Pub. 8 2019 Issue 1

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 12 O ver forty years ago, the Kansas Bankers Association’s Board of Directors made a bold decision to expand the services provided to its members by creating the KBALegal Department. At that time, no other state bankers’ association had ever taken on such a venture. In the decades since that decision was made, over 200,000 questions have been answered for Kansas bankers regarding state and federal banking laws, banking regulations, customer bankruptcy, human resources and information technology. In providing these answers, the KBA Legal Department staff has focused on educating banks about the requirements in these laws and regulations, and providing the banks with various alternatives to resolve situations so that the bank can make the business decision that is best for it. In 2011, the KBA Board of Directors made another bold decision. This decision arose from what was perceived to be a lack of adequate legal and compliance resources for banks in some Kansas communities. The Board of Directors elected to expand the traditional services that had been provided to KBA members, adding an advisory component, and with this decision, Kansas Bankers Consulting Services, LLC (KBCS) was created. KBCS is an add-on service available to KBA members. This service, if selected by a bank, provides the bank with another level of assistance in addition to the support provided to all KBA members. The KBCS attorneys are able to provide participating banks with legal advice and consultations that would be the same as if the bank were to secure the services of a law firm. Furthermore, the KBCS clients have access to compliance audits, on-site consulting, loan reviews, employee handbook reviews and bankruptcy representation. Understanding the difference between the traditional KBA Legal Department services and those offered by KBCS can be confusing. An example might help to alleviate the confusion. Let’s say that a member bank has a question about whether a customer’s family member can perform a banking transaction under a durable power of attorney. If the bank is not a member of KBCS, it can call the KBA Legal Department and obtain information about what language would need to be in the power of attorney for the transaction to be performed. If the bank is a member of the consulting service, a KBCS attorney can review the actual power of attorney document and advise the bank as to whether it should permit the transaction to be performed. Either way, the KBA Legal Department and KBCS staff can provide assistance. How about another example? A bank calls the KBA Legal Department about a Truth in Lending disclosure issue. The KBA Legal Department staff can advise the bank about what the regulation requires, and what the bank’s alternatives could be to resolve the potential problem. If the bank participates in the KBCS program, the KBCS attorney can offer to look at the bank’s loan documentation and provide the bank with specific legal advice on how the bank should resolve the issue. With seven attorneys, two Certified Regulatory Compliance Managers (CRCM), a paralegal and legal assistant, each member bank can choose the level of legal and compliance support that works best. No matter what option the bank selects, it can rest assured knowing that the KBA Legal Department and KBCS staff are here to assist the bank with its legal and compliance needs. Just ask … we’re here to help . JUST ASK … WE’RE HERE TO HELP By Terri D. Thomas, SVP-Legal Department Director