HCS SS SCS SB 346 -- FINANCIAL SERVICES

This bill makes several changes to the laws governing financial
services.  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)  Clarifies that credit card and debit card receipts may show
only the last five numbers of the card on the receipts provided
to the cardholder;

(15)  Clarifies that several provisions relating to variable-rate
loans (which are repealed in the bill) will continue to govern
those loans currently in existence, even if the loan is converted
to another form of credit later;

(16)  Makes unclaimed property payable in the course of a
demutualization, rehabilitation, or related reorganization of a
mutual insurance company abandoned after two years.  Under
current law, property may have to go unclaimed for five or seven
years to be considered abandoned;

(17)  Repeals several sections of law setting requirements and
restrictions on certain variable-rate loans;

(18)  Repeals the limit on fees that financial institutions may
charge for check overdrafts;

(19)  Adds out-of-state municipal bonds to be offered to the
State Treasurer as security by lending institutions.  The bonds
must be rated in the highest category by at least one nationally
recognized rating agency;

(20)  Allows the division to issue biennial consumer credit
licenses for certain finance companies; and

(21)  Allows financial institutions to charge late payment fees
of up to $50 for certain consumer loans and second mortgages
which are in default for more than 15 days.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am