EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 754
103RD GENERAL ASSEMBLY
1499S.03C KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 361.909, 362.020, 362.247, 362.275, 362.295, 362.490, 381.410, 427.300, and
447.200, RSMo, and to enact in lieu thereof eleven new sections relating to certain
financial organizations, with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 361.909, 362.020, 362.247, 362.275, 1
362.295, 362.490, 381.410, 427.300, and 447.200, RSMo, are 2
repealed and eleven new sections enacted in lieu thereof, to be 3
known as sections 361.909, 362.020, 362.247, 362.275, 362.295, 4
362.424, 362.490, 370.245, 381.410, 425.310, and 427.300, to 5
read as follows:6
361.909. Sections 361.900 to 361.1035 shall not apply 1
to: 2
(1) An operator of a payment system to the extent that 3
it provides processing, clearing, or settlement services 4
between or among persons exempted under this section or 5
licensees in connection with wire transfers, credit card 6
transactions, debit card transactions, stored value 7
transactions, automated clearinghouse transfers, or similar 8
funds transfers; 9
(2) A person appointed as an agent of a payee to 10
collect and process a payment from a payer to the payee for 11
goods or services, other than money transmission itself, 12
provided to the payer by the payee, provided that: 13 SCS HB 754 2
(a) There exists a written agreement between the payee 14
and the agent directing the agent to co llect and process 15
payments from a payer on the payee's behalf; 16
(b) The payee holds the agent out to the public as 17
accepting payments for goods or services on the payee's 18
behalf; and 19
(c) Payment for the goods and services is treated as 20
received by the payee upon receipt by the agent so that the 21
payer's obligation is extinguished and there is no risk of 22
loss to the payer if the agent fails to remit the funds to 23
the payee; 24
(3) A person that acts as an intermediary by 25
processing payments between an entity that has directly 26
incurred an outstanding money transmission obligation to a 27
sender and the sender's designated recipient, provided that 28
the entity: 29
(a) Is properly licensed or exempt from licensing 30
requirements under section s 361.900 to 361.1035; 31
(b) Provides a receipt, electronic record, or other 32
written confirmation to the sender identifying the entity as 33
the provider of money transmission in the transaction; and 34
(c) Bears sole responsibility to satisfy the 35
outstanding money transmission obligation to the sender, 36
including the obligation to make the sender whole in 37
connection with any failure to transmit the funds to the 38
sender's designated recipient; 39
(4) The United States or a department, agency, or 40
instrumentality thereof, or its agent; 41
(5) Money transmission by the United States Postal 42
Service or by an agent of the United States Postal Service; 43 SCS HB 754 3
(6) A state, county, city, or any other governmental 44
agency or governmental subdivision or instrumentality of a 45
state, or its agent; 46
(7) A federally insured depository financial 47
institution; bank holding company; office of an 48
international banking corporation; foreign bank that 49
establishes a federal branch under the International Bank 50
Act, 12 U.S.C. Section 3102, as amended or recodified from 51
time to time; corporation organized under the Bank Service 52
Corporation Act, 12 U.S.C. Sections 1861 -1867, as amended or 53
recodified from time to time; or corporation organized under 54
the Edge Act, 12 U.S.C. Sections 611 -633, as amended or 55
recodified from time to time, under the laws of a state or 56
the United States; 57
(8) Electronic funds transfer of governmental benefits 58
for a federal, state, county, or governmental agency by a 59
contractor on behalf of the United States or a department, 60
agency, or instrumentality thereof, or on behalf of a state 61
or governmental subdivision, agency, or instrumentality 62
thereof; 63
(9) A board of trade designated as a contract market 64
under the federal Commodity Exchange Act, 7 U.S.C. Sections 65
1-25, as amended or recodified from time to time, or a 66
person that, in the ordinary course of business, provides 67
clearance and settlement services for a board of trade to 68
the extent of its operation as or for su ch a board; 69
(10) A registered futures commission merchant under 70
the federal commodities laws to the extent of its operation 71
as such a merchant; 72
(11) A person registered as a securities broker -dealer 73
under federal or state securities laws to the extent of its 74
operation as such a broker -dealer; 75 SCS HB 754 4
(12) An individual employed by a licensee, authorized 76
delegate, or any person exempted from the licensing 77
requirements under sections 361.900 to 361.1035 if acting 78
within the scope of employmen t and under the supervision of 79
the licensee, authorized delegate, or exempted person as an 80
employee and not as an independent contractor; 81
(13) A person expressly appointed as a third -party 82
service provider to or agent of an entity exempt under 83
subdivision (7) of this section solely to the extent that: 84
(a) Such service provider or agent is engaging in 85
money transmission on behalf of and under a written 86
agreement with the exempt entity that sets forth the 87
specific functions that the service provider or agent is to 88
perform; and 89
(b) The exempt entity assumes all risk of loss and all 90
legal responsibility for satisfying the outstanding money 91
transmission obligations owed to purchasers and holders of 92
the outstanding money transmission o bligations upon receipt 93
of the purchaser's or holder's money or monetary value by 94
the service provider or agent ; 95
(14) A person appointed as an agent of a payor for 96
purposes of providing payroll processing services for which 97
the agent would otherw ise need to be licensed, provided all 98
of the following apply: 99
(a) There is a written agreement between the payor and 100
the agent that directs the agent to provide payroll 101
processing services on the payor's behalf; 102
(b) The payor holds the agent out to employees and 103
other payees as providing payroll processing services on the 104
payor's behalf; 105
(c) The payor's obligation to a payee, including an 106
employee or any other party entitled to receive funds via 107 SCS HB 754 5
the payroll processing services provi ded by the agent, shall 108
not be extinguished if the agent fails to remit the funds to 109
the payee. 110
362.020. 1. The articles of agreement mentioned in 1
this chapter shall set out: 2
(1) The corporate name of the proposed corporation. 3
The corporate name shall not be a name, or an imitation of a 4
name, used within the preceding fifty years as a corporate 5
title of a bank or trust company incorporated in this state; 6
(2) The name of the city or town and county in this 7
state in which the corporation is to be located; 8
