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| Home > Statutes > Usa Missouri |
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USA Statutes : missouri
Title : BUSINESS AND FINANCIAL INSTITUTIONS
Chapter : Chapter 364 Retail Credit Financing Institutions
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This chapter may be cited as the "Missouri Financing Institution
Licensing Law". (L. 1963 p. 463 § 1)
Unless otherwise clearly indicated by the context, when used in
this chapter, the following terms mean:
(1) "Director", the office of the director of the division of finance.
(2) "Financing institution", a person engaged in the business of
purchasing or otherwise acquiring retail time contracts or accounts under
retail charge agreements from one or more sellers. The term includes but
is not limited to a bank, trust company, loan and investment company,
savings and loan association, licensed sales finance company as the same
is defined in the Missouri motor vehicle time sales law (chapter 365,
RSMo) or registrant under sections 367.100 to 367.200, RSMo, if so
engaged; but does not include a distributor insofar as he takes
assignments of retail installment purchase contracts covering goods which
were distributed by him to the retailer thereof.
(3) "Person", an individual, partnership, corporation, association, and
any other group however organized. Words used herein shall have the same
meaning as is ascribed to such words in the Missouri retail credit sales
law (sections 408.250 to 408.370, RSMo). (L. 1963 p. 463 § 2)
1. No person shall engage in the business of a financing
institution in this state without a license therefor as provided in this
chapter; except, however, that no bank, trust company, loan and
investment company, licensed sales finance company, registrant under the
provisions of sections 367.100 to 367.200, RSMo, or person who makes only
occasional purchases of retail time contracts or accounts under retail
charge agreements and which purchases are not being made in the course of
repeated or successive purchase of retail installment contracts from the
same seller, shall be required to obtain a license under this chapter but
shall comply with all the laws of this state applicable to the conduct
and operation of a financing institution.
2. The application for the license shall be in writing, under oath and in
the form prescribed by the director. The application shall contain the
name of the applicant; date of incorporation, if incorporated; the
address where the business is or is to be conducted and similar
information as to any branch office of the applicant; the name and
resident address of the owner or partners or, if a corporation or
association, of the directors, trustees and principal officers, and other
pertinent information as the director may require.
3. The license fee for each calendar year or part thereof shall be the
sum of three hundred dollars for each place of business of the licensee
in this state which shall be paid into the general revenue fund. The
director may establish a biennial licensing arrangement but in no case
shall the fees be payable for more than one year at a time.
4. Each license shall specify the location of the office or branch and
must be conspicuously displayed therein. In case the location is changed,
the director shall either endorse the change of location of the license
or mail the licensee a certificate to that effect, without charge.
5. Upon the filing of an application, and the payment of the fee, the
director shall issue a license to the applicant to engage in the business
of a financing institution under and in accordance with the provisions of
this chapter for a period which shall expire the last day of December
next following the date of its issuance. The license shall not be
transferable or assignable. No licensee shall transact any business
provided for by this chapter under any other name. (L. 1963 p. 463 § 3,
A.L. 1986 H.B. 1195, A.L. 2003 S.B. 346)
1. Renewal of a license originally granted under this chapter
may be denied, or a license may be suspended or revoked by the director
on the following grounds:
(1) Material misstatement of fact in any application for license under
this chapter;
(2) Willful failure to comply with provisions of this chapter relating to
retail time transactions;
(3) Defrauding any retail buyer to the buyer's damage;
(4) Fraudulent misrepresentation, circumvention or concealment by the
licensee through whatever subterfuge or device of any of the material
particulars or the nature thereof required to be stated or furnished to a
buyer under the Missouri retail credit sales law (sections 408.250 to
408.370, RSMo).
2. If a licensee is a firm, association or corporation, it shall be
sufficient cause for the suspension or revocation of a license that any
officer, director or trustee of a licensed firm, association or
corporation, or any member of a licensed partnership, has so acted or
failed to act as would be cause for suspending or revoking a license to
the party as an individual. Each licensee shall be responsible for the
acts of any or all of his employees while acting as his agent, if such
licensee, after actual knowledge of the acts, retained the benefits,
proceeds, profits or advantages accruing from the acts or otherwise
ratified the acts.
