Missouri Statute | Act | Code |Ownership And Conveyance Of Property| US Code - US Statute | Chapter 443 Mortgages, Deeds Of Trust And Mortgage Brokers

"Security instrument", as that term is used in this chapter,
shall mean any mortgage, deed of trust or other real property security
instrument securing the payment or satisfaction of any debt or other
obligation. (L. 1993 H.B. 105 & 480)

Where, by any deed which shall be hereafter executed, two or
more lots or tracts of land or interests in such shall be conveyed, and
upon one or more of such tracts or lots there shall be any mortgage or
deed of trust, or lien or encumbrance not covering the other or others of
such tracts, the payment of which shall be assumed in said deed, or where
such mortgage or deed of trust or encumbrance shall be so recited in said
deed that the payment of it might be claimed to constitute a part of the
consideration of such deed, such mortgage or deed of trust or other
encumbrance shall not be held by reason of such assumption or recital to
constitute a vendor's lien upon, or to affect in any way, any property
other than that specifically covered by such mortgage or deed of trust or
other encumbrance unless it be clearly and in express words provided and
set forth in said deed that it is intended by such assumption or recital
to fasten such mortgage or deed of trust or other encumbrance as a
vendor's lien upon any of the property conveyed, other than that
specifically and prior thereto covered by it. (RSMo 1939 § 3448)

Prior revisions: 1929 § 3061; 1919 § 2220

(1900) Prior to enactment of this law grantor conveyed tracts A & B, each
subject to a separate deed of trust, by warranty deed, in which grantee
assumed payment of the encumbrances as part of the purchase money.
Assignee of mortgagee of tract A brought suit to recover balance owing on
encumbrance of tract A from grantor and grantee and to enforce against
tract B, in hands of subsequent purchaser, a vendor's lien. Upheld. West
Plains Bank v. Edwards, 84 Mo. App. 462.

Where heretofore such a deed has been executed containing such
assumption or recitals, which might be claimed to fasten such mortgage or
deed of trust or other encumbrance as a vendor's lien upon land other
than that specifically covered by such mortgage or deed of trust or other
encumbrance but in which the intention to create such vendor's lien is
not clearly set forth, then such vendor's lien shall not be held to have
been created, nor shall it be enforced, unless the party claiming or who
might claim same shall, within two years after the indebtedness secured
by such vendor's lien shall become due, file suit in the proper court
against the owner of such land and against other parties shown by the
public records of the county to be interested in said land, to ascertain
and adjudge the existence of such vendor's lien and its priority as to
other encumbrances or liens, and to foreclose such vendor's lien. (RSMo
1939 § 3449, A. 1949 S.B. 1125)

Prior revisions: 1929 § 3062; 1919 § 2221

That in the absence of fraud, every acknowledgment of a deed of
trust conveying any real estate in this state, taken before the trustee
in said deed named, at least one year prior to the date this section
shall take effect, shall be deemed valid and binding, and the fact that
such acknowledgment was taken before said trustee shall not in any manner
affect the title to the real estate therein described, in the hands of a
purchaser who in good faith has purchased, or shall hereafter purchase,
such real estate at a trustee's sale held in accordance with and under
the terms of said deed of trust. (RSMo 1939 § 3409)

Prior revision: 1929 § 3022

1. Security instruments may be assigned by instrument in
writing, acknowledged by the assignor in the manner provided for the
acknowledgment of other instruments affecting the title to real property,
and may be recorded in the office of the recorder of deeds in the county
or counties in which the security instrument being assigned was recorded.

2. Any person who acquires an interest in or a lien upon real property
for value and without notice of an unrecorded assignment of a security
instrument recorded on or after January 1, 1986, and who has relied upon
a release of such security instrument executed by the party last shown of
record to be the owner thereof, shall acquire the interest in or lien
upon such real property free from the lien of the security instrument to
the same extent as if the release upon which reliance was placed had been
executed by the lawful holder of the debt or other obligation secured by
such security instrument.

3. No recorder of deeds in this state shall accept for record any
security instrument of assignment thereof in which the mortgagee, cestui
que trust or assignee is named as bearer or the actual identity of the
mortgagee, cestui que trust or assignee is otherwise not ascertainable
from the face of the security instrument or assignment. All security
instruments and assignments thereof presented for record shall contain
the mailing address of the mortgagee, cestui que trust or assignee
except, that the omission thereof shall not affect the validity of any
security instrument or assignment, or the constructive notice imparted by
the record thereof. (L. 1985 H.B. 210, A.L. 1993 H.B. 105 & 480)

1. As used in this section, the following terms mean:

(1) "Borrower", a person who is a mortgagor, deed of trust grantor, or
debtor of any lender or a successor in interest to any of the persons
described in this subdivision;

(2) "Business or agricultural loan transaction", a loan or extension of
credit or indebtedness of a borrower to a lender, arising under a note,
guarantee or other evidence of indebtedness, where the proceeds or
benefits thereof are used primarily for agricultural purposes, or for
purposes other than personal, family or household purposes;

(3) "Construction loan", a loan:

(a) Which is secured by a security instrument; and

(b) The proceeds of which, by agreement of the borrower and lender, are
intended to be used for the construction, alteration, modification or
addition of improvements to real property; and

(c) The proceeds of which are disbursed in whole or in part by means of
future advances or future obligations. The term "construction loan"
includes loan proceeds used for expenses reasonably related to the
construction, alteration, modification or addition of improvements to
real property including governmental fees, taxes, interest, attorneys'
and accountants' fees, architects' fees, engineers' fees, utility
charges, hook-up or tap-on fees, title insurance, surveys, rents, loan
origination or servicing fees, and similar expenses;

(4) "Face amount", subject to the provisions of this section, the stated
amount of the obligations which may be secured at any given time by the
security instrument;

(5) "Future advance", any advance of funds, disbursement of loan proceeds
or other exchange of value or consideration from a lender to, or on
behalf of, a borrower that occurs after the date of the security
instrument securing such future advance, regardless of whether such
advance is made under a note, contract, guarantee or other evidence of
indebtedness that was executed prior to or contemporaneously with such
security instrument or made under a future obligation;

(6) "Future obligation", an obligation or debt of a borrower to a lender
arising under a note, contract, guarantee or other evidence of
indebtedness that was executed or otherwise became effective after the
date of the instrument securing such future obligation, including,
without limitation, any note or agreement that renews, extends, or
otherwise modifies an obligation of a borrower to a lender that is
secured by a security instrument under this section;

(7) "Lender", any mortgagee, deed of trust beneficiary, or creditor
holding a security instrument;

(8) "Owner", the owner of the interest in the real property encumbered by
the security instrument, not including the trustee, mortgagee, or
beneficiary under a deed of trust;

(9) "Person", a natural person, firm, partnership, association, or
corporation;

(10) "Security instrument", a mortgage, deed of trust, or other real
property security instrument securing the repayment of any obligation,
containing, within the body of the instrument, the provisions described
in subsection 2 of this section and containing a provision expressly
stating that the instrument is to be governed by this section.

2. Security instruments may secure future advances or other future
obligations of a borrower to a lender, whether the advances or
obligations are optional or obligatory with the lender. The future
advances or future obligations may be evidenced by one or more notes,
guarantees or other documents evidencing indebtedness of a borrower to
lender, which documents shall not be required to be executed or delivered
prior to the date of the security instrument securing them. Neither the
existence nor priority of a security instrument otherwise complying with
the provisions of this section shall be adversely affected if at any time
on or after the date of such security instrument there are no obligations
then secured by the security instrument or the obligations secured by the
security instrument are reduced to zero. The fact that a security
instrument secures future advances or future obligations shall be clearly
stated within the body of the security instrument, or within the body of
any amendment if such amendment is made to cause the original instrument
to become a security instrument and secure future advances or future
obligations as provided in this section, and the security instrument
shall state the face amount. The total amount of obligations that may be
secured by such a security instrument may decrease or increase from time
to time, but except as to advances made pursuant to subsection 3 of this
section, the total principal amount of the obligations secured at any
given time may not exceed the face amount stated in the security
instrument.

3. (1) Future advances made by a lender or future obligations incurred by
a borrower for the reasonable protection of the lender's security
interest are secured by the security instrument and shall have the
priority specified in subsection 5 of this section even though the
security instrument does not provide for such future advances or such
future obligations, or even though such future advances or such future
obligations cause the total indebtedness to exceed the face amount stated
in the security instrument, or even though a notice of termination has
been issued pursuant to subsection 6 of this section. Such advances or
obligations may include, but shall not be limited to, real property
taxes, hazard insurance premiums, assessments or maintenance charges
imposed under a condominium declaration or restrictive covenant,
subdivision assessments, reasonable repairs and maintenance, amounts due
under prior mortgages or deeds of trust, leases, or other encumbrances,
and reasonable costs and attorneys' fees incurred in enforcing the
security instrument or the indebtedness which it secures.

(2) Future advances made or future obligations incurred under a
construction loan are secured by the security instrument and shall have
the priority specified by subsection 5 of this section even though the
future advances or future obligations cause the total indebtedness to
exceed the face amount stated in the security instrument, or even though
a notice of termination has been issued pursuant to subsection 6 of this
section if the lender complies with paragraph (d) of subdivision (2) of
subsection 9 of this section.

4. The future advances and future obligations which may be secured by a
security instrument shall be limited to those obligations which are
contractual in nature and those obligations referred to in subsection 3
of this section.

5. As to any third party who may acquire or claim any rights in or a lien
upon the encumbered real property, the priority of the lien of a security
instrument securing future advances or future obligations shall date from
the time the security instrument is recorded, whether or not any third
party has actual notice of any such advances or obligations and whether
or not such advances or obligations are optional or obligatory with the
lender. If an amendment to a mortgage, deed of trust, or other real
property security instrument securing the repayment of any obligation has
been recorded which causes such instrument to become a security
instrument or if an amendment to a security instrument has been recorded
which increases the total amount of the obligations which may be secured
thereby, the priority of advances made or additional obligations incurred
thereafter which exceed the original face amount shall date from the date
the amendment was recorded, as to any third parties who may acquire any
rights in or lien upon the encumbered real property, whether or not any
third party has actual notice thereof and whether or not the advances or
additional obligations are optional or obligatory with the lender.

6. At any time subsequent to the execution of a security instrument, the
owner at that time may give a notice by sending it certified mail, return
receipt requested, or by personal delivery (the affidavit of the party
personally delivering the notice to be prima facie proof of such
delivery), to the lender by sending or delivering it to the lender if
such person is an individual, or otherwise by sending or delivering it to
the person specified in the security instrument for such purpose, or by
sending or delivering to any person on behalf of the lender, upon whom
personal service of process may be served as provided for in section
506.150, RSMo, other than the secretary of state, and the notice shall
state therein that the party sending the notice is the present owner of
the interest in the real property encumbered by the security instrument
and that the prior owner elects to terminate the operation of the
instrument as security for future advances or future obligations made or
incurred after the date the lender receives the notice. The lender shall
be entitled to rely on a statement received from a party purporting to be
the then owner as a statement received from the proper party unless the
statement was relied upon in bad faith. Within fifteen days of the
receipt of such a notice, the lender shall at its own cost record where
the original security instrument was recorded, a statement referring to
the original security instrument, legally describing the real property
therein, setting forth the fact of the receipt of the notice, stating the
date of the receipt of such notice, and stating the total principal
amount as of the date it received the notice of all the then outstanding
debts and obligations secured by the security instrument. Except as
otherwise provided in this section:

(1) No advances made by the lender to the borrower or other obligations
incurred by the borrower to the lender, after the date the lender
receives the notice contemplated in this subsection, shall be secured by
the security instrument; and

(2) The total debts so secured after receipt of such notice shall be
limited in principal amount to the amount stated by the lender in its
recorded notice, by which statement the lender shall be irrevocably
bound; and

(3) Should the lender fail to file the statement specified in this
subsection within the time period specified, the then owner may file a
similar statement, and the lender shall be irrevocably bound by that
party's statement of the total principal amount of the outstanding debts
and obligations secured by the security instrument, so long as the
statement is made in good faith. Except as to the effect of the statement
described in subdivision (3) of this subsection, with regard to the
amount specified in the statement, the lender's receipt of such a notice
from the prior owner shall not affect the amount or priority position of
advances previously made, or obligations previously incurred, or interest
thereafter accruing on such obligations or advances. Any limitation upon
the operation of a security instrument to secure future advances and
future obligations imposed as a result of the notice given in accordance
with this subsection shall not affect the security or priority of
subsequent advances made or subsequent obligations incurred, as described
in subdivision (1) or (3) of subsection 3 of this section, or subdivision
(2) of subsection 3 of this section if lender complies with paragraph (d)
of subdivision (2) of subsection 9 of this section, or the right of the
lender to seek recourse from the borrower for indebtedness in excess of
the amount secured by the security instrument.

7. A security instrument providing for the securing of future advances or
future obligations, as provided in this section, may secure a guarantee
of other obligations. The priority of the lien of the security instrument
securing the guarantee, up to the face amount stated in the security
instrument, shall be as provided in this section as if the obligations
guaranteed were future obligations.

8. At any time subsequent to the execution of a security instrument
securing a guarantee, the owner at that time may give a notice, by
sending it certified mail, return receipt requested, or by personal
delivery (the affidavit of the party personally delivering the notice to
be prima facie proof of such delivery) to* the person guaranteed by
sending or delivering it to such person if such person is an individual,
or otherwise by sending or delivering it to the person specified in the
security instrument for such purpose, or by sending or delivering to any
person on behalf of the person guaranteed, upon whom personal service of
process may be served as provided in section 506.150, RSMo, other than
the secretary of state, and the notice shall state therein that the party
sending the notice is the present owner of the interest in the real
property encumbered by the security instrument and that the owner at that
time elects to terminate the operation of the security instrument as
security for the guarantee as to debts and obligations made or incurred
after the date the person guaranteed receives the notice. The person
guaranteed shall be entitled to rely upon a statement received from a
party purporting to be the then owner as a statement received from the
proper party, unless the statement was relied upon in bad faith. Within
fifteen days of his receipt of such a notice, the person guaranteed
shall, at his own cost, record where the original security instrument was
recorded, a statement referring to the original security instrument,
legally describing the real property therein, setting forth the fact of
its receipt of the notice, stating the date of its receipt of such
notice, and stating the total principal amount as of the date it received
the notice of all the then outstanding debts and obligations guaranteed
by the guarantee secured by the security instrument. Except as otherwise
provided in this section, no guaranteed debts or guaranteed obligations
incurred after the date the person guaranteed receives the notice
contemplated in this subsection shall be secured by the security
instrument. Except as otherwise provided in this section, the total
guaranteed debts and guaranteed obligations so secured shall be limited
in principal amount to the amount stated by the person guaranteed in his
recorded notice, by which statement the person guaranteed will be
irrevocably bound. Should the person guaranteed fail to record the
statement specified in this subsection within the time period specified,
the owner at that time may record a similar statement, and the person
guaranteed shall be irrevocably bound by that party's statement of the
total principal amount of the then outstanding guaranteed debts and
guaranteed obligations secured by the security instrument, so long as the
statement is made in good faith. Except as to the effect of the statement
described in this subsection which may be recorded by the owner at that
time with regard to the amount specified therein, the receipt of such
notice from the guarantor by the person guaranteed shall not affect the
amount or priority position of the security instrument for those debts or
obligations previously incurred, or interest thereafter accruing on such
obligations or debts which are guaranteed by the guarantee secured by the
security instrument. Any limitation upon the operation of a security
instrument to secure the guarantee imposed as a result of the notice
given in accordance with this subsection shall not affect the security or
priority of subsequent advances made or obligations thereafter incurred
by the person guaranteed pursuant to subdivision (1) or (3) of subsection
3 of this section or subdivision (2) of subsection 3 of this section if
the lender complies with paragraph (d) of subdivision (2) of subsection 9
of this section, the payment of which is guaranteed by the guarantee
secured by the security instrument, or the right of the lender to seek
recourse from the guarantor for guaranteed indebtedness in excess of the
amount secured by the security instrument.

