing branch for
eligible banks:
(1) After first applying for and obtaining the approval of the commissioner,
an eligible bank incorporated under the laws of this state, may establish and
operate one or more branch banks or relocate an existing branch bank, anywhere
within this state;
(2) the application shall include the nature of the banking business to be
conducted at the proposed branch bank, the primary geographical area to
be served by it, the personnel and office facilities to be provided at the
proposed branch bank and other information the commissioner may require;
(3) the application shall include the name selected for the proposed branch
bank. The name selected for the proposed branch bank shall not be the name of
any other bank or branch bank doing business within a 15 mile radius of the
same city or town, nor shall the name selected be required to contain the name
of the applicant bank. If the name selected for the proposed branch bank does
not contain the name of the applicant bank, the branch bank shall provide in
the public lobby of such branch bank, a public notice that it is a branch bank
of the applicant bank;
(4) the application shall include proof of publication of notice that the
applicant bank intends to file or has filed an application to establish a
branch bank or relocate an existing branch bank. The notice shall be published
in a newspaper of general circulation in the county where the applicant bank
proposes to locate the branch bank. The notice shall be in the form prescribed
by the commissioner and at a minimum shall contain the name and address of the
applicant bank, the location of the proposed branch and a solicitation for
written comments. The notice shall be published on the same day for two
consecutive weeks and provide for a comment period of not less than 10 days
after the date of the second publication;
(5) upon receipt of the application, and following expiration of the comment
period, the commissioner may hold a hearing in the county in which the
applicant bank seeks to operate the branch bank. The applicant shall publish
notice of the time, date and place of such hearing in a newspaper of general
circulation in the county where the applicant bank proposes to locate the
branch bank, not less than 10 nor more than 30 days prior to the date of the
hearing, and proof of publication shall be filed with the commissioner. At any
such hearing, all interested persons shall be allowed to present written and
oral evidence to the commissioner, or the commissioner's designee, in support
of or in opposition to the branch bank. Upon completion of a transcript of the
testimony given at any such hearing, the transcript shall be filed in the
office of the commissioner;
(6) if the commissioner determines a public hearing is not warranted, the
commissioner shall approve or disapprove the application within 15 days after
receipt of a complete application but not prior to the end of the comment
period. If a public hearing is held, the commissioner shall approve or
disapprove the application within 60 days after consideration of the complete
application and the evidence gathered during the commissioner's investigation.
The period for consideration of the application may be extended if the
commissioner determines the application presents a significant supervisory
concern. If the commissioner finds that:
(A) There is a reasonable probability of usefulness and success of the
proposed branch bank; and
(B) the applicant bank's financial history and condition is sound, the new
branch or relocation shall be granted, otherwise, it shall be denied;
(7) within 15 days after any final action of the commissioner approving or
disapproving an application, the applicant, or any adversely affected or
aggrieved person who provided written comments during the specified comment
period, may request a hearing with the state banking board. Upon receipt of a
timely request, the board shall conduct a hearing in accordance with the
provisions of the Kansas administrative procedure act. Any decision of the
state banking board is subject to review in accordance with the act for
judicial review and civil enforcement of agency actions;
(c) establishment of a new branch or relocation of an existing branch for
banks which do not meet the definition of "eligible bank":
(1) After first applying for and obtaining the approval of the state banking
board, a bank incorporated under the laws of this state, which does not meet
the definition of "eligible bank," may establish and operate one or more branch
banks, or relocate an existing branch bank, anywhere within this state;
(2) an application under paragraph (1) of this
subsection, to establish and operate a branch bank or to relocate an
existing branch bank shall be in such form and contain such information as the
rules and regulations of the state bank commissioner, adopted pursuant to
K.S.A. 9-1713, and amendments thereto, shall provide;
(3) the application shall include estimates of the annual
income and expenses of the proposed branch bank, the annual volume of business
to be transacted by it, the nature of the banking business to be conducted at
the proposed branch bank, the primary geographical area to be served by it and
the personnel and office facilities to be provided at the proposed branch bank;
(4) the application shall include the name selected for the
proposed branch bank. The name selected for the proposed branch bank shall not
be the name of any other bank or branch bank doing business within
a 15 mile radius of the same city or town, nor shall the name
selected be required to contain the name of the applicant bank. If the name
selected for the proposed bank does not contain the name of the applicant bank,
the branch bank shall provide in the public lobby of such branch bank, a public
notice that it is a branch bank of the applicant bank;
(5) the application shall include
proof of publication of notice that applicant bank intends to file an
application to establish a branch bank or relocate an existing branch bank. The
notice shall be published in a newspaper of general circulation in the county
where the applicant bank proposes to locate the branch bank. The notice shall
be in the form prescribed by the state banking board and at a minimum shall
contain the name and address of the applicant bank, the location of the
