Article 14.--BANKING CODE; DEPOSIT OF PUBLIC MONEYS
9-1402.Securing the deposits of public funds;
acceptable items; items not
acceptable; expenses.
(a) Before any deposit of public moneys or funds shall be made by any
municipal corporation or quasi-municipal corporation of the state of Kansas
with any bank, savings
and
loan association or savings bank, such municipal or
quasi-municipal corporation shall obtain security for such deposit in one
of the following manners prescribed by this section.
(b) Such bank, savings
and loan association or savings bank may give to the
municipal corporation or quasi-municipal corporation a personal bond in
double the amount which may be on deposit at any given time.
(c) Such bank, savings
and loan association or savings bank may give a corporate surety bond of some surety
corporation authorized to do business in this state, which bond shall be
in an amount equal to the public moneys or funds on deposit at any given
time less the amount of such public moneys or funds which is insured by the
federal deposit insurance corporation or its successor and such bond shall be
conditioned that such deposit shall be paid
promptly on the order of the municipal corporation or quasi-municipal
corporation making such deposits.
(d) Such bank,
savings and loan association or savings bank may
deposit,
maintain, pledge, assign, and grant a security interest in, or
cause its agent, trustee, wholly-owned subsidiary or affiliate having identical
ownership to deposit, maintain, pledge, assign, and grant
a security interest in,
for the benefit of
the governing body of the municipal corporation or quasi-municipal
corporation in the manner provided in this act, securities, security
entitlements, financial assets and securities accounts owned by the
depository institution directly
or indirectly through its agent or
trustee holding securities on its behalf, or owned by the depository
institutions wholly-owned subsidiary or by such affiliate,
the market value of which is equal to
100% of the total deposits at any given time, and such securities, security
entitlements, financial assets and securities accounts, may be
accepted or
rejected by the governing body of the municipal corporation or quasi-municipal
corporation and
shall consist of the following and security entitlements thereto:
(1) Direct obligations of, or obligations that are insured as to principal
and interest by, the United States of America or any agency thereof and
obligations, including but not limited to letters of credit, and securities
of United States sponsored corporations which
under federal law may be accepted as security for public funds;
(2) bonds of any municipal corporation or quasi-municipal corporation of
the state of Kansas which have been refunded in advance of their maturity
and are fully secured as to payment of principal and interest thereon by
deposit in trust, under escrow agreement with a bank, of direct obligations
of, or obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America;
(3) bonds of the state of Kansas;
(4) general obligation bonds of any municipal corporation or
quasi-municipal corporation of the state of Kansas;
(5) revenue bonds of
any municipal corporation or quasi-municipal corporation of the state of
Kansas if approved by the state bank commissioner in the case of banks and
by the savings and loan commissioner in the case of savings and loan
associations or federally chartered savings banks;
(6) temporary notes
of any municipal corporation or quasi-municipal corporation of the
state of Kansas which are general obligations of the municipal or
quasi-municipal corporation issuing the same;
(7) warrants of any municipal corporation or
quasi-municipal corporation of the state of Kansas the issuance of which
is authorized by the state court of tax appeals and which
are payable from the proceeds of a mandatory tax levy;
(8) bonds of either a Kansas not-for-profit corporation or of a local
housing authority that are rated at least Aa by Moody's Investors Service
or AA by Standard & Poor's Corp.;
(9) bonds issued pursuant to K.S.A. 12-1740 et seq., and
amendments thereto, that are rated at least MIG-1 or Aa by Moody's Investors
Service
or AA by Standard & Poor's Corp.;
(10) notes of a Kansas not-for-profit corporation that are
issued to provide
only the interim funds for a mortgage loan that is insured by the federal
housing administration;
(11) bonds issued pursuant to K.S.A. 74-8901 through
74-8916, and amendments thereto;
(12) bonds issued pursuant to K.S.A. 68-2319 through
68-2330, and amendments thereto;
(13) commercial paper that does not exceed 270 days to maturity and which
has received one of the two highest commercial paper credit ratings by a
nationally recognized investment rating firm; or
(14) (A) negotiable promissory notes together with first lien
mortgages
on one to four family residential real estate located in
Kansas securing payment of such notes when such notes or mortgages:
(i) Are underwritten by the federal national mortgage association, the
federal home loan mortgage corporation, the federal housing administration or
the veterans administration standards;
or are valued pursuant to rules and
regulations which shall be adopted by both the state bank commissioner and the
savings and loan commissioner after having first being submitted to and
approved by both the state banking board under K.S.A. 9-1713, and amendments
thereto, and the savings and loan board. Such rules and regulations shall be
published in only one place in the Kansas administrative regulations as
directed by the state rules and regulations board;
(ii) have been in existence with the same borrower for at least two years
and with no history of any installment being unpaid for 30 days or more; and
(iii) are valued at not to exceed 50% of the lesser of the following three
values: Outstanding mortgage balance; current appraised value of the real
estate; or discounted
present value based upon current federal national mortgage association or
government national mortgage association interest rates quoted for
conventional,
federal housing administration or veterans administration mortgage loans.
