Article 14.--BANKING CODE; DEPOSIT OF PUBLIC MONEYS
9-1405.Deposit of securities, security entitlements and financial assets
in securities account; written custodial agreement; receipt.
(a) All bonds and securities given by any bank, savings and loan association or
savings
bank
to secure public moneys of the United States or any board, commission or agency
thereof, shall be deposited as required by the United States government or any
of its designated agencies.
(b) All securities, security
entitlements and financial assets securing the deposits of any
municipal corporation or quasi-municipal corporation shall be deposited
in a securities account with a bank incorporated under the laws of this state,
or
organized under the laws of the United States or another state and which has
a main or branch office in this state, a trust company incorporated under the
laws of this state or another state, the
federal
home
loan bank of Topeka or with the state treasurer pursuant to a written
custodial agreement and a
receipt taken therefor with one
copy going to the municipal corporation or quasi-municipal corporation
making the public deposit and one copy going to the bank, savings and loan
association or savings bank which has secured such public deposits. The receipt
shall identify the securities, security entitlements and financial assets which
are subject to a security interest to secure payment of the deposits of the
municipal corporation or quasi-municipal corporation. This section
shall not prohibit any custodial bank or trust company receiving securities,
security entitlements and financial assets on deposit
from
issuing a receipt and depositing securities,
security entitlements and financial assets identified in the receipt in such
bank's account with
any bank chartered in Kansas or any other state, any trust company chartered
in Kansas or any other state, any national bank, or any
centralized securities
depository wherever located within the United States. No
securities, security entitlements and financial assets
securing public deposits shall be
deposited in any bank, trust company, or national bank which is
owned directly
or indirectly by any parent corporation
of the depository bank, or with any bank, trust company, or national bank,
having common controlling shareholders,
having a common majority of
the board of directors or having common directors with the ability to control
or influence directly or
indirectly the acts or policies of
the
bank, savings and loan association or savings bank securing such public deposits.
When securities, security entitlements and financial assets
are deposited with the state treasurer as
authorized
by this subsection, the state treasurer shall make a charge for such service
which is equivalent to the reasonable and customary charge made therefor.
Securities, security entitlements and financial assets securing the deposits
of any municipal corporation or quasi-municipal corporation may be deposited
with the federal reserve bank of Kansas City to be there held in such manner,
under regulations and operating letters of the bank, as to secure payment of
the deposits of the municipal corporation or quasi-municipal corporation in the
depository institution.
(c) The depository
bank, savings and loan association or savings bank and any agent, trustee,
wholly-owned subsidiary or affiliate having identical ownership granting a
security interest shall enter
into a written agreement with the municipal corporation or quasi-municipal
corporation granting the municipal corporation or quasi-municipal corporation a
security interest in the securities, security entitlements and financial assets
qualified under K.S.A. 9-1402, and amendments thereto, to secure payment of
deposits of public moneys of the municipal corporation or quasi-municipal
corporation. Such security interests shall be perfected by the depository
bank, savings and loan association or savings bank and any agent, trustee,
wholly-owned subsidiary or affiliate having identical ownership granting a
security interest causing control
of the securities, security entitlements and financial assets under the Kansas
uniform commercial code to be given to the municipality or quasi-municipality.
The security agreement and the custodial agreement shall be in writing,
executed by all parties thereto, maintained as part of their official records,
and except for the municipal corporations or quasi-municipal corporation,
approved by their boards of directors or their loan committees, which approvals
shall be reflected in the minutes of the boards or committees.
(d) A bank, savings and loan association or savings bank which fails to pay
according to its terms
any
deposit
of public moneys of any municipal or quasi-municipal corporation shall
immediately take such actions as are required to enable bonds and
securities pledged to secure such deposit to be sold to satisfy its
obligation to the municipal or quasi-municipal corporation.
History: L. 1947, ch. 102, § 67; L. 1975, ch. 44, § 24; L. 1976,
ch. 58, § 1; L. 1982, ch. 52, § 4; L. 1983, ch. 47, § 5; L. 1985,
ch. 58, § 4; L. 1986, ch. 76, § 5; L. 1989, ch. 48, § 44; L. 1990, ch.