(3) The amount of the capital stock of the 9
corporation, the number of shares into which it is divided, 10
and the par value thereof; that the same has been subscribed 11
in good faith and all thereof actually paid u p in lawful 12
money of the United States and is in the custody of the 13
persons named as the first board of directors or managers; 14
(4) The names and places of residences of the several 15
shareholders and number of shares subscribed by each; 16
(5) The number and the names of the first directors; 17
(6) The purposes for which the corporation is formed; 18
(7) Any provisions relating to the preemptive rights 19
of a shareholder as provided in section 351.305 . 20
The articles of agreement may provide fo r the issuance of 21
additional shares of capital stock or other classes of stock 22
pursuant to the same procedures and conditions as provided 23
under section 351.180, provided that such terms and 24
procedures are acceptable to the director of finance and, 25
provided that any notice or other approval required to be 26
given or obtained from the state of Missouri shall be given 27
or obtained from the director of the division of finance . 28 SCS HB 754 6
2. The articles of agreement may designate the number 29
of directors necessa ry to constitute a quorum, and may 30
provide for the number of years the corporation is to 31
continue, or may provide that the existence of the 32
corporation shall continue until the corporation shall be 33
dissolved by consent of the stockholders or by proceed ings 34
instituted by the state under any statute now in force or 35
hereafter enacted. 36
362.247. 1. A majority of the full board of directors 1
shall constitute a quorum for the transaction of business 2
unless another number is required by the articles of 3
agreement, the bylaws or by law. The act of a majority of 4
the directors present at a meeting at which a quorum is 5
present shall be the act of the board of directors unless 6
the act of a greater number is required by the articles of 7
agreement, the bylaws or by law. 8
2. Unless otherwise prohibited by statute or 9
[regulation,] an order or memorandum of understanding 10
entered into with the director of finance related to bank 11
safety and soundness, directors may attend board meetings by 12
telephonic conference call or video conferencing, and the 13
bank or trust company may include in a quorum directors who 14
are not physically present but are allowed to vote [, 15
provided the bank or trust company has a composite rating of 16
1 or 2 under the Uniform Financial Institutions Rating 17
System of the Federal Financial Institution Examination 18
Counsel (FFIEC)]. 19
3. Any director remotely attending a board meeting via 20
telephone or video conferencing may be counted toward a 21
quorum for such meeting and, if the director is not 22
otherwise prohibited, may vote on matters before the bank or 23
trust company's board so long as the meeting minutes 24 SCS HB 754 7
identify the director appearing remotely and reflect that 25
the remote director: 26
(1) Received formal notic e of the board meeting for 27
which he or she is attending or waived such notice as 28
otherwise provided by law; 29
(2) Received the board meeting information required 30
for each board of director's meeting as provided by section 31
362.275; 32
(3) Was alone when participating in such board meeting 33
or was in the physical presence of no one not a director of 34
such bank or trust company; and 35
(4) Was able to clearly hear such board meeting 36
discussion from its beginning to end. 37
4. The director of the division of finance may 38
promulgate additional regulations, reasonable in scope, to 39
provide for the integrity of the board of directors' 40
operations when directors attend board meetings remotely, 41
the safety and soundness of the bank or trust company' s 42
operation, and the bank or trust company's interest in 43
minimizing the cost of compliance with such regulation. 44
362.275. 1. The board of directors of every bank and 1
trust company organized or doing business pursuant to this 2
chapter shall hold a regular meeting at least once each 3
month, or, upon application to and acceptance by the 4
director of finance, at such other times, not less 5
frequently than once each calendar quarter as the director 6
of finance shall approve, which approva l may be rescinded at 7
any time. There shall be submitted to the meeting a list 8
giving the aggregate of loans, discounts, acceptances and 9
advances, including overdrafts, to each individual, 10
partnership, corporation or person whose liability to the 11
bank or trust company has been created, extended, renewed or 12 SCS HB 754 8
increased since the cut -off date prior to the regular 13
meeting by more than an amount to be determined by the board 14
of directors, which minimum amount shall not exceed five 15
percent of the bank's legal loan limit, except the minimum 16
amount shall in no case be less than ten thousand dollars; a 17
second list of the aggregate indebtedness of each borrower 18
whose aggregate indebtedness exceeds five times such minimum 19
amount, except the aggregate indeb tedness shall in no case 20
be less than fifty thousand dollars; and a third list 21
showing all paper past due thirty days or more or 22
alternatively, the third list shall report the total past - 23
due ratio for loans thirty days or more past due, nonaccrual 24
loans divided by total loans, and a listing of past -due 25
loans in excess of the minimum amount to be determined by 26
the board of directors, which minimum amount shall not 27
exceed five percent of the bank's legal loan limit, except 28
the minimum amount shall in no case be less than ten 29
thousand dollars[; and a fourth list showing the aggregate 30
of the then-existing indebtedness and liability to the bank 31
or trust company of each of the directors, officers, and 32
employees thereof]. The information called for in the 33
second[,] and third[, and fourth] lists shall be submitted 34
as of the date of the regular meeting or as of a reasonable 35
date prior thereto. No bills payable shall be made, and no 36
bills shall be rediscounted by the bank or trust company 37
except with the consent or ratification of the board of 38
directors; provided, however, that if the bank or trust 39
company is a member of the federal reserve system, 40
rediscounts may be made to it by the officers in accordance 41
with its rules, a list of all rediscoun ts to be submitted to 42
the next regular meeting of the board. The director of 43
finance may require, by order, that the board of directors 44 SCS HB 754 9
of a bank or trust company approve or disapprove every 45
purchase or sale of securities and every discount, loan, 46
acceptance, renewal or other advance including every 47
overdraft over an amount to be specified in the director's 48
order and may also require that the board of directors 49
