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Can you summarize KSST 9-817?
BANKING CODE; ORGANIZATION > Mutual banks; deposits and related powers.
Short Summary
This section of the Kansas Statutes governs the powers and operations of mutual banks in relation to deposits. It states that a mutual bank, subject to its articles of incorporation, bylaws, and regulations of the commissioner, can raise funds through various types of accounts and issue evidence of these accounts. The mutual bank is prohibited from allowing overdrafts on behalf of affiliates or incurring overdrafts in its own account at federal reserve banks or federal home loan banks on behalf of affiliates. The bank may require a 14-day notice prior to payment of savings accounts if specified in its articles of incorporation, bylaws, or regulations. Failure to make full payment of any withdrawal when due without written authorization from the commissioner is considered an unsafe or unsound condition. Depositors of a mutual bank have voting rights and ownership interests as provided in the bank’s articles of incorporation and bylaws. The articles of incorporation and bylaws may also provide for borrowers to become members with corresponding rights and privileges. All savings accounts and demand accounts have equal priority upon liquidation. This section is part of the state banking code.
Whom does it apply to?
Mutual banks
What does it govern?
Mutual banks; deposits and related powers
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Kansas