Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule defines the types of loans an
association may make.
(1) For
the purpose of this chapter, an association may originate, invest in, sell,
purchase, participate or otherwise deal in any loan it could make if it were
incorporated and operating as a federal association domiciled in this state, as
long as the association complies with all applicable regulations governing
those activities by federal associations.
(2) Election Regarding Classification of
Loans.
(A) If a loan is authorized under more
than one (1) section of the Missouri Savings and Loan Law or these regulations,
an association may designate under which section the loan has been made. This
loan may be apportioned among appropriate categories, and may be moved, in
whole or in part, from one (1) category to another. To classify a loan as a
real estate loan, an association must rely substantially upon the real estate
as the primary security for the loan.
(B) For purposes of determining whether
aggregate loans or investments under the Missouri Savings and Loan Law or these
regulations exceed an applicable percentage-of-assets limitation, a loan
commitment shall be counted as an investment and shall be included in total
assets of an association only to the extent that funds have been advanced (and
not repaid) pursuant to the commitment. The term loan commitment includes a
loan in process, a letter of credit or any other commitment to extend
credit.
(C) Loans sold to a third
party shall be included in calculation of a percentage of assets investment
limitation only to the extent they are sold with recourse.
(D) An association may make a loan secured by
assignment of loans to the extent that it could, under applicable law and
regulations, make or purchase the underlying assigned loans.
(3) An association may originate,
invest in, sell, purchase, participate or otherwise deal in the following types
of loans:
(A) Residential real estate
loans-in accordance with 4 CSR 260-8.031 (relating to residential real estate
loans);
(B) Other real estate
loans-in accordance with 4 CSR 260-8.035 (relating to other real estate
loans);
(C) Commercial loans in
accordance with 4 CSR 260-8.041 (relating to commercial loans);
(D) Consumer loans-in accordance with 4 CSR
260-8.046 (relating to consumer loans);
(E) Loans to officers, directors or employees
of the association-in accordance with 4 CSR 260-8.052 (relating to loans to
officers, directors and employees);
(F) Wrap-around real estate loans-in
accordance with 4 CSR 260-8.055 (relating to wrap-around real estate
loans);
(G) Education loans-in
accordance with 4 CSR 260-8.061 (relating to education loans);
(H) Manufactured home loans-in accordance
with 4 CSR 260-8.065 (relating to manufactured home loans);
(I) Alternative mortgage loans-in accordance
with 4 CSR 260-8.072 (relating to alternative mortgage loans);
(J) Line-of-credit construction loans-in
accordance with 4 CSR 260-8.075 (relating to line-of-credit construction
loans);
(K) Letters of credit-in
accordance with 4 CSR 260-8.083 (relating to letters of credit);
(L) Loans on cooperatives-in accordance with
4 CSR 260-8.085 (relating to loans on cooperatives);
(M) Loans secured by leasehold-in accordance
with 4 CSR 260-8.091 (relating to loans secured by leaseholds);
(N) Loans on securities-in accordance with 4
CSR 260-8.096 (relating to loans on securities);
(O) Loans to homeowners-in accordance with 4
CSR 260-8.100 (relating to loans to homeowners);
(P) Government insured or guaranteed
loans-without regard to any loan limitations or restrictions otherwise imposed
by this chapter, any loan, secured or unsecured, which is insured or guaranteed
in any amount by the United States or instrumentality of the United States;
and
(Q) Loans fully secured by
savings accounts owned or otherwise pledged for or by the borrower.
*Original authority: 369.299, RSMo 1971, amended
1994.