60, § 1;
L. 1993, ch. 207, § 1;
L. 1994, ch. 105, § 1;
L. 1997, ch. 180, § 6; May 29.
Article 14.--BANKING CODE; DEPOSIT OF PUBLIC MONEYS
9-1405.Deposit of securities, security entitlements and financial assets
in securities account; written custodial agreement; receipt.
(a) All bonds and securities given by any bank, savings and loan association or
savings
bank
to secure public moneys of the United States or any board, commission or agency
thereof, shall be deposited as required by the United States government or any
of its designated agencies.
(b) All securities, security
entitlements and financial assets securing the deposits of any
municipal corporation or quasi-municipal corporation shall be deposited
in a securities account with a bank incorporated under the laws of this state,
or
organized under the laws of the United States or another state and which has
a main or branch office in this state, a trust company incorporated under the
laws of this state or another state, the
federal
home
loan bank of Topeka or with the state treasurer pursuant to a written
custodial agreement and a
receipt taken therefor with one
copy going to the municipal corporation or quasi-municipal corporation
making the public deposit and one copy going to the bank, savings and loan
association or savings bank which has secured such public deposits. The receipt
shall identify the securities, security entitlements and financial assets which
are subject to a security interest to secure payment of the deposits of the
municipal corporation or quasi-municipal corporation. This section
shall not prohibit any custodial bank or trust company receiving securities,
security entitlements and financial assets on deposit
from
issuing a receipt and depositing securities,
security entitlements and financial assets identified in the receipt in such
bank's account with
any bank chartered in Kansas or any other state, any trust company chartered
in Kansas or any other state, any national bank, or any
centralized securities
depository wherever located within the United States. No
securities, security entitlements and financial assets
securing public deposits shall be
deposited in any bank, trust company, or national bank which is
owned directly
or indirectly by any parent corporation
of the depository bank, or with any bank, trust company, or national bank,
having common controlling shareholders,
having a common majority of
the board of directors or having common directors with the ability to control
or influence directly or
indirectly the acts or policies of
the
bank, savings and loan association or savings bank securing such public deposits.
When securities, security entitlements and financial assets
are deposited with the state treasurer as
authorized
by this subsection, the state treasurer shall make a charge for such service
which is equivalent to the reasonable and customary charge made therefor.
Securities, security entitlements and financial assets securing the deposits
of any municipal corporation or quasi-municipal corporation may be deposited
with the federal reserve bank of Kansas City to be there held in such manner,
under regulations and operating letters of the bank, as to secure payment of
the deposits of the municipal corporation or quasi-municipal corporation in the
depository institution.
(c) The depository
bank, savings and loan association or savings bank and any agent, trustee,
wholly-owned subsidiary or affiliate having identical ownership granting a
security interest shall enter
into a written agreement with the municipal corporation or quasi-municipal
corporation granting the municipal corporation or quasi-municipal corporation a
security interest in the securities, security entitlements and financial assets
qualified under K.S.A. 9-1402, and amendments thereto, to secure payment of
deposits of public moneys of the municipal corporation or quasi-municipal
corporation. Such security interests shall be perfected by the depository
bank, savings and loan association or savings bank and any agent, trustee,
wholly-owned subsidiary or affiliate having identical ownership granting a
security interest causing control
of the securities, security entitlements and financial assets under the Kansas
uniform commercial code to be given to the municipality or quasi-municipality.
The security agreement and the custodial agreement shall be in writing,
executed by all parties thereto, maintained as part of their official records,
and except for the municipal corporations or quasi-municipal corporation,
approved by their boards of directors or their loan committees, which approvals
shall be reflected in the minutes of the boards or committees.
(d) A bank, savings and loan association or savings bank which fails to pay
according to its terms
any
deposit
of public moneys of any municipal or quasi-municipal corporation shall
immediately take such actions as are required to enable bonds and
securities pledged to secure such deposit to be sold to satisfy its
obligation to the municipal or quasi-municipal corporation.
History: L. 1947, ch. 102, § 67; L. 1975, ch. 44, § 24; L. 1976,
ch. 58, § 1; L. 1982, ch. 52, § 4; L. 1983, ch. 47, § 5; L. 1985,
ch. 58, § 4; L. 1986, ch. 76, § 5; L. 1989, ch. 48, § 44; L. 1990, ch.
