Letters of Credit

PURPOSE: This rule authorizes associations to issue letters of credit. (1) An association may issue commercial and standby letters of credit in conformance with the Uniform Commercial Code or the Uniform Customs and Practice for Documentary Credits and may pledge collateral to secure its obligations under them, subject to the following requirements. (2) Terms and Conditions. (A) Each letter of credit must conspicuously state that it is a letter of credit. (B) The issuer’s undertaking must contain a specified expiration date or be for a definite term and must be limited in amount. (C) The issuer’s obligation to pay must be solely dependent upon the presentation of conforming documents as specified in the letter of credit and not upon the factual performance or nonperformance by the parties to the underlying transaction. (D) The account party must have an unqualified obligation to reimburse the issuer for payments made under the letter of credit. AUTHORITY: sections 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.083. This rule previously filed as 4 CSR 140-20.083. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.083, effective July 6, 1994. Moved to 20 CSR 1140-20.083, effective Aug. 28, 2006. *Original authority: 369.249, RSMo 1971, amended 1994 and 369.299, RSMo 1971, amended 1994. 20 CSR 1140-20.085 Loans on Cooperatives PURPOSE: This rule authorizes associations to make blanket loans on cooperative housing developments and on individual cooperative units. (1) Associations are authorized to originate, invest in, sell, purchase, participate or otherwise deal in loans on the security of cooperative housing developments provided that the cooperative housing development maintains reserves at least equal to those required for comparable developments insured by the Federal Housing Administration. (2) Associations are authorized to originate, invest in, sell, purchase, participate or other wise deal in loans on individual cooperative units. These loans may be made on the security of a security interest in stock, membership certificate or other evidence of ownership issued to a stockholder or member by a cooperative housing organization and an assignment of the borrower’s interest in the proprietary lease or occupancy agreement issued by that organization. The provisions of 4 CSR 260-8.091 shall not apply to loans made pursuant to this section. AUTHORITY: sections 369.144, 369.229, 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.085. This rule previously filed as 4 CSR 14020.085. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.085, effective July 6, 1994. Moved to 20 CSR 1140-20.085, effective Aug. 28, 2006. *Original authority: 369.014, RSMo 1971, amended 1982, 1986, 1994; 369.224, RSMo 1971, amended 1983, 1989, 1994; and 369.299, RSMo 1971, amended 1994.