review, at each monthly meeting, a list of the aggregate 50
indebtedness of each borrower whose aggregate indebtedness 51
exceeds an amount to be specified in the director's order. 52
The minutes of the meeting shall indicate the compliance 53
with the requirements of this section. Furthermore, the 54
debtor's identity on the information required in this 55
subsection may be masked by code to conceal the actual 56
debtor's identity only for information mailed to or 57
otherwise provided directors who are not physically present 58
at the board meeting. The code used shall be revealed to 59
all directors at the beginning of each board meeting for 60
which this procedure is used. 61
2. For any issue in need of immediate action, the 62
board of directors or the executive committee of the board 63
as defined in section 362.253 may enter into a unanimous 64
consent agreement as permitted by subsection 2 of section 65
351.340. Such consent may be communicated by facsimile 66
transmission or by other authenticated record, separately by 67
each director, provided each consent is signed by the 68
director and the bank has no indicatio n such signature is 69
not the director's valid consent. When the bank or trust 70
company has received unanimous consent from the board or 71
executive committee, the action voted on shall be considered 72
approved. 73
362.295. 1. Within ten days after service upon it of 1
the notice provided for by section 361.130, every bank and 2
trust company shall make a written report to the director, 3 SCS HB 754 10
which report shall be in the form and shall contain the 4
matters prescribed by the director and shall speci fically 5
state the items of capital, deposits, specie and cash items, 6
public securities and private securities, real estate and 7
real estate securities, and such other items as may be 8
necessary to inform the public as to the financial condition 9
and solvency of the bank or trust company, or which the 10
director may deem proper to include therein. In lieu of 11
requiring direct filing of reports of condition, the 12
director may accept reports of condition or their equivalent 13
as filed with federal regulatory agencies and may require 14
verification and the filing of supplemental information as 15
the director deems necessary. 16
2. Every report shall be verified by the oaths of the 17
president or vice president and cashier or secretary or 18
assistant cashier or a ssistant secretary, and the 19
verification shall state that the report is true and correct 20
in all respects to the best of the knowledge and belief of 21
the persons verifying it, and the report shall be attested 22
by three directors, and shall be a report of the actual 23
condition of the bank or trust company at the close of 24
business on the day designated and which day shall be prior 25
to the call. If the director of finance obtains the data 26
pursuant to subsection 3 of section 361.130, the director 27
may rely on the verification provided to the federal 28
regulatory agency. 29
3. [Every report, exclusive of the verification, 30
shall, within thirty days after it shall have been filed 31
with the director, be published by the bank or trust company 32
in one newspaper of the place where its place of business is 33
located, or if no newspaper is published there, in a 34
newspaper of general circulation in the town and community 35 SCS HB 754 11
in which the bank or trust company is located; the newspaper 36
to be designated by the board of d irectors and a copy of the 37
publication, with the affidavit of the publisher thereto, 38
shall be attached to the report; provided, if the bank or 39
trust company is located in a town or city having a 40
population exceeding ten thousand inhabitants, then the 41
publication must be in a daily newspaper, if published in 42
that city; but if the bank or trust company is located in a 43
town or city having a population of ten thousand inhabitants 44
or less, then the publication may be in either a daily or 45
weekly newspaper published in the town or city as aforesaid; 46
and in all cases a copy of the statement shall be posted in 47
the banking house accessible to all. 48
4.] The bank and trust company shall also make such 49
other special reports to the director as he may from time to 50
time require, in such form and at such date as may be 51
prescribed by him, and the report shall, if required by him, 52
be verified in such manner as he may prescribe. 53
[5.] 4. If the bank or trust company shall fail to 54
make any report require d by this section on or before the 55
day designated for the making thereof, or shall fail to 56
include therein any matter required by the director, the 57
bank or trust company shall forfeit to the state the sum of 58
one hundred dollars for every day that the r eport shall be 59
delayed or withheld, and for every day that it shall fail to 60
report any omitted matter, unless the time therefor shall 61
have been extended by the director. Should any president, 62
cashier or secretary of the bank or trust company or any 63
director thereof fail to make the statement so required of 64
him or them, or willfully and corruptly make a false 65
statement, he or they, and each of them, shall be deemed 66
guilty of a misdemeanor, and, upon conviction thereof, upon 67 SCS HB 754 12
information, punished by a fine for each offense not 68
exceeding five hundred dollars and not less than one hundred 69
dollars, or by imprisonment not less than one or more than 70
twelve months in the city or county jail, or by both such 71
fine and imprisonment. 72
[6.] 5. A bank or trust company [may provide each 73
written] shall provide a paper or electronic copy of any 74
regular periodic report required to be [published free of 75
charge to the public; and when each bank or trust company 76
notifies their customers that such informat ion is available; 77
and when one copy of such information is available ] filed 78
under section 361.130 to each [person] customer that 79
requests it[, the newspaper publication provisions of this 80
section shall not be enforced against such bank or trust 81
company]. 82
362.424. 1. For purposes of this section, the 1
following terms mean: 2
(1) "Bank", includes any state or federally chartered 3
bank, savings bank, or savings and loan association 4
providing banking services to customers; 5
(2) "Trusted contact", any adult person designated by 6
a bank customer that a bank may contact in the event of an 7
emergency or loss of contact with the customer, or suspected 8
third party fraud or financial exploitation targeting the 9
customer. 10
2. Notwithstanding any other provision of law to the 11
contrary, any bank may report suspected fraudulent activity 12
or financial exploitation targeting any of its customers to 13
a federal, state, county, or municipal law enforcement 14
agency or any appropriate pub lic protective agency and shall 15
be immune from civil liability in doing so. 16 SCS HB 754 13
