HCS HB 1446 -- FINANCIAL TRANSACTIONS

SPONSOR:  Jones (89)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 12 to 1.

This substitute changes the laws regarding financial
transactions.  In its main provisions, the substitute:

(1)  Allows lending institutions to offer, sell, and finance
automobile club memberships, home and auto security plans, and
other plans and services providing a benefit to the borrower if
the cost is disclosed in the loan contract, the lender does not
require the purchase of the plan for the approval of the loan,
the plan can be canceled within 30 days and a refund received,
and the plan has a written acknowledgment of the intent to
purchase the plan by the purchaser.  However, no plan may include
reimbursement for a deductible on a property insurance claim, and
all optional products must be clearly identified as optional;

(2)  Allows public entities and political subdivisions to deposit
funds and earn interest based on short-term sweeps of accounts
and the redeposit of funds.  These cash sweeps into higher
interest bearing certificates of deposit will only be undertaken
at certain financial institutions that are properly insured;

(3)  Allows an owner or operator of an automated teller machine
(ATM) to charge an access fee to an individual conducting a
transaction using a foreign bank account.  Currently, foreign
banks may charge fees, but domestic ones cannot;

(4)  Exempts a trustee or third-party agent of a trust from being
personally liable for any default on a mortgage loan or a sale of
mortgage loan products that are present within a trust.  This
provision applies to all judicial proceedings including those
commenced before and pending as well as those commenced after the
substitute's effective date; and

(5)  Authorizes the sale of deficiency waiver addendums and
guaranteed asset protection products with respect to certain
loans and credit sales.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that the bill simplifies current
practice with regard to the sale of gap insurance while also
providing consumer protections.  It also makes several necessary
changes to banking laws including revising the provisions
regarding foreign and domestic banks so that they are consistent.

Testifying for the bill were Representative Jones (89); Missouri
Bankers Association; Missouri Financial Services Association; and
FIMC.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:10 pm