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Can you summarize KSST 9-541?
MISCELLANEOUS PROVISIONS > Acquisition of bank by out-of-state bank holding company; age limitation; exceptions.
Short Summary
This provision, found in the Kansas Statutes under the section ‘BANKS AND BANKING; TRUST COMPANIES » MISCELLANEOUS PROVISIONS’, regulates the acquisition of Kansas banks by out-of-state bank holding companies and their subsidiaries. It states that no out-of-state bank holding company or subsidiary can acquire more than 5% ownership or control of any class of voting shares of a Kansas bank, unless the Kansas bank has been in existence and actively engaged in business for five or more years. However, there are exceptions to this limitation. The first exception allows an out-of-state bank holding company or subsidiary to acquire more than 5% ownership or control of a Kansas bank that has been organized solely for the purpose of facilitating a merger or consolidation with a Kansas bank that has been in existence and actively engaged in business for five or more years. The second exception permits an out-of-state bank holding company or subsidiary to acquire more than 5% ownership or control of any class of voting shares of a Kansas bank if an emergency exists and the acquisition is deemed appropriate by the commissioner or the comptroller of the currency to protect the public interest against the failure or probable failure of the Kansas bank.
Whom does it apply to?
Out-of-state bank holding companies and their subsidiaries, Kansas banks
What does it govern?
Acquisition of bank by out-of-state bank holding company; age limitation; exceptions
What are exemptions?
1. Acquisition of ownership or control of, or power to vote, more than 5% of the voting shares of a Kansas bank that has been organized solely for the purpose of facilitating a merger or consolidation with a Kansas bank that has been in existence and actively engaged in business for five or more years. 2. Acquisition of ownership or control of, or power to vote, more than 5% of any class of the voting shares of a Kansas bank if an emergency exists and the acquisition is deemed appropriate by the commissioner or the comptroller of the currency to protect the public interest against the failure or probable failure of the Kansas bank.
What are the Penalties?
No penalties mentioned.
Jurisdiction
Kansas