3. Notwithstanding any other provision of law to the 17
contrary, any bank, on a voluntary basis, may offer a 18
trusted contact program to customers who may designate one 19
or more trusted contacts for the bank to contact in the 20
event a customer is not responsive to bank communications, 21
the bank is presented with an urgent matter or emergency 22
involving the customer and the bank is unable to locate the 23
customer, or the bank su spects fraudulent activity or 24
financial exploitation targeting the customer or the account 25
has been deemed dormant and the bank is attempting to verify 26
the status and location of the customer. The bank may 27
establish such procedures, requirements, and forms as it 28
deems appropriate and necessary should the bank opt to 29
implement a trusted contact program. 30
4. Notwithstanding any other provision of law to the 31
contrary, any bank may voluntarily offer customers an 32
account with convenience and securi ty features that set 33
transaction limits and permit limited access to view account 34
activity for one or more trusted contacts designated by the 35
customer. 36
5. No bank shall be liable for the actions of a 37
trusted contact. 38
6. No bank shall be lia ble for declining to interact 39
with a trusted contact when the bank, in good faith and 40
exercising reasonable care, determines that a trusted 41
contact is not acting in the best interests of the customer. 42
7. A person designated by a customer as a trus ted 43
contact who acts in good faith and exercises reasonable care 44
shall be immune from liability. 45
8. A customer may withdraw any appointment of a person 46
as a trusted contact at any time and any trusted contact may 47
withdraw from status as a trusted contact at any time. The 48 SCS HB 754 14
bank may require such documentation or verification as it 49
deems necessary to establish the withdrawal or termination 50
of a trusted contact. 51
9. No bank shall be civilly liable for implementing or 52
not implementing or for a ctions or omissions related to 53
providing or administering a trusted contact program. 54
362.490. 1. Notwithstanding any provision of law of 1
this state or of any political subdivision thereof requiring 2
security for deposits in the form of collateral, surety bond 3
or in any other form, security for such deposits shall not 4
be required to the extent said deposits are insured under 5
the provisions of an act of congress creating and 6
establishing the Federal Deposit Insurance Corporation or 7
similar agency created and established by the Congress of 8
the United States. 9
2. (1) As an alternative to the requirements for 10
direct pledging of security for deposit of public funds in 11
excess of the amount that is federally insured or guaranteed 12
pursuant to sections 110.010, 110.020, and 110.060, a 13
banking institution authorized as legal depositary for 14
public funds may secure the deposits of any governmental 15
entity by granting a security interest in a single pool of 16
securities to secure the repayment of all public funds 17
deposited in the banking institution by such governmental 18
entities and not otherwise federally insured or secured 19
pursuant to law. 20
(2) A banking institution may secure the deposit of 21
public funds using the direct met hod as provided in chapter 22
110, or the single bank pooled method provided in this 23
section, or may elect to offer government entities the 24
choice of either method to secure the deposit of public 25
funds. 26 SCS HB 754 15
(3) Under the direct method a banking institut ion may 27
secure the deposit of public funds of each government entity 28
separately by furnishing securities pursuant to sections 29
110.010, 110.020, and 110.060. 30
(4) Under the single bank pooled method a banking 31
institution may secure the deposit of p ublic funds of one or 32
more government entities through a pool of eligible 33
securities held in custody and safekeeping with one or more 34
other banking institutions or safe depositaries, to be held 35
subject to the order of the director of the division of 36
finance or the administrator appointed pursuant to 37
subsection 3 of this section for the benefit of the 38
government entities having public funds deposited with such 39
banking institution as set forth in this section. 40
3. (1) The director of the divisio n of finance shall 41
have exclusive authority to appoint a bank, trust company, 42
or association for Missouri banks which is chartered or 43
incorporated in Missouri, to serve as the administrator with 44
respect to a single bank pooled method. The administrator 45
shall act as an agent for banking institutions and as the 46
nominee of the government entities for purposes of 47
administering the pool of securities pledged to secure 48
uninsured public fund deposits. The fees and expenses of 49
such administrator shall be paid by the banking institutions 50
utilizing the single bank pooled method. The single bank 51
pooled method shall not be utilized by any banking 52
institution unless an administrator has been appointed by 53
the director pursuant to this section and is acting as the 54
administrator. The director may require the administrator 55
to post a surety bond or security to the director in an 56
amount up to one hundred thousand dollars to assure the 57
faithful performance of the duties of the administrator. 58 SCS HB 754 16
(2) At all times the aggregate market value of the 59
pool of securities so deposited, pledged, or in which a 60
security interest is granted shall be at least equal to one 61
hundred two percent of the amount on deposit which is in 62
excess of the amount so insured. 63
(3) Each banking institution shall carry on its 64
accounting records at all times a general ledger or other 65
appropriate account of the total amount of all public funds 66
to be secured by the pool of securities as determined at the 67
opening of business each day, and the aggregate market value 68
of the pool of securities pledged, or in which a security 69
interest is granted to secure such public funds. 70
(4) If a banking institution elects to secure the 71
deposit of public funds through the use of the single bank 72
pooled method, such banking institution shall notify the 73
administrator in writing that it has elected to utilize the 74
single bank pooled method and the proposed effective date 75
thereof and enter such agreement as the administrator may 76
require. 77
(5) A banking institution may not retain any deposit 78
of public funds which is required to be secured unless it 79
has secured the deposits for the benefit of the government 80
entities having public funds with such banking institution 81
pursuant to this sec tion. 82
(6) Only the securities and collateral described or 83
listed pursuant to section 30.270 for the safekeeping and 84
payment of deposits by the state treasurer may be provided 85
and accepted as security for the deposit of public funds and 86