3. No license shall be denied, suspended or revoked except after hearing
thereon. The hearing and review thereof shall be conducted according to
chapter 536, RSMo. (L. 1963 p. 463 § 4)
1. The director, or his duly authorized representatives, shall
have full power and authority at any time to make any investigation
considered necessary of financing institutions and of other persons
having personal knowledge of the matters under investigation and, to the
extent necessary for this purpose, may compel the production of all
relevant books, records, accounts and documents of financing institutions
and other persons with respect to their retail time transactions.
2. Any buyer having reason to believe that his retail time transaction
with respect to the Missouri retail credit sales law (sections 408.250 to
408.370, RSMo) has been violated may file with the director a written
complaint setting forth the details of the alleged violation, and the
director, upon receipt of the complaint, may inspect the pertinent books,
records, letters and contracts of the financing institution and of the
seller involved relating to the specific written complaint. (L. 1963 p.
463 § 5)
1. The director shall have the power to adopt and promulgate all
rules and regulations necessary to carry out the intent and purposes of
this chapter. A copy of every rule or regulation shall be mailed to each
financing institution, postage prepaid, at least fifteen days in advance
of its effective date; except, however, the failure of a financing
institution to receive a copy of the rules or regulations shall not
exempt it from the duty of compliance with the rules and regulations
lawfully promulgated hereunder.
2. The director shall have the power to issue subpoenas to compel the
attendance of witnesses and the production of documents, papers, books,
records and other evidence before him in any matter over which he has
jurisdiction, control or supervision pertaining to this chapter. The
director shall have the power to administer oaths and affirmations to any
persons whose testimony is required.
3. If any person refuses to obey any such subpoena, or to give testimony
or to produce evidence as required thereby, any judge of the circuit
court of the county in which the licensed premises are located may, upon
application and proof of the refusal, make an order awarding process of
subpoena, or subpoena duces tecum, for the witness to appear before the
director and to give testimony, and to produce evidence as required
thereby. Upon filing the order in the office of the clerk of the court,
the clerk shall issue process of subpoena, as directed, under the seal of
the court, requiring the person to whom it is directed to appear at the
time and place therein designated.
4. If any person served with any subpoena shall refuse to obey and to
give testimony, and to produce evidence as required thereby, the director
may apply to the judge of the court issuing the subpoena for an
attachment against the person as for a contempt. The judge, upon
satisfactory proof of the refusal, shall issue an attachment, directed to
any sheriff, constable or police officer, for the arrest of the person,
and upon his being brought before the judge, proceed to a hearing of the
case. The judge shall have power to enforce obedience to the subpoena,
and the answering of any question, and the production of any evidence,
that may be proper by a fine, not exceeding one hundred dollars or by
imprisonment in the county jail, or by both fine and imprisonment, and to
compel the witness to pay the costs of the proceeding to be taxed.
5. No rule or portion of a rule promulgated under the authority of this
chapter shall become effective unless it has been promulgated pursuant to
the provisions of section 536.024, RSMo. (L. 1963 p. 463 § 6, A.L. 1993
S.B. 52, A.L. 1995 S.B. 3)
Any person who knowingly violates any provision of this chapter
or of any law of this state relating to the business of a financing
institution in this state without a license therefor except as provided
in this chapter is guilty of a misdemeanor and upon conviction shall be
punished by a fine of not more than five hundred dollars or by
confinement in the county jail for not more than six months or both. (L.
