An Act concerning credit agreements; relating to actions for legal or equitable relief or
defenses; amending K.S.A. 16-117 and 16-118 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 16-117 is hereby amended to read as follows: 16-
117. As used in this act:

(a) ``Credit agreement'' means an agreement by a financial institution
to lend or delay repayment of money, goods or things in action, to oth-
erwise extend credit or to make any other financial accommodation. For
purposes of this act the term ``credit agreement'' does not include the
following agreements: Open-end or closed-end promissory notes, real
estate mortgages, security agreements, guaranty agreements, letters of
credit, deposit account agreements, agreements in connection with deposit
accounts for the payment of overdrafts, agreements in connection with
student loans insured or guaranteed pursuant to the federal higher edu-
cation act of 1965 and acts amendatory thereof and supplementary
thereto, and agreements in connection with ``lender credit cards'' as de-
fined in the uniform consumer credit code;

(b) ``creditor'' means a financial institution which extends credit or
extends a financial accommodation under a credit agreement with a

(c) ``debtor'' means a person who obtains credit or receives a financial
accommodation under a credit agreement with a financial institution; and

(d) ``financial institution'' means a bank, savings and loan association,
savings bank or credit union.

Sec. 2. K.S.A. 16-118 is hereby amended to read as follows: 16-118.
(a) A debtor or a creditor may not maintain an action for legal or equitable
relief or a defense, based in either case upon a failure to perform on a an
alleged credit agreement, unless the material terms and conditions of the
agreement is are in writing and is signed by the creditor and the debtor.

(b) All credit agreements shall contain a clear, conspicuous and
printed notice to the debtor that states that the written credit agreement
is a final expression of the credit agreement between the creditor and
debtor and such written credit agreement may not be contradicted by
evidence of any prior oral credit agreement or of a contemporaneous oral
credit agreement between the creditor and debtor. A written credit agree-
ment shall contain a sufficient space for the placement of nonstandard
terms, including the reduction to writing of a previous oral credit agree-
ment and an affirmation, signed or initialed by the debtor and the cred-
itor, that no unwritten oral credit agreement between the parties exists.

(c) Failure to comply with provisions of subsections (a) and (b) shall
preclude an action or defense based on any of the following legal or eq-
uitable theories: (1) An implied agreement based on course of dealing or
performance or on a fiduciary relationship; (2) promissory or equitable
estoppel; (3) part performance; or (4) negligent representation.

Sec. 3. K.S.A. 16-117 and 16-118 are hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 2, 1998