proposed branch and a solicitation for written comments. The notice shall be
published
on the same day for two consecutive weeks and provide for a comment period of
not less than 10 days after the date of the second publication;
(6) upon receipt of an application meeting the above
requirements, and following the expiration of the comment period,
within 60 days the state banking board
may hold a hearing in the county in which the applicant
bank seeks to establish and operate a branch bank. Notice of the time, date and
place of such hearing if one is to be
held shall be published in a newspaper of general circulation in the county
where the
applicant bank proposes to locate the branch bank not less than 10 or more
than 30 days prior to the date of the hearing, and
proof of publication shall be filed with the
commissioner. At
any such hearing, all interested persons shall be allowed to present written
and oral evidence to the board in support of or in opposition to the
application. Upon completion of a transcript of the testimony given at any such
hearing, the transcript shall be filed in the office of the commissioner and
copies shall be furnished to the members of the state banking board not less
than 10 days prior to the meeting of the board at which the
application will be considered;
(7) the state banking board shall approve or disapprove the
application within 90 days after consideration of the application and
the evidence gathered during the board's investigation. If the board finds
that:
(A) There is a reasonable probability of usefulness and
success of the proposed branch bank; and
(B) the applicant bank's financial history and condition is
sound, the
application shall be granted, otherwise, the application shall be denied;
(8) any final action of the board approving or disapproving
an application shall be subject to review in accordance with the act for
judicial review and civil enforcement of agency actions upon the petition of
the applicant or any adversely affected or aggrieved person who
provided written comments during the specified comment period;
(d) any branch bank lawfully established and operating on
the effective date of this act may continue to be operated by the bank then
operating the branch bank and by any successor bank;
(e) branch banks which have been established and are being
maintained by a bank at the time of its merger into or consolidation with
another bank or at the time its assets are purchased and its liabilities are
assumed by another bank may continue to be operated by the surviving, resulting
or purchasing and assuming bank. The surviving, resulting or purchasing and
assuming bank, with approval of the state bank commissioner, may establish and
operate a branch bank or banks at the site or sites of the merged, constituent
or liquidated bank or banks;
(f) any state bank or national banking association
may
provide and engage in banking transactions by means of remote service units
wherever located, which remote service units shall not be considered to be
branch banks. Any banking transaction effected by use
of a remote service unit shall be deemed to be transacted at a bank and not at
a remote service unit;
(g) as a condition to the operation and use of any remote
service unit
in this state, a state bank or national banking association, each hereinafter
referred to as a bank, which desires to operate or enable its customers
to utilize a remote service unit must agree that such remote service unit
will be available for use by customers of any other bank or banks upon the
request of such bank or banks to share its use and the agreement of such
bank or banks to share all costs, including a reasonable return on capital
expenditures incurred in connection with its development, installation
and operation. The owner of the remote service unit, whether a bank or any
other person, shall make the remote service unit available for use by other
banks and their customers on a nondiscriminatory basis, conditioned upon
payment of a reasonable proportion of all costs, including a reasonable
return on capital expenditures incurred in connection with the development,
installation and operation of the remote service unit. Notwithstanding the
foregoing provisions of this subsection, a remote service unit located on
the property owned or leased by the bank where the principal place of business
of a bank, or an attached auxiliary teller facility or
branch bank of a bank, is located need not
be made available
for use by any other bank or banks or customers of any other bank or banks;
(h) for purposes of this section, "remote service unit"
means an electronic information processing device, including associated
equipment, structures and systems, through or by means of which information
relating to financial services rendered to the public is stored and
transmitted, whether instantaneously or otherwise, to a bank and which, for
activation and account access, is dependent upon the use of a machine-readable
instrument in the possession and control of the holder of an account with a
bank. The term shall include "online" computer terminals and "offline"
automated cash dispensing machines and automated teller machines, but shall not
include computer terminals or automated teller machines or automated cash
dispensing machines using systems in which account numbers are not machine read
and verified. Withdrawals by means of "offline" systems shall not exceed $300
per transaction and shall be restricted to individual not corporate or
commercial accounts;
(i) for purposes of this section, "eligible bank" means a state bank that
meets the following criteria:
(1) Received a composite rating of 1 or 2 under the uniform financial
institutions rating system as a result of its most recent federal or state
examination;
(2) meets the following three criteria for a well capitalized bank:
(A) Has a total risk based capital ratio of 10% or greater;
(B) has a tier one risk based capital ratio of 6% or greater; and
(C) has a leverage ratio of 5% or greater; and
(3) is not subject to a cease and desist order, consent order, prompt
corrective action directive, written agreement, memorandum of understanding or
other administrative agreement with its primary federal regulator or the office
of the state bank commissioner.
