An Act concerning banks and trust companies; surety bonds of officers and employees; amending K.S.A. 1995 Supp. 9-1115 and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1995 Supp. 9-1115 is hereby amended to read as follows: 9-1115. (a) The board of directors may elect a chairperson and shall elect a president from its members and shall elect one or more vice- presidents, a secretary and a cashier. The office of president and cashier shall not be filled by the same person. Such officers shall hold their offices for a term of not to exceed one year and until their successors are elected and qualified.

(b) The board of directors shall require all officers and employees having the care or handling of the funds of the bank or trust company to give a good and sufficient bond to be executed by an approved corporate surety authorized to do business in this state. The amount and form of the bond shall be approved by the board of directors and the form of such bond shall be approved by the board of directors and the commis- sioner. Such bond shall be held by the commissioner of the bank or trust company. The costs of such bonds shall be paid by the bank or trust company. Proof of current bond coverage shall be provided to the commissioner.

(c) Any officer of any bank or trust company who shall become in- debted to such bank or trust company on any judgment or whose in- debtedness is charged off indebtedness or forgiven shall forfeit the office and the board of directors shall fill the vacancy.

Sec. 2. K.S.A. 1995 Supp. 9-1115 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its publication in the statute book.

Approved March 22, 1996.