9-1903. Undercapitalized and insolvent banks and trust companies; commissioner to take charge, when. If it shall appear upon the examination of any bank or trust company or from any report made to the commissioner that any bank or trust company is:
(a) Critically undercapitalized, the commissioner may:
(1) Enter an informal memorandum pursuant to K.S.A. 2021 Supp. 9-1810, and amendments thereto, to notify the bank or trust company of the unsafe and unsound condition and require the bank or trust company to correct the condition within the time prescribed by the commissioner; or
(2) take charge of such bank or trust company and all of its property and assets. In taking charge of a critically undercapitalized bank or trust company, the commissioner may:
(A) Appoint a special deputy commissioner to take charge temporarily of the affairs of the bank or trust company; or
(B) appoint a receiver if it shall appear at any time that the bank or trust company cannot sufficiently recapitalize, resume business or liquidate the bank's or trust company's indebtedness to the satisfaction of the depositors and creditors of such bank or trust company.
(b) Insolvent, the commissioner shall take charge of the bank or trust company and all property and assets of such bank or trust company. In taking charge of an insolvent bank or trust company, the commissioner shall:
(1) Appoint a special deputy commissioner to take charge temporarily of the affairs of the bank or trust company; or
(2) appoint a receiver if it shall appear at any time that the bank or trust company cannot sufficiently recapitalize, resume business or liquidate its indebtedness to the satisfaction of the depositors and creditors of such bank or trust company.
History: L. 1947, ch. 102, § 111; L. 1993, ch. 7, § 3; L. 2015, ch. 38, § 119; July 1.
Structure Kansas Statutes
Chapter 9 - Banks And Banking; Trust Companies
Article 19 - Banking Code; Dissolution; Insolvency
9-1902 Definition of insolvency.
9-1902a Critical undercapitalization.
9-1903 Undercapitalized and insolvent banks and trust companies; commissioner to take charge, when.
9-1905 Receiver for insolvent and undercapitalized bank or trust company.
9-1906 Receiver to take charge of assets; order of payment.
9-1907 Powers of federal deposit insurance corporation or its successor.
9-1908 Title to all assets to vest in insurance corporation.
9-1909 Claims to be filed within one year.
9-1910 Surrender control to commissioner.
9-1911 Receiver may borrow money.
9-1915 Deposits or debts while insolvent; liability.
9-1916 Same; action to enforce liability; evidence.
9-1918 Escheat and disposition of certain property in custody of commissioner; escheat.