|SB 0895||Amends various provisions related to financial institutions|
|LR Number:||3624L.14T||Fiscal Note:||3624-14|
|Committee:||Financial and Governmental Organization|
|Last Action:||07/11/02 - Signed by Governor||Journal page:|
|Title:||CCS HS HCS SB 895|
|Effective Date:||August 28, 2002|
CCS/HS/HCS/SB 895 - This act makes a number of changes related to financial institutions and services involving financial institutions. The state treasurer is authorized to exchange certain investments for cash (Section 30.260). County collectors are authorized to collect a penalty against persons who pay their taxes with a check with insufficient funds (Section 139.235). The act allows certain resident shareholders of S corporation chartered banks to qualify for any pro rata share of any net tax paid (Section 143.081). The act creates a definition for the term "lease or rental of tangible personal property" (Sections 148.020 and 148.610).
The act modifies the contents of the sign that must be posted by car dealerships (Section 301.560). The act modifies provisions relating to liens on motor vehicle and watercraft. It 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. The act 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. Also it 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 (Chapters 301 and 306). Any person who knowingly and intentionally sends a document releasing a lien on a motor vehicle without the authority to do so shall be guilty of a class C felony (Section 301.640).
This act revises the process for certain corporations to file their annual reports to the Secretary of State. It allows corporations to change their registered office or registered agent with the filing of its annual registration report, and it 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. The act requires that failure to file the annual registration report will result in the administrative dissolution of the corporation. It also requires corporations that are not required to file franchise tax reports to still file annual corporation registration reports on time (Sections 351.120, 351.140, 351.145, 351.150 and 351.155, 355.856 and 356.211).
Articles of agreement involving a bank shall include additional information shareholder rights (Section 362.020). Changes are made to the procedure used by a bank to become a trust company (Section 362.117). Restrictions regarding the amount of unimpaired capital lent by a bank and investment in the stock of a private corporation are amended (Section 362.170). The act changes procedures for the actions of a Board of Directors of a bank when immediate action is required (Section 362.275). The act makes changes to the power of a bank to appoint officers (Section 362.335).
Charges for late payment in motor vehicle installment contracts are amended (Section 365.100). The act includes procedures for late renewal of a business entity insurance producer (Section 375.018). New types of insurance may be sold by credit insurance agents and the act includes provisions on licensing credit insurance agents and organizations (Section 375.065). Insurers are authorized to provide insurance materials in languages other than English (Section 375.919).
The act 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 loans, and retail time contracts (repeals the "Rule of 78"). It also 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.
The act modifies a number of provisions regarding secured transactions in Article 9, Uniform Commercial Code (Sections 400.9-102 to 400.9-710). These changes involve filing requirements for perfections of liens, the priority of certain security interests and liens, perfection requirements for liens on mobile homes and various technical changes.
The act provides that no person, other than the cardholder, shall disclose more than the last five digits of a credit card or debit card on a sales receipt. It shall also be an unlawful practice to use a scanning device or reencoder to obtain information from a credit card with the intent to defraud the cardholder, issuer or merchant. The first violation of this act is an infraction. Every subsequent violation is a Class A misdemeanor. The effective date of the act is January 1, 2003, and shall apply to machines placed into service after that date. Machines existing before January 1, 2003 become subject to the act on January 1, 2005. The act also provides the venue for prosecution of the fraudulent use of a credit or debit card.
The act changes the type and amount of fees that can be charged in small loans (Section 408.140). When a lender sells collateral in which an action for deficiency could be filed against the borrower, the act provides for the lender to give notice in accordance with sections 400.9-613 and 400.9-614 (Section 408.557).
Certain securities agents and investment advisers are granted temporary permits if transferring from one broker to another within the state (Section 409.204). The burden of proving an exemption from regulation based on being a federally covered security falls on the person claiming it (Section 409.402).
Currently, a corporation must file a notarized statement when registering a fictitious name with the secretary of state. The act requires the execution of a fictitious name form under penalty of law (417.210).
The act modifies the duty of a financial institution regarding liens made in enforcing child support awards. The act requires the financial institution to notify the division of child support which, in turn, notifies the non-custodial parent. Currently, the financial institution is responsible for notifying the non-custodial parent. The act also allows the financial institution to retain surrendered funds in escrow pending a hearing if the non-custodial parent challenges the lien. The department of revenue must set up a database for child support liens on cars, watercraft and manufactured homes that can accessed by lienholders, dealers and buyers to determine if there is an existing lien (Section 454.516).
The act makes it a crime to use a credit device to pay property taxes and to knowingly cancel the charges or payment without just cause (Section 570.130).
The act modifies the process for perfecting liens on manufactured homes. The act defines what the notice of lien must contain and covers perfection of a subordinate lien. The department of revenue must notify lienholders of the receipt of a notice of lien within 15 business days after the filing of the notice.
This act contains provisions that are similar to SB 931, HB 1712 and HB 1762 (2002).
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