Kansas Administrative Regulations
Agency 17 - OFFICE OF THE STATE BANK COMMISSIONER
Article 23 - TRUST SUPERVISION
Section 17-23-6 - Funds awaiting investment or distribution
Universal Citation: KS Admin Regs 17-23-6
Current through Register Vol. 43, No. 12, March 20, 2024
(a) Funds held by a bank or trust company in a fiduciary capacity that are awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the ac-count.
(1) Each bank or trust company exercising
fiduciary powers shall adopt and follow written policies and procedures
intended to provide that a prudent rate of return, available for trust-quality,
short-term investments, is obtained upon funds so held, consistent with the
requirements of the governing instrument and local law.
(2) These policies and procedures shall take
into consideration all relevant factors, including the following:
(A) The anticipated return that could be
obtained while the cash remains uninvested or un-distributed;
(B) the cost of investing the funds;
(C) the anticipated need for the
funds; and
(D) the costs and
operational complexities of implementing and maintaining the investments for
the bank or trust company.
(b) Funds held in trust by a bank, including managing agency accounts, awaiting investment or distribution may, unless prohibited by the instrument creating the trust, be deposited in the commercial or savings or other departments of the bank.
(1) If the deposits, per account, exceed
current federal deposit insurance corporation (F.D.I.C.) limits, the bank shall
first set aside, under control of the trust department, as collateral security,
direct obligations of the United States and other obligations fully guaranteed
by the United States as to principal and interest, or any other security
available for pledging by commercial banks under Kansas state law.
(2) The securities that are deposited or
substituted as collateral shall at all times be at least equal in market value
to the amount of trust funds deposited, to the extent that the deposit exceeds
F.D.I.C. insurance limits.
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.
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