HCS SS SCS SB 892 -- FINANCIAL INSTITUTIONS AND MISSOURI UNIFORM
TRUST CODE

This bill changes the laws regarding financial institutions and
the Missouri Uniform Trust Code.

FINANCIAL INSTITUTIONS

The bill:

(1)  Authorizes an income tax credit based on the pro rata share
of corporate franchise tax paid by shareholders of S corporation
savings and loan association holding companies and credit
institutions;

(2)  Prohibits industrial loan companies or industrial banks from
establishing any deposit or loan production office or bank branch
to conduct any banking business within the state;

(3)  Requires a person seeking a repossession title to a
motorboat, vessel, watercraft, or manufactured home to present a
notice of lien receipt or the original certificate of ownership
reflecting the holder's lien.  The bill removes the requirement
that the lienholder must present the original or photostatic copy
of the security agreement and instead requires presentation of an
affidavit that the lienholder has the written consent of all
owners or lienholders of record to repossess the motorboat,
vessel, watercraft, or manufactured home or has provided the
parties with written notice of the repossession.  The lienholder
must give 10 days' written notice by first class mail to the
owners and other lienholders;

(4)  Increases the amount of a corporate surety bond that
applicants for a license to sell travelers checks or money orders
must have from $25,000 to $100,000.  The bond will be used to
secure the faithful performance of the obligations of the
applicant and to pay the costs incurred by the Division of
Finance within the Department of Economic Development to remedy
any breach of the obligations of the applicant or to pay
examination costs of the division that have not been paid.  Upon
license renewal, the bond amount will be either five times the
highest outstanding balance or five times the greatest amount
transmitted in a single day from the previous year with a minimum
bond amount of $100,000 and a maximum of $1 million.  The
division director will be authorized to perform an examination of
any person licensed under the bill if necessary; and

(5)  Changes the reporting requirements of past due loan amounts
that the board of directors of every bank and trust company must
provide at their monthly meetings and allows lenders to
accelerate maturity of an unpaid balance, take possession of the
property, or enforce a security interest on a loan if a borrower
has defaulted on a second mortgage three times.

MISSOURI UNIFORM TRUST CODE

The bill:

(1)  Revises the statutes to reflect recent changes in the
federal Uniform Trust Code by limiting a settlor's ability to
represent and bind beneficiaries in actions to amend or terminate
trusts and adds a definition of "mandatory distribution";

(2)  Changes cross references in the statutes to conform with the
Missouri Prudent Investor Act;

(3)  Prevents special needs trusts from being subject to
termination by agreement of the settlor and beneficiaries;

(4)  Protects discretionary interests in a trust from creditors;

(5)  Dissolves the Doctrine of Worthier Title to prevent
inadvertent disqualification of special needs trusts;

(6)  Redefines "power of withdrawal";

(7)  Modifies notice requirements for charitable beneficiaries;
and

(8)  Allows qualified beneficiaries to represent other
beneficiaries in actions to modify trust administrative
provisions.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:46 am