A public hearing will be conducted on Thursday, January 19th, at 2:00 p.m. in the Bank Commissioner’s Conference Room A of the Jayhawk Tower Building, 700 SW Jackson, Fourth Floor, Topeka, KS 66603 to consider proposed Kansas Administrative Regulation 17-11-24, an administrative regulation promulgated by the Office of the State Bank Commissioner regarding sales of tangible personal property to executive officers, employees, directors, and related interests.
This 60-day notice of the public hearing shall constitute a public comment period for the purpose of receiving written public comments on the proposed amended regulation. All interested parties may submit written comments prior to the hearing by mailing them to the Office of the State Bank Commissioner, 700 SW Jackson, Suite 300, Topeka, Kansas 66603-3796 or by email to [email protected]. All interested parties will be given a reasonable opportunity to present their views orally or in writing regarding the new K.A.R. 17-11-24 during the public hearing. In order to provide all parties an opportunity to present their views, it may be necessary to request that each participant limit any oral presentation.
Copies of the proposed regulation and the economic impact statement may be obtained from the Office of the State Bank Commissioner by contacting Brock Roehler at 785-379-3890, [email protected] or the mailing address given above.
Any individual with a disability may request an accommodation in order to participate in the public hearing and may request the proposed amended regulation and economic impact statement in an accessible format. Requests for accommodation to participate in the hearing should be made at least five working days in advance of the hearing by contacting Brock Roehler at the Office of the State Bank Commissioner. The west entrance to the Jayhawk Tower Building is accessible and there is one accessible parking spot at 720 SW Jackson. There is additional accessible parking on the northwest corner of Jackson and 8th Street.
A summary of the proposed amended regulation and economic impact follows. Copies of the proposed regulation and the economic impact statement can be viewed in PDF form at the link below.
Summary: K.A.R. 17-11-24 is a new regulation that creates rules where a bank or trust company may sell tangible personal property to bank executive officers, employees, directors, and related interests without receiving the Bank Commissioner’s preapproval under K.S.A 9-1112.
Economic Impact: This regulation removes a bureaucratic burden on state banks and trust companies to quickly offload other assets and fixed assets on their books. The Banking Code does not require a bank or trust company to receive the Commissioner’s preapproval to sell tangible personal property to a person with no business ties with the bank or trust company. However, a bank or trust company needs the commissioner’s approval if the sale is to an executive officer, employee, director, or related interest. All other sales to an executive officer, employee, director, or related interest would need commissioner approval under K.S.A. 9-1112, including real estate. It is also important to note that if the sale of personal property is financed by the bank, federal law requires any loan to an executive officer or director or a related interest of each to be at no more favorable terms than what a similar bank consumer could receive.
The Office of the State Bank Commissioner’s office expects a very marginal record retention expense due to a bank or trust company keeping a record of the sale for review at the next examination.