9. (1) Notwithstanding the provisions of subsections 6 and 8 of this
section, if the conditions of subdivision (2) of this subsection are
fulfilled, the notice of termination shall be ineffective:

(a) To the extent of the liability of the lender obligated under an
irrevocable letter of credit and to the extent the security instrument
secures the repayment of obligations to the lender arising therefrom; or

(b) To the extent of the liability of the guarantor to a person
guaranteed and to the extent the guarantee is secured by the security
instrument, and was given in a business or agricultural loan transaction;
or

(c) To the extent that a security instrument secures the liability of a
third party in a business or agricultural loan transaction; or

(d) As to those future advances made or future obligations incurred and
described in subdivision (2) of subsection 3 of this section after
receipt by the lender or person guaranteed of a notice of termination and
relating to the construction project existing on the date of receipt of
the notice.

(2) For the notice of termination to be ineffective as set forth in
subdivision (1) of this subsection, the statement to be recorded by the
lender must contain, in addition to the other information required by
subsections 6 and 8 of this section, the following:

(a) Notice that the security instrument secures the repayment of
obligations or advances arising from liability under an irrevocable
letter of credit and the total current amount of such liability, if it
secures such a liability; or

(b) Notice that the security instrument secures repayment of obligations
or advances arising from a guarantee given in a business or agricultural
loan transaction, if it secures such a liability; or

(c) Notice that the security instrument secures the liability of a third
party in a business or agricultural loan transaction, if it secures such
a liability; or

(d) Notice that the security instrument secures a construction loan and
the total amount of the loan determined as if the principal amount
committed to be advanced, whether or not the lender is obligated to
advance all such amounts, pursuant to a construction loan was fully
funded as of the date of the receipt of the notice, if it secures such a
liability.

(3) Notwithstanding the provisions of subsections 6 and 8 of this
section, no notice of termination shall be effective as to those future
advances made or future obligations incurred and described in subdivision
(1) or (3) of subsection 3 of this section.

(4) Once given, the additional information required by subdivision (2) of
this subsection in the statement to be recorded shall be for
informational purposes only and shall not constitute a limitation on the
amount of future advances or future obligations secured, or to be secured
in the future, under the security instrument.

10. Any mortgage or deed of trust which does not fall within the
definition of a security instrument as set forth in subsection 1 of this
section shall be governed as otherwise provided by the laws of this state
without reference to this section.

11. Nothing contained in this section shall invalidate, or adversely
affect the priority or validity of, any security instrument duly recorded
prior to September 1, 1992. To the extent that such instrument was in
compliance with the provisions of this section in effect prior to
September 1, 1992, it shall continue to be governed by those provisions
as if such provisions had not been repealed unless an amendment is made
to such security instrument clearly indicating that the security
instrument is to be governed by the provisions of this section in
existence after September 1, 1992, whereupon the security instrument
shall be governed hereby from and after the date the amendment is
recorded. The fact that such security instrument is amended so as to be
governed by this section shall not affect the rights of third parties in
the encumbered real property existing on the date of the recordation of
the amendment. (L. 1981 S.B. 40, A.L. 1982 H.B. 1781, A.L. 1984 H.B.
1409, A.L. 1991 S.B. 31, A.L. 1992 S.B. 688)

*Word "to" does not appear in original rolls.

1. If any mortgagee, cestui que trust or assignee, or personal
representative of the mortgagee, cestui que trust or assignee, receive
full satisfaction of any security instrument, he shall, at the request
and cost of the person making the same, deliver to such person a
sufficient deed of release of the security instrument; but it shall not
in any case be necessary for the trustee to join in such deed of release.
In the case of security instruments recorded prior to January 1, 1986, if
a full deed of release is offered for record, and except as otherwise
provided in subsection 3 of this section, the note or notes secured shall
be produced and canceled in the presence of the recorder, who shall enter
that fact on the deed of release prior to its recordation and attest the
same with his official signature; and except as otherwise provided in
subsection 3 of this section, no full deed of release of such a security
instrument shall be admitted to record unless the note or notes are so
produced and canceled, and that fact entered on the deed of release and
attested as above provided.

2. If such note or notes are required by subsection 1 of this section to
be presented for cancellation and are not presented for the alleged
reason that they have been lost or destroyed, the recorder, before
allowing any deed of release to be placed on the file or record, shall
require the mortgagee or cestui que trust named in the security
instrument desired to be released or his legal representative, to make
oath, in writing, stating that the note or other evidences of debt named
in the security instrument sought to be released have been paid and
delivered to the maker thereof or his representative. The recorder shall
also require the maker of such note or notes, or his legal
representative, to make affidavit, in writing, that the note or notes in
question have been paid, and cannot be produced because lost or
destroyed, and that they are not then in the possession of any person
having any lawful claim to the same. If such note or notes shall not have
been delivered to the maker or his legal representative, the affidavit so
required of the mortgagee or cestui que trust or his legal representative
shall recite that the note or other evidence of the debt named in the
security instrument has been paid and cannot be produced because lost or
destroyed, and that it is* not then in the possession of any person
having any lawful claim to the same. The term "legal representatives" as
used in this section shall include assigns. The affidavit of the maker of
such note or notes or his legal representative shall recite that such
note or notes have been paid. The affidavits so required shall be
recorded in the same manner as deeds, in a permanent record. Nothing in
this chapter shall be so construed as to require that any interest coupon
notes shall be produced and canceled in the presence of the recorder, but
that all such interest coupon notes shall conclusively be taken and be
deemed to have been paid in full, when the principal note described in
the security instrument shall have been produced and canceled in the
presence of the recorder as provided for in this chapter.

3. In case any mortgagee, cestui que trust or assignee, or personal
representative of the mortgagee, cestui que trust or assignee shall
desire to release the property described in any security instrument
recorded prior to January 1, 1986, without receiving full satisfaction of
the debt, note or obligation thereby secured, he shall be permitted to do
so by the recorder on presentation to the recorder of the notes or other
obligations evidencing the principal of the debt secured thereby, or
accounting for them by affidavits or otherwise as now or hereafter
provided by law in the case of full release, and the recorder shall note
the fact of the filing for record of such release on such notes or
obligations in substantially the following form:

"See release dated .........................................

............................... Recorder" and of the presentation of such
notes or other obligations, or accounting therefor, on the deed of
release prior to its recordation, but shall not cancel such notes or
other obligations. Nothing in this section shall be construed as making
it necessary for any trustee named in the security instrument to join in
such deed of release. (RSMo 1939 § 3465, A.L. 1975 H.B. 226, A.L. 1985
H.B. 210, A.L. 1991 S.B. 364)

Prior revisions: 1929 § 3078; 1919 § 2237; 1909 § 2844

*Words "they are" appear in original rolls.

(1996) This section requires a deed of release be delivered to the party
making the satisfaction. Masterson v. Roosevelt Bank, 919 S.W.2d 9
(Mo.App.E.D.).

Every person who shall execute a deed of release of a security
instrument recorded prior to January 1, 1986, shall at the same time of
making and delivering such release deed, make and deliver the affidavit
required by section 443.060 unless such deed of release states that the
indebtedness remains unpaid in whole or in part; and a neglect or refusal
to do so shall subject the party or person thus neglecting or refusing to
the same penalties as provided by law in case of refusing to satisfy
security instruments when paid. The affidavit named in this section may
be endorsed upon the deed of release and recorded with it. (RSMo 1939 §
3466, A.L. 1975 H.B. 226, A.L. 1985 H.B. 210)

Prior revisions: 1929 § 3079; 1919 § 2238; 1909 § 2845

Effective 1-1-86

The trustee, or trustees, in any security instrument given or
which may hereafter be given by a railroad company or other public
utility company which is subject to the regulation of the motor carrier
and railroad safety division of the department of economic development,
or successors, upon its property or any part thereof, may enter
satisfaction of said security instrument upon the records where the same
has been recorded. Where such security instrument was recorded prior to
January 1, 1986, without producing the bonds, notes or coupons secured by
said security instrument, satisfaction shall not be entered unless the
trustee, or if said trustee is a corporation, its president or vice
president, and the president or vice president of the railroad company or
other public utility company, or of its successors or assigns, shall make
and file with the recorder affidavits stating that all of the bonds,
notes or coupons secured by said security instrument have been paid or
that sufficient funds have been deposited with a bank or trust company to
pay all the bonds, notes or coupons still outstanding and unpaid; and
that said money is deposited for the express purpose of paying said
bonds, notes or coupons when the same shall be presented at said bank or
trust company for payment. (RSMo 1939 § 3467, A.L. 1947 V. I p. 229, A.L.
1985 H.B. 210)

Prior revisions: 1929 § 3080; 1919 § 2239; 1909 § 2846

Effective 1-1-86

CROSS REFERENCE:

Division of motor carrier and railroad safety abolished, duties and
functions transferred to highways and transportation commission and
department of transportation, RSMo 226.008

In case any person desires to release any part of the property
described in any security instrument recorded prior to January 1, 1986,
by deed of release, he shall be permitted to do so by the recorder on
presentation to the recorder of the notes or other obligations evidencing
the principal of the debt secured thereby, or accounting for them by
affidavits or otherwise as now or hereafter provided by law in the case
of full release, and the recorder shall note the fact of the filing for
record of such partial release on such notes or obligations in
substantially the following form:

"See partial release dated .................................

....................... Recorder" and of the presentation of such notes
or other obligations, or accounting therefor, on the deed of release
prior to its recordation, but shall not cancel such notes or other
obligations. Nothing in this section shall be construed as making it
necessary for any trustee named in the security instrument to join in
such partial deed of release. (RSMo 1939 § 3468, A.L. 1985 H.B. 210, A.L.
1991 S.B. 364)

Prior revisions: 1929 § 3081; 1919 § 2240; 1909 § 2847

In cases where a number of notes are named in any security
instrument which was recorded prior to January 1, 1986, on payment of any
one or more of such notes, the maker thereof may make affidavit as to
such payment, which such affidavit shall refer to the security instrument
by book and page of record and contain a description of the land
encumbered thereby and shall present the same along with the note or
notes to the recorder, and the recorder shall cancel the notes and make a
memorandum of such presentation and cancellation on the margin of the
affidavit, which shall then be filed for record. (RSMo 1939 § 3469, A.L.
1985 H.B. 210, A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3082; 1919 § 2241; 1909 § 2848

Whenever any security instrument heretofore or hereafter
executed, providing for the issue of a series of notes or bonds
aggregating one hundred thousand dollars or more not including interest
or interest notes or coupons secured in whole or in part by property
located in this state, by its terms confers authority upon the trustee or
trustees therein named, or either of them, to release the property or any
part thereof encumbered by any such security instrument from the lien
thereof, such release may be so made and it shall be the duty of the
recorder of deeds of the county in which the property so released from
such security instrument shall be situated to accept and record in the
proper records any deed of release executed and duly acknowledged by such
trustee, pursuant to the authority conferred by such security instrument,
releasing the whole or any part of such mortgaged property; provided,
however, that in the case of a security instrument which shall not have
been qualified under the Federal Trust Indenture Act of 1939, as from
time to time amended, no such release shall be made unless such security
instrument shall contain a provision requiring that the amount due under
the security instrument or the amount of money or other consideration
received from the sale of the property described in such release or such
portion thereof as may be stipulated in such security instrument shall be
deposited with some banking firm or banking corporation or trust company
named in such security instrument for the benefit of the holders of such
notes or bonds, or a provision requiring that there shall have been
reinvested in property subject to the lien of such security instrument an
amount of money equal to the value of the property so released; provided,
however, if there shall have been such reinvestments as provided by the
terms of such security instrument, which shall not have been qualified
under the Federal Trust Indenture Act of 1939, as from time to time
amended, there shall be filed with the recorder of deeds, together with
the aforesaid release, a certificate that at a meeting of the bondholders
or noteholders, held at the place named in the security instrument for
the payment of the principal of such bonds or notes, after publication of
notice of such meeting for two weeks in some newspaper regularly
published at such place, less than a majority in interest of the bonds or
notes represented at such meeting voted against such release or a
certificate that none of the bonds or notes were represented at such
meeting. Such certificate shall be made by the person who shall at such
meeting be elected chairman thereof, and upon the filing thereof the
recorder of deeds shall record said release as aforesaid; and provided
further, that if the mortgaged property be subject to several security
instruments, and upon the sale of only a part of the property covered by
such security instruments, the amount of money or other consideration
received from the sale of the property described in such release shall
have been deposited with the banking firm or banking corporation or trust
company named in the first security instrument for the benefit of the
holders of the notes or bonds thereby secured in the order of their
priority, and the excess if any, for the benefit of the holders of notes
or bonds secured by the subsequent security instruments in the order of
their priority, and such depositary shall so certify, then the property
so sold may be released by the trustees in each of the security
instruments, which confer authority upon the trustee or trustees therein
named to release such property from the lien of such security
instruments. (RSMo 1939 § 3470, A.L. 1947 V. I p. 229, A.L. 1985 H.B. 210)

Prior revisions: 1929 § 3083; 1919 § 2242

Effective 1-1-86

Any person who shall swear falsely in making any of the
affidavits provided for in sections 443.060, 443.070, 443.090 and 443.100
shall be deemed to be guilty of perjury, and on conviction, shall be
punished as may be provided by law for such offense. (RSMo 1939 § 3471)

Prior revisions: 1929 § 3084; 1919 § 2243; 1909 § 2849

1. If the secured party, receiving satisfaction for the debt
secured pursuant to this chapter, does not, within forty-five days after
request and tender of costs, submit for recording a sufficient deed of
release, such secured party shall be liable to the mortgagor for the
lesser of an amount of three hundred dollars a day for each day, after
the forty-fifth day, that the secured party fails to submit for recording
a sufficient deed of release or ten percent of the amount of the security
instrument, plus court costs and attorney fees to be recovered in any
court of competent jurisdiction. In the event a document submitted for
recording by a secured party is rejected for recording for any reason,
such secured party shall have sixty days following receipt of notice that
the document has been rejected in which to submit a recordable and
sufficient deed of release.

2. To qualify under this section, the mortgagor or his or her agent shall
provide the request in the form of a demand letter to the secured party
by certified mail, return receipt requested or in another form that
provides evidence of the date of receipt to the mortgagor. The letter
shall include good and sufficient evidence that the debt secured by the
deed of trust was satisfied with good funds, and the expense of filing
and recording the release was advanced.

