HB 257- This act combines HB 257, SB 290, SB 297 and SB 304, regarding financial institutions.

BANKS: Limitations on relocation and acquisition shall not apply to a national or out-of-state bank that relocates to Missouri so long as such bank had its main office in the state prior to January 1, 1997, and moved to a contiguous state. Mergers between out-of-state banks and Missouri banks may occurs if permitted by federal law.

Any bank or trust company shall have the power to make a payment on an account without determining whether there are other interests in such account, unless restricted by court order.

Holding companies may only control up to thirteen percent of total deposits within the state.

COMMERCIAL TRANSACTIONS: The statute of limitations for bringing an action on a loan is increased from six years to ten years from the date such loan is due.

Certain fees relating to liens on a debtor's property may be charged to the debtor.

COLLATERAL PROTECTION: A creditor may place insurance upon collateral they receive when loaning money. The creditor must meet the following conditions to place such insurance:

1) the debtor has entered into a credit transaction with the creditor;

2) the transaction has been written in the form of a credit agreement; and

3) the creditor places the debtor on notice that, unless the debtor has insurance coverage on the collateral, the creditor may purchase insurance to protect its interest.

The cost of collateral insurance shall be charged to the debtor if purchased by the creditor upon thirty days notice of the purchase. Any action to enforce the debtor's liability for insurance coverage must be commenced within five years after the coverage is purchased.

SAVINGS BANKS: Creates a new financial institution called a "savings bank" in Missouri. A savings bank must comply with most procedures outlined in Chapters 361 and 362, RSMo, as well as:

1. Limiting the investment of assets in commercial loans to 40%, and

2. Maintaining at least 15% of its assets as residential mortgages, home improvement loans, residential construction loans and mortgage backed securities.

Savings banks may exercise trust powers and may merge with or convert to a bank.

Additional sections outline the process for associations to convert to savings banks.

TOWING: A lienholder who repossesses a vehicle would no longer be required to notify the Highway Patrol within one hour of towing such vehicle; however, if the vehicle owner does not have knowledge of the repossession, the lienholder must notify the local law enforcement agency within two hours of repossession. The repossed vehicle would then be entered into the statewide law enforcement computer system.
DENISE GARNIER