Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 20 - Association Loans
Section 20 CSR 1140-20.083 - Letters of Credit
Universal Citation: 20 MO Code of State Regs 1140-20.083
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule authorizes associations to issue letters of credit.
(1) An association may issue commercial and standby letters of credit in conformance with the Uniform Commercial Code or the Uniform Customs and Practice for Documentary Credits and may pledge collateral to secure its obligations under them, subject to the following requirements.
(2) Terms and Conditions.
(A) Each letter of credit must conspicuously
state that it is a letter of credit.
(B) The issuer's undertaking must contain a
specified expiration date or be for a definite term and must be limited in
amount.
(C) The issuer's obligation
to pay must be solely dependent upon the presentation of conforming documents
as specified in the letter of credit and not upon the factual performance or
nonperformance by the parties to the underlying transaction.
(D) The account party must have an
unqualified obligation to reimburse the issuer for payments made under the
letter of credit.
*Original authority: 369.249, RSMo 1971, amended 1994 and 369.299, RSMo 1971, amended 1994.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
