Customer Financial Services

PURPOSE: Banks have recently faced competitive pressures from money market funds offering services similar to banking services. In response, a new service has been designed by banks; the sweep account which sweeps or pours over into a money market fund. The new service is consistent with the purpose for which state banks are chartered, is offered by national banks and, in the interest of banking competition, should be made available to state banks. This rule provides guidelines for this financial service. (1) In connection with any customer account, a bank may enter this contract by which the bank agrees that periodically it will review the account and transfer all money in excess of a set minimum balance to repurchase agreements or money market funds. Before entering into this contract with respect to any money market fund, the bank should determine that the fund is administered by a financially responsible concern and in a safe and sound manner. (2) All transfers to and withdrawals from the money market fund shall be undertaken only upon instructions contained in a written and executed agreement entered into with the customer at the time the account is established or as subsequently amended. AUTHORITY: sections 361.105, RSMo 1986, 362.105.3, RSMo Supp. 1991 and 362.106, RSMo Supp. 1990.* This rule originally filed as 4 CSR 140-6.070. Original rule filed June 14, 1982, effective Sept. 11, 1982. Amended: Filed Aug. 7, 1992, effective Feb. 26, 1993. Moved to 20 CSR 1140-6.070, effective Aug. 28, 2006. *Original authority: 361.105, RSMo 1967; 362.105.3, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991; and 362.106, RSMo 1981, amended 1985, 1990.