Missouri Amends Provisions Relating to Financial Institutions

Weiner Brodsky Kider PC
Contact

Weiner Brodsky Kider PC

Missouri recently enacted Senate Bill 106 (SB 106), which modifies various provisions relating to financial institutions, including statutes affecting lenders of consumer credit loans, retail installment contracts concerning motor vehicles, rates of interest in business commercial, and agricultural loans, members of the Missouri Banking and Savings and Loan Board (the Board), and electronic postings by the Missouri Division of Finance (the Division).

Some of the key changes made by SB 106 include the following:

  • Allows a lender of consumer credit loans (i.e., loans for personal, family or household purposes in amounts of $500 or more) to charge a reasonable service fee not to exceed $25 for any check, draft, order, or like instrument returned unpaid by a financial institution, plus an amount equal to the actual charge for the return of each check, draft, order, or like instrument returned unpaid;
  • Repeals a provision allowing a lender of consumer credit loans to collect a fee in advance for allowing the debtor to defer up to three monthly loan payments;
  • Allows the holder of a retail installment contract relating to motor vehicles to charge, finance, and collect a reasonable service fee not to exceed $25 for each check, draft, order, or like instrument returned unpaid by a financial institution, plus an amount equal to the actual charge for the return of each check, draft, order, or like instrument returned unpaid;
  • Modifies the provision that allows parties to agree in writing to any rate of interest, fees, and other terms and conditions in connection with any business loan of $5,000 or more to also apply to extensions of credit primarily for business, commercial, or agricultural purposes;
  • Requires at least three members of the Board to have at least five years of active bank or association management experience at an institution chartered under state law;
  • Repeals a provision requiring lenders of consumer credit loans to file a report with the Division detailing, among other things, the financial condition of the lender and the total aggregate number and principal amount of loans made by the lender; and
  • Requires the Division to post various statements of information concerning corporations and persons doing business in Missouri on the Division’s website.

Note SB 106 became effective on August 28, 2021.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Weiner Brodsky Kider PC | Attorney Advertising

Written by:

Weiner Brodsky Kider PC
Contact
more
less

Weiner Brodsky Kider PC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.