1963 p. 463 § 7)
As used in sections 364.100 to 364.160, the following terms
shall mean:
(1) "Director", the director of the division of finance of the state of
Missouri;
(2) "Person", an individual, partnership, association, business
corporation, nonprofit corporation, common law trust, joint-stock
company, or any other group of individuals, however organized;
(3) "Premium finance agreement", an agreement by which an insured or
prospective insured promises to pay to a premium finance company the
amount advanced or to be advanced to an insurer or to an insurance agent
or broker in payment of premiums of an insurance contract together with
interest or discount and a service charge, as authorized and limited by
sections 364.100 to 364.160;
(4) "Premium finance company", a person engaged in the business of
entering into premium finance agreements or acquiring premium finance
agreements from other premium finance companies. (L. 1984 S.B. 636 § 1)
1. No person shall engage in the business of a premium finance
company in this state without first registering as a premium finance
company with the director.
2. The annual registration fee shall be three hundred dollars payable to
the director as of the first day of July of each year. The director may
establish a biennial licensing arrangement but in no case shall the fees
be payable for more than one year at a time.
3. Registration shall be made on forms prepared by the director and shall
contain the following information:
(1) Name, business address and telephone number of the premium finance
company;
(2) Name and business address of corporate officers and directors or
principals or partners;
(3) A sworn statement by an appropriate officer, principal or partner of
the premium finance company that:
(a) The premium finance company is financially capable to engage in the
business of insurance premium financing; and
(b) If a corporation, that the corporation is authorized to transact
business in this state;
(4) If any material change occurs in the information contained in the
registration form, a revised statement shall be submitted to the director
accompanied by an additional fee of one hundred dollars. (L. 1984 S.B.
686 § 2, A.L. 1986 H.B. 1195, A.L. 2003 S.B. 346)
1. A premium finance company shall maintain records of its
premium finance transactions.
2. A premium finance company shall preserve its records of premium
finance transactions, including cards used in a card system, if any, for
at least two years after making the final entry with respect to any
premium finance agreement. The preservation of records in photographic,
microfilm or microfiche form constitutes compliance with this section.
(L. 1984 S.B. 686 § 3)
A premium finance agreement shall:
(1) Be dated and signed by or on behalf of the insured, and the printed
portion thereof shall be in at least eight point type;
(2) Contain the name and place of business of the insurance agent or
broker negotiating the related insurance contract, the name and residence
or place of business of the insured, the name and place of business of
the premium finance company to which payments are to be made, a brief
description of the insurance contracts involved and the amount of the
premium; and
(3) Set forth the following items, where applicable:
(a) The total amount of the premium;
(b) The amount of the down payment;
(c) The principal balance, meaning the difference between the amounts
stated under paragraphs (a) and (b) of this subdivision;
(d) The amount of the interest or discount;
(e) The balance payable by the insured, meaning the sum of amounts stated
under paragraphs (c) and (d) of this subdivision; and
(f) The number of installments required, the amount of each installment
expressed in dollars, and the due date or period thereof. (L. 1984 S.B.
686 § 4)
1. A premium finance company shall not charge, contract for,
receive, or collect any interest or discount charge other than as
permitted by sections 364.100 to 364.160.
2. The interest or discount is to be computed on the balance of the
premiums due, after subtracting the down payment made by the insured in
accordance with the premium finance agreement, from the effective date of
the insurance contract, for which the premiums are being advanced, to and
including the date when the final installment of the premium finance
agreement is payable.
3. The interest or discount shall be a maximum of fifteen dollars per one
hundred dollars per year, which shall be computed as a fifteen percent
add-on interest rate, plus an additional service charge of ten dollars
per premium finance agreement which need not be refunded on cancellation
or prepayment; except that, if the insurance premiums being financed are
for other than personal, family or household purposes, the parties to the
premium finance agreement may agree to any rate of interest which shall
be stated in the premium finance agreement. The interest or discount
permitted by this subsection anticipates timely repayment in consecutive
monthly installments equal in amount for a period of one year. For
repayment in greater or lesser periods or in unequal, irregular, or other
than monthly installments, the interest or discount may be computed at an
equivalent effective rate having due regard for the timely payments of
installments.
