HCS SB 235 -- MANUFACTURED HOMES, SAWMILLS, AND LENDING
INSTITUTIONS

(Vetoed by the Governor)

This bill changes the laws regarding manufactured homes,
classification of sawmills, and lending institution services.

CONVERSION OF MANUFACTURED HOMES TO REAL PROPERTY (Sections
137.115, 362.105, 365.020, 365.200, 369.229, 370.300, 400.9-303,
400.9-311, 408.015, 408.250, 436.350, 441.005, 442.010, 442.015,
513.010, 700.010, 700.111, 700.320, 700.360, 700.375, 700.525,
and 700.630, RSMo)

The bill establishes procedures for converting a manufactured
home to real property or from real property back to personal
property.  In its main provisions, the bill:

(1)  Requires a manufactured home to be permanently affixed if it
is anchored to real estate by attachment to a permanent
foundation and connected to residential utilities to qualify as
real property and requires an affidavit of affixation to contain
certain specified information and to be filed with the recorder
of deeds;

(2)  Allows a manufactured home once deemed to be real estate to
be governed by the laws applicable to real estate;

(3)  Requires an affidavit of severance to be filed with the
Department of Revenue when a manufactured home is removed from
its permanent foundation stating the property description and any
information that could affect the validity of the title of the
manufactured home or the existence of a security interest or
lien; and

(4)  Prohibits the department director from issuing a certificate
of title when an affidavit of affixation has been recorded.  The
issuance is only allowed upon the recording of an affidavit of
severance.

MANUFACTURED HOMES (Sections 700.100, 700.330, 700.350, 700.370,
700.385, and 700.526 - 700.529)

The bill changes the laws regarding manufactured homes.  In its
main provisions, the bill:

(1)  Authorizes the Missouri Public Service Commission to
suspend, revoke, or place on probation the license of a
manufactured home dealer for failure to obtain a written notice
signed and dated by the purchaser of a used manufactured home or
modular unit which states that the commission does not regulate
the setup of used manufactured homes and modular units sold by
the dealer;

(2)  Allows the sole owner of a manufactured home and multiple
owners who hold their interest as joint tenants with the right of
survivorship or as tenants by the entirety, upon application and
payment of the fee required for an original certificate of
ownership, to request the Director of the Department of Revenue
to issue a certificate of ownership for the manufactured home in
beneficiary form which includes a directive to the department
director to transfer the certificate of ownership upon the death
of the sole owner or of all multiple owners to one beneficiary or
to two or more beneficiaries as joint tenants with right of
survivorship or as tenants by the entirety named on the face of
the certificate;

(3)  Allows the owner to revoke the certificate of ownership or
change beneficiaries.  The certificate may be revoked by the sale
of the home or by filing an application to reissue the
certificate with no designation or a different designation of a
beneficiary and paying the fee for an original certificate of
ownership;

(4)  Requires the department director to issue a new certificate
of ownership to the surviving owners or beneficiaries upon proof
of an owner's death, surrender of the outstanding certificate,
and payment of a fee;

(5)  Requires lienholders to notify the department director
within 10 business days of any release of a lien if an electronic
certificate of ownership is being held by the department
director;

(6)  Requires the holder of any security interest in a
manufactured home to verify to the department that he or she has
paid all past due rent which the holder is obligated to pay to
the landowner if the home was repossessed;

(7)  Specifies what determines an abandoned manufactured home
that is located on another person's property;

(8)  Changes the process for enforcing liens for unpaid rent
against a manufactured home.  Landowners must provide the
homeowner with written notice prior to enforcing the lien and
give him or her the opportunity to pay any rent owed.  The notice
must advise the homeowner of his or her legal rights including
the right to contest the lien; and if the homeowner does not
redeem the home within 30 days from the date of mailing the
notice and no petition has been filed in circuit court to contest
the lien within 10 days of the receipt of the notice, the
landowner may apply for a certificate of title;

(9)  Authorizes the landowner to begin proceedings to sell a home
within 30 days of receipt of the lien title;

(10)  Requires the homeowner to be given at least 20 days' notice
of the sale of a home;

(11)  Specifies how the proceeds of the sale are to be
distributed;

(12)  Allows a homeowner to contest a lien brought by the
landowner by filing a petition within 10 days of the mailing of
the notice in the appropriate circuit court; and

(13)  Prohibits perfected lienholders or homeowners of an
abandoned manufactured home located on property which is being
leased from removing the home until the landlord is paid any rent
owed.

CLASSIFICATION OF SAWMILLS FOR PROPERTY TAXES (Section 137.016)

The bill classifies a sawmill or planing mill as defined in the
United States Department of Labor's Standard Industrial
Classification (SIC) Manual under Industry Group 242 with SIC
numbers 2421, 2426, or 2429 as agricultural and horticultural
property instead of commercial property for property taxation
purposes.

LENDING INSTITUTION SERVICES (Sections 408.052, 408.094, 408.140,
408.233, and 408.300)

A lending institution is allowed to sell a deficiency waiver
addendum, guaranteed asset protection, or similar product
purchased as part of a loan transaction with collateral and at
the borrower's option if the cost of the product is disclosed in
the loan contract and if the plan does not include reimbursement
for a deductible on a property insurance claim.

Lenders may offer, sell, and finance automobile club memberships,
home and auto security plans, and other plans and services that
benefit a borrower.

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