Barister's Brain
As a regular feature in Quarterly Interest, our advice columnist, Barry Barrister, will answer a legal question the OSBC has received that we think would be of interest to bankers. Even though he's a fictional lawyer (arguably the best kind), Barry has insisted we include the caveat that the advice he dispenses is general in nature, and is not intended as a substitute for obtaining specific legal advice from counsel when necessary.
Dear Barry,
Our bank is interested in participating in the Kansas State Treasurer's "Save @ School" program. I have read through all of the "getting started" information on the Treasurer's website, at www.kansasstatetreasurer.com. Are there any banking laws I need to be aware of with respect to such a program?
Thank You,
Steven Stash
Dear Steve:
As a matter of fact, several years ago, a provision was added to the State Banking Code in order to address school savings programs like "Save @ School". K.S.A. 9-1138 authorizes banks to enter into written agreements with a school board to establish a school savings deposit program in any elementary or secondary school. The statute requires that an executed agreement be submitted to the commissioner's office for approval prior to the implementation of the program. There is also a requirement that the bank involved have a main office or branch located in the same county as the participating school. However, if no bank in the county wants to participate in such a program, then a bank in a contiguous county is also eligible. The Office of the State Bank Commissioner has recently worked with the State Treasurer's office to develop a model agreement that banks may use if they desire. Some banks may choose to develop their own agreement, which is also acceptable. Regardless, the executed agreement must still be submitted to the commissioner for approval prior to implementing the program. You are to be commended for your desire to play a role in teaching the young people of your community the importance of money management. Good luck to you in your future endeavor!
Frugally yours,
Barry
