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12  AN ACT relating to banks and trust companies; concerning directors and
13    officers; stock ownership; bank holding companies; limitations on
14    ownership; amending K.S.A. 9-1114 and 9-1118 and K.S.A. 1996
15    Supp. 9-520 and repealing the existing section sections; also re-
16    pealing K.S.A. 1996 Supp. 9-1117.
17
18  Be it enacted by the Legislature of the State of Kansas:
19    Section 1.  K.S.A. 9-1114 is hereby amended to read as follows:
20  9-1114. The business of any bank or trust company shall be man-
21  aged and controlled by its board of directors and this shall include
22  the authority to provide for bonus payments, in addition to ordi-
23  nary compensation for any or all of its officers and employees. The
24  board shall consist of not less than five nor more than 25 members,
25  all of whom shall be stockholders of the bank or trust company or of the
26  parent corporation of the bank or trust company, and who shall be
27  elected by the stockholders at any regular annual meeting which
28  shall be held during the first 120 days of each calendar year. If the
29  number of directors elected is less than 25, the number of directors
30  may be increased so long as the total number does not exceed 25
31  and when the number is increased the first additional directors
32  may be elected at a special meeting of the stockholders. The di-
33  rectors shall be elected in the manner provided in the general
34  corporation code. Vacancies in the board of directors may be filled
35  in the manner provided in the general corporation code. A major-
36  ity of the directors shall be residents of this state. Any director of
37  any bank or trust company who shall become indebted to such
38  bank or trust company on any judgment or charged off indebted-
39  ness shall forfeit such person's position as director and such va-
40  cancy shall be filled as provided by law.
41    Section 1. Sec. 2.  K.S.A. 9-1118 is hereby amended to read as fol-
42  lows: 9-1118. Each director shall take and subscribe an oath that such
43  director will administer the affairs of such bank or trust company dili-
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 1  gently and honestly and that such director will not knowingly or willfully
 2  permit any of the laws relating to banks or trust companies to be violated
 3  and each director and the president of a bank or trust company shall
 4  swear that such director or president is the owner in good faith of shares
 5  of common stock having a par value of at least $500 of such bank or trust
 6  company or in the parent corporation of such bank or trust company
 7  standing in such director's or president's name and that the same has not
 8  been pledged or assigned, except as authorized by K.S.A. 9-1117, and
 9  amendments thereto. A copy of such oath shall be filed with the com-
10  missioner.
11    Sec. 3.  K.S.A. 1996 Supp. 9-520 is hereby amended to read as
12  follows: 9-520. (a) Excluding shares held under the circumstances
13  set out in paragraph (2) of subsection (a) of K.S.A. 9-519, and
14  amendments thereto, no bank holding company or any subsidiary
15  thereof shall directly or indirectly acquire ownership or control of,
16  or power to vote, any of the voting shares of any bank domiciled in
17  this state which holds Kansas deposits if, after such acquisition, all
18  banks domiciled in this state, in which the bank holding company or
19  any subsidiary thereof has ownership or control of, or power to vote, any
20  voting shares, would have and all subsidiaries would hold or control, in
21  the aggregate, more than 15% of the total deposits of all banks in this
22  state plus the total deposits, savings deposits, shares and other accounts
23  in savings and loan associations, federal savings banks and building and
24  loan associations in this state as determined by the state bank commis-
25  sioner on the basis of the most recent reports to supervisory authorities
26  which are available at the time of the acquisition total Kansas deposits.
27    (b)  This section shall not prohibit a bank holding company or
28  any subsidiary thereof from acquiring ownership or control of, or
29  power to vote, any of the voting shares of any bank domiciled in this
30  state if the state bank if the commissioner, in the case of a bank or-
31  ganized under the laws of this state, or the comptroller of the cur-
32  rency, in the case of a national banking association, determines that
33  an emergency exists and that the acquisition is appropriate in order
34  to protect the public interest against the failure or probable failure
35  of the bank.
36    (c)  As used in this section, ``Kansas deposits'' means deposits, savings
37  deposits, shares or similar accounts held by banks, savings and loan as-
38  sociations, savings banks and building and loan associations attributable
39  to any office in Kansas where deposits are accepted as determined by the
40  commissioner on the basis of the most recent reports to supervisory au-
41  thorities which are available at the time of the acquisition.
42    Sec. 2.bcu 3 4.  K.S.A. 9-1118 is 9-1114 and 9-1118 and K.S.A. 1996
43  Supp. 9-520 and 9-1117 are hereby repealed.
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 1    Sec. 3.bcu 4 5.  This act shall take effect and be in force from and after
 2  its publication in the statute book.