SCS HB 257 -- SAVINGS BANKS; TRUST COMPANIES; TOWING OF MOTOR
VEHICLES

This bill gives the Commissioner of the Division of Finance the
authority to grant charters to individuals incorporating for the
purpose of establishing a savings bank.

Among provisions relating to application for and granting of a
state savings bank charter by the Commissioner of Finance, the
bill:

(1)  Specifies the contents of the articles of incorporation of
a savings bank;

(2)  States the grounds for granting of a charter;

(3)  Establishes the powers of savings banks;

(4)  Places limits on the investments of savings banks;

(5)  Specifies the operational authority of savings banks;

(6)  Permits mergers with or conversion to banks;

(7)  Allows state and federal savings and loans to convert to,
consolidate, or merge with state chartered savings banks;

(8)  Places the acquisition of any depository financial
institution within the 13% deposit cap which applies to banks
and bank holding companies.  Currently only bank deposits are
counted toward the limit;

(9)  Gives banks and trust companies the authority to make
payments on accounts without determining whether there are other
interests in such accounts, unless the accounts are restricted
by court order; and

(10)  Increases the statute of limitations for bringing an
action on a loan in a commercial transaction from 6 to 10 years;

The bill contains provisions regarding collateral protection.
After meeting certain conditions, creditors may place insurance
upon collateral they have received when loaning money.

The bill also allows the Division of Finance to examine state
chartered trust companies doing business in this state; and
after June 1, 1997, federal law permitting, state banks and
trust companies will be allowed to merge or consolidate with
out-of-state banks and trust companies.

The bill requires a lienholder who repossesses a motor vehicle
to notify a local law enforcement agency within 2 hours of
towing such vehicle.

This bill has an emergency clause.

HB 257 --  SAVINGS BANKS (Copeland)

This bill gives the Commissioner of the Division of Finance the
authority to grant charters to individuals incorporating for the
purpose of establishing savings banks.

The bill contains provisions relating to application for and
granting of a state savings bank charter by the Commissioner of
Finance.

The bill:

(1) Specifies the contents of the articles of incorporation of a
savings bank;

(2) States the grounds for granting of a charter;

(3) Establishes the powers of savings banks;

(4) Places limits on the investments of savings banks;

(5) Specifies the operational authority of savings banks;

(6) Permits mergers with or conversion to banks; and

(7)  Allows state and federal savings and loans to convert to,
consolidate, or merge with state chartered savings banks.

The bill also allows the Division of Finance to examine state
chartered trust companies doing business in this state; and

after June 1, 1997, federal law permitting, state banks and
trust companies will be allowed to merge or consolidate with
out-of-state banks and trust companies.

This bill has an emergency clause.

FISCAL NOTE:  No impact on state funds.

HB 257 -- SAVINGS BANKS

CO-SPONSORS:  Copeland, Leake

COMMITTEE ACTION:  Voted "do pass" by the Committee on Banks and
Financial Institutions by a vote of 27 to 0.

This bill gives the Commissioner of the Division of Finance the
authority to grant charters to individuals incorporating for the
purpose of establishing savings banks.

The bill contains provisions relating to application for and
granting of a state savings bank charter by the Commissioner of
Finance.

The bill:

(1) Specifies the contents of the articles of incorporation of a
savings bank;

(2) States the grounds for granting of a charter;

(3) Establishes the powers of savings banks;

(4) Places limits on the investments of savings banks;

(5) Specifies the operational authority of savings banks;

(6) Permits mergers with or conversion to banks; and

(7)  Allows state and federal savings and loans to convert to,
consolidate, or merge with state chartered savings banks.

The bill also allows the Division of Finance to examine state
chartered trust companies doing business in this state; and

after June 1, 1997, federal law permitting, state banks and
trust companies will be allowed to merge or consolidate with
out-of-state banks and trust companies.

This bill has an emergency clause.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill is needed to allow
state chartered savings and loans to convert their charters to
state savings bank charters.  Savings and loans are under a
burden because they are regulated by 3 bodies, the Office of
Thrift Supervision, the FDIC, and the Division of Finance.
Banks are regulated by the FDIC and the Division of Finance.
This puts a financial strain on these thrifts because they must
pay to be under the supervision of these regulatory bodies.  By
allowing state savings and loans to convert to savings banks,
they would no longer be under the auspices of the Office of
Thrift Supervision.  At this time state chartered savings and
loans are allowed to convert to national savings banks, and this
bill would allow S&L's to convert to state chartered savings
banks.  Supporters also feel that this bill is needed to put
state banks on the same playing field as national banks when
interstate branch banking goes into effect on June 1, 1997.

Testifying for the bill were Representatives Copeland and Leake;
Deputy Commissioner of Finance; Missouri League of Financial
Institutions; Missouri Bankers Association; Missouri Independent
Bankers Association; and Mercantile Bank Corporation.

OPPONENTS:  There was no opposition voiced to the committee.

Bob Dominique, Research Analyst

HB 257 -- Savings Banks

Co-Sponsors:  Copeland, Leake

This bill gives the Commissioner of the Division of Finance the
authority to grant charters to individuals incorporating for the
purpose of establishing savings banks.

The bill contains provisions relating to application for and
granting of a state savings bank charter by the Commissioner of
Finance.

The bill:

(1) Specifies the contents of the articles of incorporation of a
savings bank;

(2) States the grounds for granting of a charter;

(3) Establishes the powers of savings banks;

(4) Places limits on the investments of savings banks;

(5) Specifies the operational authority of savings banks;

(6) Permits mergers with or conversion to banks; and

(7)  Allows state and federal savings and loans to convert to,
consolidate or merge with state chartered savings banks.

The bill also allows the Division of Finance to examine state
chartered trust companies doing business in this state; and

after June 1, 1997, federal law permitting, state banks and
trust companies will be allowed to merge or consolidate with
out-of-state banks and trust companies.

This bill has an emergency clause.