172             1997 Session Laws of Kansas             Ch. 59

An Act relating to banks and trust companies; bank holding companies; limitations on
ownership; amending K.S.A. 9-1114 and 9-1118 and K.S.A. 1996 Supp. 9-520 and re-
pealing the existing sections; also repealing K.S.A. 1996 Supp. 9-1117.

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

Section 1. K.S.A. 9-1114 is hereby amended to read as follows: 9-
1114. The business of any bank or trust company shall be managed and
controlled by its board of directors and this shall include the authority to
provide for bonus payments, in addition to ordinary compensation for any
or all of its officers and employees. The board shall consist of not less
than five nor more than 25 members, all of whom shall be stockholders
of the bank or trust company or of the parent corporation of the bank or
trust company, and who shall be elected by the stockholders at any regular
annual meeting which shall be held during the first 120 days of each
calendar year. If the number of directors elected is less than 25, the
number of directors may be increased so long as the total number does
not exceed 25 and when the number is increased the first additional
directors may be elected at a special meeting of the stockholders. The
directors shall be elected in the manner provided in the general corpo-
ration code. Vacancies in the board of directors may be filled in the man-
ner provided in the general corporation code. A majority of the directors
shall be residents of this state. Any director of any bank or trust company
who shall become indebted to such bank or trust company on any judg-
ment or charged off indebtedness shall forfeit such person's position as
director and such vacancy shall be filled as provided by law.

Ch. 59             1997 Session Laws of Kansas             173

Sec. 2. K.S.A. 9-1118 is hereby amended to read as follows: 9-1118.
Each director shall take and subscribe an oath that such director will
administer the affairs of such bank or trust company diligently and hon-
estly and that such director will not knowingly or willfully permit any of
the laws relating to banks or trust companies to be violated and each
director and the president of a bank or trust company shall swear that
such director or president is the owner in good faith of shares of common
stock having a par value of at least $500 of such bank or trust company
or in the parent corporation of such bank or trust company standing in
such director's or president's name and that the same has not been
pledged or assigned, except as authorized by K.S.A. 9-1117, and amend-
ments thereto. A copy of such oath shall be filed with the commissioner.

Sec. 3. K.S.A. 1996 Supp. 9-520 is hereby amended to read as fol-
lows: 9-520. (a) Excluding shares held under the circumstances set out in
paragraph (2) of subsection (a) of K.S.A. 9-519, and amendments thereto,
no bank holding company or any subsidiary thereof shall directly or in-
directly acquire ownership or control of, or power to vote, any of the
voting shares of any bank domiciled in this state which holds Kansas
deposits if, after such acquisition, all banks domiciled in this state, in
which the bank holding company or any subsidiary thereof has ownership
or control of, or power to vote, any voting shares, would have and all
subsidiaries would hold or control, in the aggregate, more than 15% of
the total deposits of all banks in this state plus the total deposits, savings
deposits, shares and other accounts in savings and loan associations, fed-
eral savings banks and building and loan associations in this state as de-
termined by the state bank commissioner on the basis of the most recent
reports to supervisory authorities which are available at the time of the
acquisition total Kansas deposits.

(b) This section shall not prohibit a bank holding company or any
subsidiary thereof from acquiring ownership or control of, or power to
vote, any of the voting shares of any bank domiciled in this state if the
state bank if the commissioner, in the case of a bank organized under the
laws of this state, or the comptroller of the currency, in the case of a
national banking association, determines that an emergency exists and
that the acquisition is appropriate in order to protect the public interest
against the failure or probable failure of the bank.

(c) As used in this section, ``Kansas deposits'' means deposits, savings
deposits, shares or similar accounts held by banks, savings and loan as-
sociations, savings banks and building and loan associations attributable
to any office in Kansas where deposits are accepted as determined by the
commissioner on the basis of the most recent reports to supervisory au-
thorities which are available at the time of the acquisition.

Sec. 4. K.S.A. 9-1114 and 9-1118 and K.S.A. 1996 Supp. 9-520 and
9-1117 are hereby repealed.

174             1997 Session Laws of Kansas             Ch. 59

Sec. 5. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 4, 1997.