SCS/HB 1432 - This act modifies the financial transaction provisions found in Chapter 370 (Credit Unions), Chapter 408 (Legal Tender and Interest), Chapter 443 (Mortgages, Deeds of Trust and Mortgage Brokers), Chapter 456 (Trusts and Trustees) and Chapter 473 (Probate Code-Administration of Decedents' Estates), RSMo.

Chapter 370, RSMo, is modified to authorize central credit unions, upon obtaining approval of the Divisions of Finance and Credit Unions, to: 1) convert into a Missouri bank or trust company; or 2) consolidate or merge with one or more banks, trust companies or central credit unions. Conversion, consolidation and merger issues are detailed.

Chapter 408, RSMo, is modified so that the Consumer Finance Act is renamed the "Consumer Loan Act".

Section 443.130, RSMo, is modified so that any person who has received satisfaction regarding a security instrument, mortgage or deed of trust must deliver to the person making satisfaction a deed of release within 15 business days. The current law requires that the deed of release be delivered within 30 days.

A new subsection is added to Section 443.130, RSMo, which allows the mortgagor to forward a demand letter to the mortgagee requesting a deed of release. The demand letter must show that the debt secured by the deed of trust was satisfied with "good funds", and that the expense of filing and recording the deed of release was advanced.

The Missouri Prudent Investor Act is codified into Chapters 456 and 473, RSMo. Essentially, a trustee must invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. A trustee must exercise reasonable care, skill and caution.

The Prudent Investors Act also details: (1) what factors a trustee must consider when investing and managing trust assets; 2) diversification of trust investments; (3) treating multiple beneficiaries equally; and (4) a trustee's delegation of authority to an agent. The Prudent Investors Act applies prospectively and retrospectively.

Several of the modifications to Chapters 443 and 456, RSMo, are similar to SB 836. The emergency clause only applies to the modifications to Chapter 443, RSMo.
RONALD J. LEONE