Kansas OSBC: Approved Revenue Bonds Search Tool Aids Public Funds Pledging

• Kansas law, specifically K.S.A. 9-1402, requires public moneys from municipal and quasi-municipal corporations to be secured.
• The Kansas State Bank Commissioner has authority to approve certain revenue bonds for pledging, which must meet specific criteria.
• Bonds approved by the Commissioner are searchable via the OSBC Online search engine, under K.S.A. 9-1402(d)(5) and K.S.A. 75-4201(k)(4).
• An "ACTIVE" status in the OSBC Online search confirms a bond is approved for pledging public funds, while "INACTIVE" means it is not approved or has matured.
• Bonds not submitted for Commissioner approval or not found in the OSBC Online system are not acceptable for pledging public funds.

Lawyers and compliance officers in Kansas, particularly those involved with public funds deposits or collateralization, must utilize this tool to confirm that specific revenue bonds meet the necessary criteria for pledging.

Kansas law mandates strict security protocols for public moneys held by municipal and quasi-municipal corporations. Under K.S.A. 9-1402, deposits of these public funds must be safeguarded through one of several methods explicitly outlined in state statutes. A primary method involves the pledging of various assets, including securities, security entitlements, financial assets, or securities accounts, which must be owned by the financial institution receiving the deposits.

While a general list of statutorily approved securities exists for this purpose, the State Bank Commissioner for the State of Kansas holds additional, specific authority. The Commissioner can approve certain revenue bonds for pledging, provided these bonds satisfy particular criteria established by the state. This dual approach ensures comprehensive oversight over how public deposits are collateralized, offering both broad statutory guidelines and targeted regulatory approval for specific financial instruments.

For legal professionals and compliance officers managing public deposits in Kansas, verifying the approval status of specific revenue bonds is crucial. The Kansas State Bank Commissioner maintains a dedicated online resource, the OSBC Online search engine, where bonds that have received the Commissioner's approval are listed. This system is specifically designed to facilitate the lookup of revenue bonds approved under K.S.A. 9-1402(d)(5) and K.S.A. 75-4201(k)(4) for pledging purposes.

It is important to note that the OSBC Online revenue bond lookup tool does not include all statutorily approved securities. Securities that are approved under general statutes, without requiring specific Commissioner review, are not maintained or searchable within this online database. To access the OSBC Online search engine, users must first navigate to the "Online Access" portal and acknowledge the Kansas Open Records Act disclaimer before proceeding to the search interface. Once there, the "Lookup a License" option should be selected to begin the inquiry.

The OSBC Online platform offers flexible search options to help users identify the approval status of Kansas municipal bond pledging requirements. To search for a specific bond, users can input known details. If the municipal or quasi-municipal corporation is the primary known detail, this information should be entered into the "Business Name/DBA" field. Concurrently, "Revenue Bond" must be selected from the "License/Charter Type" dropdown menu before initiating the search. For instance, entering "Garnett" would yield results such as "City of Garnett Utility Refunding and Improvement Revenue Bonds."

Alternatively, if a CUSIP number for a particular bond is available, it can be directly entered into the second box located under the "License/Cert Number" fields, leaving other search fields blank. Upon retrieving search results, the status of the bond will be displayed. An "ACTIVE" status confirms that the bond has been approved by the Commissioner for securing public funds, aligning with public deposits collateral Kansas requirements. Conversely, an "INACTIVE" status indicates that the bond is either not approved or has reached maturity; if maturity is the reason, this detail should be visible in the "Status Reason" category. Should a search yield no results, it signifies that the bond has not been submitted to the Commissioner for approval and is therefore not acceptable for pledging public funds.

The meticulous process of verifying bond approval through the OSBC Online search engine is indispensable for ensuring compliance with K.S.A. 9-1402 public funds security requirements. Lawyers and compliance officers in Kansas, particularly those involved with public funds deposits or collateralization, must utilize this tool to confirm that specific revenue bonds meet the necessary criteria for pledging. This proactive verification is critical for upholding the integrity and security of public moneys across the state.

Failure to confirm the active approval status of a revenue bond means it cannot be used as collateral for public deposits, potentially leading to non-compliance with state statutes. The OSBC Online system, therefore, serves as a vital resource for maintaining adherence to Kansas municipal bond pledging requirements and the broader framework governing public deposits collateral Kansas. For further inquiries or assistance, the State Bank Commissioner's main office is located at 700 SW Jackson St, Suite 300, Topeka, KS 66603, and can be reached by phone at (785) 380-3939.

Lawyers and compliance officers in Kansas involved with public funds deposits or collateralization must utilize the OSBC Online search engine to verify that specific revenue bonds are approved by the State Bank Commissioner for pledging, thereby ensuring compliance with K.S.A. 9-1402 and other relevant statutes concerning the security of public moneys.

Source: Original reporting via Kansas State Bank Commissioner