9-2305. Capitalization requirements. (a) For purposes of this section, "capital" means the total of the aggregate par value of a fiduciary financial institution's outstanding membership units, its surplus and its undivided profits.
(b) (1) The required capital for fiduciary financial institutions shall at all times be $250,000 when:
(A) The fiduciary financial institution does not accept deposits, other than alternative asset custody accounts;
(B) the fiduciary financial institution maintains no third-party debt except debts owed to the members of the fiduciary financial institution or affiliates of the fiduciary financial institution; and
(C) the fiduciary financial institution has secured an agreement from its members whereby such members agree to contribute additional capital to the fiduciary financial institution if needed to ensure the safety and soundness of the fiduciary financial institution. A fiduciary financial institution that fails to satisfy the foregoing requirements shall be subject to the capitalization requirements of K.S.A. 9-901a, and amendments thereto, applicable to trust companies.
(2) The capital of a fiduciary financial institution shall be divided, with 60% of the amount as the aggregate par value of outstanding membership units, 30% as surplus and 10% as undivided profits.
History: L. 2021, ch. 80, ยง 5; July 1.
Structure Kansas Statutes
Chapter 9 - Banks And Banking; Trust Companies
Article 23 - Technology-enabled Fiduciary Financial Institutions
9-2301 Citation of act; definitions.
9-2303 Fees and assessments; examination expenses; remittance of moneys.
9-2304 Provisions of state banking code applicable; exceptions; conflict of law.
9-2305 Capitalization requirements.
9-2306 Board of directors; membership; annual meeting; oath; notification of commissioner.
9-2307 Report to commissioner; safety and soundness.
9-2308 Name of institution; advertising; restrictions.
9-2309 Maintaining suitable office space; requirements; staffing; maintenance of records.
9-2311 Financing; required distribution amount; schedules; remittance of moneys.
9-2313 Custodial services; requirements.
9-2314 Trust advisor; rights, powers, immunities and liabilities.
9-2316 Trust advisor; presumed fiduciary; jurisdiction; appointment.
9-2317 Entity as trust advisor; requirements.
9-2318 Indemnification of trust advisor; exceptions.
9-2320 Privacy; protection in court proceedings; exception.
9-2321 Forms; definition; request for review; review not approval or endorsement.
9-2322 Adoption of rules and regulations by the commissioner; contracts for technical assistance.
9-2323 No maximum interest rate or charge.
9-2326 Trust interest not void or invalid by any common law rule.
9-2327 Tax classification as determined under the federal internal revenue code.