Memo RM1996-1
To: All State-Chartered Banks
From: W. Newton Male, Bank Commissioner
Date: February 8, 1996
RE: Special Order 1996-1
Proposed Changes in K.S.A. 9-1104, Legal Lending Limits
Appraiser Qualifications
Enclosed please find Special Order 1996-1 which went into effect January 25, 1996. Special Order 1996-1 is an order of specific application. It was issued in response to a request by Emprise Bank, Wichita, Kansas for authority to form a temporary subsidiary for purposes of effectuating an authorized merger between Emprise and Wichita Federal Savings and Loan Association, Wichita, Kansas. The formation of the subsidiary is incidental to an otherwise authorized corporate reorganization and the entire life and corporate existence of the subsidiary will be momentary. The formation of the subsidiary is consistent with federal banking regulations and represents no substantive alteration of the authorized merger of the two financial institutions.
B. Proposed Revision of K.S.A. 9-1104. Section B no longer applicable
You were previously notified that I established a task force to draft revisions to the lending limits statute, K.S.A. 9-1104. Enclosed please find the final product produced by the task force. This revised version of K.S.A. 9-1104 was introduced today in the Senate Financial Institutions and Insurance Committee. Hearings on the bill are tentatively scheduled for February 19, 1996. Throughout the legislative process, there are opportunities to propose amendments to bills which have been previously introduced. However, because of the length of the legislative session, the time frame is fairly short. Therefore, if you have comments that you believe should be considered regarding any of the changes made to the statute, please contact Judi Stork or Sonya Allen at our office immediately. We encourage you to closely review the proposed amendments and consider how the changes will affect your bank. The sooner we are made aware of potential problems, the more time we have to determine whether an amendment should be proposed.
C. Appraiser Qualifications.
It has come to my attention that some appraisals are being performed for banks by appraisers who are not qualified to perform the particular type or dollar level of appraisal they are completing. For example, an appraiser who is licensed only to appraise residential property is being used in some circumstances to appraise commercial property. Please be advised that any appraisal performed after March 1, 1996 by an appraiser who is not qualified will be deemed an inadequate appraisal and criticized by examiners from this Office. To determine an appraiser's qualifications, you may want to refer to the list distributed recently by the Kansas Bankers Association, call the State Real Estate Appraisal Board (913) 296-0706, or simply ask your appraiser to provide verification of his or her qualifications.