History: L. 1947, ch. 102, § 40; L. 1957, ch. 72, § 1; L. 1967,
ch. 70, § 1; L. 1973, ch. 46, § 1; L. 1975, ch. 43, § 1; L. 1975,
ch. 44, § 16; L. 1978, ch. 45, § 2; L. 1984, ch. 49, § 2; L. 1984, ch. 50,
§ 1; L. 1984, ch. 48, § 5;
L. 1986, ch. 57, § 8; L. 1986, ch. 58, § 1;
L. 1987, ch. 53, § 1;
L. 1990, ch. 58, § 1;
L. 1992, ch. 61, § 1;
L. 1994, ch. 51, § 5;
L. 1995, ch. 79, § 15;
L. 1997, ch. 180, § 12;
L. 2001, ch. 87, § 7; July 1.
9-1111.Branch banking;
transactions by remote service units authorized; conditions and restrictions;
remote service unit defined.
The general business of every bank shall be transacted at the place of business
specified in its certificate of authority and at one or more branch
banks established and operated as provided in this section. Except for the
establishment or operation of a trust branch bank or the relocation of an
existing trust branch bank pursuant to K.S.A. 9-1135, and
amendments
thereto, it shall be unlawful for
any bank to establish and operate any branch bank
or relocate an existing branch bank except as hereinafter provided.
Notwithstanding the provisions of this section, any location at which a
depository institution, as defined by K.S.A. 9-701, and amendments
thereto, receives deposits, renews time deposits, closes loans, services loans
or receives payments on loans or other obligations, as agent, for a bank
pursuant to subsection (25) of K.S.A. 9-1101, and amendments
thereto, or other applicable state or federal law, or is authorized to
open accounts or receive deposits under subsection (28) of K.S.A. 9-1101, and
amendments thereto, shall not be deemed to be a branch bank:
(a) For the purposes of this section, the term "branch bank" means any
office, agency or other place of business located within this state, other
than the place of business specified in the bank's certificate of
authority, at which deposits are received, checks paid, money lent or trust
authority exercised, if approval has been granted by the state bank
commissioner, under K.S.A. 9-1602, and amendments thereto;
(b) establishment of a new branch or relocation of an existing branch for
eligible banks:
(1) After first applying for and obtaining the approval of the commissioner,
an eligible bank incorporated under the laws of this state, may establish and
operate one or more branch banks or relocate an existing branch bank, anywhere
within this state;
(2) the application shall include the nature of the banking business to be
conducted at the proposed branch bank, the primary geographical area to
be served by it, the personnel and office facilities to be provided at the
proposed branch bank and other information the commissioner may require;
(3) the application shall include the name selected for the proposed branch
bank. The name selected for the proposed branch bank shall not be the name of
any other bank or branch bank doing business within a 15 mile radius of the
same city or town, nor shall the name selected be required to contain the name
of the applicant bank. If the name selected for the proposed branch bank does
not contain the name of the applicant bank, the branch bank shall provide in
the public lobby of such branch bank, a public notice that it is a branch bank
of the applicant bank;
(4) the application shall include proof of publication of notice that the
applicant bank intends to file or has filed an application to establish a
branch bank or relocate an existing branch bank. The notice shall be published
in a newspaper of general circulation in the county where the applicant bank
proposes to locate the branch bank. The notice shall be in the form prescribed
by the commissioner and at a minimum shall contain the name and address of the
applicant bank, the location of the proposed branch and a solicitation for
written comments. The notice shall be published on the same day for two
consecutive weeks and provide for a comment period of not less than 10 days
after the date of the second publication;
(5) upon receipt of the application, and following expiration of the comment
period, the commissioner may hold a hearing in the county in which the
applicant bank seeks to operate the branch bank. The applicant shall publish
notice of the time, date and place of such hearing in a newspaper of general
circulation in the county where the applicant bank proposes to locate the
branch bank, not less than 10 nor more than 30 days prior to the date of the
hearing, and proof of publication shall be filed with the commissioner. At any
such hearing, all interested persons shall be allowed to present written and
oral evidence to the commissioner, or the commissioner's designee, in support
of or in opposition to the branch bank. Upon completion of a transcript of the
testimony given at any such hearing, the transcript shall be filed in the
office of the commissioner;
(6) if the commissioner determines a public hearing is not warranted, the
commissioner shall approve or disapprove the application within 15 days after
receipt of a complete application but not prior to the end of the comment
period. If a public hearing is held, the commissioner shall approve or
disapprove the application within 60 days after consideration of the complete
application and the evidence gathered during the commissioner's investigation.