3. In any action against such person who fails to release the lien as
provided in subsections 1 and 2 of this section, the plaintiff, or his or
her attorney, shall prove at trial that the plaintiff notified the holder
of the note by certified mail, return receipt requested, or as otherwise
permitted by subsection 2 of this section. (RSMo 1939 § 3472, A.L. 1994
H.B. 1312, A.L. 1996 H.B. 1432, A.L. 2004 H.B. 959)

Prior revisions: 1929 § 3085; 1919 § 2244; 1909 § 2850

(1996) Cost means the recorder of deeds' fee for releasing the deed of
trust. Murray v. Fleet Mortgage Corp., 936 S.W.2d 212 (Mo.App. E.D.).

Any attorney in fact, to whom the money due on any security
instrument is paid, shall have power to execute a release, as specified
in section 443.060. Such deed of release, duly acknowledged and recorded,
shall have the effect to release the security instrument, and bar all
actions brought thereon, and revest in the mortgagor, or person who
executed the security instrument, or his legal representatives, all title
to the property contained in such security instrument. (RSMo 1939 § 3473,
A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3086; 1919 § 2245; 1909 § 2851

Hereafter any president, vice president, secretary, treasurer or
cashier of any corporation may, in the name and on behalf of such
corporation, execute releases of any security instrument by release deed,
with the same force and effect and in like manner as if executed by the
president of such corporation. (RSMo 1939 § 3474, A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3087; 1919 § 2246

The personal representative of the holder or owner of any
indebtedness secured by any security instrument, shall, if such
indebtedness had been paid to the decedent in such decedent's lifetime,
upon request of the owner or owners of the property conveyed by such
security instrument, deliver to such person a sufficient deed of release
of such security instrument. (RSMo 1939 § 3476, A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3089; 1919 § 2248; 1909 § 2853

If such personal representative, upon satisfactory proof
produced to the personal representative of the payment of such
indebtedness to the decedent, does not, within thirty days after request
and tender of expenses, deliver to the person owning the property a
sufficient deed of release, the personal representative shall personally
forfeit to the party aggrieved ten percent of the amount of the security
instrument, absolutely, and any other damages such aggrieved party may be
able to prove such party has sustained, to be recovered in any court of
competent jurisdiction. (RSMo 1939 § 3477, A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3090; 1919 § 2249; 1909 § 2854

Nothing contained in sections 443.160 and 443.170 shall be so
construed as to make any executor or administrator liable to his
decedent's estate for any indebtedness by mortgage or deed of trust,
released by him in accordance with this chapter. (RSMo 1939 § 3478)

Prior revisions: 1929 § 3091; 1919 § 2250; 1909 § 2855

Any and all releases of mortgages and deeds of trust on lands in
this state, securing the payment of any debt or obligation, which have
been recorded in the office of the recorder of deeds in the county in
which such land is located for ten years or more, and which purport to
release any such mortgage or deed of trust and the debt or obligation
secured thereby, and which purport to have been executed by the mortgagee
or cestui que trust of such mortgage or deed of trust, or by his agent or
attorney, or by any assignee, or his agent or attorney, or by the
executor or administrator of any deceased mortgagee or cestui que trust,
or of any deceased assignee, or by any person acting for a corporation
which is either the mortgagee or the cestui que trust, or the assignee,
of said mortgage or deed of trust, shall be deemed to be valid, and the
lien of such mortgage or deed of trust shall be deemed to be canceled and
discharged, notwithstanding any defect in the execution, acknowledgment,
certificate of acknowledgment, recording or certificate of recording of
the same; except that this section shall not apply to any mortgage or
deed of trust unless the debt or obligation secured thereby has been due
and payable for at least ten years. Any person desiring to assert any
right or claim which would be barred by this section may do so by
bringing an appropriate action to establish such right or claim, at any
time within two years after the passage of this section, but not
thereafter. (L. 1951 p. 746)

All mortgagees of real estate or persons holding security
interests in personal estate, including leasehold interests, when the
debt or damages secured amount to fifty dollars or more, may file a
petition in the office of the circuit court against the mortgagor or the
debtor and the actual tenants or occupiers of the real estate, or persons
in possession of personal property, setting forth the substance of the
mortgage deed or security agreement, and praying that judgment may be
rendered for the debt or damages, and that the equity of redemption may
be foreclosed, and the mortgaged property or collateral sold to satisfy
the amount due. (RSMo 1939 § 3447, A.L. 1965 p. 114)

Prior revisions: 1929 § 3060; 1919 § 2219; 1909 § 2828

CROSS REFERENCE: Right to foreclose barred when note barred, RSMo 516.150

If any part of the property be real estate, the petition may be
filed in any county where any part of the mortgaged premises is situated;
if it be exclusively personal estate, it may be filed and proceeded with
as in other civil actions. (RSMo 1939 § 3452)

Prior revisions: 1929 § 3065; 1919 § 2224; 1909 § 2831

The issue, service and return of summons and executions, and all
proceedings under sections 443.010 to 443.440, shall be subject to and
governed by the law regulating proceedings in civil suits, except as
otherwise herein provided. (RSMo 1939 § 3455)

Prior revisions: 1929 § 3068; 1919 § 2227; 1909 § 2834

Any person claiming an interest in the mortgaged property or
collateral may, on motion, be made defendant to the proceedings, and may
answer in avoidance or bar of the deed, security agreement, or debt or
damages and issue shall be made and tried as in other civil suits. (RSMo
1939 § 3456, A.L. 1965 p. 114)

Prior revisions: 1929 § 3069; 1919 § 2228; 1909 § 2835

When the mortgagor or debtor is not summoned, but notified by
publication, and has not appeared, the judgment, if for the plaintiff,
shall be that he recover the debt and damages, or damages, found to be
due, and costs, to be levied of the mortgaged property or collateral,
describing it as in the mortgage or security agreement. (RSMo 1939 §
3457, A.L. 1965 p. 114)

Prior revisions: 1929 § 3070; 1919 § 2229; 1909 § 2836

When the mortgagor or debtor has been duly summoned, or appears
to the action, the judgment, if for the plaintiff, shall be as in section
443.230 specified, with the addition that if the mortgaged property or
collateral is not sufficient to satisfy the debt and damages, or damages
and costs, then the residue is to be levied of other goods, chattels,
lands and tenements of the mortgagor or debtor. (RSMo 1939 § 3458, A.L.
1965 p. 114)

Prior revisions: 1929 § 3071; 1919 § 2230; 1909 § 2837

In case of the death of the mortgagee or the secured party or
his assignee, or of the mortgagor or debtor, whether before or after
action brought, the personal representative of the deceased party shall
be made plaintiff or defendant, as the case may require. (RSMo 1939 §
3453, A.L. 1965 p. 114)

Prior revisions: 1929 § 3066; 1919 § 2225; 1909 § 2832

When the personal representative of the mortgagor or debtor has
been duly summoned, or appears to the action, the judgment, if for the
plaintiff, shall be as before directed; and if, in such case, the
mortgaged property or collateral be insufficient to satisfy the debt and
damages, or damages and costs, the judgment, as to the residue, shall
have the effect of a judgment against an executor or administrator, as
such. (RSMo 1939 § 3454, A.L. 1965 p. 114)

Prior revisions: 1929 § 3067; 1919 § 2226; 1909 § 2833

The execution to be issued shall be a special fieri facias, in
accordance with the judgment, and shall be executed and returned as
executions in ordinary civil suits. (RSMo 1939 § 3459)

Prior revisions: 1929 § 3072; 1919 § 2231; 1909 § 2838

A purchaser under a sale by virtue of an execution on a judgment
rendered in pursuance of the provisions of sections 443.010 to 443.440
shall take a title as against the parties to the suit, but he shall not
be permitted to set it up against the subsisting equities of those who
are not parties thereto. (RSMo 1939 § 3460)

Prior revisions: 1929 § 3073; 1919 § 2232; 1909 § 2839

All mortgages of real property or security agreements providing
for a security interest in personal property, or both, with powers of
sale in the mortgagee or secured party, and all sales made by such
mortgagee, secured party or his personal representatives, in pursuance of
the provisions of the mortgages or security agreements, shall be valid
and binding by the laws of this state upon the mortgagors and debtors,
and all persons claiming under them, and shall forever foreclose all
right and equity of redemption of the property so sold. Nothing herein
shall be construed to affect in any way the rights of a tenant to the
growing and unharvested crops on lands foreclosed as aforesaid, to the
extent of the interest of the tenant under the terms of contract or lease
between the tenant and the mortgagor or his personal representatives.
(RSMo 1939 § 3462, A.L. 1965 p. 114)

Prior revisions: 1929 § 3075; 1919 § 2234; 1909 § 2841

(1951) Where holder of unrecorded warranty deed to land was in the U.S.
Military service at time of foreclosure of mortgage on such land, he was
not entitled, under federal Soldiers' and Sailors' Civil Relief Act, as
against innocent purchaser, to have foreclosure sale set aside. Godwin v.
Gerling, 362 Mo. 19, 239 S.W.2d 352.

(1951) Because §§ 443.420, 443.430 and 443.440 expressly provide, in the
event a bond to redeem is posted, for the delivery to the purchaser of a
certificate of sale, it implies that when redemptioner gives notice of
his intention to redeem the trustee is not to deliver his trustee's deed
to the purchaser pending the lapse of the twenty days allowed for the
posting of the bond. Leone v. Bear, 362 Mo. 464, 241 S.W.2d 1008.

(1975) This section held constitutional as against claim that it
constitutes state action and thereby violates the due process clause of
the fourteenth amendment to the Constitution of the United States.
Federal National Mortgage Association v. Howlett (Mo.), 521 S.W.2d 428.

If any person shall die owning real estate on which there is an
outstanding deed of trust or mortgage of real estate, or having subjected
personal property to a security interest with power of sale, shall die,
no sale shall take place under the deed of trust or mortgage conveying
real estate within six months after the death of such person, and no sale
shall take place of personal property so subjected to a security interest
within four months after the death of the person. (RSMo 1939 § 140, A.L.
1965 p. 114, A.L. 1973 S.B. 166)

Prior revisions: 1929 § 141; 1919 § 140; 1909 § 149

All sales of real estate under a power of sale contained in any
mortgage or deed of trust executed after August 28, 1989, shall be made
in the county where the land to be sold is situated, and not less than
twenty days' notice of such sale shall be given, whether so provided in
such mortgage or deed of trust or not. Where the property to be sold is
located in more than one county, the property may be sold in any county
where a part of the property is located. (RSMo 1939 § 3463, A.L. 1989
H.B. 49)

Prior revisions: 1929 § 3076; 1919 § 2235; 1909 § 2842

(1975) This section held constitutional as against claim that it
constitutes state action and thereby violates the due process clause of
the fourteenth amendment to the Constitution of the United States.
Federal National Mortgage Association v. Howlett (Mo.), 521 S.W.2d 428.

The notice required by section 443.310 shall set forth the date
and book and page of the record of such mortgages or deeds of trust, the
grantors, the time, terms and place of sale, and a description of the
property to be sold, and shall be given by advertisement, inserted for at
least twenty times, and continued to the day of the sale, in some daily
newspaper, in counties having cities of fifty thousand inhabitants or
more, and in all other counties such notice shall be given by
advertisement in some weekly newspaper published in such county for four
successive issues, the last insertion to be not more than one week prior
to the day of sale, or in some daily, triweekly or semiweekly paper
published in such county at least once a week for four successive weeks.
Such notice shall appear on the same day of each week, the last insertion
to be not more than one week prior to the day of sale, and if there be no
newspaper published in such county or city, such notice shall be
published in the nearest newspaper thereto in this state. Nothing in this
section shall be construed to authorize the giving of any shorter notice
than that required by such mortgage or deed of trust. Where the property
to be sold lies wholly or in part within the corporate limits of any city
having or that may hereafter have a population of fifty thousand
inhabitants or more, then the notice provided for in this section shall
be published in a daily newspaper in such city and where the property to
be sold lies wholly or in part within the corporate limits of a city
extending into two or more counties, then the notice provided for in this
section shall be published in some newspaper published in the county in
which the property lies, in the manner provided in this section for
publication in such county, even though such property may lie in a city
having a population of fifty thousand inhabitants or more. Where the
property to be sold is located in more than one county, the notices
required in this section shall be published in each county in which a
part of the property is located. Other provisions of this section to the
contrary notwithstanding, in any county of the first class not having a
charter form of government and containing a portion of a city with a
population over three hundred fifty thousand and in any county of the
second class containing a portion of a city with a population over three
hundred fifty thousand, the notice requirements of section 443.310 and
this section may be met by advertisement in some weekly newspaper
published in such counties for four successive issues, the last insertion
to be not more than one week prior to the date of the sale. (RSMo 1939 §
3464, A.L. 1943 p. 402, A. 1949 S.B. 1125, A.L. 1951 p. 748, A.L. 1989
H.B. 49)

Prior revisions: 1929 § 3077; 1919 § 2236; 1909 § 2843

CROSS REFERENCE: Notice, how published in city of St. Louis, RSMo 493.100
to 493.120

(1962) Where deed of trust provided for thirty days' notice before a
foreclosure sale could be had, the giving of less than thirty days'
notice was an irregularity for which the sale would be set aside. Kennon
v. Camp (Mo.), 353 S.W.2d 693.

(1975) This section held constitutional as against claim that it
constitutes state action and thereby violates the due process clause of
the fourteenth amendment to the Constitution of the United States.
Federal National Mortgage Association v. Howlett (Mo.), 521 S.W.2d 428.

(1977) Purchaser at foreclosure sale not entitled to cancellation and
refund when he later discovered he had purchased only a life estate.
Words "bargain, sell and convey" do not import a covenant of fee simple
title. Use of words "heirs" does not create a warranty of fee fimple
title. Michie v. National Bank of Caruthersville (A.), 558 S.W>2d 270.

1. Any person desiring notice of sale under any deed of trust or
mortgage with power of sale upon real property may, at any time
subsequent to recordation of such deed of trust or mortgage, cause to be
filed for record in the office of the recorder of each county in which
any part or parcel of the real property is situated a duly acknowledged
request for such notice of sale. This request shall specify the name and
address of the person to whom the notice is to be mailed and shall
identify the deed of trust or mortgage by stating the names of the
parties thereto and the legal description of the land described therein
and the book and page where the same is recorded or the recorder's number
and shall be in substantially the following form:

"In accordance with RSMo, 443.325, request is hereby made that notice of
sale under the deed of trust (or mortgage) recorded the .... day of ....,
20.., (as recorder's number .... or in Book ...., Page ....) of the
records of .... County, Missouri, the legal description of the property
being .... in County, Missouri, executed by .... as Grantor (or
Mortgagor) in which .... is named as beneficiary (or Mortgagee) and ....
as Trustee, be mailed to .... (Name) at ...., (Address) ...., (City)
(State).

..................

(Signature)

..................

(Acknowledgment)" A separate request shall be filed for each person
desiring notice of sale.

