Subordinated Debt Security

PURPOSE: This regulation permits an association to issue a subordinated debt security for purposes of either borrowing money or increasing the net worth of an association. Editor’s Note: Copies of all referenced federal regulations are available to any interested party at the Division of Finance, Room 630, 301 West High Street, Jefferson City, Missouri or the Office of the Secretary of State at a cost established by state law. (1) An association, for the purpose of borrowing money or increasing its net worth, may issue subordinated debt securities subject to the conditions and limitations of this regulation and federal laws and regulations. The term ‘’subordinated debt security’’ shall include any note, bond, debenture or other obligation or security evidencing loans or advances and subordinated on liquidation to all claims having the same priority as savings accounts or any higher priority. (2) An association seeking to issue a subordinated debt security shall file with the director one (1) copy of its application for issuance as filed with the appropriate federal regulatory agency. No association shall issue a subordinated debt security unless it has obtained written approval from the appropriate federal regulatory agency. An association shall file with the director a copy of the approval granted by the appropriate federal regulatory agency in connection with the issuance of a subordinated debt security. (3) An association desiring to issue a subordinated debt security shall comply with the applicable federal regulatory agency regarding securities offerings. The association shall file with the director one (1) copy of any offering circular, amendment, notice, securities sales report or other documents and reports filed with the appropriate federal regulatory agency in connection with the issuance of a subordinated debt security. (4) An association, the accounts of which are not insured by the appropriate federal regulatory agency shall file its application for issuance of a subordinated debt security solely with the director in the same form and pursuant to the same requirements as would be necessary if the association’s accounts were insured by the appropriate federal regulatory agency. Any of these requirements may be waived by the director in the case of an uninsured association as s/he in his/her discretion shall deem prudent and proper. AUTHORITY: section 369.299, RSMo 1994.* This rule originally filed as 4 CSR 2603.040. This rule previously filed as 4 CSR 140-15.040. Original rule filed April 2, 1973, effective April 11, 1973. Rescinded and readopted: Filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-15.040, effective July 6, 1994. Amended: Filed Nov. 8, 1994, effective March 30, 1995. Moved to 20 CSR 1140-15.040, effective Aug. 28, 2006. *Original authority 1971, amended 1994.