Types of Loans

PURPOSE: This rule defines the types of loans an association may make. (1) For the purpose of this chapter, an association may originate, invest in, sell, purchase, participate or otherwise deal in any loan it could make if it were incorporated and operating as a federal association domiciled in this state, as long as the association complies with all applicable regulations governing those activities by federal associations. (2) Election Regarding Classification of Loans. (A) If a loan is authorized under more than one (1) section of the Missouri Savings and Loan Law or these regulations, an association may designate under which section the loan has been made. This loan may be apportioned among appropriate categories, and may be moved, in whole or in part, from one (1) category to another. To classify a loan as a real estate loan, an association must rely substantially upon the real estate as the primary security for the loan. (B) For purposes of determining whether aggregate loans or investments under the Missouri Savings and Loan Law or these regulations exceed an applicable percentage-ofassets limitation, a loan commitment shall be counted as an investment and shall be included in total assets of an association only to the extent that funds have been advanced (and not repaid) pursuant to the commitment. The term loan commitment includes a loan in process, a letter of credit or any other commitment to extend credit. (C) Loans sold to a third party shall be included in calculation of a percentage of assets investment limitation only to the extent they are sold with recourse. (D) An association may make a loan secured by assignment of loans to the extent that it could, under applicable law and regulations, make or purchase the underlying assigned loans. (3) An association may originate, invest in, sell, purchase, participate or otherwise deal in the following types of loans: (A) Residential real estate loans—in accordance with 4 CSR 260-8.031 (relating to residential real estate loans); (B) Other real estate loans—in accordance with 4 CSR 260-8.035 (relating to other real estate loans); (C) Commercial loans—-in accordance with 4 CSR 260-8.041 (relating to commercial loans); (D) Consumer loans—in accordance with 4 CSR 260-8.046 (relating to consumer loans); (E) Loans to officers, directors or employees of the association—in accordance with 4 CSR 260-8.052 (relating to loans to officers, directors and employees); (F) Wrap-around real estate loans—in accordance with 4 CSR 260-8.055 (relating to wrap-around real estate loans); (G) Education loans—in accordance with 4 CSR 260-8.061 (relating to education loans); (H) Manufactured home loans—in accordance with 4 CSR 260-8.065 (relating to manufactured home loans); (I) Alternative mortgage loans—in accordance with 4 CSR 260-8.072 (relating to alternative mortgage loans); (J) Line-of-credit construction loans—in accordance with 4 CSR 260-8.075 (relating to line-of-credit construction loans); (K) Letters of credit—in accordance with 4 CSR 260-8.083 (relating to letters of credit); (L) Loans on cooperatives—in accordance with 4 CSR 260-8.085 (relating to loans on cooperatives); (M) Loans secured by leasehold—in accordance with 4 CSR 260-8.091 (relating to loans secured by leaseholds); (N) Loans on securities—in accordance with 4 CSR 260-8.096 (relating to loans on securities); (O) Loans to homeowners—in accordance with 4 CSR 260-8.100 (relating to loans to homeowners); (P) Government insured or guaranteed loans—without regard to any loan limitations or restrictions otherwise imposed by this chapter, any loan, secured or unsecured, which is insured or guaranteed in any amount by the United States or instrumentality of the United States; and (Q) Loans fully secured by savings accounts owned or otherwise pledged for or by the borrower. AUTHORITY: section 369.299, RSMo 1994.* This rule originally filed as 4 CSR 2608.025. This rule previously filed as 4 CSR 140-20.025. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.025, effective July 6, 1994. Moved to 20 CSR 1140-20.025, effective Aug. 28, 2006. *Original authority: 369.299, RSMo 1971, amended 1994.