Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 2 - Banks and Trust Companies
Section 20 CSR 1140-2.095 - Standards for Certain Fiduciary Investments
Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: House Bill 105/480 of the 87th General Assembly amended section 362.550.5., RSMo to allow a bank or trust company to purchase, in a fiduciary capacity, state or political subdivision securities underwritten by it, its parent or affiliated companies, but subject to investment standards set by the director of the Division of Finance. The purpose of this rule is to set those standards.
(1) The standards of prudence and care established by subsection 456.520.1., RSMo, must be followed by a bank or trust company when purchasing, in a fiduciary capacity, state or political subdivision securities (securities) underwritten by it, its parent or affiliated companies.
(2) This prudence and care will require such determinations as are appropriate for the type of transaction involved including a consideration of the resource and liabilities of the obligor and a determination that the obligor possesses the capacity to make all required payments.
(3) The securities must be general obligations or revenue bonds of the issuing entity.
(4) These securities, at the time of purchase, must be rated in the two (2) highest grades by a nationally recognized bond rating service.
*Original authority: 361.105, RSMo 1967 and 362.550, RSMo 1967, amended 1972, 1983, 1991.