2. Upon the filing for record of such request, the recorder shall index
the request in a separate index so that the name of the mortgagor or
grantor shall be indexed as the grantor, and the name of the requesting
party shall be indexed as the grantee.

3. In the event of foreclosure under a power of sale, the foreclosing
mortgagee or trustee shall, not less than twenty days prior to the
scheduled date of the sale, cause to be deposited in the United States
mail an envelope certified or registered, and with postage prepaid,
enclosing a notice containing the information required in the published
notice of sale referred to in section 443.320, addressed

(1) To each person whose name and address is set forth in any such
request recorded at least forty days prior to the scheduled date of sale;
and

(2) To the person shown by the records in the office of the recorder of
deeds to be the owner of the property as of forty days prior to the
scheduled date of foreclosure sale at the foreclosing mortgagee's last
known address for said record owner; and

(3) To the mortgagor or grantor named in the deed of trust or mortgage at
the foreclosing mortgagee's last known address for said mortgagor or
grantor.

(4) Actual receipt by the addressee of the envelope referred to above
shall not be necessary to establish compliance with the notice
requirements of subsection 3 hereof. Recording of receipt issued by the
United States Post Office for certified or registered mail to evidence
that said envelope has been delivered by the sender to the United States
Post Office shall constitute proof of compliance with notice requirements
of subsection 3 hereof.

4. The foreclosing mortgagee* or trustee of a deed of trust or mortgage
filed subsequent to a deed of trust or mortgage for which a request has
been recorded in accordance with subsection 1 hereof shall give notice to
each person named in each such request so long as the prior deed of trust
or mortgage identified in such notice has not been released of record.

5. The release of a deed of trust or mortgage shall cancel of record all
requests for notice which pertain to the deed of trust or mortgage
identified in such request. (L. 1973 H.B. 164, A.L. 1975 H.B. 226)

Effective 7-14-75

*Word "mortgages" appears in original rolls.

The trustee exercising a power of sale granted in any security
instrument may in the trustee's discretion set the time for sale at any
commercially reasonable time, unless the security instrument specifies an
hour at which the sale is to occur. The time for sale will be deemed to
be commercially reasonable if the sale is held between the hours of 9:00
a.m. and 5:00 p.m. on the date of sale. If no time is stated in the
notice of sale, then the sale shall be held at the time customary for
such sales in the county. If the trustee elects to state a specific time
for sale in the notice of sale, then the sale shall be held at the time
stated in the notice unless the sale is continued as may be otherwise
provided by law. (L. 1992 S.B. 688, A.L. 1994 H.B. 1312)

If any trustee in any deed of trust to secure the payment of a
debt or other liability shall die, or has died, shall become or has
become mentally incapacitated, shall remove or has removed out of this
state, shall neglect or refuse or has neglected or refused to act as such
trustee, or shall or has become unable, by sickness or other disability,
to perform or execute his trust, any person interested in the debt or
other liability secured by such deed of trust, may present his or their
affidavit, stating the facts of the case, specifically, to the circuit
court of the county in which the property or estate conveyed by such deed
of trust, or any part thereof, is situated. (RSMo 1939 § 3525, A. 1949
S.B. 1125, A.L. 1983 S.B. 44 & 45)

Prior revisions: 1929 § 3135; 1919 § 13418; 1909 § 11919

If such court shall be satisfied that the facts stated in such
affidavit are true, it shall make an order appointing the sheriff, or
some other suitable person of the county, trustee to execute such deed of
trust, in the place of the original trustees; and thereupon such sheriff,
or other suitable person appointed by said court, shall be possessed of
all the rights, powers and authority possessed by the original trustee,
under the deed of trust, and such sheriff or other person shall proceed
to sell and convey the property and to pay off the debts and liabilities
according to the directions of the deed of trust, and shall do all other
acts the original trustee had power to do, and with the same force and
effect. (RSMo 1939 § 3527, A. 1949 S.B. 1125)

Prior revisions: 1929 § 3137; 1919 § 13419; 1909 § 11920

No foreign corporation or individual shall act as trustee in any
security instrument made after August 28, 1994, affecting any property,
real or personal, situate or being in this state, unless in such
instrument there is named as cotrustee a corporation organized under the
laws of this state, or an individual citizen of the state of Missouri. If
any Missouri corporation is designated trustee in any security instrument
or is appointed a successor trustee, it shall not be considered to be
subject to any disability to act as such because it is organized under a
chapter of the Missouri revised statutes other than chapter 362, RSMo, or
because its articles of incorporation do not contain a specific power to
execute trusts or serve as trustee under security instruments. (RSMo 1939
§ 3482, A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3095; 1919 § 2254; 1909 § 2859

CROSS REFERENCE: Trust company's powers under reciprocal corporate
fiduciary powers act, RSMo 362.600

1. A trustee exercising a power of sale granted in any security
instrument may, in his discretion, continue the sale without
readvertisement or mailing additional notice by announcing or causing to
be announced on the day and at the time and place of sale the fact of
such continuance. The announcement shall contain the date, time and place
to which the sale is continued. No party shall have a cause of action for
damages against a trustee for continuing or refusing to continue a sale
as provided in this section.

2. Only one continuance shall be made under the authority granted by this
section, which continuance shall be for a period of not to exceed seven
days. The provisions of this section shall not prevent the holder of a
security instrument and the owner of the land encumbered thereby from
agreeing to more than one continuance or to continuances for more than
one week. Nothing in this section shall prevent a trustee from abandoning
a sale before its completion and commencing new sale proceedings after
compliance with sections 443.310, 443.320 and 443.325. (L. 1993 H.B. 105
& 480)

As a compensation for his services, any person selling property
at auction under any writing, instrument or deed made or executed for
securing the payment of any debt shall receive a commission on the amount
of sales not exceeding two percent on the first one thousand dollars, and
one percent on all sums over that amount and under five thousand dollars,
and one-half of one percent on all sums over that amount. (RSMo 1939 §
3479)

Prior revisions: 1929 § 3092; 1919 § 2251; 1909 § 2856

Any person taking a larger compensation for his services, as
aforesaid, shall be liable to any party interested in such writing,
instrument or deed, in a sum double the amount taken for such services,
recoverable by a suit in a court of competent jurisdiction. (RSMo 1939 §
3480)

Prior revisions: 1929 § 3093; 1919 § 2252; 1909 § 2857

Whenever any real estate within this state shall have been or
shall hereafter be sold by any trustee or mortgagee, or sheriff or other
person acting as trustee, under a power of sale given in any mortgage or
deed of trust, the recitals in the trustee or mortgagee's deed concerning
the default, advertisement, sale or receipt of the purchase money, and
all other facts pertinent thereto, shall be received as prima facie
evidence in all courts of the truth thereof. (RSMo 1939 § 3481)

Prior revisions: 1929 § 3094; 1919 § 2253; 1909 § 2858

(1975) This section held constitutional as against claim that it
constitutes state action and thereby violates the due process clause of
the fourteenth amendment to the Constitution of the United States.
Federal National Mortgage Association v. Howlett (Mo.), 521 S.W.2d 428.

In all cities in this state which now have or which may
hereafter have three hundred fifty thousand inhabitants or more and in
all counties in this state of the first class, no trustee's deed or
mortgagee's deed under power of sale in foreclosure of any security
instrument recorded prior to January 1, 1986, shall be accepted by the
recorder of deeds for record unless:

(1) The principal note or notes or other principal obligations which were
unpaid when the foreclosure sale commenced and for the default in payment
of which foreclosure is had, are produced to the recorder; or

(2) If such notes are lost then the owner of the principal notes or
obligations makes an affidavit that such notes are lost and produces such
affidavit for the recorder. Upon such trustee's or mortgagee's deed being
filed for record, the recorder shall make a notation on the principal
note or notes or other principal obligations showing that such deed in
foreclosure has been filed of record, in substantially the following form:

"Deed under foreclosure filed ................, 20....

......................... Recorder" Except, whenever any trustee's deed
or mortgagee's deed under power of sale in foreclosure of any security
instrument recorded prior to January 1, 1986, providing for the issuance
of more than one principal note or bond shall be presented for recording,
it shall be accepted by the recorder of deeds for record upon the
presentation to the recorder of the unpaid principal note or notes or
bonds required by such security instrument to permit the trustee to sell
the property under foreclosure sale. A foreclosure sale shall be deemed
to have commenced within the meaning of this law upon the first
publication of the notice of sale. (RSMo 1939 § 3484, A.L. 1945 p. 681,
A.L. 1985 H.B. 210, A.L. 1994 H.B. 1312)

If such property is redeemed by payment to the officer before
the sale, such officer shall make a certificate of such redemption, and
acknowledge the same before some officer authorized to take
acknowledgments of deeds for lands; and such certificate shall be
recorded in the office in which the security instrument is recorded, and
shall have the same effect as if a deed of release has been filed for
record. (RSMo 1939 § 3475, A.L. 1994 H.B. 1312)

Prior revisions: 1929 § 3088; 1919 § 2247; 1909 § 2852

Deeds of trust in the nature of mortgages of lands may, in
addition to being forecloseable by suit, be also foreclosed by trustee's
sale at the option of the holder of the debt or obligation thereby
secured and the mortgaged property sold by the trustee or his successor
in the same manner and in all respects as in case of mortgages with power
of sale; and all real estate which may be sold under any such power of
sale in a mortgage deed of trust hereafter made and which at such sale
shall be brought in by the holder of such debt or obligation or by any
other person for such holder shall be subject to redemption by the
grantor in such mortgage deed of trust or his heirs, devisees, executors,
administrators, grantees or assigns at any time within one year from the
date of the sale; provided, however, that such person so entitled to
redeem shall give written notice at the sale or within ten days before
the date advertised for the sale to the person making or who is to make
the sale of the purpose to redeem if the sale and purchase are so made;
and provided further, the said grantor, his representatives, grantees or
assigns to make the redemption shall within the year pay the debt and
interest or other obligation secured by such deed of trust and to accrue
thereon together with all sums paid out by any holder thereof or
purchaser at such sale or holder of the rights of such purchaser for
interest and principal and either of any prior encumbrances, and for
taxes and assessments and all legal charges and costs of the sale. (RSMo
1939 § 3450, A.L. 1993 H.B. 105 & 480)

Prior revisions: 1929 § 3063; 1919 § 2222; 1909 § 2829

(1958) Redemption statutes do not constitute the exclusive remedy of a
mortgagor; in proper cases equity will enforce the right of redemption
independent of and outside the statutes. Fitzpatrick v. Federer (Mo.),
315 S.W.2d 826.

(1959) Where trial court denied petition to redeem from foreclosure and
appeal was not heard or decided within year and during such year owner of
equity of redemption did not pay or offer to pay the debt secured by the
mortgage, the case became moot and the right of redemption was lost.
Euclid Terrace Corp. v. Golterman Enterprises, Inc. (A.), 327 S.W.2d 542.

(1962) Where mortgaged premises were damaged by fire prior to foreclosure
sale at which mortgagee purchased premises at full amount of the
outstanding indebtedness, mortgagor was entitled to the insurance
proceeds as the purchase constituted payment and extinguished the debt.
Northwestern National Insurance Co. v. Mildenberger (A.), 359 S.W.2d 380.

(1968) Where purchaser of property sold under foreclosed deed of trust
purchased property for himself and not for or on behalf of debt holder,
mortgagor did not have a cause of action for redemption. Dickey v. Barnes
(A.), 427 S.W.2d 732.

(1975) This section held constitutional as against claim that it
constitutes state action and thereby violates the due process clause of
the fourteenth amendment to the Constitution of the United States.
Federal National Mortgage Association v. Howlett (Mo.), 521 S.W.2d 428.

Mortgage insurers may insure a mortgage in an amount not
exceeding one hundred three percent of the fair market value of the
authorized real estate security at the time that the loan is made if
secured by a first lien or charge on such real estate security. (L. 1994
H.B. 1449 § 1 merged with S.B. 718 § 35, A.L. 1998 H.B. 1794 merged with
S.B. 719, A.L. 2000 H.B. 1802 merged with S.B. 896, A.L. 2002 H.B. 1375
merged with S.B. 729)

No party shall have the right of redeeming from any such sale as
set forth in section 443.410 unless he shall have given the written
notice specified in said section and shall within twenty days after such
sale give security to the satisfaction of the circuit court of the county
in which the land is located for the payment of the interest on the debt
or obligation secured by the mortgage deed of trust under which the sale
is made to accrue within such year after the sale is made, and for the
payment in full of the legal charges and costs of the sale, and for the
payment of all interest accrued prior to the sale or thereafter which the
purchaser at the sale or his representatives or assigns may pay on any
prior encumbrance on the land, as well as the interest which may accrue
thereon during such year allowed for redemption whether so paid or not
and all taxes and assessments and interest and costs thereon whether
general or special accrued or accruing during such year allowed for
redemption and whether paid by the purchaser at the sale or not together
with interest at rate of six percent per annum on all sums so paid by the
purchaser or those claiming under him and for damages for all waste
committed or suffered by the party giving such security or those claiming
under him during such year unless said property is so redeemed, and it
shall be necessary to pay for such redemption all such sums to which the
purchaser or those claiming under him should be entitled with interest as
aforesaid. Said security shall be by bond executed by the person or
persons so entitled to redeem with at least one good surety in a sum
amply sufficient to cover the aggregate of all said sums exclusive of the
principal debt or obligation, but including damages and interest, to be
so absolutely paid in event redemption is not made and the aggregate of
all such shall be the measure of damages to be paid in satisfaction of
said bond if such redemption is not made. (RSMo 1939 § 3451)

Prior revisions: 1929 § 3064; 1919 § 2223; 1909 § 2830

(1951) Because §§ 443.420, 443.430 and 443.440 expressly provide, in the
event a bond to redeem is posted, for the delivery to the purchaser of a
certificate of sale, it implies that when redemptioner gives notice of
his intention to redeem the trustee is not to deliver his trustee's deed
to the purchaser pending the lapse of the twenty days allowed for the
posting of the bond. Leone v. Bear, 362 Mo. 464, 241 S.W.2d 1008.

(1965) Validity of trustees sale is admitted by implication when
statutory redemption procedure is begun. St. Bethel Missionary Baptist
Church v. St. Louis Builders, Inc. (Mo.), 388 S.W.2d 776.

A motion or application for the approval shall be filed with the
bond in the office of the clerk of the circuit court and at least one
day's notice in writing thereof and of the time when the same will be
filed and presented shall be given to the purchaser at such sale if he is
a resident of the county and can be found therein, otherwise it shall be
given to the trustee making the sale. If court should not be in session
when such bond and application are so filed the clerk may temporarily
approve the same subject to future action of the court thereon but unless
so temporarily approved or presented to the court for consideration
within such twenty days the same shall be taken and deemed as finally
rejected and disapproved. The court may continue or adjourn the hearing
or consideration of such bond when so within such twenty-day period
temporarily approved by the clerk or presented to the court but the
proceedings thereon shall be speedily and summarily acted upon and
settled including the right or not of the obligor or obligors in the bond
to give bond and to make such redemption. The court at discretion may at
such hearing or consideration of such bond or at any time during the
redemption period of one year appoint a receiver to take charge and
possession of and preserve the property so sold and to have the rents and
profits thereof subject to the orders of the court, and the net result
therefrom shall belong to the owner of the equity of redemption if
redemption be made, otherwise to the purchaser at such sale. And the
court may require additional bond to be given as security at any time
during such redemption period on application of the purchaser with at
least five days' notice of such application to the principal on the
original bond or his attorney, or agent, or representative. (RSMo 1939 §
3451, A.L. 1978 H.B. 1634)

Prior revisions: 1929 § 3064; 1919 § 2223

Effective 1-2-79

(1957) Notice requirement of this section is mandatory and ex parte
approval of redemption bond by the court held erroneous and further
proceedings in connection therewith would be prohibited. State ex rel.
Hopkins v. Stemmons (A.), 302 S.W.2d 51.

