9-1411. Duties of administrator in the event of a default; liquidation of securities; delegation to federal deposit insurance agency.

549 words·~2 min read·/ks/chapter-9/9-1411

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)When the administrator determines that a bank, savings and loan association or savings bank has experienced a default, the administrator shall:

(1)Ascertain the aggregate amounts of public moneys secured pursuant to K.S.A. 9-1402 and 12-1675 , and amendments thereto, and deposited in the defaulting bank, savings and loan association or savings bank, as disclosed by the records of such bank, savings and loan association or savings bank. The administrator shall determine for each governmental unit for which public moneys are deposited in the defaulting bank, savings and loan association or savings bank the accounts and amount of federal deposit insurance or guarantee that is available for each account. The administrator shall then determine for each such governmental unit the amount of public moneys not insured or guaranteed by the federal deposit insurance corporation and the amount of public moneys secured by a pool of securities pledged. Upon completion of such determination, the administrator shall provide each such governmental unit with a statement that reports the amount of public moneys deposited by such governmental unit in the defaulting bank, savings and loan association or savings bank, the amount of public moneys that may be insured or guaranteed by the federal deposit insurance corporation and the amount of public moneys secured by a pool of securities, or any combination thereof, pursuant to K.S.A. 9-1402 and 12-1675 , and amendments thereto. Each such governmental unit shall verify the information in such report with such governmental unit's records within 10 business days after receiving the report and information from the administrator; and

(2)shall repay each governmental unit for the public moneys not insured or guaranteed by the federal deposit insurance corporation deposited in the defaulting bank, savings and loan association or savings bank by the governmental unit upon receipt of a verified report from such governmental unit. The administrator may liquidate the securities pledged for immediate distribution if the defaulting bank, savings and loan association or savings bank is to be liquidated or if, for any other reason, the administrator determines that public moneys are not likely to be promptly paid upon demand. In the event that the amount of the deposit guaranty bond or the proceeds of the securities held by the administrator after liquidation is insufficient to cover all public moneys not insured or guaranteed by the federal deposit insurance corporation for all governmental units served by the administrator, the administrator shall pay out to each governmental unit available amounts pro rata in accordance with the respective public moneys not insured or guaranteed by the federal deposit insurance corporation for each such governmental unit.

(b)Any liquidation occurring under the provisions of this section shall conform to the procedures established in this section. In the event that a federal deposit insurance agency is appointed and acts as a liquidator or receiver of any bank, savings and loan association or savings bank under state or federal law, the duties under this section that are specified to be performed by the administrator in the event of default may be delegated to and performed by such federal deposit insurance agency.

(c)This section shall take effect on and after January 1, 2026.