Kansas Administrative Regulations
Agency 121 - DEPARTMENT OF CREDIT UNIONS
Article 4 - TRUST SUPERVISION
Section 121-4-1 - Definitions

Universal Citation: KS Admin Regs 121-4-1

Current through Register Vol. 43, No. 39, September 26, 2024

For the purposes of this article, the following definitions shall apply:

(a) "Account" means the trust or other fiduciary relationship which has been established with the corporate credit union.

(b) "Collective investment fund" means funds held by a corporate credit union as fiduciary and invested collectively in either of the following types of funds:

(1) a common trust fund maintained by the corporate credit union exclusively for the collective investment and reinvestment of moneys contributed to the fund by the corporate credit union in its capacity as trustee; or

(2) a fund consisting solely of assets of retirement, pension, profit-sharing, stock bonus or other trusts, if all such assets are only from retirement, pension, profit-sharing, stock bonus or other trusts that provide the corporate credit union with a certification of exemption from federal income tax under the internal revenue code.

(c) "Corporate credit union" means a corporate credit union as defined in K.S.A. 17-2231 which has been authorized by the administrator, pursuant to K.A.R. 121-4-2, to exercise fiduciary powers.

(d) "Fiduciary" means a corporate credit union undertaking to act alone or jointly with others primarily for the benefit of another in all matters connected with its undertaking as trustee.

(e) "Fiduciary powers" means the powers of a trustee to act as specified in the instrument establishing the trust.

(f) "Fiduciary records" means all documents which are written, transcribed, recorded, received or otherwise come into possession of a corporate credit union and which are necessary to preserve information concerning the acts and events relevant to the exercise of fiduciary powers by a corporate credit union.

Trust Supervision

(g) "Investment authority" means the responsibility conferred by action of law or a provision of an appropriate governing instrument to make, select or change investments, review investment decisions made by others, or to provide investment advice or counsel to others.

(h) "Investment discretion" means the authority of a corporate credit union, as trustee, to determine what securities, property, or other investments will be purchased or sold by or for an account.

(i) "Security" means any interest or instrument commonly known as a "security," whether in the nature of debt or equity.

(1) The term security includes the following:
(A) any stock, bond, note, debenture, or evidence of indebtedness; or

(B) any participation in or right to subscribe to or purchase any of these instruments.

(2) The term "security" does not include:
(A) any deposit or share account in a federally or state-insured bank or credit union;

(B) any loan participation;

(C) any letter of credit or other form of corporate credit union indebtedness incurred in the ordinary course of business;

(D) currency;

(E) any note, draft, bill of exchange, or banker's acceptance which has a maturity at the time of issuance of not more than nine months, exclusive of days of grace, or any renewal of such an instrument with a maturity which is likewise limited;

(F) units of a collective investment fund; or

(G) U.S. savings bonds.

(j) "Trust committee" means:

(1) the board of directors of the corporate credit union; or

(2) any committee of the board charged, by the board of directors, with the responsibility for administration and supervision of the trust activities of the corporate credit union. The trust committee may assign authority to other committees or individuals, as necessary and appropriate to carry out the committee's responsibility.

Disclaimer: These regulations may not be the most recent version. Kansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.