CCS HS HCS SB 895 -- SECURITY AND BANKING REGULATIONS

This bill:

(1)  Allows the State Treasurer to temporarily exchange certain
obligations of state moneys for cash;

(2)  Allows county collectors or treasurer ex officio collectors
to charge a returned check charge of $10 or 5% of the total
amount on a returned check, not to exceed $100;

(3)  Allows Missouri resident S shareholders of out-of-state
banks to qualify for a pro rata share of net tax paid;

(4)  Defines "lease or rental of tangible personal property" for
banks, credit unions, and savings and loans;

(5)  Allows motor vehicle and trailer dealers to use the names by
which they are known to the public on signs;

(6)  Requires the Director of the Department of Revenue to mail
or electronically confirm receipt of notice of lien to the
lienholder within 15 days of filing.  Confirmation of ownership
may also be sent electronically;

(7)  Requires the certificate of ownership of a motor vehicle or
trailer to be sent to the owner shown on the face of the title
rather than to the first lienholder;

(8)  Allows notice of subordinate liens to be sent electronically
and makes it a class A misdemeanor for an owner to fail to name
the lienholder in the application for title;

(9)  Allows a document other than a certificate of ownership, if
notarized, to be released upon the satisfaction of a lien or
encumbrance on motor vehicles, trailers, motorboats, vessels, and
watercraft.  A person who sends in a separate document releasing
a lien without authority is guilty of a class C felony;

(10)  Allows policies involving liens on motor vehicles,
trailers, motorboats, vessels, and watercraft entered into before
July 1, 2003, to be covered by existing statute;

(11)  Allows notice of subordinate liens to be sent
electronically and outlines the procedures for perfecting a lien
for a subordinate lienholder for motorboats, vessels, and
watercraft;

(12)  Allows corporations to change their registered office or
registered agent with the filing of its annual registration
report;

(13)  Allows communications and forms between the Secretary of
State and corporations to be electronic.  It also requires the
Secretary of State to furnish forms of annual corporate
registration reports to any corporation upon request;

(14)  Requires that failure to file the annual registration
report will result in the administrative dissolution of the
corporation;

(15)  Requires corporations that are not required to file
franchise tax reports to still file annual corporation
registration reports on time;

(16)  Adds any electronic means of transmitting or paying money
to the definition of "check" for purposes of the Sale of Checks
Law;

(17)  Requires that articles of agreement involving a bank
include additional information on shareholder rights;

(18)  Grants banks, savings and loan associations, and state
savings banks new powers currently permitted for national banks,
federal savings and loan associations, and federal savings banks;

(19)  Revises the procedures used by a bank to become a trust
company, the actions of a board of directors of a bank when
immediate action is required, and restrictions regarding the
amount of unimpaired capital lent by a bank and investment in the
stock of a private corporation;

(20)  Allows banks or trust companies to appoint officers and
requires them to have a chief executive officer, but they need
not have a president;

(21)  Requires that the actuarial method be used for calculating
refunds on prepayment of obligations from premium finance
companies and on motor vehicles, insurance policies, small
consumer loans that are in excess of $5,000, and retail time
contracts (repeals the "Rule of 78");

(22)  Revises procedures for late payment in motor vehicle
installment contracts;

(23)  Allows an insurance business to renew a lapsed license
within 12 months for a $25 penalty for each month the license was
lapsed;

(24)  Revises procedures for the licensing of credit insurance
companies and agents;

(25)  Allows insurers to provide insurance policies,
endorsements, riders, and explanatory materials in a language
other than English;

(26)  Makes several changes to the Uniform Commercial Code.  It
revises the definition of "chattel paper" to include a lease or
security interest in certain goods and license of software used
in the goods; deletes the definition of "notice" and limits the
applicability of the definitions for "original debtor" and
"proceeds"; revises the rules which may not be waived by certain
debtors; revises the priority of certain security interests and
agricultural liens; makes a technical change regarding parties to
be sent notification and to the contents of the notification;
makes a security interest subordinate to the rights of a lien
creditor to the extent that the security interest secures an
advance more than 45 days after the person becomes a lien
creditor; revises certain rules regarding security interests so
that they also apply if the interests are assigned or
transferred; revises rules about filing statements so that a
debtor authorizes the filing of a finance statement by the
acquisition of certain security interests or agricultural liens;
revises the process for the filing of certain termination
statements; requires that the Department of Revenue, not the
Secretary of State, administer the Uniform Commercial Code
Transition Fee Trust Fund, revises the duties of the Secretary of
State with regard to the fund, and requires that the moneys in
the fund be deemed non-state funds; and limits the records to be
accepted by a local filing office and extends the date for each
local filing office to maintain former Article 9 records;

(27)  Changes the perfection rights for liens on manufactured
homes;

(28)  Defines "merchant," "reencoder," and "scanning device" with
regard to unlawful credit card practices and makes it an unlawful
practice to disclose more than the last five credit card or debit
card numbers on any sales receipt.  A first violation is an
infraction, and a subsequent violation is a class A misdemeanor.
This change is effective on machines placed into service on or
after January 1, 2003.  Machines placed into service before
January 1, 2003, must be in compliance by January 1, 2005.
Prosecution of violators will be allowed in a variety of
jurisdictions;

(29)  Requires that all credit contracts with interest or time
price differential calculated on an add-on basis, regardless of
the length of term, be computed on the basis of the originally
contracted rate;

(30)  Revises the type and amount of fees that can be charged on
small loans;

(31)  Makes changes regarding temporary registration of
investment advisors;

(32)  Requires a corporation to make a declaration, not a
notarized statement, within five business days of starting a
business using a fictitious name;

(33)  Requires financial institutions to encumber assets of
noncustodial parents on whom a lien has been placed for child
support enforcement, to notify the person affected, and respond
to the Division of Finance or agency authorized under Title IV-D
of the Social Security Act within 10 days; allows the state to
place a lien or block on the issuance of a certificate of
ownership on motor vehicles, boats, outboard motors, manufactured
homes, and trailers in order to enforce child support and
requires the Department of Revenue to maintain a child support
lien database; and allows garnishees to pay or surrender property
to either the sheriff or the court before final judgment without
penalty;

(34)  Prohibits fraudulent use of a credit or debit device in
paying property taxes;

(35)  Adds electronic and other formats to the crime of making a
false declaration; and

(36)  Makes changes regarding liens and encumbrances on
manufactured homes.

The effective date for the repeal and reenactment of the
provisions concerning lapsed license renewal for insurance
businesses; liens; encumbrances; certificates of ownership of
land and sea vehicles, trailers, and manufactured homes; and the
change to the actuarial method of calculating refunds is January
1, 2003.

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