(B) Securities under (A)
shall be taken at their value for not more than 50% of the security
required under the provisions of this section.
(C) Securities under (A) shall be withdrawn immediately from the
collateral pool if any installment is unpaid for 30 days or more.
(D) A status report on all such loans shall be provided to the investing
governmental entity by the
financial institution on a quarterly basis.
(e) No such bank, savings and loan association
or savings bank may deposit and maintain for the
benefit
of the governing
body of a municipal or quasi-municipal corporation of the state of
Kansas, any securities which consist of:
(1) Bonds secured by revenues of a utility which has been in operation for
less than three years; or
(2) bonds issued under K.S.A. 12-1740 et seq., and amendments thereto,
unless such bonds
have been refunded in advance of their maturity as provided in subsection
(d) or such bonds are rated at least Aa by Moody's Investors Service or
AA by Standard & Poor's Corp.
(f) Any expense incurred in
connection with granting approval of revenue bonds shall be paid by the
applicant for approval.
History: L. 1947, ch. 102, § 64;
L. 1965, ch. 76, § 1;
L. 1968, ch. 236, § 1;
L. 1970, ch. 63, § 1;
L. 1973, ch. 48, § 1;
L. 1976, ch. 79, § 1;
L. 1978, ch. 45, § 1;
L. 1980, ch. 47, § 1;
L. 1982, ch. 52, § 2;
L. 1983, ch. 49, § 17;
L. 1983, ch. 47, § 3;
L. 1983, ch. 49, § 18;
L. 1985, ch. 58, § 1;
L. 1985, ch. 58, § 2;
L. 1986, ch. 76, § 2;
L. 1986, ch. 76, § 3;
L. 1987, ch. 56, § 1;
L. 1989, ch. 48, § 42;
L. 1989, ch. 209, § 18;
L. 1992, ch. 146, § 25;
L. 1994, ch. 74, § 1;
L. 1997, ch. 180, § 4;
L. 2008, ch. 109, § 22; July 1.
Article 14.--BANKING CODE; DEPOSIT OF PUBLIC MONEYS
9-1402.Securing the deposits of public funds;
acceptable items; items not
acceptable; expenses.
(a) Before any deposit of public moneys or funds shall be made by any
municipal corporation or quasi-municipal corporation of the state of Kansas
with any bank, savings
and
loan association or savings bank, such municipal or
quasi-municipal corporation shall obtain security for such deposit in one
of the following manners prescribed by this section.
(b) Such bank, savings
and loan association or savings bank may give to the
municipal corporation or quasi-municipal corporation a personal bond in
double the amount which may be on deposit at any given time.
(c) Such bank, savings
and loan association or savings bank may give a corporate surety bond of some surety
corporation authorized to do business in this state, which bond shall be
in an amount equal to the public moneys or funds on deposit at any given
time less the amount of such public moneys or funds which is insured by the
federal deposit insurance corporation or its successor and such bond shall be
conditioned that such deposit shall be paid
promptly on the order of the municipal corporation or quasi-municipal
corporation making such deposits.
