AGO 1994-128.

Case Date:September 21, 1994
Court:Kansas
 
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Kansas Attorney General Opinions 1994. AGO 1994-128. September 21, 1994ATTORNEY GENERAL OPINION No. 94-128Bill Grant, General CounselState Banking Department 700 Jackson, Suite 300 Topeka, Kansas 66603 Re: Banks and Banking; Trust Companies -- Banking Code; Organization -- Prohibiting Interstate Branch Banking; Approval of Relocation of Main Office by Banking Board. Synopsis: When a national bank relocates its main office from Kansas to another state pursuant to 12 U.S.C. sec. 30, the national bank may retain the branches located in Kansas. Furthermore, the national bank does not have to seek the state banking board's approval to relocate its main office from another state to Kansas. Cited herein: K.S.A. 9-532; 9-813; 12 U.S.C. sec. 30; 12 U.S.C. sec. 36; Art. 1, sec. 8.* * * Dear Mr. Grant: As general counsel for the Kansas banking department, you have requested our opinion regarding the following two questions: "1. If a national banking association relocates its main office from Kansas to another state pursuant to 12 U.S.C. sec. 30(b), does continued operation by the association of its Kansas locations as branches of the out of state association violate K.S.A. 9-813 and/or 12 U.S.C. sec. 36? "2. Is the relocation of the main office of a national banking association from another state into Kansas, pursuant to 12 U.S.C. sec. 30(b), subject to the Kansas Bank Holding Company Act (KBHCA) found at K.S.A. 9-519 through K.S.A. 9-524 and K.S.A. 9-532 through K.S.A. 9-539?" You acknowledge that a national bank can relocate its main office from Kansas to another state pursuant to 12 U.S.C. sec. 30. You have informed us that this move complies with the 30 mile requirement of 12 U.S.C. sec. 30. Therefore, the question centers around what happens to the branches that are located in Kansas once the national bank relocates its main office to Missouri. 12 U.S.C. sec. 36 states: "(b)(1) A national bank resulting from the conversion of a State bank may retain and operate as a branch any office which was a branch of the State bank immediately prior to conversion if such office: "(A) might be established under subsection (c) of this section as a new branch of the resulting national bank, and is approved by the Comptroller of the Currency for continued operation as a branch of the resulting national bank; "(B) was a branch of any bank on February 25, 1927; or "(C) is approved by the Comptroller of the Currency for continued operation as a branch of the resulting national bank. "The Comptroller of the Currency may not grant approval under clause (C) of this paragraph if a State bank (in a situation identical to that of the national bank) resulting from the conversion of a national bank would be prohibited by the law of such State from retaining and operating as a branch an identically situated office which was a branch of the national bank immediately prior to conversion. (2) A national bank (referred to in this paragraph as the 'resulting bank'), resulting from the consolidation of a national bank (referred to in this paragraph as the 'national bank') under whose charter the consolidation is effected with another bank or banks, may retain and operate as a branch any office which, immediately prior to such consolidation, was in operation as: "(A) a main office or branch office of any bank (other than the national bank) participating in the consolidation if, under subsection (c) of this section, it might be established as a new branch of the resulting bank, and if the Comptroller of the Currency approves of its continued operation after the consolidation; "(B) a branch of any bank participating in the consolidation, and which, on February 25, 1927, was in operation as a branch of any bank; or "(C) a branch of the national bank and which, on February 25, 1927, was not in operation as a branch of any bank, if the Comptroller of the Currency approves of its continued operation after the consolidation. "The Comptroller of the Currency may not grant approval under clause (C) of this paragraph if a State bank (in a situation identical to that of the resulting national bank) resulting from the consolidation into a State bank of another bank or banks...

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