shall be eligible as collateral. The administrator shall 87
not accept any securities which are not described or listed 88
pursuant to section 30.270. 89 SCS HB 754 17
(7) The administrator may establish such procedures 90
and reporting requirements as necessary for depository 91
banking institutions and their safekeeping banks or 92
depositaries to confirm the amount of insured public fund 93
deposits, the pledge of securities to the administrator to 94
secure the deposit of public funds, as agent for each 95
participating banking institutio n, and to monitor the market 96
value of pledged securities as reported by the custody 97
agents, and to add, substitute, or remove securities held in 98
the single bank pool as directed by the depository banking 99
institution. 100
(8) In the event of the failu re and insolvency of a 101
banking institution using the single bank pooled method, 102
subject to any order of the director pursuant to powers 103
vested under chapter 361, the administrator shall direct the 104
safekeeping banks or depositaries to sell the pledged 105
securities and direct proceeds to the payment of the 106
uninsured public fund deposits or to transfer the pledged 107
securities to that banking institution's primary supervisory 108
agency or the duly appointed receiver for the banking 109
institution to be liquidat ed to pay out the uninsured public 110
fund deposits. 111
370.245. 1. For purposes of this section, the 1
following terms mean: 2
(1) "Credit union", any state or federally chartered 3
credit union providing financial services to members; 4
(2) "Trusted contact", any adult person designated by 5
a credit union member that a credit union may contact in the 6
event of an emergency or loss of contact with the member, or 7
suspected third party fraud or financial exploitation 8
targeting the member. 9 SCS HB 754 18
2. Notwithstanding any other provision of law to the 10
contrary, any credit union may report suspected fraudulent 11
activity or financial exploitation targeting any of its 12
members to a federal, state, county, or municipal law 13
enforcement agency or any appropriate public protective 14
agency and shall be immune from civil liability in doing so. 15
3. Notwithstanding any other provision of law to the 16
contrary, any credit union, on a voluntary basis, may offer 17
a trusted contact program to members who may designate one 18
or more trusted contacts for the credit union to contact in 19
the event a member is not responsive to credit union 20
communications, the credit union is presented with an urgent 21
matter or emergency involving the member and the credit 22
union is unable to locate the member, or the credit union 23
suspects fraudulent activity or financial exploitation 24
targeting the member or the account has been deemed dormant 25
and the credit union is attempting to verify the status and 26
location of the member. The credit union may establish such 27
procedures, requirements, and forms as it deems appropriate 28
and necessary should the credit union opt to implement a 29
trusted contact program. 30
4. Notwithstanding any other provision of law to the 31
contrary, any credit union may voluntarily offer members an 32
account with convenience and security features that set 33
transaction limits and permit limited access to view account 34
activity for one or more trusted contacts designated by the 35
member. 36
5. No credit union shall be liable for the actions of 37
a trusted contact. 38
6. No credit union shall be liable for declining to 39
interact with a trusted contact when the credit union, in 40
good faith and exercising reasonable care, determines that a 41 SCS HB 754 19
trusted contact is not acting in the best interests of the 42
member. 43
7. A person designated by a member as a trusted 44
contact who acts in good faith and exercises reasonable care 45
shall be immune from liability. 46
8. A member may withdraw any appointment of a person 47
as a trusted contact at any time and any trusted contact may 48
withdraw from status as a trusted contact at any time. The 49
credit union may require such documentation or verification 50
as it deems necessary to establish the withdrawal or 51
termination of a trusted contact. 52
9. No credit union shall be civilly liable for 53
implementing or not implementing or for actions or omissions 54
related to providing or administering a trusted contact 55
program. 56
381.410. As used in this section and section 381.412, 1
the following terms mean: 2
(1) "Cashier's check", a check, however labeled, drawn 3
on the financial institution, which is signed only by an 4
officer or employee of such institution, is a direct 5
obligation of such instituti on, and is provided to a 6
customer of such institution or acquired from such 7
institution for remittance purposes; 8
(2) "Certified funds", United States currency, funds 9
conveyed by a cashier's check, certified check, or teller's 10
check, as defined in Federal Reserve Regulations CC, or 11
funds conveyed by wire transfers[, including] 12
unconditionally received by the settlement agent or the 13
agent's depository, or funds conveyed by a real -time payment 14
system, including, but not limited to, RTP and Fed No w, for 15
which a settlement agent receives written advice from a 16 SCS HB 754 20
financial institution that collected funds have been 17
credited to the settlement agent's account; 18
(3) "Director", the director of the department of 19
commerce and insurance, unless the s ettlement agent's 20
primary regulator is another department. When the 21
settlement agent is regulated by such department, that 22
department shall have jurisdiction over this section and 23
section 381.412; 24
(4) "Financial institution": 25
(a) A person or entity doing business under the laws 26
of this state or the United States relating to banks, trust 27
companies, savings and loan associations, credit unions, 28
commercial and consumer finance companies, industrial loan 29
companies, insurance companies, smal l business investment 30
corporations licensed under the Small Business Investment 31
Act of 1958, 15 U.S.C. Section 661, et seq., as amended, or 32
real estate investment trusts as defined in 26 U.S.C. 33
Section 856, as amended, or institutions constituting the 34
Farm Credit System under the Farm Credit Act of 1971, 12 35
U.S.C. Section 2000, et seq., as amended; or 36
(b) A mortgage loan company or mortgage banker doing 37
business under the laws of this state or the United States 38
which is subject to licensing, s upervision, or auditing by 39
the Federal National Mortgage Association, or the Federal 40
Home Loan Mortgage Corporation, or the United States 41
Veterans' Administration, or the Government National 42
Mortgage Association, or the United States Department of 43
Housing and Urban Development, or a successor of any of the 44
foregoing agencies or entities, as an approved seller or 45
