SB 0836 - Fiscal Note

Fiscal Note - SB 0836 - Regulates Certain Financial Transactions

L.R. NO.  2953-04
BILL NO.  HCS for SB 836
SUBJECT:  Financial Transactions
TYPE:     Original
DATE:     May 13, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None                             $0              $0              $0

Total Estimated
Net Effect on All
State Funds                      $0              $0              $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None                             $0              $0              $0

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0              $0              $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the following agencies assume this legislation would have no
fiscal impact on their agencies:  Department of Economic Development -
Divisions of Finance and Credit Unions, Attorney General's Office, Office of
State Courts Administrator, Department of Natural Resources, and the
Department of Insurance.

Oversight assumes that if a number of central credit unions convert to banks
or trust companies as allowed by the proposal, there could be fiscal impact
to the Divisions of Finance and Credit Union.  Oversight assumes that any
impact would likely offset in that the Division of Finance could incur
additional duties, while the Division of Credit Unions may experience a
decrease in workload.  However, it is anticipated that such impact on either
division would be minimal.


FISCAL IMPACT - State Government     FY 1997   FY 1998   FY 1999
                                    (10 Mo.)

                                           0         0         0



FISCAL IMPACT - Local Government     FY 1997   FY 1998   FY 1999
                                    (10 Mo.)

                                           0         0         0


DESCRIPTION

This legislation would establish the "Missouri Prudent Investor Act."

The proposal would allow for the conversion of central credit unions to state
banks or trust companies upon approval of the directors of the divisions of
finance and credit unions within the department of economic development.  It
would also allow for the merger or consolidation of central credit unions
with state banks or trust companies or other central credit unions.

The legislation modifies RSMo 443.130 to require any person who receives
satisfaction regarding a security instrument, mortgage or deed of trust to
deliver to the person making satisfaction a deed of release within 15
business days, as opposed to within 30 days under current law.  The proposal
also adds language to that section providing for a mortgagor to forward a
demand letter via certified mail 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.  This section contains an
emergency  clause and is to be effective upon passage and approval.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Economic Development - Divisions of Finance and Credit Unions
Attorney General's Office
Office of State Courts Administrator
Department of Natural Resources
Department of Insurance