SCS/SBs 304 & 297 - This act makes various changes regarding financial transactions.

TOWING: A lienholder who repossesses a motor vehicle would no longer be required to notify the Highway Patrol within one hour of towing such vehicle.

BANKS: Limitations on relocation and acquisition shall not apply to a national or out-of-state bank that relocates to Missouri so long as such bank had its main office in the state prior to January 1, 1997, and moved to a contiguous state. Mergers between out-of-state banks and Missouri banks may occurs if permitted by federal law.

Any bank or trust company shall have the power to make a payment on an account without determining whether there are other interests in such account, unless restricted by court order.

COMMERCIAL TRANSACTIONS: The statute of limitations for bringing an action on a loan is increased from six years to ten years from the date such loan is due.

Certain fees relating to liens on a debtor's property may be charged to the debtor.

COLLATERAL PROTECTION: A creditor may place insurance upon collateral they receive when loaning money. The creditor must meet the following conditions to place such insurance:

1) the debtor has entered into a credit transaction with the creditor;

2) the transaction has been written in the form of a credit agreement; and

3) the creditor places the debtor on notice that, unless the debtor has insurance coverage on the collateral, the creditor may purchase insurance to protect its interest.

The cost of collateral insurance shall be charged to the debtor if purchased by the creditor upon thirty days notice of the purchase. Any action to enforce the debtor's liability for insurance coverage must be commenced within five years after the coverage is purchased.
DENISE GARNIER