The period for consideration of the application may be extended if the
commissioner determines the application presents a significant supervisory
concern. If the commissioner finds that:
(A) There is a reasonable probability of usefulness and success of the
proposed branch bank; and
(B) the applicant bank's financial history and condition is sound, the new
branch or relocation shall be granted, otherwise, it shall be denied;
(7) within 15 days after any final action of the commissioner approving or
disapproving an application, the applicant, or any adversely affected or
aggrieved person who provided written comments during the specified comment
period, may request a hearing with the state banking board. Upon receipt of a
timely request, the board shall conduct a hearing in accordance with the
provisions of the Kansas administrative procedure act. Any decision of the
state banking board is subject to review in accordance with the act for
judicial review and civil enforcement of agency actions;
(c) establishment of a new branch or relocation of an existing branch for
banks which do not meet the definition of "eligible bank":
(1) After first applying for and obtaining the approval of the state banking
board, a bank incorporated under the laws of this state, which does not meet
the definition of "eligible bank," may establish and operate one or more branch
banks, or relocate an existing branch bank, anywhere within this state;
(2) an application under paragraph (1) of this
subsection, to establish and operate a branch bank or to relocate an
existing branch bank shall be in such form and contain such information as the
rules and regulations of the state bank commissioner, adopted pursuant to
K.S.A. 9-1713, and amendments thereto, shall provide;
(3) the application shall include estimates of the annual
income and expenses of the proposed branch bank, the annual volume of business
to be transacted by it, the nature of the banking business to be conducted at
the proposed branch bank, the primary geographical area to be served by it and
the personnel and office facilities to be provided at the proposed branch bank;
(4) the application shall include the name selected for the
proposed branch bank. The name selected for the proposed branch bank shall not
be the name of any other bank or branch bank doing business within
a 15 mile radius of the same city or town, nor shall the name
selected be required to contain the name of the applicant bank. If the name
selected for the proposed bank does not contain the name of the applicant bank,
the branch bank shall provide in the public lobby of such branch bank, a public
notice that it is a branch bank of the applicant bank;
(5) the application shall include
proof of publication of notice that applicant bank intends to file an
application to establish a branch bank or relocate an existing branch bank. The
notice shall be published in a newspaper of general circulation in the county
where the applicant bank proposes to locate the branch bank. The notice shall
be in the form prescribed by the state banking board and at a minimum shall
contain the name and address of the applicant bank, the location of the
proposed branch and a solicitation for written comments. The notice shall be
published
on the same day for two consecutive weeks and provide for a comment period of
not less than 10 days after the date of the second publication;
(6) upon receipt of an application meeting the above
requirements, and following the expiration of the comment period,
within 60 days the state banking board
may hold a hearing in the county in which the applicant
bank seeks to establish and operate a branch bank. Notice of the time, date and
place of such hearing if one is to be
held shall be published in a newspaper of general circulation in the county
where the
applicant bank proposes to locate the branch bank not less than 10 or more
than 30 days prior to the date of the hearing, and
proof of publication shall be filed with the
commissioner. At
any such hearing, all interested persons shall be allowed to present written
and oral evidence to the board in support of or in opposition to the
application. Upon completion of a transcript of the testimony given at any such
hearing, the transcript shall be filed in the office of the commissioner and
copies shall be furnished to the members of the state banking board not less
than 10 days prior to the meeting of the board at which the
application will be considered;
(7) the state banking board shall approve or disapprove the
application within 90 days after consideration of the application and
the evidence gathered during the board's investigation. If the board finds
that:
(A) There is a reasonable probability of usefulness and
success of the proposed branch bank; and
(B) the applicant bank's financial history and condition is
sound, the
application shall be granted, otherwise, the application shall be denied;
