SCS HB 707 -- BANKS AND FINANCIAL INSTITUTIONS

This bill changes the laws regarding banking.  In its main
provisions, the bill:

(1)  Removes the requirement that bank examiners be members of a
political party;

(2)  Defines "financial institution" as any entity subject to
chartering, licensing, or regulation by the Division of Finance
within the Department of Economic Development;

(3)  Authorizes the division director to compel the attendance of
witnesses and the production of documents and electronic records
in an examination or investigation.  The division director may
seek judicial enforcement of a subpoena by application to an
appropriate court;

(4)  Removes the requirement that the division director must
petition the circuit court where a bank is located for an order
appointing the Federal Deposit Insurance Corporation (FDIC) as
the liquidating agent of a bank;

(5)  Allows a bank when restating its articles of agreement to
amend its articles of incorporation at the same time;

(6)  Specifies that a drop box for deposit purposes is not
considered a branch bank;

(7)  Requires that loans or other extensions of credit to
officers and directors of banks be made in accordance with
Federal Reserve Board regulations;

(8)  Revises the provision requiring banks and trust companies to
maintain reserves against aggregate deposits as provided by the
Federal Reserve Act.  A bank's required surplus fund cannot be
created or increased by the net earnings of the bank, and banks
must account for every item of income and expense to determine
the amount of net income or loss for a dividend period;

(9)  Requires that a notice be posted in the lobby, on the
entrances, and given to the division director for a branch office
of a bank to temporarily be closed for any reasonable period of
time for repairs or purposes decided by the bank's board of
directors; and

(10)  Changes the term "foreign corporation" to "out-of-state
bank or trust company" and includes any thrift institution under
the jurisdiction of the Office of Thrift Supervision in the
United States Department of the Treasury.  Unless the
out-of-state bank or trust company verifies to the division that
it satisfies certain capital requirements and maintains a bond
for faithful performance of fiduciary duties, the division
director may require a bond of at least $1 million.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm