Development Finance Corporation Investments and Loans

PURPOSE: This rule complies with section 371.120.3(2), RSMo, which authorizes the director to adopt a rule to fix and prescribe limits under which a savings and loan association may invest in, become a member of, and lend to or commit to lend to a development finance corporation chartered and supervised by the commissioner of finance under Chapter 371, RSMo. Savings and loan associations are authorized to become members of these corporations pursuant to section 371.120, RSMo. (1) An association whose fiscal year end net worth is in excess of five percent (5%) of its withdrawable accounts is authorized to invest in, to become a member of and lend to, or commit to lend to a development finance corporation chartered and supervised by the commissioner of finance under Chapter 371, RSMo. The aggregate amount of these investments, loans and commitments to lend of any such insured association outstanding at any time shall not exceed one-half of one percent (.5%) of the fiscal year end total assets of that insured association or two hundred fifty thousand dollars ($250,000), whichever is the lesser. (2) Secured loans made or participated in, directly or indirectly, by an insured association to a development finance corporation shall not be included in computing the limit on investments, loans or commitments to lend as authorized in this rule. AUTHORITY: sections 369.144(7) and (9), 369.299(2) and (6) and 371.120, RSMo 1994. This rule originally filed as 4 CSR 2609.040. This rule previously filed as 4 CSR 140-20.040. Original rule filed July 16, 1979, effective Oct. 12, 1979. Changed to 4 CSR 140-21.040, effective July 6, 1994. Amended: Filed Nov. 8, 1994, effective March 30, 1995. Moved to 20 CSR 114020.040, effective Aug. 28, 2006. *Original authority: 369.144(7) and (9), RSMo 1971, amended 1982, 1983, 1984, 1989, 1994; 369.299(2) and (6), RSMo 1971, amended 1994; and 371.120, RSMo 1961, amended 1963, 1978, 1994.