Loans Secured by Leasehold

PURPOSE: This rule authorizes associations to make loans secured by first liens on leasehold interests and prescribes the conditions and limitations on loans secured by leaseholds. (1) An association may originate, invest in, sell, purchase, participate or otherwise deal in loans secured by first liens on leasehold interests in real estate, in accordance with the following requirements. (2) Terms and Conditions. (A) The unexpired term of the leasehold exceeds the term of the loan by five (5) years or more. (B) The loan is made under a policy set by the board of directors of the association. (C) The association obtains a written opinion from an attorney that the lease agreement is lawful and enforceable. (D) The association maintains a copy of the lease agreement and the attorney’s opinion in the loan file. AUTHORITY: sections 369.229, 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.091. This rule previously filed as 4 CSR 140-20.091. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.091, effective July 6, 1994. Moved to 20 CSR 1140-20.091, 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.