- House Committee Substitute -

HCS/SB 895 - This act makes a number of changes related to financial institutions and services involving financial institutions. Certain out-of-state bonds are now acceptable (Section 30.270). The act allows certain resident shareholders of S corporation chartered banks to qualify for any pro rata share of any net tax paid (Section 143.081). The act creates a definition for the term "lease or rental of tangible personal property" (Sections 148.020 and 148.610).

The act modifies the contents of the sign that must be posted by car dealerships (Section 301.560). The act modifies provisions relating to liens on motor vehicle and watercraft (Chapters 301 and 306).

Articles of agreement involving a bank shall include additional information shareholder rights (Section 362.020). Changes are made to the procedure used by a bank to become a trust company (Section 362.117). Restrictions regarding the amount of unimpaired capital lent by a bank and investment in the stock of a private corporation are amended (Section 362.170). The act changes procedures for the actions of a Board of Directors of a bank when immediate action is required (Section 362.275). The act makes changes to the power of a bank to appoint officers (Section 362.335).

Charges for late payment in motor vehicle installment contracts are amended (Section 365.100). The act creates a pawnshop database to satisfy certain reporting requirements (Sections 367.031 to 367.051). The act includes procedures for late renewal of a business entity insurance producer (Section 375.018). New types of insurance may be sold by credit insurance agents and the act includes provisions on licensing credit insurance agents and organizations (Section 375.065).

The act also changes the perfection rights for liens on manufactured homes (Section 400.9-303 and section 700.350).

The act changes the type and amount of fees that can be charged in small loans (Section 408.140). Certain securities agents and investment advisers are granted temporary permits if transferring from one broker to another within the state (Section 409.204). The burden of proving an exemption from regulation based on being a federally covered security falls on the person claiming it (Section 409.402).

JIM ERTLE