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Can you summarize KSST Chapter 9, Article 18?
BANKS AND BANKING; TRUST COMPANIES > BANKING CODE; SUPERVISION; BOARD
Short Summary
The provided legal document content covers the following aspects: 1. Ability of the commissioner to enter into informal agreements with banks and trust companies in Kansas to address safety or soundness concerns, violations of law, or weaknesses displayed by the bank or trust company. These agreements are confidential examination material and not subject to certain provisions of the law. 2. Action against current or former officers or directors of any bank or trust company in Kansas who have been found to be dishonest, reckless, or incompetent in performing their duties, or who willfully or continuously fail to observe legally made orders of the commissioner or the state banking board. The state banking board may remove such officers or directors and prohibit their further participation in the affairs of any state bank or trust company in Kansas. The officer or director has the right to a hearing before the state banking board, and any action taken by the state banking board is subject to review. 3. Assessment and collection of civil money penalties in relation to banks and trust companies in Kansas. The commissioner, with the approval of the state banking board, may assess and collect civil money penalties for engaging in unsafe or unsound practices or violating provisions of the state banking code, rules and regulations, or lawful orders of the commissioner or state banking board. The civil money penalty shall not exceed $1,000 per day for each day the violation continues. Factors such as good faith, gravity of the violation, previous violations, and nature and extent of past violations are considered when determining the amount of the penalty. Closed public hearings may be conducted, and banks or trust companies are prohibited from indemnifying or insuring against civil money penalties. 4. Issuance of cease and desist orders by the commissioner against banks and trust companies in Kansas. The commissioner has the authority to issue a notice of charges if a bank or trust company is engaging in unsafe or unsound practices or violating laws, rules, regulations, or orders of the commissioner or state banking board. The notice of charges includes a statement of facts and sets a hearing before the state banking board. The state banking board may issue a cease and desist order if the unsafe or unsound practice or violation is established. The order may require the bank or trust company, as well as its directors, officers, employees, or agents, to cease and desist or take corrective action. Temporary orders may be issued in cases where the continuation of the practice or violation is likely to cause insolvency, substantial dissipation of assets or earnings, or seriously prejudice the interests of depositors or clients.
Whom does it apply to?
Banks, trust companies, executive officers, directors, employees, agents, and other persons participating in the conduct of the affairs of banks or trust companies
What does it govern?
Ability of the commissioner to enter into informal agreements with banks and trust companies in Kansas, action against current or former officers or directors of any bank or trust company in Kansas, assessment and collection of civil money penalties in relation to banks and trust companies in Kansas, issuance of cease and desist orders by the commissioner against banks and trust companies in Kansas
What are exemptions?
The adoption of informal agreements is not subject to certain provisions of the law and is considered confidential examination material. The document does not specify any penalties or exemptions.
What are the Penalties?
The commissioner may assess and collect civil money penalties for engaging in unsafe or unsound practices or violating provisions of the state banking code, rules and regulations, or lawful orders of the commissioner or state banking board. The civil money penalty shall not exceed $1,000 per day for each day the violation continues.
Jurisdiction
Kansas