Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 20 - Association Loans
Section 20 CSR 1140-20.091 - Loans Secured by Leasehold
Universal Citation: 20 MO Code of State Regs 1140-20.091
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule authorizes associations to make loans secured by first liens on leasehold interests and prescribes the conditions and limitations on loans secured by leaseholds.
(1) An association may originate, invest in, sell, purchase, participate or otherwise deal in loans secured by first liens on leasehold interests in real estate, in accordance with the following requirements.
(2) Terms and Conditions.
(A) The unexpired term of the
leasehold exceeds the term of the loan by five (5) years or more.
(B) The loan is made under a policy set by
the board of directors of the association.
(C) The association obtains a written opinion
from an attorney that the lease agreement is lawful and enforceable.
(D) The association maintains a copy of the
lease agreement and the attorney's opinion in the loan file.
*Original authority: 369.014, RSMo 1971, amended 1982, 1986, 1994; 369.224, RSMo 1971, amended 1983, 1989, 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.
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