servicer, if their principal place of business is in 46
Missouri or a state which is contiguous to Missouri; 47 SCS HB 754 21
(5) "Settlement agent", a p erson, corporation, 48
partnership, or other business organization which accepts 49
funds and documents as fiduciary for the buyer, seller or 50
lender for the purposes of closing a sale of an interest in 51
real estate located within the state of Missouri, and is not 52
a financial institution, or a member in good standing of the 53
Missouri Bar, or a person licensed under chapter 339. 54
425.310. 1. A debt collector, including a debt 1
collection attorney or law firm, shall be authorized to 2
collect a payment transaction fee from a person, business, 3
or other payor making a credit card or an electronic payment 4
not to exceed the lesser of twenty -five dollars or three 5
percent of the payment amount, not including the fee, 6
provided the following are di sclosed to the person, 7
business, or other payor prior to the time the transaction 8
is complete: 9
(1) That a payment transaction fee is to be collected; 10
(2) The amount of the payment transaction fee or 11
method of its calculation, which includes a percentage as 12
limited under this section; and 13
(3) At least one alternative payment method for which 14
there would be no payment transaction fee. 15
2. A notice in substantially the following form 16
complies with the provisions under subsection 1 of this 17
section: 18
"NOTICE: A payment transaction fee will be 19
collected to complete this method of payment in 20
the amount of ($____) (____% of the amount to be 21
paid, limited to three percent). If you want to 22
avoid this payment transaction fee, you may 23
instead pay by (set out available nonfee payment 24
methods(s)).". 25 SCS HB 754 22
427.300. 1. This section shall be known and may be 1
cited as the "Commercial Financing Disclosure Law". 2
2. For purposes of this section, the following terms 3
mean: 4
(1) "Account"; 5
(a) Includes: 6
a. A right to payment of a monetary obligation, 7
regardless of whether earned by performance, for one of the 8
following: 9
(i) Property that has been or is to be sold, leased, 10
licensed, assigned, or othe rwise disposed of; 11
(ii) Services rendered or to be rendered; 12
(iii) A policy of insurance issued or to be issued; 13
(iv) A secondary obligation incurred or to be incurred; 14
(v) Energy provided or to be provided; 15
(vi) The use or hire of a vessel under a charter or 16
other contract; 17
(vii) Arising out of the use of a credit or charge 18
card or information contained on or for use with the card; or 19
(viii) As winnings in a lottery or other game of 20
chance operated or sponsored by a state, governmental unit 21
of a state, or person licensed or authorized to operate the 22
game by a state or governmental unit of a state; and 23
b. Health-care-insurance receivables; and 24
(b) Does not include: 25
a. Rights to payment evidence d by chattel paper or an 26
instrument; 27
b. Commercial tort claims; 28
c. Deposit accounts; 29
d. Investment property; 30
e. Letter-of-credit rights or letters of credit; or 31 SCS HB 754 23
f. Rights to payment for moneys or funds advanced or 32
sold, other than rights arising out of the use of a credit 33
or charge card or information contained on or for use with 34
the card; 35
(2) "Accounts receivable purchase transaction", any 36
transaction in which the business forwards or otherwise 37
sells to the provide r all or a portion of the business's 38
accounts or payment intangibles at a discount to their 39
expected value. The provider's characterization of an 40
accounts receivable purchase transaction as a purchase is 41
conclusive that the accounts receivable purchas e transaction 42
is not a loan or a transaction for the use, forbearance, or 43
detention of money; 44
(3) "Broker", any person who, for compensation or the 45
expectation of compensation, obtains a commercial financing 46
transaction or an offer for a commerci al financing 47
transaction from a third party that would, if executed, be 48
binding upon that third party and communicates that offer to 49
a business located in this state. The term broker excludes 50
a provider, or any individual or entity whose compensation 51
is not based or dependent on the terms of the specific 52
commercial financing transaction obtained or offered; 53
(4) "Business", an individual or group of individuals, 54
sole proprietorship, corporation, limited liability company, 55
trust, estate, cooper ative, association, or limited or 56
general partnership engaged in a business activity; 57
(5) "Business purpose transaction", any transaction 58
where the proceeds are provided to a business or are 59
intended to be used to carry on a business and not for 60
personal, family, or household purposes. For purposes of 61
determining whether a transaction is a business purpose 62
transaction, the provider may rely on any written statement 63 SCS HB 754 24
of intended purpose signed by the business. The statement 64
may be a separate statement or may be contained in an 65
application, agreement, or other document signed by the 66
business or the business owner or owners; 67
(6) "Commercial financing facility", a provider's plan 68
for purchasing multiple accounts receivable from the 69
recipient over a period of time pursuant to an agreement 70
that sets forth the terms and conditions governing the use 71
of the facility; 72
(7) "Commercial financing transaction", any commercial 73
loan, accounts receivable purchase transaction, commercial 74
open-end credit plan or each to the extent the transaction 75
is a business purpose transaction; 76
(8) "Commercial loan", a loan to a business, whether 77
secured or unsecured; 78
(9) "Commercial open-end credit plan", commercial 79
financing extended by any provider under a plan in which: 80
(a) The provider reasonably contemplates repeat 81
transactions; and 82
(b) The amount of financing that may be extended to 83
the business during the term of the plan, up to any limit 84
set by the provider, is generally made available to the 85
extent that any outstanding balance is repaid; 86
(10) "Depository institution", any of the following: 87
(a) A bank, trust company, or industrial loan company 88
doing business under the authority of, or in accordance 89
with, a license, certificate, or charter issued by the 90
United States, this state, or any other state, district, 91
territory, or commonwealth of the United States that is 92
authorized to transact business in this state; 93 SCS HB 754 25
(b) A federally chartered savings and lo an 94
association, federal savings bank, or federal credit union 95
that is authorized to transact business in this state; or 96
(c) A savings and loan association, savings bank, or 97
credit union organized under the laws of this or any other 98
state that is authorized to transact business in this state; 99
(11) "General intangible", any personal property, 100