(d) Such bank,
savings and loan association or savings bank may
deposit,
maintain, pledge, assign, and grant a security interest in, or
cause its agent, trustee, wholly-owned subsidiary or affiliate having identical
ownership to deposit, maintain, pledge, assign, and grant
a security interest in,
for the benefit of
the governing body of the municipal corporation or quasi-municipal
corporation in the manner provided in this act, securities, security
entitlements, financial assets and securities accounts owned by the
depository institution directly
or indirectly through its agent or
trustee holding securities on its behalf, or owned by the depository
institutions wholly-owned subsidiary or by such affiliate,
the market value of which is equal to
100% of the total deposits at any given time, and such securities, security
entitlements, financial assets and securities accounts, may be
accepted or
rejected by the governing body of the municipal corporation or quasi-municipal
corporation and
shall consist of the following and security entitlements thereto:
(1) Direct obligations of, or obligations that are insured as to principal
and interest by, the United States of America or any agency thereof and
obligations, including but not limited to letters of credit, and securities
of United States sponsored corporations which
under federal law may be accepted as security for public funds;
(2) bonds of any municipal corporation or quasi-municipal corporation of
the state of Kansas which have been refunded in advance of their maturity
and are fully secured as to payment of principal and interest thereon by
deposit in trust, under escrow agreement with a bank, of direct obligations
of, or obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America;
(3) bonds of the state of Kansas;
(4) general obligation bonds of any municipal corporation or
quasi-municipal corporation of the state of Kansas;
(5) revenue bonds of
any municipal corporation or quasi-municipal corporation of the state of
Kansas if approved by the state bank commissioner in the case of banks and
by the savings and loan commissioner in the case of savings and loan
associations or federally chartered savings banks;
(6) temporary notes
of any municipal corporation or quasi-municipal corporation of the
state of Kansas which are general obligations of the municipal or
quasi-municipal corporation issuing the same;
(7) warrants of any municipal corporation or
quasi-municipal corporation of the state of Kansas the issuance of which
is authorized by the state court of tax appeals and which
are payable from the proceeds of a mandatory tax levy;
(8) bonds of either a Kansas not-for-profit corporation or of a local
housing authority that are rated at least Aa by Moody's Investors Service
or AA by Standard & Poor's Corp.;
(9) bonds issued pursuant to K.S.A. 12-1740 et seq., and
amendments thereto, that are rated at least MIG-1 or Aa by Moody's Investors
Service
or AA by Standard & Poor's Corp.;
(10) notes of a Kansas not-for-profit corporation that are
issued to provide
only the interim funds for a mortgage loan that is insured by the federal
housing administration;
(11) bonds issued pursuant to K.S.A. 74-8901 through
74-8916, and amendments thereto;
(12) bonds issued pursuant to K.S.A. 68-2319 through
68-2330, and amendments thereto;
(13) commercial paper that does not exceed 270 days to maturity and which
has received one of the two highest commercial paper credit ratings by a
nationally recognized investment rating firm; or
(14) (A) negotiable promissory notes together with first lien
mortgages
on one to four family residential real estate located in
Kansas securing payment of such notes when such notes or mortgages:
(i) Are underwritten by the federal national mortgage association, the
federal home loan mortgage corporation, the federal housing administration or
the veterans administration standards;
or are valued pursuant to rules and
regulations which shall be adopted by both the state bank commissioner and the
savings and loan commissioner after having first being submitted to and
approved by both the state banking board under K.S.A. 9-1713, and amendments
thereto, and the savings and loan board. Such rules and regulations shall be
published in only one place in the Kansas administrative regulations as
directed by the state rules and regulations board;
(ii) have been in existence with the same borrower for at least two years
and with no history of any installment being unpaid for 30 days or more; and
(iii) are valued at not to exceed 50% of the lesser of the following three
values: Outstanding mortgage balance; current appraised value of the real
estate; or discounted
present value based upon current federal national mortgage association or
government national mortgage association interest rates quoted for
conventional,
federal housing administration or veterans administration mortgage loans.
(B) Securities under (A)
shall be taken at their value for not more than 50% of the security
required under the provisions of this section.
(C) Securities under (A) shall be withdrawn immediately from the
collateral pool if any installment is unpaid for 30 days or more.
(D) A status report on all such loans shall be provided to the investing
governmental entity by the
financial institution on a quarterly basis.
