State of Kansas
State Bank Commissioner
Special Order 1988-3
This Order issued this 18th day of April, 1988, by the State Bank Commissioner with the approval of the State Banking Board.
Whereas, K.S.A. 9-1101 does not provide state banks the authority to establish a subsidiary corporation for the purpose of holding and managing property acquired by the bank through debt previously contracted; and,
Whereas, the Office of the Comptroller of the Currency has determined that a national bank has the authority to operate a subsidiary corporation which holds and manages property acquired through debt previously contracted; and
Whereas, K.S.A. 9-1715(b) provides the state bank commissioner may, with the prior approval of the state banking board, authorize state banks to engage in any activity in which such banks could engage 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 the state banks may operate a wholly-owned subsidiary corporation which holds and manages property acquired through debt previously contracted. Unless otherwise provided by statute or regulation, all provisions of State banking laws and regulations applicable to the operations of the parent bank shall be equally applicable to the operations of the operating subsidiary. Further, each operating subsidiary shall be subject to examination and supervision in the same manner and to the same extent as the parent bank.
This Special Order shall take effect April 18, 1988.
It is so ordered.
State Bank Commissioner
W. Newton Male
