Sources of Borrowed Money

PURPOSE: This rule authorizes sources of money from which an association may borrow and specifies the limitations, if any, and conditions on those sources and transactions. 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) Amount of Borrowed Money. Associations may borrow money in any amount approved by its creditors subject to limitations, if any, that may be imposed by applicable federal regulations. (2) Security for Borrowed Money. Associations may pledge and otherwise encumber any of its assets to secure its debts. The terms of the security agreement or other documentation shall provide, however, for the provisions contained in applicable federal regulations along with a written notification to the director in the event of any default on the obligation. In addition, associations may act as surety to the same extent as federal associations. (3) Sources of Borrowed Money. Associations may borrow money from-- (A) A Federal Home Loan Bank or banks; and (B) Any other source, provided the requirements contained in applicable federal regulations concerning outside borrowings are met. AUTHORITY: sections 369.144 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-9.011.This rule previously filed as 4 CSR 140-20.011. Original rule filed July 14, 1978, effective Nov. 13, 1978. Rescinded and readopted: Filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-21.011, effective July 6, 1994. Amended: Filed Nov. 8, 1994, effective March 30, 1995. Moved to 20 CSR 1140-20.011, effective Aug. 28, 2006. *Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994 and 369.299, RSMo 1971, amended 1994.