(1957) Notice required by this section is mandatory and notification of
trustee under § 443.110 did not relieve those seeking approval of bond of
duty giving it. White v. Huffman (A.), 304 S.W.2d 909.

If the bond is given and approved the trustee at the purchaser's
request shall execute, acknowledge and deliver to him a certificate of
sale or purchase giving a reference to the deed of trust, fact of sale
and purchase. And if redemption is not made within the year as so
provided he shall thereupon execute to the purchaser or his heirs or
devisees good and sufficient deed of conveyance upon the presentation of
such certificate or showing of reason for its nonproduction to the
satisfaction of the trustee. The rights, interests and estates of any of
the parties may be conveyed by deed as interests in land are conveyed and
trustee's deed may be made to the original purchaser and shall inure to
his grantees. If the certificate of sale or any conveyance of the
purchaser's interest is recorded the purchaser and his grantee shall give
a sufficient recordable acknowledgment of redemption if the same be made.
Any prematurely executed trustee's deed shall operate as a certificate of
sale by the trustee, and if the trustee dies, becomes incapable or cannot
be found the court may summarily and on ex parte application of the
purchaser appoint a successor or commissioner to execute a good and
sufficient conveyance in completion of the trustee's sale if redemption
be not made within the year provided. Both the certificate of sale and
purchase and deed and the recitals therein shall each be prima facie
evidence of the recitals therein. (RSMo 1939 § 3451)

Prior revisions: 1929 § 3064; 1919 § 2223

1. Notwithstanding other provisions of law to the contrary,
every mortgage or deed of trust or any supplement or amendment thereto,
or satisfaction thereof, covering any real or personal property situated
in this state, made to secure the payment of bonds issued, or to be
issued thereafter, by any corporation which is an interstate gas pipeline
company, or by a public utility as defined in section 386.020, RSMo,
shall be executed and duly acknowledged and certified, as other
instruments affecting real estate, and may be filed in the office of the
secretary of state, who shall certify that the instrument has been filed
in his or her office by endorsing upon the instrument the word "filed"
and the date and hour of filing. This endorsement is the filing date of
the instrument and is conclusive of the date and time of the filing in
the absence of actual fraud. In lieu of filing an original of such
instrument, a true copy thereof may be filed with an affidavit by the
mortgagor or the mortgagee, or an agent of either, that it is a true
copy. The secretary of state shall thereupon file and index the endorsed
instrument.

2. The filing of such instrument in the office of the secretary of state
shall be notice to all persons of the contents thereof and to all
subsequent purchasers and encumbrancers, and no other filing or recording
of any such instrument shall be necessary.

3. Such mortgage or deed of trust, and any supplement to or amendment
thereof, filed in the office of the secretary of state in accordance with
the provisions of this section, shall be a lien on the mortgaged property
from the time it is filed.

4. Such mortgage or deed of trust, or any supplement to or amendment
thereof, heretofore recorded or filed in the office of the recorder of
deeds of any county in this state may be refiled in the office of the
secretary of state in the manner provided in this section, and such
refiling shall thereafter as to any property not previously released from
such mortgage or deed of trust and any supplement to or amendment thereof
be of the same effect as if the instrument had been originally filed in
the office of the secretary of state.

5. When such mortgage is satisfied, released or canceled, in whole or in
part, and evidence thereof shall be filed in the office of the secretary
of state, the secretary of state shall enter the date of such
satisfaction, release or cancellation thereof in an appropriate record in
his or her office. The secretary of state shall furnish to the person
filing such mortgage, supplement or amendment thereto or any evidence of
satisfaction, release or cancellation of such mortgage a certificate of
the filing.

6. The secretary of state shall charge and collect a fee for each filing
or certificate of filing in accordance with the uniform filing fees as
provided in section 400.9-403, RSMo.

7. Instruments recorded or filed prior to August 28, 1993, shall not be
affected by this section. (L. 1993 S.B. 198 § 1)

Financial institutions, as defined in section 381.410, RSMo,
which are mortgage servicers, shall pay property tax obligations which
they service from escrow accounts, as defined in Title 24, Part 3500,
Section 17, Code of Federal Regulations, in one annual payment before the
first day of January of the year following the year for which the tax is
levied. Escrow accounts established between such financial institutions
and borrowers are contractually binding and may disallow the payment of
property taxes more than once a year as such payments are authorized in
section 139.053, RSMo. (L. 1999 S.B. 386 § 408.620)

Sections 443.800 to 443.893 shall be known and may be cited as
the "Residential Mortgage Brokers License Act". (L. 1994 S.B. 718 § 1)

1. For the purposes of sections 443.800 to 443.893, the
following terms mean:

(1) "Advertisement", the attempt by publication, dissemination or
circulation to induce, directly or indirectly, any person to apply for a
loan to be secured by residential real estate;

(2) "Affiliate":

(a) Any entity that directly controls, or is controlled by, the licensee
and any other company that is directly affecting activities regulated by
sections 443.800 to 443.893 that is controlled by the company that
controls the licensee;

(b) Any entity:

a. That is controlled, directly or indirectly, by a trust or otherwise
by, or for the benefit of, shareholders who beneficially, or otherwise,
control, directly or indirectly, by trust or otherwise, the licensee or
any company that controls the licensee; or

b. A majority of the directors or trustees of which constitute a majority
of the persons holding any such office with the licensee or any company
that controls the licensee;

(c) Any company, including a real estate investment trust, that is
sponsored and advised on a contractual basis by the licensee or any
subsidiary or affiliate of the licensee;

(3) "Annual audit", a certified audit of the licensee's books and records
and systems of internal control performed by a certified public
accountant in accordance with generally accepted accounting principles
and generally accepted auditing standards;

(4) "Board", the residential mortgage board, created in section 443.816;

(5) "Borrower", the person or persons who use the services of a loan
broker, originator or lender;

(6) "Director", the director of the division of finance within the
department of economic development;

(7) "Escrow agent", a third party, individual or entity, charged with the
fiduciary obligation for holding escrow funds on a residential mortgage
loan pending final payout of those funds in accordance with the terms of
the residential mortgage loan;

(8) "Exempt entity", the following entities:

(a) Any bank or trust company organized under the laws of this or any
other state or any national bank or any foreign banking corporation
licensed by the division of finance or the United States Comptroller of
the Currency to transact business in this state;

(b) Any state or federal savings and loan association, savings bank or
credit union or any consumer finance company licensed under sections
367.100 to 367.215, RSMo, which is actively engaged in consumer credit
lending;

(c) Any insurance company authorized to transact business in this state;

(d) Any person engaged solely in commercial mortgage lending or any
person making or acquiring residential or commercial construction loans
with the person's own funds for the person's own investment;

(e) Any service corporation of a federally chartered or state- chartered
savings and loan association, savings bank or credit union;

(f) Any first-tier subsidiary of a national or state bank that has its
principal place of business in this state, provided that such first-tier
subsidiary is regularly examined by the division of finance or the
Comptroller of the Currency or a consumer compliance examination of it is
regularly conducted by the Federal Reserve;

(g) Any person engaged solely in the business of securing loans on the
secondary market provided such person does not make decisions about the
extension of credit to the borrower;

(h) Any mortgage banker as defined in subdivision (19) of this
subsection; or

(i) Any wholesale mortgage lender who purchases mortgage loans originated
by a licensee provided such wholesale lender does not make decisions
about the extension of credit to the borrower;

(j) Any person making or acquiring residential mortgage loans with the
person's own funds for the person's own investment;

(k) Any person employed or contracted by a licensee to assist in the
performance of the activities regulated by sections 443.800 to 443.893
who is compensated in any manner by only one licensee;

(l) Any person licensed pursuant to the real estate agents and brokers
licensing law, chapter 339, RSMo, who engages in servicing or the taking
of applications and credit and appraisal information to forward to a
licensee or an exempt entity for transactions in which the licensee is
acting as a real estate broker and who is compensated by either a
licensee or an exempt entity;

(m) Any person who originates, services or brokers residential mortgagee
loans and who receives no compensation for those activities, subject to
the director's regulations regarding the nature and amount of
compensation;

(9) "Financial institution", a savings and loan association, savings
bank, credit union, mortgage banker or bank organized under the laws of
Missouri or the laws of the United States with its principal place of
business in Missouri;

(10) "First-tier subsidiary", as defined by administrative rule
promulgated by the director;

(11) "Full-service office", office and staff in Missouri reasonably
adequate to handle efficiently communications, questions and other
matters relating to any application for a new, or existing, home mortgage
loan which the licensee is brokering, funding, originating, purchasing or
servicing. The management and operation of each full-service office must
include observance of good business practices such as adequate, organized
and accurate books and records, ample phone lines, hours of business,
staff training and supervision and provision for a mechanism to resolve
consumer inquiries, complaints and problems. The director shall
promulgate regulations with regard to the requirements of this
subdivision and shall include an evaluation of compliance with this
subdivision in the periodic examination of the licensee;

(12) "Government-insured mortgage loan", any mortgage loan made on the
security of residential real estate insured by the Department of Housing
and Urban Development or Farmers Home Loan Administration, or guaranteed
by the Veterans Administration;

(13) "Lender", any person who either lends money for or invests money in
residential mortgage loans;

(14) "Licensee" or "residential mortgage licensee", a person who is
licensed to engage in the activities regulated by sections 443.800 to
443.893;

(15) "Loan broker" or "broker", a person exempted from licensing pursuant
to subdivision (8) of this subsection, who performs the activities
described in subdivisions (17) and (32) of this subsection;

(16) "Loan brokerage agreement", a written agreement in which a broker
agrees to do either of the following:

(a) Obtain a residential mortgage loan for the borrower or assist the
borrower in obtaining a residential mortgage loan; or

(b) Consider making a residential mortgage loan to the borrower;

(17) "Loan brokering", "mortgage brokering", or "mortgage brokerage
service", the act of helping to obtain for an investor or from an
investor for a borrower, a loan secured by residential real estate
situated in Missouri or assisting an investor or a borrower in obtaining
a loan secured by residential real estate in return for consideration;

(18) "Making a residential mortgage loan" or "funding a residential
mortgage loan", for compensation or gain, either, directly or indirectly,
advancing funds or making a commitment to an applicant for a residential
mortgage loan;

(19) "Mortgage banker", a mortgage loan company which is subject to
licensing, supervision, or annual audit requirements by the Federal
National Mortgage Association (FNMA), or the Federal Home Loan Mortgage
Corporation (FHLMC), or the United States Veterans Administration (VA),
or the United States Department of Housing and Urban Development (HUD),
or a successor of any of the foregoing agencies or entities, as an
approved lender, loan correspondent, seller, or servicer;

(20) "Mortgage loan" or* "residential mortgage loan", a loan to, or for
the benefit of, any natural person made primarily for personal, family or
household use, including a reverse mortgage loan, primarily secured by
either a mortgage or reverse mortgage on residential real property or
certificates of stock or other evidence of ownership interests in, and
proprietary leases from, corporations or partnerships formed for the
purpose of cooperative ownership of residential real property;

(21) "Net worth", as provided in section 443.859;

(22) "Originating", the advertising, soliciting, taking applications,
processing, closing, or issuing of commitments for, and funding of,
residential mortgage loans;

(23) "Party to a residential mortgage financing transaction", a borrower,
lender or loan broker in a residential mortgage financing transaction;

(24) "Payments", payment of all, or any part of, the following:
principal, interest and escrow reserves for taxes, insurance and other
related reserves and reimbursement for lender advances;

(25) "Person", any individual, firm, partnership, corporation, company or
association and the legal successors thereof;

(26) "Personal residence address", a street address, but shall not
include a post office box number;

(27) "Purchasing", the purchase of conventional or government-insured
mortgage loans secured by residential real estate from either the lender
or from the secondary market;

(28) "Residential mortgage board", the residential mortgage board created
in section 443.816;

(29) "Residential mortgage financing transaction", the negotiation,
acquisition, sale or arrangement for, or the offer to negotiate, acquire,
sell or arrange for, a residential mortgage loan or residential mortgage
loan commitment;

(30) "Residential mortgage loan commitment", a written conditional
agreement to finance a residential mortgage loan;

(31) "Residential real property" or "residential real estate", real
property located in this state improved by a one-family to four-family
dwelling;

(32) "Servicing", the collection or remittance for, or the right or
obligation to collect or remit for, any lender, noteowner, noteholder or
for a licensee's own account, of payments, interests, principal and trust
items such as hazard insurance and taxes on a residential mortgage loan
and includes loan payment follow-up, delinquency loan follow-up, loan
analysis and any notifications to the borrower that are necessary to
enable the borrower to keep the loan current and in good standing;

(33) "Soliciting, processing, placing or negotiating a residential
mortgage loan", for compensation or gain, either, directly or indirectly,
accepting or offering to accept an application for a residential mortgage
loan, assisting or offering to assist in the processing of an application
for a residential mortgage loan on behalf of a borrower, or negotiating
or offering to negotiate the terms or conditions of a residential
mortgage loan with a lender on behalf of a borrower including, but not
limited to, the submission of credit packages for the approval of
lenders, the preparation of residential mortgage loan closing documents,
and including a closing in the name of a broker;

(34) "Ultimate equitable owner", a person who, directly or indirectly,
owns or controls an ownership interest in a corporation, foreign
corporation, alien business organization, trust or any other form of
business organization regardless of whether the person owns or controls
the ownership interest through one or more persons or one or more
proxies, powers of attorney, nominees, corporations, associations,
partnerships, trusts, joint stock companies or other entities or devices,
or any combination thereof.

2. The director may define by rule any terms used in sections 443.800 to
443.893 for efficient and clear administration. (L. 1994 S.B. 718 § 3,
A.L. 1995 H.B. 63, et al., A.L. 2001 S.B. 538)

*Word "or" does not appear in original rolls.

1. No person shall engage in the business of brokering, funding,
originating, servicing or purchasing of residential mortgage loans
without first obtaining a license from the director, pursuant to sections
443.800 to 443.893 and the regulations promulgated thereunder. The
licensing provisions of sections 443.805 to 443.812 shall not apply to
any entity engaged solely in commercial mortgage lending or to any person
exempt as provided in section 443.803 or pursuant to regulations
promulgated as provided in sections 443.800 to 443.893.

