Kansas Statutes 74-50,205. Same; establishment of account by financial institution; duties; deposits, limitations
(a) Financial institutions seeking to open and maintain individual development accounts approved by the secretary for account holders shall be permitted to establish individual development accounts pursuant to Kan. Stat. Ann. § 74-50,201 through 74-50,208, and amendments thereto.
(b) A financial institution establishing an individual development account shall:
Terms Used In Kansas Statutes 74-50,205
- Account holder: means a legal resident who is the owner of an individual development account. See Kansas Statutes 74-50,202
- Community-based organization: means any religious or charitable association or tribal entity that is approved by the department to implement the individual development account reserve fund. See Kansas Statutes 74-50,202
- 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 secretary to create and maintain the necessary financial instruments setting up individual development accounts for eligible families or individuals to implement this program. See Kansas Statutes 74-50,202
- Individual development account: means a financial instrument established in Kan. See Kansas Statutes 74-50,202
- Secretary: means the secretary of commerce. See Kansas Statutes 74-5059
(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 three-to-one match ratio;
(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 any of the purposes listed in subsections (a) through (e) of Kan. Stat. Ann. § 74-50,204, 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 30% of an account holder’s annual personal income not to exceed $4,000, except when necessary to comply with the emergency withdrawal provisions contained in Kan. Stat. Ann. § 74-50,206, and amendments thereto. The total balance in an individual development account at any time shall not exceed $50,000.