Purchase of Bank Employee’s Residence

PURPOSE: A major obstacle to the relocation of bank employees is the difficulty in disposing of their residences which increases in direct proportion to the prevailing interest rates. This rule sets forth the position of the Division of Finance that a bank may legally purchase an employee’s residence to facilitate a transfer. (1) A bank or trust company, to facilitate the transfer of an employee, may purchase the employee’s residence. Any residence so acquired should be sold as soon after that as possible and, in no event, no later than six (6) years from the date of purchase. (2) Any residence purchased shall be entered on the bank’s books as Other Real Estate at a value as would be permissible under 20 CSR 1140-2.070 if it were formerly used for bank premises. AUTHORITY: sections 361.105 and 362.165, RSMo 2016, and section 362.105, RSMo Supp. 2020.* This rule originally filed as 4 CSR 140-6.060. Original rule filed Dec. 10, 1981, effective April 1, 1982. Moved to 20 CSR 1140-6.060, effective Aug. 28, 2006. Amended: Filed March 30, 2021, effective Sept. 30, 2021. *Original authority: 361.105, RSMo 1967, amended 1993, 1994, 1995, 2011; 362.105, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992, 1995, 2000, 2001, 2003, 2010, 2011, 2017; and 362.165, RSMo 1939, amended 1967, 1983, 1995.