Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This amendment expands the business
activities that can be conducted at non-bank branch locations, which will allow
Missouri state-chartered banks to better compete with national banks that
already possess the authority to conduct the same activities under federal law;
eliminates state restrictions not applicable to nationally chartered banks,
which put Missouri banks at a competitive disadvantage; and eliminates a
burdensome annual reporting requirement that Missouri banks must file under the
current rule.
PURPOSE: This rule defines non-branch offices in a
manner consistent with federal definitions, implements procedures regarding the
establishment of non-branch offices, and provides parity for Missouri
state-chartered banks with national banks regarding the establishment of
branches and other types of banking facilities.
(1) Definitions-
(A) "Administrative office" means a bank
facility to which the bank does not permit members of the public to have
physical access for purposes of making deposits, paying checks, or borrowing
money (such as an office established by the bank that receives deposits or loan
payments only electronically or through the mail or involves staff engaged only
in "back office" administrative work or loan approvals);
(B) "Bank" means any bank or depository trust
company chartered by Missouri or any other state;
(C) "Branch," for purposes of this rule-
1. "Branch" means any branch bank, branch
office, branch agency, additional office, or any branch place of business
established by a bank at which deposits are received or checks paid or money
lent. A "branch" may include a temporary, seasonal, or mobile
facility that meets these criteria;
2. "Branch" does not include-
A. A loan production office;
B. A deposit production office;
C. An automated teller machine, an interactive video
terminal, remote capture terminal or remote service unit, including but not
limited to an automated loan machine, a personal computer, mobile device or
similar device used in providing financial services, or a drop box for deposit
and payment purposes;
D. An administrative office;
E. A facility that is located at the site of, or is an
extension of, an approved main office or branch; or
F. Any other office that does not engage in any of the
activities in paragraph (1)(C)1. of this rule, including any office combining
any of the activities or facilities permitted in the exemptions listed in
subparagraphs (1) (C)2.A. through D.;
(D) "Deposit production office" means a bank
office at which deposit-related functions are conducted, but at which deposits
are not received, checks are not paid, nor money lent;
(E) "Deposit-related functions" means including
assembling and providing information about deposit products and services,
soliciting and processing deposit account applications, approving or denying
deposit account applications, and conducting deposit account set-up activities,
such as execution of documents, but not including "receipt of
deposits";
(F) "Deposits are received" or "receipt
of deposits" includes the bank accepting funds to be deposited from the
depositor, in-person;
(G) "Loan production office" means a bank
office at which loan-related functions are conducted, but at which deposits are
not received, checks are not paid, nor money lent;
(H) "Loan-related functions" includes
assembling and providing information about loan products and services,
soliciting and processing loan applications, approving or denying loan
applications, and conducting loan closing activities, such as execution of
documents but not including "money lent";
(I) "Money lent" means disbursing to the
borrower, in- person, loan proceeds directly from bank funds-
1. From the lending bank or its subsidiary; or
2. At a facility that is established by the lending bank or
its subsidiary;
(J) "Non-branch banking facility" means any
item described in paragraph (1)(C)2. of this rule; and
(K) "Trust office" means an office of a bank or
nondepository trust company chartered in Missouri, other than a main office or
a branch, at which the bank or trust company engages in one (1) or more
fiduciary activities requiring trust powers and/or activities incidental to the
exercise of such trust powers, but at which deposits are not received, checks
are not paid, nor money lent.
(2) Loan Production, Deposit Production, and Combination
Offices. Any bank may establish in Missouri one (1) or more loan production,
deposit production or non-branch banking facilities described in subparagraph
(1)(C)2.F. of this rule that involve any combination of "loan-related
functions" and "deposit-related functions," provided that,
within thirty (30) days after establishing any such office, such bank shall
file a written notice with the Division of Finance stating the name of the
bank, the location of the office, and the activities to be conducted at the
office. Notwithstanding anything contrary to the foregoing, if the purchase or
lease of such real property or improvements needed to establish any office
authorized by this rule exceeds the legal loan limit or is from an officer,
director, employee, affiliate, principal shareholder, or a related interest of
such person, prior written approval shall be obtained from the commissioner of
finance.
(3) Other Non-branch Banking Facilities. Any bank may
establish in Missouri one (1) or more administrative offices or one (1) or more
of the types of non-branch banking facilities described in subparagraph
(1)(C)2.C. or (1)(C)2.E of this rule, and such establishment does not require
notice to the Division of Finance.
(4) Establishment of Trust Offices.
(A) A Missouri-chartered bank granted fiduciary powers
pursuant to section 362.115, RSMo, and trust company, may establish one (1) or
more in-state or out-of-state trust offices on the same conditions as set forth
in section (2) subject to the requirements of the host state, if any.
(B) Banks and trust companies chartered by jurisdictions
other than Missouri must comply with section 362.600, RSMo, to establish any
trust office in this state.
(5) Remote Work. Nothing in this rule shall apply to the
personal residences of bank officers, employees, or agents, who may be
conducting bank business remotely at home, provided that bank customers are not
permitted physical access to the residence for purposes of conducting business
with the bank.
*Original authority: 361.105, RSMo 1967; and 362.105, RSMo
1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990,
1991.
