Session of 2000
Effective: July 1, 2000

HOUSE BILL No. 2754 An Act relating to banks and trust companies; concerning the holding of real estate;    amending K.S.A. 1999 Supp. 9-1102 and repealing the existing section.


Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1999 Supp. 9-1102 is hereby amended to read as
follows: 9-1102. (a) Any bank or trust company may own, purchase, lease,
hold, encumber or convey real property and certain personal property
subject to the following:

      (1) Own suitable building, furniture and fixtures, stock in a single
trust company organized under the laws of the state of Kansas, and stock
in a safe deposit company organized under the laws of the state of Kansas,
and stock in a corporation organized under the laws of this state owning
real estate all or a part of which is occupied or to be occupied by the bank
or trust company;

      (2) purchase, hold, encumber and convey real estate or lease, as lessor
or lessee, any building or buildings. Any real estate not necessary for the
bank's or trust company's accommodation in the transaction of its busi-
ness shall be disposed of or charged off its books by the bank or trust
company not later than seven years after its acquisition intended use for
banking purposes ends, unless the state bank commissioner authorizes
the bank or trust company to retain such real estate on its books for a
period not to exceed an additional two three years;

      (3) a bank's or trust company's total investment or ownership at all
times in any one or more of the following shall not exceed 1/2 of its un-
impaired capital stock, surplus, undivided profits and capital notes and
debentures, and any such excess shall be removed from the bank's or
trust company's books unless approval is granted by the state bank com-
missioner:

      (A) The book value of real estate plus all encumbrances thereon;

      (B) the book value of furniture and fixtures;

      (C) the book value of stock in a safe deposit company;

      (D) the book value of stock in a trust company; or

      (E) the book value of stock in a corporation organized under the laws
of this state owning real estate occupied by the bank or trust company
and advances to such corporation acquired or made after July 1, 1973.
Except that any real estate not necessary for the accommodation of the
bank's or trust company's business shall be disposed of or charged off its
books according to paragraph (2).

      (b) Any bank or trust company may acquire real estate in satisfaction
of any debts due it and may purchase real estate in satisfaction of any
debts due it, and may purchase real estate at judicial sales, but no bank
or trust company shall bid at any judicial sale a larger amount than is
necessary to protect its debts and costs. No real estate or interest in oil
and gas leasehold acquired in the satisfaction of debts or upon judicial
sales shall be carried as a book asset of the bank or trust company for
more than 10 years. At the termination of the 10 years such real estate
shall be charged off. The commissioner may grant an extension not to
exceed four years, if in the commissioner's judgment it will be to the
advantage of the bank or trust company to carry the real estate as an asset
for such extended period. Any such extensions issued shall be reviewed
by the commissioner on an annual basis.

      Sec.  2. K.S.A. 1999 Supp. 9-1102 is hereby repealed.
      Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.