Loans on Securities

PURPOSE: This rule authorizes associations to make loans to insured financial institutions or to registered brokers or dealers secured by loans, obligations or investments in which associations may invest directly. 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. An association may invest in loans secured by obligations of or by obligations fully guaranteed as to principal and interest by the United States or any agency or instrumentality of the United States listed in applicable federal regulations, if the borrower is a financial institution insured by the Federal Deposit Insurance Corporation or is a broker or dealer registered with the Securities and Exchange Commission and provided the market value of the securities for each loan at least equals the amount of the loan at the time it is made. AUTHORITY: sections 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.096. This rule previously filed as 4 CSR 140-20.096. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.096, effective July 6, 1994. Amended: Filed Nov. 8, 1994, effective March 30, 1995. Moved to 20 CSR 114020.096, effective Aug. 28, 2006. *Original authority: 369.249, RSMo 1971, amended 1994 and 369.299, RSMo 1971, amended 1994.