HCS/SS/SCS/SB 892 – This act allows a financial institution to charge for processing refused negotiable instruments and payment orders. This act also provides that a debtor is not entitled to receive notice of the right to cure, in the case of a second mortgage loan, after the third default before the lender can enforce the security interest. Upon the third default, the debtor may no longer cure. This act also adds late charges and expenses of foreclosures incurred by the lender to the definition of "current obligation of the debtor," which must be paid to cure a default on a second mortgage loan. Under current law, applicants for licensure to issue or sell checks must post a twenty-five thousand dollar corporate surety bond. This act raises that amount to one hundred thousand dollars. The bond may be used to pay costs incurred by the Division of Finance to remedy breaches of obligations by the applicant or pay examination costs not paid by the applicant. For all licensees selling payment instruments or stored value cards, the required amount of the bond for renewal of the license shall be five times the high outstanding balance from the previous year with a minimum of one hundred thousand dollars and a maximum of on million dollars. For all licensees receiving money for transmission, the required amount of the bond for renewal of the license shall be five times the greatest amount transmitted in a single day during the previous year with a minimum of one hundred thousand dollars and a maximum of one million dollars. The Director of Finance may, when necessary, examine any licensee and the cost shall be paid by the licensee. The director shall investigate the character and fitness of each licensee before initial licensure and renewal. The director may charge up to $100 for applications to amend and reissue licenses. Under current law, financial institutions must submit a list showing all paper past due thirty days or more at their monthly meetings. This act allows the institutions, in the alternative, to submit a list of the total past due ratio for loans that are thirty days or more past due, nonaccrual loans divided by the total loans, and a list of past due loans in excess of a minimum amount set by the board not to exceed five percent of the bank's legal loan limit but the minimum amount may not be less than ten thousand dollars. Collateral to the indebtedness does not have to be described as of the date of the lists. The act specifies that financial institutions shall be served process according to the Missouri Rules of Civil Procedure describing service of corporations. State or federally chartered banks, trust companies, and thrift institutions may appoint a service agent and register that person with the Director of Finance. The act allows the Director of Finance to receive service of process for out-of-state banks or trust companies. Currently the Director of Revenue shall collect $2 for each copy of process. This act raises the amount to be collected by the director to $10. This act provides for an income tax credit for shareholders of S corporation savings and loan association holding companies and credit institutions based on the pro rata share of corporate franchise tax paid by such association or institution. The act bars industrial loan companies and industrial banks from operating in Missouri. The act also provides that a person seeking a repossession title to a motorboat, vessel or watercraft, or a manufactured home must present a notice of lien receipt or the original certificate of ownership reflecting the holder's lien. The act removes the requirement that the lienholder must present the original or photostatic copy of the security agreement. Instead, the act requires presentation of an affidavit that the lienholder has the written consent of all owners or lienholders of record to repossess the vessel, motorboat or watercraft or has provided such parties with written notice of the repossession. The act also imposes specific notice requirements upon the lienholder that are similar to the requirements for persons repossessing motor vehicles. The lienholder must give 10 days written notice by 1st class U.S. mail to the owners and other lienholders. The act modifies certain provisions of the Uniform Trust Code. The act defines “ascertainable standard” as one relating to an individual’s health, education, support, or maintenance under the Internal Revenue Code. The “power of withdrawal” is redefined to encompass the power of a beneficiary to withdraw assets from the trust without the consent of the trustee or any other person. Similarly, “revocable” as applied to trusts means that the settlor has the legal power to revoke the trust without consent of the trustee or person holding an adverse interest regardless of whether the settlor has the mental capacity to do so in fact. Settlors may designate by the terms of the trust permissible distributees to receive notification of the trust and other information related to its administration. In trusts where a gift tax marital deduction has been claimed, and the settlor’s marriage has been dissolved or annulled, beneficial terms of a trust in favor of the former spouse or fiduciary appointment of the spouse shall not be revoked. Such a situation shall not result in an incomplete gift for federal gift tax purposes or the inclusion of assets of a trust in the gross estate of a settlor for federal estate tax purposes. A beneficiary who is not a qualified beneficiary may be represented and bound by a qualified beneficiary, as long as there is no conflict of interest between such persons with regard to the question or dispute. Noncharitable irrevocable trusts may be modified or terminated upon consent of the settlor and all beneficiaries without court approval, unless the trust has been established by a court under certain provisions of law. The act also makes Section 456.4-411B, which provides that the court may terminate or modify the terms of a noncharitable trust in certain instances, applicable to trusts that become irrevocable on or after January 1, 2005, and makes Section 456.590, which allows the court to confer certain powers on trustees in certain instances, applicable to all trusts that become irrevocable prior to January 1, 2005. A beneficiary's interest in a trust that is subject to the trustee’s discretion shall not constitute an interest in property or enforceable right. A creditor or claimant may not attach distributions from such a right, if it exists, regardless of whether or not the interest is subject to a spendthrift provision. Additionally, the act abolishes the doctrine of worthier title and the Rule in Bingham's case as a rule of law and as a rule of construction. This act is similar to SB 1087, SCS/SB 993, SCS/SB 781, and HB 1234 (2006). CHRIS HOGERTY