State of Kansas
State Bank Commissioner
Special Order 1995-3
This Special ordered issued this 14th day of July, 1995 by the Kansas State Bank Commissioner.
Whereas, 12 U.S.C. § 84(d) provides authority for The Comptroller of the Currency to promulgate rules and regulations to administer the legal lending limits established by 12 U.S.C. § 84 and to "... establish limits or requirements other than those specified..." in the statute; and,
Whereas, pursuant to this authority, the Comptroller of the Currency enacted Part 32 of Title 12 of the Code of Federal Regulations which impose limitations on all loans and extensions of credit made by national banks and their operating subsidiaries; and,
Whereas, 12 C.F.R. § 32.1(c) specifically excludes from the lending limitations those loans or extensions of credit made by a national bank to any entity which meets the definition of affiliate, as defined in subsection (b)(1) of section 23A of the Federal Reserve Act (12 U.S.C. § 371c(b)(1)); and,
Whereas, K.S.A. 9-1104 or any other Kansas statue, rule, or regulation does not provide a similar exclusion from the Kansas lending limitations, for loans made by a Kansas state bank to an entity which meets the definition of affiliate, as defined in subsection (b)(1) of section 23A of the Federal Reserve Act (12 U.S.C. § 371c(b)(1)); and,
Whereas, UMB Bank Kansas, Overland Park, Kansas is a Kansas state chartered bank subject to the lending limitations imposed by K.S.A. 9-1104; and,
Whereas, UMB USA, a Delaware credit card bank, is deemed to be an affiliate of UMB Bank Kansas as the term affiliate is defined by subsection 23A of the Federal Reserve Act (12 U.S.C. § 371c(b)(1)); and,
Whereas, if UMB Bank Kansas were a national bank it would be empowered to lend to UMB USA, without regard to the lending limitations imposed by 12 U.S.C. § 84 and Part 32 of Title 12 of the Code of Federal Regulations due to the specific exclusion found in 12 C.F.R. § 32.1(c); and,
Whereas, K.S.A. 9-1715 provides the Kansas State Bank Commissioner with the power to authorize state banks to engage in any activity in which such bank could engage were they operating as a national bank,
It is therefore ordered that UMB Bank Kansas is hereby empowered to lend to UMB USA, its successors, or assigns, without regard to the lending limitations imposed by K.S.A. 9-1104 so long as UMB Bank Kansas and UMB USA, its successors, or assigns, are affiliates as defined by subsection 23A of the Federal Reserve Act (12 U.S.C. § 371c(b)(1)).
It is further ordered, pursuant to K.S.A. 9-1715(b), as amended by L. 1995, Ch. 74, July 1, that the terms of this special order shall become effective July 14th, 1995 and shall remain in full force and effect until amended or revoked by the Kansas State Bank Commissioner.
It is so ordered.
State Bank Commissioner
Frank D. Dunnick
