SCS/HCS/HB 221 - This act modifies a number of laws associated with banking.

The act provides that in first class counties having two recorders' offices, priority shall be given to Article 9 securities over liens on deeds of trust and other instruments affecting real property for the period between June 30, 2001 and June 30, 2003. An additional fee of one dollar is to be collected by the county recorder of deeds on all documents or instruments recorded, to be deposited in the county employees' retirement fund or to the general revenue fund if the county doesn't have a county employees' retirement fund. The additional fee becomes effective September 1, 2003.

The Missouri Higher Education Loan Authority is authorized to consolidate existing parent loans for undergraduate students ("PLUS"). The date for repayment of bonds issued by the Missouri Higher Education Loan Authority is extended from 30 to 40 years.

Duties of parties regarding the creation of liens on certain watercraft are modified to provide that the director of revenue shall mail the certificate of title with the new and address of the new lienholder to the owner named in the certificate of title, not the first lienholder named in the certificate.

The Director of the Division of Finance is authorized to obtain data filed with federal regulatory agencies in lieu of requiring direct filing of reports of condition from financial institutions. The Director may require verification of the data from such institutions. During the Director's examination of a bank or trust company, if the director relies upon audits by a C.P.A., the Director must be afforded access to any workpapers used as a basis for the audit. Auditors are required to keep such workpapers for a minimum of three years.

The definition of "bank" is modified to specifically include chartered commercial banks and national banks in this state. The definitions of "demand deposits" and "time deposits" are modified to provide that payment of such deposits can be required as provided in federal law. Currently, payments can be required within 30 days.

Banks are authorized to purchase or lease real property in an amount not exceeding its legal loan limit and may derive income from the renting or leasing of such property. Should the purchase or lease exceed the legal loan limit or be from an interested party, such bank must seek prior approval from the Director of the Division of Finance. Banks and trust companies, savings and loan associations and credit unions may impose fees or service charges on deposit accounts, subject to certain promulgated rules.

The definition of "unimpaired capital" is modified to provide that goodwill cannot comprise more than 10% of unimpaired capital for purposes of determining lending limits.

The act creates a definition of a "trust holding company" and authorizes the formation of a trust holding company in Missouri. The Director of the Division of Finance is required to determine if a proposed acquisition by a trust holding company of a trust company is consistent with the interests of having sound trust companies. The Director is authorized to grant or deny the proposed acquisition. The Director may examine and investigate trust holding companies.

In Section 400.9-525, the act statutorily enacts the electronic filing of certain initial financing statements and lowers the fee for such filings from $7 to $5. The uniform commercial code transition fee trust fund is abolished. The effective date for Section 400.9-525 is September 1, 2003.

This act provides that no person, other than the cardholder shall disclose more than the last five digits of a credit card or debit card account number on a sales receipt provided to the cardholder for merchandise sold in this state.

Section 408.455, RSMo, is modified to provide that contracts originally subject to variable interest rate limitations shall remain subject to limitations on additional charges, excessive interest, false advertising and lending discrimination even if the contract is converted into another form of credit.

The act repeals certain sections in Chapter 408, RSMo, concerning requirements and restrictions on variable rate unsecured loans. Sections 408.653 and 408.654 regarding fee limitations and limits for overdraft charges are also repealed.

This act is similar to SB 346 and SB 292 (2003).
JIM ERTLE