Kansas Statutes 65-7105. Same; administration of accounts by financial institutions; duties
Terms Used In Kansas Statutes 65-7105
- Account holder: means a person who is the owner of an individual development account. See Kansas Statutes 65-7102
- Community-based organization: means any nonprofit or charitable association that is approved by the institute to implement the individual development account reserve fund. See Kansas Statutes 65-7102
- Financial institution: means any bank, trust company, savings bank, credit union or savings and loan association or any other financial institution regulated by the state of Kansas, any agency of the United States or other state with an office in Kansas which is approved by the institute to create and manage the necessary financial instruments setting up individual development accounts for eligible families or individuals to implement this program. See Kansas Statutes 65-7102
- Individual development account: means a financial instrument established in Kan. See Kansas Statutes 65-7102
- Institute: means the Schiefelbusch institute for life span studies of the university of Kansas. See Kansas Statutes 65-7102
(a) Financial institutions seeking to administer individual development accounts approved by the institute shall be permitted to establish individual development accounts pursuant to Kan. Stat. Ann. §§ 65-7101 through 65-7107, and amendments thereto. The financial institution shall certify to the institute, on forms prescribed by the institute and accompanied by any documentation required by the institute, that such accounts have been established pursuant to this act and that deposits have been made on behalf of the account holder.
(b) A financial institution establishing an individual development account shall:
(1) Keep the account in the name of the account holder;
(2) permit deposits to be made in the account by the following, subject to the indicated conditions:
(A) The account holder; or
(B) a community-based organization on behalf of the account holder. Such a deposit may include moneys to match the account holder’s deposits, up to a five to one match rate;
(3) require the account to earn at least the market rate of interest; and
(4) permit the account holder to withdraw moneys upon approval of a community-based organization from the account for the purpose as provided in Kan. Stat. Ann. § 65-7104, and amendments thereto.
(c) The total of all deposits by the account holder into an individual development account in a calendar year shall not exceed $5,000. The total balance in an individual development account at any time shall not exceed $50,000.