Education Loans

PURPOSE: This rule authorizes associations to make loans for educational purposes and to prescribe the conditions and limitations on those loans. (1) An association may originate, invest in, sell, purchase, participate or otherwise deal in loans made for the purpose of paying educational expenses. (2) Terms and Conditions. (A) No association shall make any investment in loans under this regulation if the aggregate amount of its investment in those loans (exclusive of any investment which is or which at the time of its making was otherwise authorized) would exceed five percent (5%) of the assets of the association; and (B) The borrower shall certify to the association that the proceeds of the loan are to be used solely for the payment of educational expenses. AUTHORITY: sections 369.229, 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.061. This rule previously filed as 4 CSR 140-20.061. Original rule filed July 14, 1978, effective Nov. 13, 1978. Amended: Filed Aug. 15, 1983, effective Nov. 11, 1983. Rescinded and readopted: Filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.061, effective July 6, 1994. Moved to 20 CSR 1140-20.061, effective Aug. 28, 2006. *Original authority: 369.229, RSMo 1971, amended 1983, 1994; and 369.249 and 369.299, RSMo 1971 amended 1994.