Kansas Statutes 75-4220. Liability of depository banks and affiliates; sale of security
Each depository bank and its agent, trustee, wholly-owned subsidiary or affiliate having identical ownership granting a security interest pursuant to Kan. Stat. Ann. § 75-4218, and amendments thereto, shall be liable for payment if: (a) The depository bank fails to: (1) Pay any check, draft or warrant drawn by the treasurer and director of accounts and reports; or (2) account for any check, draft, warrant, order, or certificate of deposit, or any money entrusted to such bank by the treasurer; or (b) a conservator or receiver is appointed for the depository bank.
Any loss incurred by the state by reason of failure by any depository bank to safely keep and account for moneys and interest thereon shall be recovered by the state from the depository bank and a sale of the securities securing payment of such moneys under this act. The attorney general is authorized to prosecute in the name of the state any and all actions for recovery of any loss incurred by the state under this act.
Terms Used In Kansas Statutes 75-4220
- Bank: means a bank incorporated under the laws of this state, or organized under the laws of the United States or another state and which has a main or branch office in this state. See Kansas Statutes 75-4201
- Conservator: means an individual or corporation appointed by the court to act on behalf of a conservatee and possessed of some or all of the powers and duties set out in Kan. See Kansas Statutes 77-201
- Custodial bank: means a bank holding on deposit collateral which is security for state bank accounts. See Kansas Statutes 75-4201
- Depository bank: means a bank, savings bank or savings and loan association authorized and eligible to receive state moneys. See Kansas Statutes 75-4201
- Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
- Securities: means , for the purposes of this section and Kan. See Kansas Statutes 75-4201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
- State bank account: means state moneys or fee agency account moneys deposited in accordance with the provisions of this act. See Kansas Statutes 75-4201
- Treasurer: means state treasurer. See Kansas Statutes 75-4201
- Trustee: A person or institution holding and administering property in trust.
In case of default by any depository bank having a state bank account of any type, the securities securing payment of such account under this act, if not in the possession of the treasurer, shall be transferred to the treasurer by the custodial bank to be sold by the treasurer and payment of the proceeds of such sale shall be made to the state to the extent of the state’s interest, subject to the provisions of Kan. Stat. Ann. § 75-4221, and amendments thereto.