9-811. Prohibition against nonbank banks; allowing certain credit card banks. - Kansas Statutes

9-811

Chapter 9.--BANKS AND BANKING; TRUST COMPANIES Article 8.--BANKING CODE; ORGANIZATION

      9-811.   Prohibition against nonbank banks; allowing certain credit card banks. No financial institution whose deposits are insured by the federal deposit insurance corporation shall conduct business in this state unless such institution (a) has the legal right to accept deposits that the depositor has the legal right to withdraw on demand and to engage in the business of making commercial loans or, (b) is a national bank which engages only in credit card operations, does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others, does not accept any savings or time deposits of less than $100,000, accepts deposits only from corporations which own 51% or more of the voting shares of the bank holding company or its parent corporation, as defined by K.S.A. 9-519, and amendments thereto, of which the bank engaging only in credit card operations is a subsidiary, as defined by K.S.A. 9-519, and amendments thereto, maintains only one office that accepts deposits, and does not engage in the business of making commercial loans.

      History:   L. 1985, ch. 84, § 1; L. 1991, ch. 46, § 2; July 1.