17-2252. Certificate required for guarantee corporation to guarantee credit union shares; issuance, when; fee.
17-2252
17-2252. Certificate required for guarantee corporation to guarantee credit union shares; issuance, when; fee. (a) No guarantee corporation shall engage in the business of writing contracts under this act without having first obtained a certificate from the administrator.
(b) Certificates shall be issued for one year and shall expire on May 31 of each year, and may be renewed by the administrator upon payment of the renewal fee unless there is, after a hearing or an opportunity for a hearing has been given in accordance with the provisions of the Kansas administrative procedure act, sufficient showing of cause that such certificate should not be renewed. Every certificate holder shall on or before the last day of May pay to the administrator the sum of $100 as a certificate renewal fee for the succeeding year. Failure to pay such fee shall automatically revoke such certificate but shall not operate to restrict or cancel any contracts made prior to such cancellation.
(c) The administrator shall issue a certificate to a guarantee corporation after:
(1) It files with the administrator: (i) a formal application for the certificate in such form as the administrator requires, executed by its president or other principal officer; (ii) a certified copy of its charter or articles of incorporation and its bylaws; (iii) a verified statement showing all assets, liabilities and surplus, which statement shall be subscribed and sworn to by the president or other principal officer; (iv) the location of the guarantee corporation's office and the name of its legal agent; (v) a copy of the contract to be used; and (vi) any other relevant document that is requested by the administrator;
(2) It pays a certificate fee of $100 to the administrator;
(3) It complies with the deposit requirements set forth herein;
(4) It maintains funds to guarantee the shares of credit union members in an amount at least equal to or approximately equal to (on a percentage basis) those provided by similar guarantee corporations then in existence in this state or by any federal agency serving similar purposes;
(5) It shall agree and pledge to deposit with the administrator 10% of its assets or $50,000, whichever is less; and
(6) The administrator is satisfied that the owners, board of directors, officers and employees of such guarantee corporation are of good reputation.
History: L. 1975, ch. 136, § 11; L. 1981, ch. 103, § 3; L. 1988, ch. 356, § 52; July 1, 1989.