including things in action, other than accounts, chattel 101
paper, commercial tort claims, deposit accounts, documents, 102
goods, instruments, investment pr operty, letter-of-credit 103
rights, letters of credit, money, and oil, gas, or other 104
minerals before extraction. General intangible also 105
includes payment intangibles and software; 106
(12) "Payment intangible", a general intangible under 107
which the account debtor's principal obligation is a 108
monetary obligation; 109
(13) "Provider", a person who consummates more than 110
five commercial financing transactions to a business located 111
in this state in any calendar year. Provider also includes 112
a person that enters into a written agreement with a 113
depository institution to arrange for the extension of a 114
commercial financing transaction by the depository 115
institution to a business via an online lending platform 116
administered by the person. The fact that a provider 117
extends a specific offer for a commercial financing 118
transaction on behalf of a depository institution shall not 119
be construed to mean that the provider engaged in lending or 120
financing or originated that loan or financing. 121
3. (1) A provider that consummates a commercial 122
financing transaction shall disclose the terms of the 123
commercial financing transaction as required by this 124
section. The disclosures shall be provided at or before 125 SCS HB 754 26
consummation of the transaction. Only one disclosure is 126
required for each commercial financing transaction, and a 127
disclosure is not required as a result of the modification, 128
forbearance, or change to a consummated commercial financing 129
transaction. 130
(2) A provider shall disclose the following in 131
connection with each commercial financing transaction: 132
(a) The total amount of funds provided to the business 133
under the terms of the commercial financing transaction 134
agreement. This disclosure shall be labeled "Total Amount 135
of Funds Provided"; 136
(b) The total amount of funds disbursed to the 137
business under the terms of the commercial financing 138
transaction, if less than the total amount of funds 139
provided, as a result of any fees deducted or withheld at 140
disbursement and any amount paid to a third party on behalf 141
of the business. This disclosure shall be labeled "Total 142
Amount of Funds Disbursed"; 143
(c) The total amount to be paid to the provider 144
pursuant to the commercial financing transaction agreement. 145
This disclosure shall be labeled "T otal of Payments"; 146
(d) The total dollar cost of the commercial financing 147
transaction under the terms of the agreement, derived by 148
subtracting the total amount of funds provided from the 149
total of payments. This calculation shall include any fees 150
or charges deducted by the provider from the "Total Amount 151
of Funds Provided". This disclosure shall be labeled "Total 152
Dollar Cost of Financing"; 153
(e) The manner, frequency, and amount of each 154
payment. This disclosure shall be labeled "Payments". If 155
the payments may vary, the provider shall instead disclose 156
the manner, frequency, and the estimated amount of the 157 SCS HB 754 27
initial payment labeled "Estimated Payments" and the 158
commercial financing transaction agreement shall include a 159
description of the m ethodology for calculating any variable 160
payment and the circumstances when payments may vary; 161
(f) A statement of whether there are any costs or 162
discounts associated with prepayment of the commercial 163
financing product including a reference to the p aragraph in 164
the agreement that creates the contractual rights of the 165
parties related to prepayment. This disclosure shall be 166
labeled "Prepayment"; and 167
(3) A provider that consummates a commercial financing 168
facility may provide disclosures of thi s subsection which 169
are based on an example of a transaction that could occur 170
under the agreement. The example shall be based on an 171
accounts receivable total face amount owed of ten thousand 172
dollars. Only one disclosure is required for each 173
commercial financing facility, and a disclosure is not 174
required as result of a modification, forbearance, or change 175
to the facility. A new disclosure is not required each time 176
accounts receivable are purchased under the facility. 177
4. The provisions of this section shall not apply to 178
the following: 179
(1) A provider that is a depository institution or a 180
subsidiary or affiliate; 181
(2) A provider that is a service corporation to a 182
depository institution that is: 183
(a) Owned and controlled by a de pository institution; 184
and 185
(b) Regulated by a federal banking agency; 186
(3) A provider that is a lender regulated under the 187
federal Farm Credit Act, 12 U.S.C. Section 2001, et seq.; 188
(4) A commercial financing transaction that is: 189 SCS HB 754 28
(a) Secured by real property; 190
(b) A lease; or 191
(c) A purchase money obligation that is incurred as 192
all or part of the price of the collateral or for value 193
given to enable the business to acquire rights in or the use 194
of the collateral if the valu e is in fact so used; 195
(5) A commercial financing transaction in which the 196
recipient is a motor vehicle dealer or an affiliate of such 197
a dealer, or a vehicle rental company, or an affiliate of 198
such a company, pursuant to a commercial loan or commer cial 199
open-end credit plan of at least fifty thousand dollars or a 200
commercial financing transaction offered by a person in 201
connection with the sale or lease of products or services 202
that such person manufactures, licenses, or distributes, or 203
whose parent company or any of its directly or indirectly 204
owned and controlled subsidiaries manufactures, licenses, or 205
distributes; 206
(6) A commercial financing transaction that is a 207
factoring transaction, purchase, sale, advance, or similar 208
of accounts receivable owed to a health care provider 209
because of a patient's personal injury treated by the health 210
care provider; 211
(7) A provider that is licensed as a money transmitter 212
in accordance with a license, certificate, or charter issued 213
by this state or any other state, district, territory, or 214
commonwealth of the United States; 215
(8) A provider that consummates no more than five 216
commercial financing transactions in this state in a twelve - 217
month period; [or] 218
(9) A commercial financing transacti on of more than 219
five hundred thousand dollars ; or 220 SCS HB 754 29
(10) A commercial financing product that is a premium 221
finance agreement, as defined in subdivision (3) of section 222
364.100, offered or entered into by a provider that is a 223
registered premium financ e company. 224
5. (1) No person shall engage in business as a broker 225
within this state for compensation, unless prior to 226
conducting such business, the person has filed a 227