60, § 1;
L. 1993, ch. 207, § 1;
L. 1994, ch. 105, § 1;
L. 1997, ch. 180, § 6; May 29.
Article 14.--BANKING CODE; DEPOSIT OF PUBLIC MONEYS
9-1405.Deposit of securities, security entitlements and financial assets
in securities account; written custodial agreement; receipt.
(a) All bonds and securities given by any bank, savings and loan association or
savings
bank
to secure public moneys of the United States or any board, commission or agency
thereof, shall be deposited as required by the United States government or any
of its designated agencies.
(b) All securities, security
entitlements and financial assets securing the deposits of any
municipal corporation or quasi-municipal corporation shall be deposited
in a securities account with a bank incorporated under the laws of this state,
or
organized under the laws of the United States or another state and which has
a main or branch office in this state, a trust company incorporated under the
laws of this state or another state, the
federal
home
loan bank of Topeka or with the state treasurer pursuant to a written
custodial agreement and a
receipt taken therefor with one
copy going to the municipal corporation or quasi-municipal corporation
making the public deposit and one copy going to the bank, savings and loan
association or savings bank which has secured such public deposits. The receipt
shall identify the securities, security entitlements and financial assets which
are subject to a security interest to secure payment of the deposits of the
municipal corporation or quasi-municipal corporation. This section
shall not prohibit any custodial bank or trust company receiving securities,
security entitlements and financial assets on deposit
from
issuing a receipt and depositing securities,
security entitlements and financial assets identified in the receipt in such
bank's account with
any bank chartered in Kansas or any other state, any trust company chartered
in Kansas or any other state, any national bank, or any
centralized securities
depository wherever located within the United States. No
securities, security entitlements and financial assets
securing public deposits shall be
deposited in any bank, trust company, or national bank which is
owned directly
or indirectly by any parent corporation
of the depository bank, or with any bank, trust company, or national bank,
having common controlling shareholders,
having a common majority of
the board of directors or having common directors with the ability to control
or influence directly or
indirectly the acts or policies of
the
bank, savings and loan association or savings bank securing such public deposits.
When securities, security entitlements and financial assets
are deposited with the state treasurer as
authorized
by this subsection, the state treasurer shall make a charge for such service
which is equivalent to the reasonable and customary charge made therefor.
Securities, security entitlements and financial assets securing the deposits
of any municipal corporation or quasi-municipal corporation may be deposited
with the federal reserve bank of Kansas City to be there held in such manner,
under regulations and operating letters of the bank, as to secure payment of
the deposits of the municipal corporation or quasi-municipal corporation in the
depository institution.
(c) The depository
bank, savings and loan association or savings bank and any agent, trustee,
wholly-owned subsidiary or affiliate having identical ownership granting a
security interest shall enter
into a written agreement with the municipal corporation or quasi-municipal
corporation granting the municipal corporation or quasi-municipal corporation a
security interest in the securities, security entitlements and financial assets
qualified under K.S.A. 9-1402, and amendments thereto, to secure payment of
deposits of public moneys of the municipal corporation or quasi-municipal
corporation. Such security interests shall be perfected by the depository
bank, savings and loan association or savings bank and any agent, trustee,
wholly-owned subsidiary or affiliate having identical ownership granting a
security interest causing control
of the securities, security entitlements and financial assets under the Kansas
uniform commercial code to be given to the municipality or quasi-municipality.
The security agreement and the custodial agreement shall be in writing,
executed by all parties thereto, maintained as part of their official records,
and except for the municipal corporations or quasi-municipal corporation,
approved by their boards of directors or their loan committees, which approvals
shall be reflected in the minutes of the boards or committees.
(d) A bank, savings and loan association or savings bank which fails to pay
according to its terms
any
deposit
of public moneys of any municipal or quasi-municipal corporation shall
immediately take such actions as are required to enable bonds and
securities pledged to secure such deposit to be sold to satisfy its
obligation to the municipal or quasi-municipal corporation.
History: L. 1947, ch. 102, § 67; L. 1975, ch. 44, § 24; L. 1976,
ch. 58, § 1; L. 1982, ch. 52, § 4; L. 1983, ch. 47, § 5; L. 1985,
ch. 58, § 4; L. 1986, ch. 76, § 5; L. 1989, ch. 48, § 44; L. 1990, ch.
60, § 1;
L. 1993, ch. 207, § 1;
L. 1994, ch. 105, § 1;
L. 1997, ch. 180, § 6; May 29.