2. No person except a licensee or exempt entity shall do any business
under any name or title or circulate or use any advertising or make any
representation or give any information to any person which indicates or
reasonably implies activity within the scope of the provisions of
sections 443.800 to 443.893. (L. 1994 S.B. 718 § 2 subsecs. 1, 2, A.L.
1995 H.B. 63, et al., A.L. 2001 S.B. 538)

The director may, through the attorney general, request the
circuit court in the appropriate jurisdiction to issue an injunction to
restrain any person from violating, or continuing to violate, any
provision of sections 443.805 to 443.812. (L. 1994 S.B. 718 § 2 subsec.
3, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

When the director has reasonable cause to believe that any
person has not submitted an application for licensure and is conducting
any of the activities described in subsection 1 of section 443.805, the
director may examine all books and records of the person and any
additional documentation necessary to determine whether such person is
required to be licensed pursuant to sections 443.800 to 443.893. (L. 1994
S.B. 718 § 2 subsec. 4, A.L. 1995 H.B. 63, et al., A.L. 2001 S.B. 538)

Effective May 21, 1998, any person who violates any provision of
sections 443.805 to 443.812 shall be deemed guilty of a class C felony.
(L. 1994 S.B. 718 § 2 subsec. 5, A.L. 1995 H.B. 63, et al., A.L. 2001
S.B. 538)

1. Only one license shall be issued to each person conducting
activities regulated by sections 443.800 to 443.893. A licensee shall
register with the director each office, place of business or location
where the licensee conducts any part of the licensee's business pursuant
to section 443.839.

2. Licensees may only solicit, broker, fund, originate, serve and
purchase residential mortgage loans in conformance with sections 443.800
to 443.893 and such rules as may be promulgated by the director
thereunder. (L. 1994 S.B. 718 § 2 subsecs. 6, 7, A.L. 1995 H.B. 63, et
al., A.L. 2001 S.B. 538)

There is hereby created in the division of finance a
"Residential Mortgage Board" which shall have such powers and duties as
are now or hereafter conferred upon it by law. The board shall consist of
five members who shall be appointed by the governor. The members of the
board shall be residents of this state, and one of the members shall be a
member of the Missouri Bar in good standing. Three members of the board
shall be experienced in mortgage brokering and the remaining members of
the board shall have no financial interest in any mortgage brokering
business. Not more than three members of the board shall be members of
the same political party. The term of office of each member shall be
three years, except for those first appointed. Two shall be appointed for
terms of two years and one shall be appointed for a term of one year.
Members shall serve until their successors are duly appointed and have
qualified. Each member shall serve for the remainder of the term for
which the member was appointed. The board shall select one of the members
as chairman and one of the members as secretary. Vacancies on the board
shall be filled for the unexpired term in the same manner as in the case
of an original appointment. The members of the board shall receive as
compensation the sum of one hundred dollars per day while discharging
their duties, and they shall be reimbursed for their actual and necessary
expenses incurred in the performance of their duties. A majority of the
members of the board shall constitute a quorum and the decision of a
majority of a quorum shall be the decision of the board. The board shall
meet upon call of the chairman, or of the director, or of any two members
of the board, and may meet at any place in this state. The board shall:

(1) Approve or disapprove each regulation proposed by the director
pertaining to mortgage brokering; and

(2) Hear and determine any appeal from a denial or revocation of a
mortgage broker license or decision of the director pertaining to
mortgage brokering. (L. 1995 H.B. 63, et al.)

Effective 6-13-95

Each member of the residential mortgage board shall file
annually, no later than February first, with the Missouri ethics
commission a statement of the member's current business transactions or
other affiliations with any licensee under the provisions of sections
443.800 to 443.893. The board may adopt any rules or regulations
regarding the conduct of board members to avoid conflicts of interest on
the part of the members of the residential mortgage board in connection
with their positions on the board. (L. 1994 S.B. 718 § 4 subsec. 2)

1. No person engaged in a business regulated by sections 443.800
to 443.893 shall operate such business under a name other than the real
names of the persons conducting such business, a corporate name adopted
pursuant to chapter 351, RSMo, or a fictitious name registered with the
secretary of state's office.

2. Any person who knowingly violates this section shall be deemed guilty
of a class A misdemeanor. A person who is convicted of a second or
subsequent violation of this section shall be deemed guilty of a class C
felony. (L. 1994 S.B. 718 § 5, A.L. 2001 S.B. 538)

The director shall issue a license upon completion of the
following:

(1) The filing of an application;

(2) The filing with the director of a listing of judgments entered
against, and bankruptcy petitions by, the applicant for the preceding
seven years;

(3) The payment of investigation and application fees to be established
by administrative rule; and

(4) An investigation of the averments required by section 443.827, which
investigation must allow the director to issue positive findings stating
that the financial responsibility, experience, character and general
fitness of the applicant, and of the members thereof, if the applicant is
a partnership or association, and of the officers and directors thereof
if the applicant is a corporation, are such as to command the confidence
of the community and to warrant belief that the business will be operated
honestly, fairly and efficiently within the scope of sections 443.800 to
443.893. If the director does not find the applicant's business and
personal conduct warrants the issuance of a license, the director shall
notify the applicant of the denial with the reasons stated for such
denial. An applicant may appeal such denial to the board. (L. 1994 S.B.
718 § 6 subsec. 1, A.L. 1995 H.B. 63, et al., A.L. 2001 S.B. 538)

All licenses shall be issued in duplicate with one copy being
transmitted to the license applicant and the second being retained with
the director. Upon receipt of such license, a residential mortgage
licensee may engage in a business regulated by sections 443.800 to
443.893. Such license shall remain in full force and effect until it
expires without renewal, is surrendered by the licensee or is revoked or
suspended as provided in sections 443.800 to 443.893. (L. 1994 S.B. 718 §
6 subsec. 2, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. Application for a license shall be made as provided in
sections 443.833 and 443.835. The application shall be in writing, made
under oath, and on a form provided by the director.

2. The application shall contain the name and complete business and
residential address or addresses of the applicant. If the applicant is a
partnership, association, corporation or other form of business
organization, the application shall contain the names and complete
business and residential addresses of each member, director and principal
officer of such entity. Such application shall also include a description
of the activities of the applicant, in such detail and for such periods
as the director may require, including all of the following:

(1) An affirmation of financial solvency noting such capitalization
requirements as may be required by the director, and access to such
credit as may be required by the director;

(2) An affirmation that the applicant or the applicant's members,
directors or principals, as may be appropriate, are at least eighteen
years of age;

(3) Information as to the character, fitness, financial and business
responsibility, background, experience and criminal records of any:

(a) Person, entity or ultimate equitable owner that owns or controls,
directly or indirectly, ten percent or more of any class of stock of the
applicant;

(b) Person, entity or ultimate equitable owner that is not a depository
institution that lends, provides or infuses, directly or indirectly, in
any way, funds to or into an applicant, in an amount equal to, or more
than, ten percent of the applicant's net worth;

(c) Person, entity or ultimate equitable owner that controls, directly or
indirectly, the election of twenty-five percent or more of the members of
the board of directors of the applicant; and

(d) Person, entity or ultimate equitable owner that the director finds
influences management of the applicant. (L. 1994 S.B. 718 § 7, A.L. 1995
H.B. 63, et al., A.L. 2001 S.B. 538)

Each application shall be accompanied by an averment that the
applicant:

(1) Will maintain at least one full-service office within the state of
Missouri as provided in section 443.857;

(2) Will maintain staff reasonably adequate to meet the requirements of
section 443.857;

(3) Will keep and maintain for thirty-six months the same written records
as required by the federal Equal Credit Opportunity Act, 15 U.S.C. 1691,
et seq., and any other information required by rules of the director;

(4) Will timely file any report required pursuant to sections 443.800 to
443.893;

(5) Will not engage, whether as principal or agent, in the practice of
rejecting residential mortgage applications or varying terms or
application procedures without reasonable cause, on real estate within
any specific geographic area from the terms or procedures generally
provided by the licensee within other geographic areas of the state;

(6) Will not engage in fraudulent home mortgage underwriting practices;

(7) Will not make payments, whether directly or indirectly, of any kind
to any in-house or fee appraiser of any government or private money
lending agency with which an application for a home mortgage has been
filed for the purpose of influencing the independent judgment of the
appraiser with respect to the value of any real estate which is to be
covered by such home mortgage;

(8) Has filed tax returns, both state and federal, for the past three
years or filed with the director a personal, an accountant's or
attorney's statement as to why no return was filed;

(9) Will not engage in any activities prohibited by section 443.863;

(10) Will not knowingly misrepresent, circumvent or conceal any material
particulars regarding a transaction to which the applicant is a party;

(11) Will disburse funds in accordance with the applicant's agreements
through a licensed and bonded disbursing agent or licensed real estate
broker;

(12) Has not committed any crime against the laws of this state, or any
other state or of the United States, involving moral turpitude,
fraudulent or dishonest dealings and that no final judgment has been
entered against the applicant in a civil action upon grounds of fraud,
misrepresentation or deceit which has not been previously reported to the
director;

(13) Will account for and deliver to any person any personal property,
including, but not limited to, money, funds, deposits, checks, drafts,
mortgages or any other thing of value, which has come into the
applicant's possession and which is not the applicant's property or which
the applicant is not in law or equity entitled to retain under the
circumstances, at the time which has been agreed upon or is required by
law, or, in the absence of a fixed time, upon demand of the person
entitled to such accounting and delivery;

(14) Has not engaged in any conduct which would be cause for denial of a
license;

(15) Has not become insolvent;

(16) Has not submitted an application which contains a material
misstatement;

(17) Has not demonstrated negligence or incompetence in the performance
of any activity required to hold a license under sections 443.800 to
443.893;

(18) Will advise the director in writing of any changes to the
information submitted on the most recent application for license within
forty-five days of such change. The written notice must be signed in the
same form as the application for the license being amended;

(19) Will comply with the provisions of sections 443.800 to 443.893, or
with any lawful order or rule made thereunder;

(20) When probable cause exists, will submit to periodic examinations by
the director as required by sections 443.800 to 443.893; and

(21) Will advise the director in writing of any judgments entered
against, and bankruptcy petitions by, the license applicant within five
days of the occurrence of the judgment or petition. (L. 1994 S.B. 718 §
8, A.L. 1995 H.B. 63, et al., A.L. 2001 S.B. 538)

The director shall refuse to license or renew a license if:

(1) It is determined that the applicant is not in compliance with any
provision of sections 443.800 to 443.893;

(2) There is substantial continuity between the applicant and any
violator of any provision of sections 443.800 to 443.893; or

(3) The director cannot make the findings specified in section 443.821.
(L. 1994 S.B. 718 § 9, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. Licenses shall be renewed on the first anniversary of the
date of issuance and every two years thereafter. Renewal application
forms and fees shall be submitted to the director at least sixty days
before the renewal date.

2. The director shall send notice at least ninety days before the
licensee's renewal date, but failure to send or receive such notice is no
defense for failure to timely renew, except when an extension for good
cause is granted by the director. If the director does not grant an
extension and the licensee fails to submit a completed renewal
application form and the proper fees in a timely manner, the director may
assess additional fees as follows:

(1) A fee of five hundred dollars shall be assessed the licensee thirty
days after the proper renewal date, and one thousand dollars each month
thereafter, until the license is either renewed or expires pursuant to
subsections 3 and 4 of this section;

(2) Such fee shall be assessed without prior notice to the licensee, but
shall be assessed only in cases where the director possesses
documentation of the licensee's continuing activity for which the
unrenewed license was issued.

3. A license which is not renewed by the date required in this section
shall automatically become inactive. No activity regulated by sections
443.800 to 443.893 shall be conducted by the licensee when a license
becomes inactive. An inactive license may be reactivated by filing a
completed reactivation application with the director, payment of the
renewal fee, and payment of a reactivation fee equal to the renewal fee.

4. A license which is not renewed within one year of becoming inactive
shall expire. (L. 1994 S.B. 718 § 10 subsecs. 1 to 4, A.L. 1995 H.B. 63,
et al., A.L. 2001 S.B. 538)

A licensee ceasing an activity or activities regulated by
sections 443.800 to 443.893 and desiring to no longer be licensed shall
so inform the director in writing and, at the same time, return the
license and all other symbols or indicia of licensure to the director.
The licensee shall include a plan for the withdrawal from a business
regulated by sections 443.800 to 443.893, including a timetable for the
disposition of the business. Upon receipt of such written notice, the
director shall issue a certified statement canceling the license. (L.
1994 S.B. 718 § 10 subsec. 5, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. The director may waive the licensing fee upon receipt of:

(1) An application for a residential mortgage license in Missouri;

(2) An addendum requesting waiver of the fee stating the grounds in
support of such waiver, including, but not limited to, not-for-profit
status, or the showing of undue hardship; and

(3) In the case of out-of-state servicer of loans in Missouri, the
following documentation shall be required;

(a) A verification that the firm services only twenty-five or fewer loans
secured by residential real estate situated in Missouri; except that, any
out-of-state servicer located in the metropolitan area of the city of St.
Louis and any city with at least three hundred fifty thousand inhabitants
which is located in more than one county may service more than
twenty-five loans provided that such servicer meets all the requirements
for licensing provided for businesses located in Missouri, except the
provision for a full-service office located in Missouri;

(b) An agreement not to originate, purchase or acquire additional
servicing of loans secured by residential real estate situated in
Missouri;

(c) An agreement to maintain a dedicated toll-free telephone number for
the exclusive use by the licensee's Missouri customers;

(d) An agreement to provide a written notice, at least annually, to the
licensee's Missouri customers advising them of the dedicated toll-free
telephone number and to furnish the director with a copy of such written
notice.

2. In order for a licensee to be granted a waiver pursuant to subsection
1 of this section, a request for a waiver of the filing fee shall be
submitted each year along with any other required license renewal
procedures. (L. 1994 S.B. 718 § 11, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. A licensee may apply for authority to open and maintain
additional offices by:

(1) Giving the director prior notice of the licensee's intention in such
form as prescribed by the director;

(2) Paying a fee to be established by the director by administrative rule.

2. Upon receipt of the notice and fee required by subsection 1 of this
section, the director shall issue a certificate for the additional
office. The certificate shall be conspicuously displayed in the
respective additional office. (L. 1994 S.B. 718 § 12, A.L. 1995 H.B. 63,
et al., A.L. 2001 S.B. 538)

The license shall be conspicuously displayed in every Missouri
office. The license shall state the full name and address of the
licensee. The license shall not be transferable or assignable. A separate
certificate shall be issued for display in each Missouri office. (L. 1994
S.B. 718 § 13, A.L. 2001 S.B. 538)

1. The expenses of administering sections 443.800 to 443.893,
including investigations and examinations provided for in sections
443.800 to 443.893 shall be borne by and assessed against entities
regulated by sections 443.800 to 443.893. The director shall establish
fees by regulation in at least the following categories:

(1) Application fees;

(2) Investigation of license applicant fees;

(3) Examination fees;

(4) Contingent fees; and

(5) Such other categories as may be required to administer sections
443.800 to 443.893.

