House Committee Substitute

HCS/SCS/SB 635 - Currently, irrevocable standby letters of credit issued by a federal home loan bank possessing the highest credit rating by at least one nationally recognized rating agency are listed as acceptable collateral for public deposits. This act removes the reference to credit ratings.

This act modifies the law governing the establishment, improvement and maintenance of private roads.

This act establishes a process for establishing a plan of maintenance for private roads when adjoining homeowners or homeowners who hold easements to use private roads are unable to agree in writing upon a plan of maintenance for a private road. If the homeowners are unable to agree to a plan of maintenance, one or more of the homeowners may petition the circuit court for an order establishing a plan of maintenance.

Under the terms of the act, the cost of the maintenance plan for a private road must be apportioned among the homeowners according to the use and benefit to the residential property benefitted by the access as mutually agreed by the homeowners or as ordered by the court. The method of apportionment established by the homeowners or ordered by the court may be based on equal division, residential assessed value, usage or benefit or other methods.

The act provides that a court may implement the same procedures to order a plan of maintenance for establishing or widening a private road. The act further provides that the court may appoint disinterested commissioners to determine a maintenance plan and the apportionment of costs.

If homeowners are unable to agree upon the designation of a supervisor to complete a maintenance plan, then the commissioners appointed by the court shall designate a supervisor. The appointed supervisor shall be compensated in the same manner as the commissioners.

Under the act, any agreement executed by all owners for, or final order approving, a plan of maintenance shall be recorded with the county recorder of deeds. Under the terms of the act, adjoining landowners or holders of an easement to use a private road may bring an action to enforce the maintenance plan, whether as mutually agreed or as ordered by the court.

The act allows a prior agreement or court order establishing a plan of maintenance to be amended or modified and may be restated at any time by a recorded agreement signed by all the homeowners or other benefitted owners. A court proceeding to amend, modify, or restate a plan of maintenance shall not be filed sooner than 7 years from the entry of a prior order unless there is prima facie evidence showing that the real property benefitted by the private road has been developed or divided in a manner rendering the plan of maintenance obsolete or showing that the existing apportionment of the use and benefit is inequitable.

For the purposes of obtaining a maintenance order, the act defines "private road" as any private road established under chapter 228 or any easement of access which provides a mean of ingress and egress by motor vehicle for any owners of residences from such homes to a public road. The act specifies that private roads do not include roads owned by the United States, the state of Missouri, or other political subdivisions. The act also specifies that the provisions of law that pertain to the establishment and maintenance of private roads shall not apply to roads created by or included in any recorded plat referencing or referenced in an indenture or declaration creating an owner's association, regardless of whether such road is designated as a common element. In addition, the private road statutes shall not apply to any land or property owned or operated by any railroad regulated by the Federal Railroad Administration.

Currently, certain banks, savings institutions, and credit unions are required to file a notice with the Missouri Real Estate Appraisers Commission that includes some of the same information and certifications that real estate appraisal management companies must file. This act eliminates the requirement that these banks, savings institutions, and credit unions file this notice.

Currently, Missouri banks and trust companies with trust powers, and national banks with trust powers under United States laws with their principal place of business in Missouri, are authorized to transfer fiduciary obligations consisting only of irrevocable life insurance trusts to the Missouri trust office of an out of state bank with trust powers or to an out of state trust company. This act allows all banks, trust companies, and national banks with trust powers, regardless of location, to transfer those obligations to any such banks and trust companies.

This act is similar to SB 71 (2011), HB 1308 (2012), HCS #2/HB 1524 (2012), SB 579 (2012), HB 1103 (2012), HB 1349 (2012), and SCS/SB 623 (2012).


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