(e) No such bank, savings and loan association
or savings bank may deposit and maintain for the
benefit
of the governing
body of a municipal or quasi-municipal corporation of the state of
Kansas, any securities which consist of:
(1) Bonds secured by revenues of a utility which has been in operation for
less than three years; or
(2) bonds issued under K.S.A. 12-1740 et seq., and amendments thereto,
unless such bonds
have been refunded in advance of their maturity as provided in subsection
(d) or such bonds are rated at least Aa by Moody's Investors Service or
AA by Standard & Poor's Corp.
(f) Any expense incurred in
connection with granting approval of revenue bonds shall be paid by the
applicant for approval.
History: L. 1947, ch. 102, § 64;
L. 1965, ch. 76, § 1;
L. 1968, ch. 236, § 1;
L. 1970, ch. 63, § 1;
L. 1973, ch. 48, § 1;
L. 1976, ch. 79, § 1;
L. 1978, ch. 45, § 1;
L. 1980, ch. 47, § 1;
L. 1982, ch. 52, § 2;
L. 1983, ch. 49, § 17;
L. 1983, ch. 47, § 3;
L. 1983, ch. 49, § 18;
L. 1985, ch. 58, § 1;
L. 1985, ch. 58, § 2;
L. 1986, ch. 76, § 2;
L. 1986, ch. 76, § 3;
L. 1987, ch. 56, § 1;
L. 1989, ch. 48, § 42;
L. 1989, ch. 209, § 18;
L. 1992, ch. 146, § 25;
L. 1994, ch. 74, § 1;
L. 1997, ch. 180, § 4;
L. 2008, ch. 109, § 22; July 1.
Article 14.--BANKING CODE; DEPOSIT OF PUBLIC MONEYS
9-1402.Securing the deposits of public funds;
acceptable items; items not
acceptable; expenses.
(a) Before any deposit of public moneys or funds shall be made by any
municipal corporation or quasi-municipal corporation of the state of Kansas
with any bank, savings
and
loan association or savings bank, such municipal or
quasi-municipal corporation shall obtain security for such deposit in one
of the following manners prescribed by this section.
(b) Such bank, savings
and loan association or savings bank may give to the
municipal corporation or quasi-municipal corporation a personal bond in
double the amount which may be on deposit at any given time.
(c) Such bank, savings
and loan association or savings bank may give a corporate surety bond of some surety
corporation authorized to do business in this state, which bond shall be
in an amount equal to the public moneys or funds on deposit at any given
time less the amount of such public moneys or funds which is insured by the
federal deposit insurance corporation or its successor and such bond shall be
conditioned that such deposit shall be paid
promptly on the order of the municipal corporation or quasi-municipal
corporation making such deposits.
(d) Such bank,
savings and loan association or savings bank may
deposit,
maintain, pledge, assign, and grant a security interest in, or
cause its agent, trustee, wholly-owned subsidiary or affiliate having identical
ownership to deposit, maintain, pledge, assign, and grant
a security interest in,
for the benefit of
the governing body of the municipal corporation or quasi-municipal
corporation in the manner provided in this act, securities, security
entitlements, financial assets and securities accounts owned by the
depository institution directly
or indirectly through its agent or
trustee holding securities on its behalf, or owned by the depository
institutions wholly-owned subsidiary or by such affiliate,
the market value of which is equal to
100% of the total deposits at any given time, and such securities, security
entitlements, financial assets and securities accounts, may be
accepted or
rejected by the governing body of the municipal corporation or quasi-municipal
corporation and
shall consist of the following and security entitlements thereto:
(1) Direct obligations of, or obligations that are insured as to principal
and interest by, the United States of America or any agency thereof and
obligations, including but not limited to letters of credit, and securities
of United States sponsored corporations which
under federal law may be accepted as security for public funds;
(2) bonds of any municipal corporation or quasi-municipal corporation of
the state of Kansas which have been refunded in advance of their maturity
and are fully secured as to payment of principal and interest thereon by
deposit in trust, under escrow agreement with a bank, of direct obligations
of, or obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America;
(3) bonds of the state of Kansas;
(4) general obligation bonds of any municipal corporation or
quasi-municipal corporation of the state of Kansas;
(5) revenue bonds of
any municipal corporation or quasi-municipal corporation of the state of
