Attorney General Opinion No. 1986-013

Download or read book Attorney General Opinion No. 1986-013 written by Robert T. Stephan and published by . This book was released on 1986 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: K.S.A. 1985 Supp. 75-4218 provides that all state bank accounts shall be secured by a pledge of securities owned by each bank receiving a deposit. The term "securities" is defined by K.S.A. 75-4201(p)(1) to include direct obligations of, or obligations that are insured by, the United States government or one of its agencies. By virtue of 12 U.S.C. 52001 e̲t̲ s̲e̲q̲., federal land banks, land bank associations, production credit associations, intermediate credit banks and banks for cooperatives are "federally chartered instrumentalities". This term has been interpreted by courts in Kansas and elsewhere as not raising them to the level of federal agencies. Accordingly, under K.S.A. 75-4201 as it now reads, obligations of these federally chartered instrumentalities may not be pledged to secure the deposit of state funds in Kansas banks. However, due to a 1983 amendment to K.S.A. 1984 Supp. 19-1402, such obligations may be used as security for the deposit of m̲u̲n̲i̲c̲i̲p̲a̲l̲ funds. Cited herein: K.S.A. 1985 Supp. 9-1402; K.S.A. 75-4201; K.S.A. 1985 Supp 75-4218; L. 1983, ch. 47, section 3; 12 U.S.C. sections 2011, 2012, 2031, 2033, 2071, 2072, 2091, 2093, 2121, 2122, 2155, 2157.