SCS/HS/HCS/HB 822 - This act makes the following changes relating to banking:

Section 143.471 - Specifies the formula to be used to calculate the pro rata share of the tax credit for bank tax paid by S Corporation shareholders of bank and bank holding companies. A shareholder may carry forward the tax credit for up to five years.

Section 362.077 - requires any state bank, trust company or national bank which is in existence in another state but is relocated to Missouri to calculate the age of its bank charter as of the date the charter is moved to Missouri. That charter must be at least five years old before the bank or trust company is permitted to engage in an interstate acquisition or merger if the result is the merger or relocation to another state with Missouri branches remaining. This section is identical to SB 456.

Section 362.247 - Allows bank or trust company directors who are not physically present at a meeting to be counted towards a quorum under the following conditions: the bank or trust company has a composite rating of 1 or 2 under the Capital, Assets, Management, Earnings, Liquidity and Sensitivity Rating System; the board meeting is not attended by representatives of the bank or trust company state or federal bank regulator; and any director not physically present has to have signed an affidavit that the director received formal notice of the meeting and meeting information and that he or she was alone during the participation in the meeting. Failure to follow these procedures can result in enforcement action by the Division of Finance.

Section 362.275 - Current law requires every regular meeting of boards of directors for bank and trust companies to have lists of loans and related information submitted. This act allows debtors' information to be redacted or masked by code for directors not physically present at the meeting. A board of directors is authorized to ratify a poll taken by senior officers of the company on any issue in need of immediate action and ultimate board approval under certain conditions.

Section 362.550 - Permits trusts or other fiduciary instruments to specify, by reference to this section, that the trustee or other fiduciary does not have the authority to invest in mutual funds.

Section 362.610 - Makes a technical change to reflect the fact that federal law now permits out-of-state banks to merge with a national bank headquartered in Missouri.

Section 362.925 - Deletes statute authorizing state bank holding companies to acquire control of Missouri banks or bank holding companies if reciprocal conditions are met in the adjoining state.

Section 365.020 - Includes within definition of "principal balance" for purposes of the Missouri Motor Vehicle Time Sales Law any amounts paid or to be paid under an agreement to discharge a security interest, lien or lease interest on property traded in. Bailment contracts are removed from the definition of "retail installment contract."

Section 365.200 - Allows, for any motor vehicle not subject to the time sales law, a seller to include in the contractual time sale the outstanding balance of a prior loan or lease of a motor vehicle used as a trade in. A seller must first qualify as a retail seller under the time sales law.

Section 370.107 - Removes the existing fee schedule for credit unions which support the Division of Credit Unions and requires the Director of the Division to determine the fee, up a maximum specified amount.

Section 408.620 - Requires mortgage servicers to pay property tax obligations from escrow accounts in one annual payment before January 1 of the year following the year the tax is levied.

Section 427.200 - Allows any person to hold personal property for lease. A lease must be in writing and may be either the functional equivalent of a loan or a true lease. The act allows motor vehicle leases to include the outstanding balance of a prior loan or lease of a motor vehicle used as a trade in. Lease payments shall be considered in the nature of rent rather than interest, and Chapter 408 provisions do not apply.

Section 456.040 - Current law requires deposits by personal property lessees to be returned to the lessee or applied in accordance with the agreement at the end of the lease term. This act exempts from this requirement leases entered into by lessors who are also financial institutions in commercial lease transactions of at least $25,000.

Section 456.520 - Allows trustees to borrow money from any person, including themselves, which will be repaid from or secured by trust assets. Trustees are permitted to employ or contract with certain persons if they are associated or affiliated with the trustee.

Section 475.092 - Allows a court or other grantor to establish an inter vivos trust for the benefit of a minor or disabled person if, upon the person's death, the State of Missouri is reimbursed for Medicaid expenses and any creditors are paid amounts due for the person's care, maintenance and support. Trustees of any trusts created prior to the effective date of the act are not liable if the trust has insufficient property to reimburse the State of Missouri or the creditors.

Section 475.093 - Authorizes the establishment of a trust for the benefit of a protectee under the Missouri Family Trust Fund provisions including minors and disabled persons.

Section 511.030 - Allows court judgments to include affirmative or other relief for plaintiffs as well as for defendants. If a minor or disabled person is entitled to judgment, the court is authorized to direct or ratify any transaction for the person's physical or financial needs.

Section 620.010 - Removes the current requirement that credit union fees be sufficient to cover examination and administration expenses as well as support services. This provision, as modified, is transferred to section 370.107.

Sections 1-11 - Enacts the Viatical Settlements Act. Viatical settlements involve the sale of life insurance by the owner to enable the owner to obtain the benefit, or some portion of the policy benefit, prior to the death of the insured. Viatical settlement providers, viatical settlement representatives and viatical settlement brokers are required to be licensed by the Director of the Department of Insurance, who is empowered to suspend, revoke or refuse to renew the license for specified reasons. Certain information is required to be disclosed to a viator (policy owner) no later than the time of application. Violations of these provisions shall be considered unfair trade practices pursuant to Chapter 375, RSMo. These sections have an effective date of January 1, 2000. These provisions are also contained in HB 1019.

Section 12 - Allows Subchapter S corporation shareholders of a bank or bank holding company to take as a tax credit a pro rata share of either the bank franchise tax or tax in lieu of the franchise tax.

Section 13 - Prohibits making false statements regarding another person for the purpose of fraudulently procuring a credit or debit card. The act also prohibits using another person's personal identifying information, without his or her authorization, for the purpose of acquiring credit, goods or services.

Sections 362.077, 370.107, and 620.010 have an emergency clause.

The act is similar to HCS/SCS/SB 386.
RUSS HEMBREE