SB 0836 Regulates Certain Financial Transactions
LR Number:L2953.04C Fiscal Note:2953-04
Committee:Financial and Governmental Operations
Last Action:05/28/96 - In Conference
Title:HCS/SB 836
Effective Date:August 28, 1996
Full Bill Text | All Actions | Senate Home Page | List of 1996 Senate Bills
Current Bill Summary

HCS/SB 836 - This act makes numerous changes to the financial transaction provisions found in Chapters 362 (Banks and Trust Companies), 370 (Credit Unions), 408 (Legal Tender and Interest), 427 (Creditor Protection), 456 (Trusts and Trustees), and 473 (Probate Code), RSMo.

Chapter 370, RSMo, is modified to authorize central credit unions, upon obtaining approval of the Divisions of Finance and Credit Unions, to: 1) convert into a Missouri bank or trust company; or 2) consolidate or merge with one or more banks, trust companies or central credit unions. Conversion, consolidation and merger issues are detailed.

Two new sections are added to Chapter 408, RSMo. Section 408.032 addresses recording fees. Section 408.092 gives the court discretion to award attorneys fees in actions seeking "to enforce any contract for credit provided by a for-profit business".

A new subsection is added to Section 443.130, RSMo, which allows the mortgagor to forward a demand letter to the mortgagee requesting a deed of release. The demand letter must show that the debt secured by the deed of trust was satisfied with "good funds", and that the expense of filing and recording the deed of release was advanced.

The Missouri Prudent Investor Act is codified into Chapters 456 and 473, RSMo. Essentially, a trustee must invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. A trustee must exercise reasonable care, skill and caution.

The Prudent Investors Act also details: (1) what factors a trustee must consider when investing and managing trust assets; 2) diversification of trust investments; (3) treating multiple beneficiaries equally; and (4) a trustee's delegation of authority to an agent. The Prudent Investors Act applies prospectively and retrospectively.

Section 1 states that insurance policies which provide liability coverage for depository institutions may include a contractual provision which addresses "legal costs, attorneys fees and defense costs associated with defending the insured party within the maximum limit of liability as described in the policy."

The portions of this act which modify Chapters 370, 443, 456 and 473, RSMo, are very similar to SCS/HB 1432. The modifications to Chapter 443, RSMo, are subject to an emergency clause and, therefore, will become law upon passage and approval.