Summary of the Perfected Version of the Bill


COMMITTEE OF ORIGIN:  Special Committee on General Laws

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 as a condition 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 and not a required purchase;

(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 or surcharge to an individual
conducting a transaction using a foreign bank account.
Currently, foreign banks may charge fees, but domestic ones
cannot; and

(4)  Authorizes the sale of a deficiency waiver addendum,
guaranteed asset protection, or a similar product purchased as
part of a loan transaction with collateral and at the borrower's
consent if the cost of the product is disclosed in the loan
contract, is reasonable, and meets specified requirements.  A
debtor may cancel an addendum, protection, or other similar
product within 15 days of its purchase and must receive a full

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

Copyright (c) Missouri House of Representatives

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