(8) any final action of the board approving or disapproving
an application shall be subject to review in accordance with the act for
judicial review and civil enforcement of agency actions upon the petition of
the applicant or any adversely affected or aggrieved person who
provided written comments during the specified comment period;
(d) any branch bank lawfully established and operating on
the effective date of this act may continue to be operated by the bank then
operating the branch bank and by any successor bank;
(e) branch banks which have been established and are being
maintained by a bank at the time of its merger into or consolidation with
another bank or at the time its assets are purchased and its liabilities are
assumed by another bank may continue to be operated by the surviving, resulting
or purchasing and assuming bank. The surviving, resulting or purchasing and
assuming bank, with approval of the state bank commissioner, may establish and
operate a branch bank or banks at the site or sites of the merged, constituent
or liquidated bank or banks;
(f) any state bank or national banking association
may
provide and engage in banking transactions by means of remote service units
wherever located, which remote service units shall not be considered to be
branch banks. Any banking transaction effected by use
of a remote service unit shall be deemed to be transacted at a bank and not at
a remote service unit;
(g) as a condition to the operation and use of any remote
service unit
in this state, a state bank or national banking association, each hereinafter
referred to as a bank, which desires to operate or enable its customers
to utilize a remote service unit must agree that such remote service unit
will be available for use by customers of any other bank or banks upon the
request of such bank or banks to share its use and the agreement of such
bank or banks to share all costs, including a reasonable return on capital
expenditures incurred in connection with its development, installation
and operation. The owner of the remote service unit, whether a bank or any
other person, shall make the remote service unit available for use by other
banks and their customers on a nondiscriminatory basis, conditioned upon
payment of a reasonable proportion of all costs, including a reasonable
return on capital expenditures incurred in connection with the development,
installation and operation of the remote service unit. Notwithstanding the
foregoing provisions of this subsection, a remote service unit located on
the property owned or leased by the bank where the principal place of business
of a bank, or an attached auxiliary teller facility or
branch bank of a bank, is located need not
be made available
for use by any other bank or banks or customers of any other bank or banks;
(h) for purposes of this section, "remote service unit"
means an electronic information processing device, including associated
equipment, structures and systems, through or by means of which information
relating to financial services rendered to the public is stored and
transmitted, whether instantaneously or otherwise, to a bank and which, for
activation and account access, is dependent upon the use of a machine-readable
instrument in the possession and control of the holder of an account with a
bank. The term shall include "online" computer terminals and "offline"
automated cash dispensing machines and automated teller machines, but shall not
include computer terminals or automated teller machines or automated cash
dispensing machines using systems in which account numbers are not machine read
and verified. Withdrawals by means of "offline" systems shall not exceed $300
per transaction and shall be restricted to individual not corporate or
commercial accounts;
(i) for purposes of this section, "eligible bank" means a state bank that
meets the following criteria:
(1) Received a composite rating of 1 or 2 under the uniform financial
institutions rating system as a result of its most recent federal or state
examination;
(2) meets the following three criteria for a well capitalized bank:
(A) Has a total risk based capital ratio of 10% or greater;
(B) has a tier one risk based capital ratio of 6% or greater; and
(C) has a leverage ratio of 5% or greater; and
(3) is not subject to a cease and desist order, consent order, prompt
corrective action directive, written agreement, memorandum of understanding or
other administrative agreement with its primary federal regulator or the office
of the state bank commissioner.
History: L. 1947, ch. 102, § 40; L. 1957, ch. 72, § 1; L. 1967,
ch. 70, § 1; L. 1973, ch. 46, § 1; L. 1975, ch. 43, § 1; L. 1975,
ch. 44, § 16; L. 1978, ch. 45, § 2; L. 1984, ch. 49, § 2; L. 1984, ch. 50,
§ 1; L. 1984, ch. 48, § 5;
L. 1986, ch. 57, § 8; L. 1986, ch. 58, § 1;
L. 1987, ch. 53, § 1;
L. 1990, ch. 58, § 1;
L. 1992, ch. 61, § 1;
L. 1994, ch. 51, § 5;
L. 1995, ch. 79, § 15;
L. 1997, ch. 180, § 12;
L. 2001, ch. 87, § 7; July 1.