9-1407. Exemption of security for insured portion of public deposits; reciprocal deposit programs. (a) That portion of any deposit of public moneys or funds which is insured by the federal deposit insurance corporation, or its successor, need not be secured as provided in article 14 of chapter 9 of the Kansas Statutes Annotated, and amendments thereto.
(b) Public moneys or funds deposited by a municipal corporation or quasi-municipal corporation in a selected bank, savings and loan association or savings bank which are part of a reciprocal deposit program shall not be treated as securities and need not be secured as provided in article 14 of chapter 9 of the Kansas Statutes Annotated, and amendments thereto, if the:
(1) Bank, savings and loan association or savings bank receives reciprocal deposits from other participating institutions located in the United States in an amount equal to the amount of funds deposited by the municipal corporation or quasi-municipal corporation; and
(2) total cumulative amount of each deposit does not exceed the maximum deposit insurance amount for one depositor at one financial institution as determined by the federal deposit insurance corporation.
History: L. 1947, ch. 102, § 69; L. 1982, ch. 52, § 5; L. 1997, ch. 180, § 8; L. 2009, ch. 49, § 1; L. 2015, ch. 38, § 81; July 1.
Structure Kansas Statutes
Chapter 9 - Banks And Banking; Trust Companies
Article 14 - Banking Code; Deposit Of Public Moneys
9-1401 Designation of depositories for public funds; duty of public officers; agreements.
9-1402 Securing the deposits of public funds.
9-1403 Securities for deposits of public funds; exemption during peak deposits.
9-1406 Exemption from liability for loss by official depository.
9-1407 Exemption of security for insured portion of public deposits; reciprocal deposit programs.
9-1409 Securing deposits of public moneys of out-of-state governmental units; when.