Commercial Loans

PURPOSE: This rule authorizes associations to make secured or unsecured loans for commercial, corporate, business or agricultural purposes. Editor’s Note: Copies of all referenced federal regulations are available at a cost established by state law 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 may originate, invest in, sell, purchase, participate or otherwise deal in loans for commercial, corporate, business or agricultural purposes. (2) The aggregate amount which an association may invest in commercial loans shall not exceed fifteen percent (15%) of the association’s assets or higher percentage as the director may authorize upon application. Further, total commercial loans to one (1) borrower (excluding service corporations and finance subsidiaries of an association) shall not exceed fifteen percent (15%) of an association’s unimpaired capital and unimpaired surplus, plus an additional ten percent (10%) for loans fully secured by readily marketable collateral, as set forth in applicable federal regulations. Notwithstanding the provisions of 4 CSR 140-20.025(2), the percentage of assets limitation of this rule shall apply to— (A) Overdraft loans on demand accounts; and (B) Commercial loans not secured by real estate made by the association’s service corporation. AUTHORITY: sections 369.144, 369.229 and 369.249, RSMo 1994.* This rule originally filed as 4 CSR 260-8.041. This rule previously filed as 4 CSR 140-20.041. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.041, effective July 6, 1994. Amended: Filed Nov. 8, 1994, effective March 30, 1995. Moved to 20 CSR 114020.041, effective Aug. 28, 2006. *Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994; 369.229, RSMo 1971, amended 1983, 1994; and 369.249, RSMo 1971, amended 1994.