Opinion letter to Mr. John W. Ridgeway

February 14. 1964 Mr . John W. Ridgeway Deputy Commissioner of Finance Jefferson Building Opinion No . 363 (1963) No . 8 (1964, Answered by letter Jefferson City, Missouri Dear Mr. Ridgeway: This letter ot advioe is written in lieu of a torma opinion touching the tollo~ question submitted by you . ~D ~ ·-' "Are assigned accounts receivable within the language •collateral security having an ascertained market value•, as the same is found in Section 362.170(1) (b) RSMo 1959?" That portion or Section 362.170 (1). (b), RSMo 1959, as amended. referred to in your question, contains a directive that certain described loans by banks be secured by "collateral security having an ascertained market value" equaling a desig- nated percentage ot tba liabilities so secured. In 1942 this office rendered an opinion bearing date of March 18. 1942, to D. R. Harrison, then Coanissionsr of Finance. Such opinion was addressed to the term "actual market value" as such term 1s used 1n Section 362.170 (~, (c) RSMo 1959, as amended, such cited subparagraph of the statute making reference to collateral security of warehouse receipts. A review has been made of defini tiona of "market value" set .forth in the opinion of this office dated March 18, 1942, and such definitions have not changed to this date. No court decision has been found specifically holding that accounts receivable have an "ascertained market value". As early as 1879, the St. Louis Court or Appeals held in Bank of North America, Reap •• v. Tamblyn, App., 7 MO. App. 571, that a bank could take an assignment from a corporation or an account due to the corporation. The rollow1ng language from State ex rel. Globe-Democrat Publishing CoiiiJ)&nY v. Qebner, 316 Mo . 694, l.e. 696, 294 s.w. 1017, demonstrates that accounts receivable are property: Mr. John w. Ridgeway -2- "Accounts receivable are amounts owing t o a creditor on open account. [Newport Nat. Bank v. Herkimer Co. Bank, 225 u.s., l.c. 184, 56 L.Bd. lo42]. They are in the nature of credits which, under the statute (Sec. 12967, R. S. 1919), include •every claim or domand of money, interest or other valuable thing, due or to become due 1 • Thus defined they are declared by the statute above cited to be personal property. As such they are proper sub- jects of taxation within the limitations stated. 0 An ascertained market value is merely a "f~Jundtt market value . While accounts receivable in various localities may be more or less difficult to determine they nevertheless have an "ascertained market value" . Ve enclose a copy or the opinion of this office referred to in this letter for your guidance. If you will acquaint this office with the character or accounts receivable mentioned in your inquiry we will be in a better position t o advise you. JI.O/dg Encl. Yours very truly, THbMAs P. !AaLKTON Attorney General