9-2312. Authorized functions; parties engaged by an institution; services to residents of other states.

504 words·~2 min read·/ks/chapter-9/9-2312

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

(a)Subject to the requirements of K.S.A. 9-2309 (d), and amendments thereto, a fiduciary financial institution may:

(1)Employ attorneys, accountants, investment advisors, agents or other persons, even if they are affiliated or associated with the fiduciary financial institution, to advise or assist the fiduciary financial institution in the performance of such fiduciary financial institution's fidfin transactions, custodial services and trust business and act without independent investigation upon such recommendations;

(2)employ one or more agents to perform any act of fidfin transactions, custodial services or trust business;

(3)license internet-related services, including web services, software, mobile applications, technology-enabled platforms and processes to or from affiliates, third parties, other fiduciary financial institutions and their affiliates;

(4)license fidfin products and forms, as defined in K.S.A. 9-2321 , and amendments thereto, to or from other fiduciary financial institutions and their affiliates;

(5)perform any services that a fiduciary financial institution is authorized to perform under the laws of this state on behalf of another fiduciary financial institution; and

(6)employ another fiduciary financial institution to perform any services that a fiduciary financial institution is authorized to perform under the laws of this state.

(b)A party engaged by a fiduciary financial institution pursuant to subsection

(a)shall not be deemed to have engaged in fidfin transactions, custodial services or trust business in this state nor shall such party be deemed a trust service office of the fiduciary financial institution under K.S.A. 9-2108 , and amendments thereto, or a trust facility or out-of-state facility under K.S.A. 9-2111 , and amendments thereto, by reason of providing services to a fiduciary financial institution or licensing products, platforms, systems or processes to such fiduciary financial institution.

(c)A fiduciary financial institution that provides services or licenses fidfin products or forms pursuant to subsection

(a)shall not be deemed a trust service office of the fiduciary financial institution that has acquired such services or licensed such products or forms.

(d)If a fiduciary financial institution offers its technology-enabled platform to provide fidfin services to residents of other states, neither the marketing, use and deployment of such platform by parties in other states nor the origination of fidfin services through such platform shall constitute an out-of-state trust facility under K.S.A. 9-2111 , and amendments thereto, if the fiduciary financial institution complies with the provisions of K.S.A. 9-2309 , and amendments thereto.

(e)A fiduciary financial institution shall provide notice to the commissioner pursuant to the provisions of K.S.A. 9-2103 (a)(12), and amendments thereto, if such fiduciary financial institution engages a party pursuant to the provisions of subsection (a).

(f)Whenever a fiduciary financial institution causes to be performed for such fiduciary financial institution, by contract or otherwise, any service authorized under this act or the state banking code, such performance shall be subject to regulation and examination by the commissioner to the same extent as if such service was being performed by the fiduciary financial institution itself.