2. In addition to any fees collected pursuant to sections 443.800 to
443.893, the director shall by rules and regulations establish schedules
to apply to the assessment and collection of any necessary contingent or
miscellaneous fees. Any fees established pursuant to the authority of
sections 443.800 to 443.893 shall be set at an amount to produce revenue
which will not substantially exceed the cost of administering sections
443.800 to 443.893. (L. 1994 S.B. 718 § 14 subsecs. 1, 2, A.L. 1995 H.B.
63, et al.)

Effective 6-13-95

1. There is hereby created in the state treasury the
"Residential Mortgage Licensing Fund" which shall be used, upon
appropriation by the general assembly, for all costs incurred by the
director in administering the provisions of sections 443.800 to 443.893.
The director shall transmit all fees received pursuant to sections
443.800 to 443.893 to the director of revenue for deposit in an
interest-bearing account in the state treasury to the credit of the
residential mortgage licensing fund. Any interest earned on the money in
this fund shall be credited to the residential mortgage licensing fund.

2. Notwithstanding the provisions of section 33.080, RSMo, to the
contrary, money in this fund shall not be transferred and placed to the
credit of general revenue until the amount in the fund at the end of the
biennium exceeds three times the amount of the appropriations from the
residential mortgage licensing fund for the preceding fiscal year. The
amount, if any, in the fund which shall lapse is that amount in the fund
which exceeds the appropriate multiple of the appropriations from the
residential mortgage licensing fund for the preceding fiscal years. (L.
1994 S.B. 718 § 14 subsecs. 3, 4, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

No rule or portion of a rule promulgated under the authority of
sections 443.800 to 443.893 shall become effective unless it has been
promulgated pursuant to the provisions of section 536.024, RSMo. (L. 1994
S.B. 718 § 15, A.L. 1995 S.B. 3)

A corporate surety bond in the principal sum of twenty thousand
dollars shall accompany each application for a license. The bond shall be
in a* form satisfactory to the director and shall be issued by a bonding
company or insurance company authorized to do business in this state, to
secure the faithful performance of the obligations of the applicant and
the agents and subagents of the applicant in connection with the
activities of originating, servicing or acquiring mortgage loans. An
applicant or licensee may, in lieu of filing the bond required pursuant
to this section, provide the director with a twenty thousand dollar
irrevocable letter of credit, as defined in section 400.5-103, RSMo,
issued by any financial institution. (L. 1994 S.B. 718 § 16, A.L. 1995
H.B. 63, et al., A.L. 2001 S.B. 538)

*Word "a" does not appear in original rolls.

1. At the end of the licensee's fiscal year, but in no case more
than twelve months after the last audit conducted pursuant to this
section and section 443.853, each licensee shall cause the licensee's
books and accounts to be audited by a certified public accountant not
connected with such licensee. The books and records of all licensees
shall be maintained on an accrual basis. The audit shall be sufficiently
comprehensive in scope to permit the expression of an opinion on the
financial statements in the report and must be performed in accordance
with generally accepted accounting principles and generally accepted
auditing standards.

2. As used in this section and section 443.853, the term "expression of
opinion" includes either:

(1) An unqualified opinion;

(2) A qualified opinion;

(3) A disclaimer of opinion; or

(4) An adverse opinion.

3. If a qualified or adverse opinion is expressed or if an opinion is
disclaimed, the reasons therefor shall be fully explained. An opinion,
qualified as to a scope limitation, shall not be acceptable.

4. The audit report shall be filed with the director within one hundred
twenty days of the audit date. The report filed with the director shall
be certified by the certified public accountant conducting the audit. The
director may promulgate rules regarding late audit reports.

5. As an alternative to the audit requirements of subsections 1 to 4 of
this section, a licensee may meet the requirements of this section
without filing an audit report by posting and maintaining a corporate
surety bond, in addition to that described in section 443.849, in the
amount of one hundred thousand dollars. The bond shall be in form
specified by and satisfactory to the director and payable to the director
and shall be issued by a bonding company or insurance company authorized
to do business in this state, to secure the faithful performance of the
obligations of the licensee, its agents and subagents in connection with
the activities of originating, servicing or acquiring mortgage loans. A
licensee may, in lieu of this bond, provide the director with a one
hundred thousand dollar irrevocable letter of credit, as defined in
section 400.5- 103, RSMo, issued by any financial institution. (L. 1994
S.B. 718 § 17 subsecs. 1 to 4, A.L. 1995 H.B. 63, et al., A.L. 2001 S.B.
179 merged with S.B. 538)

1. If any licensee required to make an audit fails to cause an
audit to be made, the director shall cause the audit to be made by a
certified public accountant at the licensee's expense. The director shall
select such certified public accountant by advertising for bids or by
such other fair and impartial means as the director establishes by
regulation.

2. In lieu of an audit required by this section and section 443.851, the
director may accept any audit made in conformance with the audit
requirements of the United States Department of Housing and Urban
Development.

3. The workpapers of the certified public accountants employed by each
licensee for purposes of conducting audits required by this section and
section 443.851 are to be made available to the director or the
director's designee upon request and may be reproduced by the director or
the director's designee to enable the director to carry out the purposes
of sections 443.800 to 443.893. (L. 1994 S.B. 718 § 17 subsecs. 5, 6, 7,
A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

In addition to such other rules the director may promulgate to
effectuate sections 443.800 to 443.893, the director shall prescribe
rules governing the advertising of mortgage loans, including, without
limitation, the following requirements:

(1) Advertising for loans transacted pursuant to the requirements of
sections 443.800 to 443.893 may not be false, misleading or deceptive. No
person whose activities are regulated pursuant to the provisions of
sections 443.800 to 443.893 may advertise in any manner so as to indicate
or imply that the person's interest rates or charges for loans are in any
way recommended, approved, set or established by the state or by the
provisions of sections 443.800 to 443.893;

(2) All advertisements by a licensee shall contain the name and an office
address of such entity, which shall conform to a name and address on
record with the director. (L. 1994 S.B. 718 § 18, A.L. 1995 H.B. 63, et
al., A.L. 2001 S.B. 538)

Each licensee shall maintain, in the state of Missouri, at least
one full-service office with staff reasonably adequate to efficiently
handle all matters relating to any proposed or existing home mortgage
with respect to which such licensee is performing services. (L. 1994 S.B.
718 § 19, A.L. 2001 S.B. 538)

Effective May 21, 1998, every licensee shall have and maintain a
net worth of not less than twenty-five thousand dollars. The director may
promulgate rules with respect to net worth definitions and requirements
for licensees as necessary to accomplish the purposes of sections 443.800
to 443.893. In lieu of the net worth requirement established by this
section, the director may accept evidence of conformance by the licensee
with the net worth requirements of the United States Department of
Housing and Urban Development. (L. 1994 S.B. 718 § 20, A.L. 1995 H.B. 63,
et al., A.L. 2001 S.B. 538)

Whenever the serving of a residential mortgage is transferred or
sold by a licensee, notice shall be given to the mortgagor simultaneously
with such transfer and shall include, at the minimum, where and to whom
to address the mortgagor's questions relating to the residential
mortgage, the exact name, address and telephone number to whom at least
the next three months' payments are to be submitted and the total amount
required of the mortgagor by the servicer for each of the months referred
to in the notice. (L. 1994 S.B. 718 § 21)

It is unlawful discrimination to refuse loans or to vary the
terms of loans or the application procedures for loans because of:

(1) The borrower's race, color, religion, national origin, age, gender or
marital status; or

(2) The geographic location of the proposed security. (L. 1994 S.B. 718 §
22, A.L. 2001 S.B. 538)

The director may promulgate rules with respect to placement in
escrow accounts by any licensee of any money, funds, deposits, checks or
drafts entrusted to the licensee by any person dealing with the licensee
as a residential mortgage licensee. (L. 1994 S.B. 718 § 23, A.L. 1995
H.B. 63, et al.)

Effective 6-13-95

At the time of application, each residential mortgage licensee
which is a broker shall disclose, within the loan brokerage disclosure
statement, that:

(1) The licensee does not make loans; and

(2) The funds are provided by another person which may affect
availability of funds. (L. 1994 S.B. 718 § 24, A.L. 2001 S.B. 538)

1. The functions, powers and duties of the director shall
include the following:

(1) To issue or refuse to issue any license as provided in sections
443.800 to 443.893;

(2) To revoke or suspend for cause any license issued pursuant to
sections 443.800 to 443.893;

(3) To keep records of all licenses issued pursuant to sections 443.800
to 443.893;

(4) To receive, consider, investigate and act upon complaints made by any
person in connection with any residential mortgage licensee in this state;

(5) To consider and act upon any recommendations from the residential
mortgage board;

(6) To prescribe the forms of and receive:

(a) Applications for licenses; and

(b) All reports and all books and records required to be made by any
residential mortgage licensee pursuant to the provisions of sections
443.800 to 443.893, including annual audited financial statements;

(7) To adopt rules necessary and proper for the administration of
sections 443.800 to 443.893;

(8) To subpoena documents and witnesses and compel their attendance and
production, to administer oaths and to require the production of any
books, papers or other material relevant to any inquiry authorized by
sections 443.800 to 443.893;

(9) To require information with regard to any applicant as the director
may deem desirable, with due regard to the paramount interests of the
public, about the experience, background, honesty, truthfulness,
integrity and competency of the applicant concerning financial
transactions involving primary or subordinate mortgage financing and
where the applicant is an entity other than an individual, as to the
honesty, truthfulness, integrity and competency of any officer or
director of the corporation, association or other entity or the members
of a partnership;

(10) To examine the books and records of every licensee at intervals as
provided by sections 443.800 to 443.893 and the rules promulgated
thereunder;

(11) To enforce the provisions of sections 443.800 to 443.893;

(12) To levy fees and charges for services performed in administering the
provisions of sections 443.800 to 443.893. The aggregate of all fees
collected by the director shall be deposited promptly after receipt and
accompanied by a detailed statement of such receipts in the residential
mortgage licensing fund;

(13) To appoint a staff which may include an executive director,
examiners, supervisors, experts, special assistants and any necessary
support staff as needed to effectively and efficiently administer the
provisions of sections 443.800 to 443.893; and

(14) To conduct hearings for such purposes as the director deems
appropriate.

2. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
section shall become effective only if it complies with and is subject to
all of the provisions of chapter 536, RSMo, and, if applicable, section
536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and
if any of the powers vested with the general assembly pursuant to chapter
536, RSMo, to review, to delay the effective date or to disapprove and
annul a rule are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after August 28,
2001, shall be invalid and void. (L. 1994 S.B. 718 § 25, A.L. 1995 H.B.
63, et al., A.L. 2001 S.B. 538)

The director may issue and serve subpoenas and subpoenas duces
tecum to compel the attendance of witnesses and the production of all
books, accounts, records and other documents and materials relevant to an
examination or investigation. The director or the director's duly
authorized representative may administer oaths and affirmations to any
person. (L. 1994 S.B. 718 § 26 subsec. 1, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

If any person does not comply with a subpoena or subpoena duces
tecum issued or caused to be issued by the director, the director may
petition the circuit court of the county in which the person subpoenaed
resides or has the person's principal place of business for an order
requiring the subpoenaed person to appear and testify and to produce such
books, accounts, records and other documents as are specified in the
subpoena duces tecum. The court may grant injunctive relief restraining
the person from advertising, promoting, soliciting, entering into,
offering to enter into, continuing, or completing any residential
mortgage financing transaction or residential mortgage servicing
transaction. The court may grant such other relief, including, but not
limited to, the restraint, by injunction or appointment of a receiver, of
any transfer, pledge, assignment or other disposition of the person's
assets or any concealment, alteration, destruction or other disposition
of books, accounts, records or other documents and materials as the court
deems appropriate, until the person has fully complied with the subpoena
or subpoena duces tecum and the director has completed an investigation
or examination. (L. 1994 S.B. 718 § 26 subsec. 2, A.L. 1995 H.B. 63, et
al.)

Effective 6-13-95

When it appears to the director that the compliance with a
subpoena or subpoena duces tecum issued or caused to be issued by the
director pursuant to sections 443.871 to 443.877 is essential to an
investigation or examination, the director, in addition to the other
remedies provided for in sections 443.871 to 443.877, may apply for
relief to the circuit court of the county in which the subpoenaed person
resides or has the person's principal place of business. The court shall
thereupon direct the issuance of an order against the subpoenaed person
requiring sufficient bond conditioned on compliance with the subpoena or
subpoena duces tecum. The court shall cause to be endorsed on the order a
suitable amount of bond or payment pursuant to which the person named in
the order shall be freed, having a due regard to the nature of the case.
(L. 1994 S.B. 718 § 26 subsec. 3, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

In addition to the other provisions of sections 443.871 to
443.877, the director may seek a writ of attachment or an equivalent
order from the circuit court having jurisdiction over the person who has
refused to obey a subpoena, who has refused to give testimony or who has
refused to produce the material described in the subpoena duces tecum.
(L. 1994 S.B. 718 § 26 subsec. 4, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. In addition to any reports required pursuant to sections
443.800 to 443.893, every licensee shall file such other reports as the
director shall request.

2. Any licensee or any officer, director, employee or agent of any
licensee who fails to file any reports required by sections 443.800 to
443.893 or who shall deliberately, willfully or knowingly make, subscribe
to or cause to be made any false entry with intent to deceive the
director or the director's appointees or who shall purposely cause delay
in filing such reports shall be deemed guilty of a class A misdemeanor.
(L. 1994 S.B. 718 § 27, A.L. 1995 H.B. 63, et al., A.L. 2001 S.B. 538)

1. Upon written notice to a licensee, the director may suspend
or revoke any license issued pursuant to sections 443.800 to 443.893 if
the director makes a finding of one or more of the following in the
notice that:

(1) Through separate acts or an act or a course of conduct, the licensee
has violated any provision of sections 443.800 to 443.893, any rule
promulgated by the director or any other law or rule of this state or the
United States;

(2) Any fact or condition exists which, if it had existed at the time of
the original application for such license would have warranted the
director in refusing originally to issue such license;

(3) If a licensee is other than an individual, any ultimate equitable
owner, officer, director or member of the licensed partnership,
association, corporation or other entity has so acted or failed to act as
would be cause for suspending or revoking a license to that party as an
individual.

2. No license shall be suspended or revoked, except as provided in this
section, nor shall any licensee be subject to any other disciplinary
proceeding without notice of the licensee's right to a hearing as
provided in sections 443.800 to 443.893.

3. The director, on good cause shown that an emergency exists, may
suspend any license for a period not to exceed thirty days, pending an
investigation.

4. The provisions of section 443.835 shall not affect a residential
mortgage licensee's civil or criminal liability for acts committed before
such licensee surrenders the license.

5. No revocation, suspension or surrender of any license shall impair or
affect the obligation of any preexisting lawful contract between the
licensee and any person.

6. Every license issued pursuant to sections 443.800 to 443.893 shall
remain in force and effect until the license has expired without renewal,
has been surrendered, revoked or suspended in accordance with the
provisions of sections 443.800 to 443.893, except that, the director may
reinstate a suspended license or issue a new license to a licensee whose
license has been revoked if no fact or condition exists which would have
warranted the director to refuse originally to issue such license
pursuant to sections 443.800 to 443.893.

