Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 20 - Association Loans
Section 20 CSR 1140-20.075 - Line-of-Credit Construction Loans

Universal Citation: 20 MO Code of State Regs 1140-20.075
Current through Register Vol. 49, No. 6, March 15, 2024

PURPOSE: This rule authorizes associations to make construction loans without the security of real property and specifies the conditions and limitations for unsecured construction loans.

An association (pursuant to a plan adopted by the board of directors) may originate, invest in, sell, purchase, participate or otherwise deal in loans for constructing, adding to, improving, altering, repairing, equipping or furnishing what is or is to become real estate used primarily for residential purposes, relying substantially for repayment on the borrower's general credit standing and forecast of income, with or without other security, or on third-party guarantees or similar assurances for repayment. The aggregate amount of an association's investment in these loans shall not exceed the greater of five percent (5%) of the association's assets or the sum of its surplus, undivided profits and reserves. Investments under this regulation shall not be included in any other percentage of assets limitation referred to in this chapter.

*Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994; 369.229, RSMo 1971, amended 1983, 1994; and 369.249 and 369.299, RSMo 1971, amended 1994.

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