Kansas if approved by the state bank commissioner in the case of banks and
by the savings and loan commissioner in the case of savings and loan
associations or federally chartered savings banks;
(6) temporary notes
of any municipal corporation or quasi-municipal corporation of the
state of Kansas which are general obligations of the municipal or
quasi-municipal corporation issuing the same;
(7) warrants of any municipal corporation or
quasi-municipal corporation of the state of Kansas the issuance of which
is authorized by the state court of tax appeals and which
are payable from the proceeds of a mandatory tax levy;
(8) bonds of either a Kansas not-for-profit corporation or of a local
housing authority that are rated at least Aa by Moody's Investors Service
or AA by Standard & Poor's Corp.;
(9) bonds issued pursuant to K.S.A. 12-1740 et seq., and
amendments thereto, that are rated at least MIG-1 or Aa by Moody's Investors
Service
or AA by Standard & Poor's Corp.;
(10) notes of a Kansas not-for-profit corporation that are
issued to provide
only the interim funds for a mortgage loan that is insured by the federal
housing administration;
(11) bonds issued pursuant to K.S.A. 74-8901 through
74-8916, and amendments thereto;
(12) bonds issued pursuant to K.S.A. 68-2319 through
68-2330, and amendments thereto;
(13) commercial paper that does not exceed 270 days to maturity and which
has received one of the two highest commercial paper credit ratings by a
nationally recognized investment rating firm; or
(14) (A) negotiable promissory notes together with first lien
mortgages
on one to four family residential real estate located in
Kansas securing payment of such notes when such notes or mortgages:
(i) Are underwritten by the federal national mortgage association, the
federal home loan mortgage corporation, the federal housing administration or
the veterans administration standards;
or are valued pursuant to rules and
regulations which shall be adopted by both the state bank commissioner and the
savings and loan commissioner after having first being submitted to and
approved by both the state banking board under K.S.A. 9-1713, and amendments
thereto, and the savings and loan board. Such rules and regulations shall be
published in only one place in the Kansas administrative regulations as
directed by the state rules and regulations board;
(ii) have been in existence with the same borrower for at least two years
and with no history of any installment being unpaid for 30 days or more; and
(iii) are valued at not to exceed 50% of the lesser of the following three
values: Outstanding mortgage balance; current appraised value of the real
estate; or discounted
present value based upon current federal national mortgage association or
government national mortgage association interest rates quoted for
conventional,
federal housing administration or veterans administration mortgage loans.
(B) Securities under (A)
shall be taken at their value for not more than 50% of the security
required under the provisions of this section.
(C) Securities under (A) shall be withdrawn immediately from the
collateral pool if any installment is unpaid for 30 days or more.
(D) A status report on all such loans shall be provided to the investing
governmental entity by the
financial institution on a quarterly basis.
(e) No such bank, savings and loan association
or savings bank may deposit and maintain for the
benefit
of the governing
body of a municipal or quasi-municipal corporation of the state of
Kansas, any securities which consist of:
(1) Bonds secured by revenues of a utility which has been in operation for
less than three years; or
(2) bonds issued under K.S.A. 12-1740 et seq., and amendments thereto,
unless such bonds
have been refunded in advance of their maturity as provided in subsection
(d) or such bonds are rated at least Aa by Moody's Investors Service or
AA by Standard & Poor's Corp.
(f) Any expense incurred in
connection with granting approval of revenue bonds shall be paid by the
applicant for approval.
History: L. 1947, ch. 102, § 64;
L. 1965, ch. 76, § 1;
L. 1968, ch. 236, § 1;
L. 1970, ch. 63, § 1;
L. 1973, ch. 48, § 1;
L. 1976, ch. 79, § 1;
L. 1978, ch. 45, § 1;
L. 1980, ch. 47, § 1;
L. 1982, ch. 52, § 2;
L. 1983, ch. 49, § 17;
L. 1983, ch. 47, § 3;
L. 1983, ch. 49, § 18;
L. 1985, ch. 58, § 1;
L. 1985, ch. 58, § 2;
L. 1986, ch. 76, § 2;
L. 1986, ch. 76, § 3;
L. 1987, ch. 56, § 1;
L. 1989, ch. 48, § 42;
L. 1989, ch. 209, § 18;
L. 1992, ch. 146, § 25;
L. 1994, ch. 74, § 1;
L. 1997, ch. 180, § 4;
L. 2008, ch. 109, § 22; July 1.