registration with the division of finance within the 228
department of commerce and insurance and has on file a good 229
and sufficient bond as specified in this subsection. The 230
registration shall be effective upon receipt by the division 231
of finance of a completed registration form and the required 232
registration fee, and shall remain eff ective until the time 233
of renewal. 234
(2) After filing an initial registration form, a 235
broker shall file, on or before January thirty -first of each 236
year, a renewal registration form along with the required 237
renewal registration fee. 238
(3) The broker shall pay a one-hundred-dollar 239
registration fee upon the filing of an initial registration 240
and a fifty-dollar renewal registration fee upon the filing 241
of a renewal registration. 242
(4) The registration form required by this subsection 243
shall include the following: 244
(a) The name of the broker; 245
(b) The name in which the broker is transacted if 246
different from that stated in paragraph (a) of this 247
subdivision; 248
(c) The address of the broker's principal office, 249
which may be outside thi s state; 250
(d) Whether any officer, director, manager, operator, 251
or principal of the broker has been convicted of a felony 252 SCS HB 754 30
involving an act of fraud, dishonesty, breach of trust, or 253
money laundering; and 254
(e) The name and address in this state of a designated 255
agent upon whom service of process may be made. 256
(5) If information in a registration form changes or 257
otherwise becomes inaccurate after filing, the broker shall 258
not be required to file a further registration form prior to 259
the time of renewal. 260
(6) Every broker shall obtain a surety bond issued by 261
a surety company authorized to do business in this state. 262
The amount of the bond shall be ten thousand dollars. The 263
bond shall be in favor of the state of Missouri. Any person 264
damaged by the broker's breach of contract or of any 265
obligation arising therefrom, or by any violation of this 266
section, may bring an action against the bond to recover 267
damages suffered. The aggregate liability of the surety 268
shall be only for actual da mages and in no event shall 269
exceed the amount of the bond. 270
(7) Employees regularly employed by a broker who has 271
complied with this subsection shall not be required to file 272
a registration or obtain a surety bond when acting within 273
the scope of their employment for the broker. 274
6. (1) Any person who violates any provision of this 275
section shall be punished by a fine of five hundred dollars 276
per incident, not to exceed twenty thousand dollars, for all 277
aggregated violations arising from the use of the 278
transaction documentation or materials found to be in 279
violation of this section. Any person who violates any 280
provision of this section after receiving written notice of 281
a prior violation from the attorney general shall be 282
punished by a fine o f one thousand dollars per incident, not 283
to exceed fifty thousand dollars, for all aggregated 284 SCS HB 754 31
violations arising from the use of the transaction 285
documentation or materials found to be in violation of this 286
section. 287
(2) Violation of any provision o f this section shall 288
not affect the enforceability or validity of the underlying 289
agreement. 290
(3) This section shall not create a private right of 291
action against any person or other entity based upon 292
compliance or noncompliance with its provisions. 293
(4) Authority to enforce compliance with this section 294
is vested exclusively in the attorney general of this state. 295
7. The requirements of subsections 3 and 5 of this 296
section shall take effect upon either: 297
(1) Six months after the divis ion of finance finalizes 298
promulgating rules, if the division intends to promulgate 299
rules; or 300
(2) February 28, 2025, if the division does not intend 301
to promulgate rules. 302
8. The division of finance may promulgate rules 303
implementing this secti on. If the division of finance 304
intends to promulgate rules, it shall declare its intent to 305
do so no later than February 28, 2025. Any rule or portion 306
of a rule, as that term is defined in section 536.010, that 307
is created under the authority delegated in this section 308
shall become effective only if it complies with and is 309
subject to all of the provisions of chapter 536 and, if 310
applicable, section 536.028. This section and chapter 536 311
are nonseverable and if any of the powers vested with the 312
general assembly pursuant to chapter 536 to review, to delay 313
the effective date, or to disapprove and annul a rule are 314
subsequently held unconstitutional, then the grant of 315 SCS HB 754 32
rulemaking authority and any rule proposed or adopted after 316
August 28, 2024, shall be invalid and void. 317
[447.200. 1. If any consumer deposit 1
account with a banking organization or financial 2
organization, as such terms are defined in and 3
under section 447.503, is determined to be or to 4
have been inactive for a perio d of twelve or 5
more months and if inactivity fees apply to such 6
account, such banking organization, bank or 7
financial organization shall notify the person 8
or depositor named on such inactive account of 9
such inactivity . Notice may be delivered by 10
first class mail, with postage prepaid, and 11
marked "Address Correction Requested", or 12
alternatively, the notice may be sent or 13
delivered electronically if the consumer has 14
consented to receiving electronic disclosures in 15
accordance with the federal Trut h in Savings 16
Act, 12 U.S.C. Sections 4301 to 4313, and the 17
regulations promulgated pursuant thereto. 18
2. Notwithstanding any provision of law to 19
the contrary, for any consumer deposit account 20
with a banking organization, bank or financial 21
organization that is or that has been inactive 22
for twelve months or more, such bank or 23
financial organization shall issue annual 24
statements to the person or depositor named on 25
the account. The organization or a bank may 26
charge a service fee of up to five do llars for 27
any statement issued under this subsection, 28
provided that such fee shall be withdrawn from 29
the inactive account. 30
3. If any consumer deposit account with a 31
banking organization, bank or financial 32
organization is determined to be or to h ave been 33
inactive for a period of five years, the funds 34
from such account shall be remitted to the 35
abandoned fund account established under section 36
447.543. 37
4. For purposes of this section, the word 38
"inactive" means a prescribed period during 39
which there is no activity or contact initiated 40
by the person or depositor named on the account, 41 SCS HB 754 33
which results in an inactivity fee or fees being 42
charged to the account. ] 43
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