SCS HCS HB 221 -- BANKING

This bill makes several changes to the laws governing banking.
The bill:

(1)  Gives priority to Article 9 securities over liens on deeds
of trust and other instruments affecting real property in first
classification counties which have two recorders' offices for the
time period from June 30, 2001, to August 28, 2003;

(2)  Adds $1 to the recording fee that county recorders charge
for every document recorded.  Additional moneys are to be sent to
the county employees' retirement fund or to the general revenue
fund of charter counties without a county employees' retirement
fund.  The bill contains an effective date of September 1, 2003,
for this section;

(3)  Allows the Missouri Higher Education Loan Authority (MOHELA)
to originate PLUS Loans (Parent Loans for Undergraduate Students)
and increases the term of the bonds the loan authority may sell
from 30 years to 40 years;

(4)  Allows the Division of Finance to obtain information filed
with federal regulatory agencies, rather than requiring banks to
file reports of condition directly with the division;

(5)  Allows the division access to the work papers used in a
certified public accountant's audit of a bank and requires the
certified public accountant to maintain these records for three
years after the report to the bank is issued;

(6)  Requires banks to get prior approval from the division when
the bank seeks to purchase real property for an amount that
exceeds its loan limit or when the bank seeks to purchase
property from an officer, shareholder, or other person with a
similar relationship to the bank;

(7)  Prohibits the division and the State Banking Board from
setting conditions or requirements on deposit account fees or
service charges assessed by financial institutions that are more
restrictive than those allowed by federal law;

(8)  Amends the definition of "unimpaired capital" by requiring
that goodwill comprise no more than 10% of the lending
institution's unimpaired capital;

(9)  Establishes a process for establishing a new form of
business entity called "trust holding company";

(10)  Clarifies that trust holding companies will not be subject
to Federal Reserve examination;

(11)  Requires any acquisition of a nondepository trust company
by a trust holding company to be approved by the division;

(12)  Allows the division to pursue joint actions and
investigations of trust holding companies with other state and
federal regulatory authorities;

(13)  Allows electronic filing with the Office of the Secretary
of State of certain filings of initial financing statements and
abolishes the Uniform Commercial Code Transition Fee Trust Fund.
The bill contains an effective date of September 1, 2003, for
this section;

(14)  Repeals several sections of law setting requirements and
restrictions on certain variable-rate loans and clarifies that
the sections will continue to govern these loans currently in
existence, even if the loan is converted to another form of
credit later; and

(15)  Repeals the limit on fees that financial institutions may
charge for check overdrafts.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am