9-1213. Payment of certain drafts of failed or closed banks. - Kansas Statutes

9-1213

Chapter 9.--BANKS AND BANKING; TRUST COMPANIES Article 12.--BANKING CODE; TRANSACTIONS

      9-1213.   Payment of certain drafts of failed or closed banks. If any bank shall be presented in the usual course of business with a draft drawn on it by any bank in the state of Kansas, after said drawer bank has failed or been closed for business by law or by other proper legal action, which said draft was issued prior to the failure or closing of said bank and has on deposit to the credit of said failed or closed bank sufficient funds with which to pay said draft, said bank shall, upon receiving proof that said draft represents payment of cash letters covering checks which had been charged to the individual accounts of the said failed or closed bank prior to the failure or closing of said bank, honor and pay said draft regardless of its having received notice, constructive or otherwise, of the failure or closing of such bank.

      History:   L. 1955, ch. 66, § 1; June 30.