Brief (1)
HB 2754 concerns real estate property acquired by a bank for its own use. The bill requires a bank to dispose of or charge off its books such property not later than seven years from the date the intended use for banking purposes ends. The seven-year period for holding such property for the bank's own use under current law begins to run on the date of purchase or acquisition of the property. Further, the bill authorizes the Commissioner to extend from two to three additional years the time in which a bank would have to dispose of the unused property.
Background
HB 2754 was requested by the Kansas Bankers Association whose representative explained that the current law places banks that do not use acquired property for its own use in violation of the law almost immediately upon making a decision not to use the property. The bill will give a bank additional time to divest itself of the property without being in violation of the law.
The fiscal note prepared by the Division of the Budget indicates passage of the bill will have no fiscal effect.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html