State of Kansas
State Bank Commissioner
Special Order 1986-1
This Order issued this 22nd day of May, 1986, by the State Bank Commissioner with the prior approval of the State Banking Board.
Whereas, under Kansas statutes, state banks are not authorized to adjust capital stock and unimpaired surplus funds for lending limit calculation; and,
Whereas, under a 1986 amendment to 12 CFR Part 32, adopted by the Office of the Comptroller of the Currency ("OCC"), a national bank, with charged-off agricultural and oil and gas loans, is permitted to use a substitute lending limit, and,
Whereas, K.S.A. 9-1715(b) provides that the State Bank Commissioner may, with prior approval of the State Banking Board, authorize state banks to engage in any activity in which such banks could engage in were they operating as national banks; and,
Whereas, the Commissioner and the State Banking Board deem it reasonably required to preserve and protect the welfare of state banks and to promote competitive equality of state and national banks.
Now therefore, it is hereby ordered that any state bank may implement the substitute lending limit pursuant to adjustments set forth in the 1986 amendment to 12 CFR Part 32 dealing with lending limits and adopted by the OCC.
This Special Order shall take effect May 22, 1986.
It is so ordered.
State Bank Commissioner
Eugene T. Barrett, Jr.