7. Whenever the director revokes or suspends a license issued pursuant to
sections 443.800 to 443.893, the director shall execute in duplicate a
written order to that effect. The director shall publish notice of such
order in a newspaper of general circulation in the county in which the
residential mortgage licensee's business is located and shall serve a
copy of such order upon the licensee. Such order may be reviewed by the
board.

8. When the director finds any person in violation of the grounds
provided in subsection 9 of this section, the director may enter an order
imposing one or more of the following disciplinary actions:

(1) Revocation of the license;

(2) Suspension of the license subject to reinstatement upon satisfying
all reasonable conditions the director may specify;

(3) Placement of the licensee on probation for a period of time and
subject to any reasonable conditions as the director may specify;

(4) Issuance of a reprimand; and

(5) Denial of a license.

9. The following acts shall constitute grounds for which the disciplinary
actions specified in subsection 8 of this section may be taken:

(1) Being convicted or found guilty, regardless of pendency of an appeal,
of a crime in any jurisdiction which involves fraud, dishonest dealings,
or any other act involving moral turpitude;

(2) Fraud, misrepresentation, deceit or negligence in any mortgage
financing transaction;

(3) A material or intentional misstatement of fact on an initial or
renewal application;

(4) Failure to follow the director's rules with respect to placement of
funds in escrow accounts;

(5) Insolvency or filing under any provision of the United States
Bankruptcy Code as a debtor;

(6) Failure to account or deliver to any person any property such as any
money, funds, deposits, checks, drafts, mortgages or any other documents
or things of value, which has come into the licensee's possession and
which is not the person's property or which the licensee is not in law or
equity entitled to retain, under the circumstances and at the time which
has been agreed upon or is required by law or, in the absence of a fixed
time, upon demand of the person entitled to such accounting and delivery;

(7) Failure to disburse funds in accordance with agreements;

(8) Any misuse, misapplication or misappropriation of trust funds or
escrow funds;

(9) Having a license, or the equivalent, to practice any profession or
occupation revoked, suspended or otherwise acted against, including the
denial of licensure by a licensing authority of this state or another
state, territory or country for fraud, dishonest dealings or any other
act involving moral turpitude;

(10) Failure to issue a satisfaction of mortgage when the mortgage has
been executed and proceeds were not disbursed to the benefit of the
mortgagor and when the mortgagor has fully paid the licensee's costs and
commission;

(11) Failure to comply with any order of the director or rule made or
issued pursuant to the provisions of sections 443.800 to 443.893;

(12) Engaging in activities regulated by sections 443.800 to 443.893
without a current, active license unless specifically exempted by the
provisions of sections 443.800 to 443.893;

(13) Failure to pay timely any fee or charge due under the provisions of
sections 443.800 to 443.893;

(14) Failure to maintain, preserve and keep available for examination,
all books, accounts or other documents required by the provisions of
sections 443.800 to 443.893 and the rules of the director;

(15) Refusal to permit an investigation or examination of the licensee's
or the licensee's affiliates' books and records or refusal to comply with
the director's subpoena or subpoena duces tecum;

(16) A pattern of substantially underestimating closing costs;

(17) Failure to comply with, or any violation of, any provision of
sections 443.800 to 443.893.

10. A licensee shall be subject to the disciplinary actions specified in
sections 443.800 to 443.893 for a violation of subsection 9 of this
section by any officer, director, shareholder, joint venture, partner,
ultimate equitable owner or employee of the licensee.

11. Such licensee shall be subject to suspension or revocation for
employee actions only if there is a pattern of repeated violations by an
employee or employees or the licensee has knowledge of the violation.

12. The procedures for the surrender of a license shall be:

(1) The director may, after ten days' notice by certified mail to the
licensee at the address set forth on the license, stating the
contemplated action and, in general, the grounds for such action and the
date, time and place of a hearing on the action, and after providing the
licensee with a reasonable opportunity to be heard prior to such action,
revoke or suspend any license issued pursuant to sections 443.800 to
443.893 if the director finds that:

(a) The licensee has failed to comply with any provision of sections
443.800 to 443.893 or any order, decision, finding, rule or direction of
the director lawfully made pursuant to the authority of sections 443.800
to 443.893; or

(b) Any fact or condition exists which, if it had existed at the time of
the original application for the license, clearly would have warranted
the director to refuse to issue the license;

(2) Any licensee may surrender a license by delivering to the director
written notice that the licensee thereby surrenders such license, but
surrender shall not affect the licensee's civil or criminal liability for
acts committed prior to surrender or entitle the licensee to a return of
any part of the license fee. (L. 1994 S.B. 718 § 28, A.L. 1995 H.B. 63,
et al., A.L. 2001 S.B. 538)

The director shall at all times maintain staff and facilities
adequate to receive, record and investigate complaints and inquiries made
by any person concerning sections 443.800 to 443.893 and any licensees
licensed pursuant to the provisions of sections 443.800 to 443.893. Each
licensee shall open the licensee's books, records, documents and offices
wherever situated to the director or the director's appointees as needed
to facilitate such investigations. (L. 1994 S.B. 718 § 29, A.L. 1995 H.B.
63, et al.)

Effective 6-13-95

On or before March first of each year, each licensee, except
those exempt entities provided for in subsection 8 of section 443.803,
shall file a report with the director which shall disclose the following
information with respect to the immediately preceding calendar year:

(1) A list of home mortgages granted, issued, originated or closed during
the report period, with respect to which such licensee has had any
connection. The list shall show for each census tract, in regions where
such census tracts have been established and by zip code in all other
regions, the number and aggregate dollar amount of applications for and
the number granted and aggregate dollar amount of:

(a) Conventional mortgage loans;

(b) Mortgage loans insured under the National Housing Act, 12 U.S.C.
1701, et seq.; and

(c) Mortgage loans guaranteed under the provisions of the Federal
Veterans' Benefits Act, 38 U.S.C. 3710 et seq.;

(2) List by zip code in those areas having no census tract:

(a) The total number of home mortgages on real estate situated in this
state with respect to which the licensee has had any connection and which
are in default on the last day of the reporting period; and

(b) The total number of claims paid during the reporting period on home
mortgages with respect to which the licensee has had any connection,
including the date of the first default thereon and the date each such
foreclosure proceeding was instituted;

(3) If the director finds that another report that the licensee is
required to compile is equivalent to the annual report of mortgage
activity, then the director may accept such report as fulfilling the
reporting requirements of this section;

(4) The director may also require by rule that licensees report such
additional information as is necessary to assure strict compliance with
the provisions of sections 443.800 to 443.893. (L. 1994 S.B. 718 § 30,
A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. In addition to such other powers as may be prescribed by
sections 443.800 to 443.893, the director may promulgate rules consistent
with the purpose of sections 443.800 to 443.893, including, but not
limited to:

(1) Such rules in connection with the activities of licensees as may be
necessary and appropriate for the protection of consumers in this state;

(2) Such rules as may be necessary and appropriate to define improper or
fraudulent business practices in connection with the activities of
licensees;

(3) Such rules as may define the terms used in sections 443.800 to
443.893 and as may be necessary and appropriate to interpret and
implement the provisions of sections 443.800 to 443.893; and

(4) Such rules as may be necessary for the enforcement of sections
443.800 to 443.893.

2. The director may make such specific ruling, demands and findings as
the director may deem necessary for the proper conduct of the mortgage
lending industry. (L. 1994 S.B. 718 § 31, A.L. 1995 H.B. 63, et al., A.L.
2001 S.B. 538)

Unless exempt from licensure pursuant to the provisions of
sections 443.800 to 443.893, no person engaged in, or offering to engage
in, any act or service for which a license is required pursuant to the
provisions of sections 443.800 to 443.893 may bring or maintain any
action in any court of this state to collect compensation for the
performance of the licensable services without alleging and proving that
the person was the holder of a valid residential mortgage license issued
pursuant to the provisions of sections 443.800 to 443.893 at all times
during the performance of such services. (L. 1994 S.B. 718 § 32)

Upon making any one or more of the following findings, the
director may issue a notice of intent to issue an order of removal or
prohibition, or an order of removal and prohibition, which order may
remove a named person, persons or entity or entities from participating
in the affairs of one or more licensees and may be permanent or for a
specific shorter period of time. The findings required by this section
may be any one or more of the following:

(1) A finding that the part or entity subject to the order has been
convicted of a crime involving material financial loss to a licensee, a
federally insured depository institution, a government-sponsored
enterprise, a Federal Home Loan Bank, a Federal Reserve Bank or any other
person;

(2) A finding that the person or entity subject to the order has
submitted, or caused to be submitted, any document that contains multiple
willful and material misstatements of facts and includes the signature of
the person or entity specified in the director's order or that is
notarized, certified, verified or is in any other way attested to as to
the document's veracity. An application for licensure or license renewal
may be considered such a document. (L. 1994 S.B. 718 § 33, A.L. 1995 H.B.
63, et al.)

Effective 6-13-95

When the director makes a finding that a receivership or
conservatorship is necessary to protect consumers of a licensee from the
consequences of the licensee's failure to comply with the provisions of
sections 443.800 to 443.893 or other unsafe and unsound practice, the
director shall request the attorney general of this state to petition the
circuit court of Cole County or of the county in which the licensee is
located to appoint a receiver or conservator for purposes of protecting
consumers and resolving the affairs of the licensee. (L. 1994 S.B. 718 §
34, A.L. 1995 H.B. 63, et al.)

Effective 6-13-95

1. Sections 443.901 to 443.912 shall be known and be cited as
the "Missouri Reverse Mortgage Act".

2. For the purposes of sections 443.901 to 443.912 the following terms
mean:

(1) "Authorized lender" or "lender", a lender authorized to engage in
business as a bank, savings institution or credit union under the laws of
the United States or this state, residential mortgage licensee who is
licensed pursuant to sections 443.800 to 443.893 or entity that is an
exempt entity pursuant to sections 443.800 to 443.893;

(2) "Brokered", the act of helping to obtain for an investor or other
entity, or from an investor or other entity, for a borrower, a
residential mortgage loan, including a reverse mortgage loan;

(3) "Originated", advertised, solicited, processed, for which a loan
application is taken, or which is closed, committed for, or funded;

(4) "Principal" as it relates to reverse mortgages, the total of the net
amount paid to, receivable by, contracted for, or paid, or payable, for
the account of the borrower, and to the extent payment is deferred,
additional charges permitted by sections 443.901 to 443.912;

(5) "Reverse mortgage loan", a loan originated, made or brokered by an
authorized lender which:

(a) Is secured by residential real estate property;

(b) Provides cash advances to the borrower based upon the equity in the
borrower's owner-occupied principal residence;

(c) Requires no payment of principal or interest until the entire loan
becomes due and payable; and

(d) Otherwise complies with the terms of sections 443.901 to 443.912. (L.
1995 H.B. 63, et al. § 1)

Notwithstanding any other provisions of law to the contrary,
reverse mortgage loans shall be governed by the following:

(1) Payment in whole or in part is permitted without penalty at any time
during the period of the loan;

(2) An advance made under a reverse mortgage and interest on the advances
have priority over a lien filed after the closing of a reverse mortgage
loan;

(3) A reverse mortgage loan may provide for an interest rate which is
fixed or adjustable and may also provide for interest that is contingent
on appreciation in the value of the property;

(4) If a reverse mortgage loan provides for periodic advances to a
borrower, the advances may not be reduced in amount or number based on an
adjustment in the interest rate;

(5) Lenders failing to make loan advances as required in the loan
agreement and failing to cure the default as required in the loan
agreement shall forfeit an amount equal to the greater of two hundred
dollars or one percent of the amount of the loan advance the lender
failed to make;

(6) The repayment requirement is also expressly subject to the following
additional conditions:

(a) Temporary absences from the home not to exceed sixty consecutive days
do not cause the mortgage to become due and payable;

(b) Temporary absences from the home exceeding sixty consecutive days,
but less than six months, do not cause the mortgage to become due and
payable so long as the borrower has taken prior action which secures the
home in a satisfactory manner;

(c) The lender's right to collect reverse mortgage loan proceeds is
subject to the applicable statute of limitations for loan contracts.
Notwithstanding the applicable statute of limitations for loan contracts,
the statute of limitations commences on the date that the mortgage
becomes due and payable;

(d) The lender must prominently disclose any interest or other fees to be
charged during the period that commences on the date that the mortgage
becomes due and payable and ends when repayment in full is made;

(7) The following fees and charges may be charged to the borrower, and
financed by the lender, in connection with a reverse mortgage loan,
except for loans insured or guaranteed by agencies of the federal
government in which case federal law or regulation shall apply:

(a) A nonrefundable origination fee not to exceed two percent of the
principal;

(b) Fees and charges prescribed by law actually and necessarily paid to
public officials for perfecting, releasing or satisfying a security
interest related to the reverse mortgage loan;

(c) Recording taxes to perfect documents;

(d) Bona fide closing costs paid to third parties, which shall include:

a. Fees or premiums for title examination, title insurance or similar
purposes, including surveys;

b. Fees for preparation of a deed, settlement statement or other
documents;

c. Fees for notarizing deeds and other documents;

d. Appraisal fees; and

e. Fees for credit reports;

(e) A charge for insurance against loss of, or damage to, property where
no such coverage already exists;

(f) Fixed monthly servicing fees, repair administration fees and payment
plan change fees;

(8) As a convenience to the borrower, reverse mortgage loan applications
may be taken by the lender over the telephone or at the borrower's home
and reverse mortgage loans may be closed by mail or at a title company's
office. (L. 1995 H.B. 63, et al. § 2, A.L. 1997 H.B. 633)

Effective 6-4-97

Reverse mortgage loans may be made or acquired without regard to
the following provisions for other types of mortgage transactions:

(1) Limitations on the purpose and use of future advances or any other
mortgage proceeds;

(2) Limitations on future advances to a term of years, or limitations on
the term of credit line advances;

(3) Limitations on the term during which future advances take priority
over intervening advances;

(4) Requirements that a maximum mortgage amount be stated in the mortgage;

(5) Prohibitions on balloon payments;

(6) Prohibitions on compound interest;

(7) Interest rate limits under the usury statutes;

(8) Requirements that a percentage of the loan proceeds must be advanced
prior to loan assignment. (L. 1995 H.B. 63, et al. § 3)

Reverse mortgage loan payments made to a borrower shall be
treated as proceeds from a loan and not as income for the purpose of
determining eligibility and benefits under means-tested programs of aid
to individuals:

(1) Undisbursed funds shall be treated as equity in a borrower's home and
not as proceeds from a loan for the purpose of determining eligibility
and benefits under means-tested programs of aid to individuals;

(2) This section applies to any law relating to payments, allowances,
benefits or services provided on a means-tested basis by this state,
including, but not limited to, supplemental security income, low-income
energy assistance, property tax relief, medical assistance and general
assistance. (L. 1995 H.B. 63, et al. § 4)

No reverse mortgage loan commitment may be made by a lender
unless the loan applicant attests in writing that the applicant received
from the lender at the time of initial inquiry a statement regarding the
advisability and availability of independent information and counseling
services on reverse mortgages. Such statement may be in a form developed
by the lender or the division of finance. (L. 1995 H.B. 63, et al. § 5)

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