HCS SB 895 -- BANKING REGULATIONS

SPONSOR:  Yeckel (Liese)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Banks and
Financial Institutions by a vote of 18 to 0 with 2 present.

This substitute:

(1)  Grants Missouri banks, savings banks, and savings and loans
the same powers as national banks, subject to approval by the
Director of the Division of Finance;

(2)  Makes changes to rules affecting bank officers and boards of
directors and rules affecting liens and encumbrances on
manufactured homes;

(3)  Increases the late payment fees that banks can charge;

(4)  Increases the percentage of unimpaired capital, from 15% to
25%, that banks or trust companies may lend if they have a
composite rating of 1 or 2 under the Capital, Assets, Management,
Earnings, Liquidity and Sensitivity Rating System of the Federal
Financial Institute Examination Counsel and are located in a city
with a population of 100,000 or more.  A bank may also invest in
equity stock in the Federal Home Loan Bank up to twice the limit
that it is entitled to lend out; and

(5)  Requires that the actuarial method be used to calculate
refunds due to persons in premium finance agreements, retail
installment contracts, credit insurance agreements, retail time
contracts, and any note or loan contract providing for an amount
of interest that is prepaid in full.

The substitute also allows the State Treasurer to invest in
municipal bonds of any political subdivision in adjoining
counties of any contiguous state if the bonds are rated in the
highest category by at least one nationally recognized
statistical rating agency.

FISCAL NOTE:  Estimated Net Income to Highway Funds of $351,912
in FY 2003, $815,082 in FY 2004, and $1,128,007 in FY 2005.

PROPONENTS:  Supporters say that the bill modernizes banking,
provides a level playing field, includes savings and loans
associations, and standardizes loan payments.

Testifying for the bill were Senator Yeckel; Missouri Bankers
Association; Missouri Independent Bankers Association; Central
Bank; Household International; Missouri Financial Services
Association; Office of the Secretary of State; and Bank of
America.

OPPONENTS:  There was no opposition voiced to the committee.

Mark Pioli, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am