SCS/HS/HB 736 - OMNIBUS BANKING BILL - This act amends various provisions relating to banking law.

(1) Allows banking S corporations to take a tax credit for all of their allowed tax returns, as opposed to allowing only a credit on the tax on bank income;

(2) Redefines "tax credit" for purposes of banking S corporations to include all income taxes and corporate franchise taxes;

(3) States that, if the corporate franchise tax is repealed for Missouri corporations other than financial institutions, then:

(a) Financial institutions will be granted a tax credit, in lieu of the existing tax credit, of 1.5% of net income. S corporations can pass the tax credit through to their shareholders; and

(b) All taxes and tax credits on S corporations will be passed through to the shareholders, with certain exceptions;

(4) Allows insurance companies, beginning with the tax year 2003, to carry premium tax deductions for examination fees forward to any of the 5 subsequent tax years in order to claim the full deduction. Except that any deduction claimed through the carryforward provisions of this section, it shall be credited wholly against the general revenue fund and shall not cause a reduction in revenue to the county foreign insurance fund.;

(5) Clarifies the manner in which subordinate liens on motor vehicles or trailers must be perfected;

(6) Modifies bank stockholders' meetings laws to allow voting shareholders to transact all business required at annual or special meetings by unanimous written consent;

(7) Allows state bank and trust companies to:

(a) Hold noncontrolling equity interests in financial business entities that are owned by other financial institutions located in Missouri, and

(b) Lend money on real estate and handle real estate closings and escrows;

(8) Allows certain bank and trust companies in communities with sufficiently small populations, as established by rule of the Division of Finance, to keep the additional powers granted to them for 5 years after they exceed the allowable population;

(9) Allows state bank and trust companies to offer any product or service that a national bank can offer, as long as the state bank:

(a) Follows federal law while conducting these practices, and

(b) Is approved for these purposes by the Division of Finance after a prescribed notice period;

(10) Provides that state law preempts the field of future legislation by political subdivisions as to regulation of financial institutions;

(11) Expands the capital investment allowances granted to state banks to include holding companies authorized to do business in the state;

(12) Clarifies that certain investment prohibitions are limited only to other allowable investments;

(13) Allows bank and trust stockholders to appoint a chief executive officer or a president. Current law only allows presidents to be appointed;

(14) Allows bona fide fees to be collected on residential real estate loans for any actual and necessary services associated with the loan;

(15) Allows late payment charges not to exceed 5% of the payment due or $50, whichever is less, on small loans overdue for 15 days or more;

(16) Prohibits any regulation regarding the charging of insurance commissions on credit insurance or the payment of fair market value consideration on contracts to facilitate the sale of insurance from being more restrictive on financial institutions than regulations are on insurance agents, subject to enforcement actions by the Division of Finance or the Division of Credit Unions as necessary to protect the safety and soundness of the financial institution; and

(17) Increases the attachment exemption for unmatured life insurance contracts of persons in bankruptcy proceedings from $5,000 to $150,000.

(18) Increases the length of time for exemptions of a insurance contract purchased by the person for one year for bankruptcy proceedings purposes. Current law only required six months;

(19) Allows Financial Institutions that pay obligations from escrow to be exempt from city or county ordinance that require property taxes to be paid by installments.

Similar provisions are contained in SS/HCS/HB 738 (2001).
JULIA SOMMER GRUS