State of Kansas
State Bank Commissioner
Special Order 1993-1
This Order issued this 21st day of June, 1993, by the State Bank Commissioner with the prior approval of the State Banking Board.
Whereas, pursuant to Comptroller's Staff Interpretive Letters Letter No. 323, dated January 8, 1985, OCC policy allows national banks to purchase surety bond coverage for the purpose of insuring deposits in excess of the FDIC's $100,000 coverage.
Whereas, under Kansas statutes, state banks are not authorized to purchase an insurance company's surety bond for the purpose of insuring deposits in excess of the FDIC's $100,000 coverage.
Whereas, K.S.A. 9-1715(b) provides the state bank commissioner may, with prior approval of the state banking board, authorize state banks or trust companies to engage in any activity in which such banks or trust companies 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 or trust companies and to promote competitive equality of state and national banks.
Now therefore, it is hereby ordered that state banks may purchase surety bond coverage for the purpose of insuring deposits in excess of the FDIC's $100,000 coverage.
This Special Order shall take effect June 21, 1993.
It is so ordered.
State Bank Commissioner
Frank D. Dunnick
