SCS SB 243 -- LENDING INSTITUTION SERVICES

SPONSOR:  Pearce (Jones, 89)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 11 to 0.

This substitute allows lending institutions to sell deficiency
waiver addendums, guaranteed asset protections, or similar
products purchased as part of a loan transaction with collateral
at the borrower's option if the cost of the product is disclosed
in the loan contract.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill allows purchasers the
option to insure their car or other asset in case of damage.
Insurance will generally pay the difference in the value of the
asset and the outstanding balance if the asset is damaged or
destroyed.  Banks should be able to sell and finance insurance
policies in the same manner as insurance companies and auto
dealers.

Testifying for the bill were Senator Pearce; and Missouri Bankers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am