JEFFERSON CITY -- The General Assembly has passed legislation that makes numerous changes to laws dealing with Missouri's financial institutions, and garners an additional $30 million for the state.

"This bill continues our efforts to modernize our state's banking system," said Sen. Anita Yeckel, R-Sunset Hills, who served as the Senate sponsor of House Bill 221. "While many of these changes seem quite simple, they will make a big difference to the manner in which financial institutions do business."

Changes are made to the statute of limitations regarding the demutulization of insurance companies. When mutual insurance companies convert over to a stock company, they have a certain length of time to pay of their mutual holders.

Under this new law, unclaimed property payable in the course of demutulization, rehabilitation or related reorganization is considered abandoned after three years and will then become state property. It is estimated that this change will result in an additional $30 million for the State of Missouri.

Included in this bill is a provision that 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.

The PLUS Loan is a low variable interest rate loan made available to the parents of a dependent undergraduate student. This loan is intended to cover the remaining cost of attendance at a college or university.

With more than $3.3 billion in assets, and purchase activity in excess of $700 million per year, MOHELA is one of the top 12 holders and servicers of student loans in the United States. Over 500,000 students have received a MOHELA financed student loan.

"The changes we are making in this loan will enable more parents to send their children to college," said Sen. Yeckel. "With the rising cost of education, it's important to assist parents in any way possible."

HB 221 will add $1 to the recording fee that county recorders charge to every document recorded.

The additional money will be sent to the county employees' retirement fund or to the general revenue fund of charter counties without a county employees' retirement fund.

"This provides additional revenues for counties, without being a hardship on the people they serve," Sen. Yeckel said.

Additional changes made under HB 221:

• Prohibits the Division of Finance and 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.
• Clarifies that trust holding companies will not be subject to Federal Reserve examination.
• Allows electronic filing with the Office of the Secretary of State of certain filings of initial financing statements and abolishes the Uniform Code Transition Fee Trust Fund.

Having been approved by the General Assembly, HB 221 was signed into law by the governor on May 8.