4. Notwithstanding the provisions of any premium finance agreement, any
insured may prepay the obligation in full at any time and shall receive a
refund credit. The amount of the refund shall be calculated by the
actuarial method of calculating refunds and no more interest shall be
retained by the lender than is actually earned. (L. 1984 S.B. 686 § 5,
A.L. 1986 H.B. 1207, A.L. 2002 S.B. 895)
Effective 7-1-03
1. A premium finance agreement may provide for the payment by
the insured of a delinquency charge of up to five percent of any
installment which is in default for a period of five days or more. If the
premium finance agreement is for personal, family or household purposes,
then the maximum delinquency charge shall be fifteen dollars. If the
default results in the cancellation of any insurance contract listed in
the agreement, the agreement may provide for the payment by the insured
of a cancellation charge of fifteen dollars.
2. A premium finance agreement may provide for payment of collection
costs and attorney's fees equal to twenty percent of the outstanding
indebtedness if the premium finance agreement is referred for collection
to a collection agency or attorney who are not salaried employees of the
premium finance company.
3. None of the charges referred to in this section shall be considered,
directly or indirectly, in determining whether a violation of the usury
laws has occurred under a premium finance agreement. (L. 1984 S.B. 686 §
6)
1. When a premium finance agreement contains a power of attorney
clause enabling the premium finance company to cancel any insurance
contract or contracts listed in the agreement, the insurance contract or
contracts shall not be canceled by the premium finance company unless
such cancellation is done in accordance with this section.
2. Not less than ten days' written notice shall be mailed to the insured,
at the last known address shown on the records of the premium finance
company, of the intent of the premium finance company to cancel the
insurance contract unless the default is cured within such ten-day period.
3. After expiration of such ten-day period, the premium finance company
may thereafter cancel such insurance contract or contracts by mailing to
the insurer a notice of cancellation. The insurance contract shall be
canceled as if such notice of cancellation had been submitted by the
insured, but without requiring the return of the insurance contract or
contracts. The premium finance company shall also mail a copy of the
notice of cancellation to the insured at the last known address shown on
the records of the premium finance company.
4. All statutory, regulatory, and contractual restrictions providing that
the insurance contract may not be canceled unless notice is given to a
governmental agency, mortgagee, or other third party shall apply where
cancellation is effected under the provisions of this section. The
insurer shall give the prescribed notice on behalf of itself or the
insured to any governmental agency, mortgagee, or other third party on or
before the second business day after the day it receives the notice of
cancellation from the premium finance company and shall determine the
effective date of cancellation taking into consideration the number of
days' notice required to complete the cancellation. (L. 1984 S.B. 686 § 7)
Whenever a financed insurance contract is canceled, the insurer
shall return whatever gross unearned premiums are due under the insurance
contract directly to the premium finance company for the account of the
insured or insureds as soon as reasonably possible, but in no event later
than sixty days after the effective date of cancellation. In the event
that the crediting of return premiums to the account of the insured
results in a surplus over the amount due from the insured, the premium
finance company shall refund such excess to the insured, provided that no
such refund shall be required if it amounts to less than one dollar. (L.
1984 S.B. 686 § 8)
No filing of the premium finance agreement shall be necessary to
perfect the validity of such agreement as a secured transaction as
against creditors, subsequent purchasers, pledgees, encumbrancers,
trustees in bankruptcy or any other insolvency proceeding under any law,
or anyone having the status or power of the aforementioned or their
successors or assigns. (L. 1984 S.B. 686 § 9)
All revenues collected by or paid to the director under the
provisions of sections 364.100 to 364.160 shall be forwarded immediately
to the director of revenue, who shall deposit them in the general revenue
fund. (L. 1984 S.B. 686 § 10)
The licensing provisions of sections 364.100 to 364.160 shall
not apply to any insurance agent or insurance broker licensed to do
business in this state. Nor shall the provisions of sections 364.100 to
364.160 apply to insurance premiums financed in connection with credit
transactions. (L. 1984 S.B. 686 § 11)
Any premium finance company willfully and knowingly violating
the provisions of sections 364.100 to 364.160 shall be guilty of a class
A misdemeanor. (L. 1984 S.B. 686 § 13)
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