Missouri Statute | Act | Code |Trade And Commerce| US Code - US Statute

The silver coins of the United States are hereby declared a
legal tender, at their par value, fixed by the laws of the United States,
and shall be receivable in payment of all debts, public or private,
hereafter contracted in the state of Missouri; provided, however, that no
person shall have the right to pay, upon any one debt, dimes and half
dimes to an amount exceeding ten dollars, or of twenty and twenty-five
cent pieces exceeding twenty dollars. (RSMo 1939 § 3359)

Prior revisions: 1929 § 2972; 1919 § 7100; 1909 § 8099

As used in sections 408.020 to 408.562:

(1) "Bank" shall mean bank, trust company, or bank and trust company;

(2) "Business loan" shall mean a loan to an individual or a group of
individuals, the proceeds of which are to be used in a business or for
the purpose of acquiring an interest in a business. The term shall also
include a loan to a trust, estate, cooperative, association, or limited
or general partnership;

(3) "Corporation" shall mean any corporation, whether for profit or not
for profit, and including any urban redevelopment corporation;

(4) "Lender" shall include any bank, savings and loan association, credit
union, corporation, partnership, or any other person or entity who makes
loans or extends credit;

(5) "Monthly Index of Long Term United States Government Bond Yields"
shall mean the monthly unweighted average yield for all outstanding
United States Treasury bonds neither due nor callable in less than ten
years, based on the daily closing bid prices in the over the counter
market, as determined by the Board of Governors of the Federal Reserve
System, published in the Federal Reserve Bulletin, and expressed in terms
of percent per annum;

(6) "Residential real estate" shall mean any real estate used or intended
to be used as a residence by not more than four families, one of whom is
the borrower;

(7) "Residential real estate loan" shall mean a loan made for the
acquisition, construction, repair, or improvement of, or secured by,
residential real estate. The term shall also include any loan made to
refinance such a loan. No loan secured by residential real estate shall
be considered to be a business loan unless such loan meets the
requirements of subdivision (2) of this section and subdivision (2) of
section 408.035. (L. 1974 2d Ex. Sess. S.B. 1, A.L. 1979 S.B. 305, A.L.
1982 H.B. 1341, et al.)

Creditors shall be allowed to receive interest at the rate of
nine percent per annum, when no other rate is agreed upon, for all moneys
after they become due and payable, on written contracts, and on accounts
after they become due and demand of payment is made; for money recovered
for the use of another, and retained without the owner's knowledge of the
receipt, and for all other money due or to become due for the forbearance
of payment whereof an express promise to pay interest has been made.
(RSMo 1939 § 3226, A.L. 1979 S.B. 305)

Prior revisions: 1929 § 2839; 1919 § 6491; 1909 § 7179

(1952) Where assignee of life insurance policies paid premiums thereon,
but did not surrender same for their cash value so as to cause them to
become due and payable, they became due and payable upon the death of
insured, so that interest or right to reimbursement for premiums under
this statute did not accrue prior to such death. Boyle v. Crimm, 363 Mo.
731, 253 S.W.2d 149.

(1955) Demand for real estate broker's commission is unnecessary to start
running of interest where such commission becomes due under contract.
Doerflinger Realty Co. v. Fields (A.), 281 S.W.2d 609.

(1958) In absence of demand for payment of unwritten account, the filing
of suit substitutes therefor and the interest bearing period starts as of
the date of the verdict. The verdict need not separately state the amount
of interest allowed and error in amount allowed may be cured by
remittitur. Weekley v. Wallace (A.), 314 S.W.2d 256.

(1960) Where water district bonds contained no provision for the payment
of interest after maturity, the statutory interest rate applied after
demand was made. State ex rel. Stern Bros. & Co. v. Stilley (Mo.), 337
S.W.2d 934.

(1961) Where laborer filed a claim against contractor on his bond but the
evidence did not show that he ever made a demand for payment against the
principal in the bond, the bonding company would not be liable for any
interest until such time as demand was made and therefore in this case
the allowance of interest was improper. Phoenix Assurance Co. of New York
v. Appleton City, 296 F.2d 787.

(1962) In action to recover balance due on subcontract for covering
subgrade with topsoil, the fact that parties honestly disagreed as to
amount of fill provided under subcontract did not make the sum due
thereunder unascertainable and court did not err in allowing interest
thereon from date of acceptance of the work. Eastmount Const. Co. v.
Transport Mfg. & Equip. Co., 301 F.2d 34.

(1964) A promissory note which provides when the indebtedness evidenced
thereby becomes due and payable is a written agreement within the meaning
of this section and a demand of payment is not necessary to start the
accrual of interest under the statute. Sebree v. Rosen (Mo.), 374 S.W.2d
132.

(1966) Court did not err in directing jury to award interest if they
found for plaintiff, instead of only permitting it to do so. Schultz v.
Queen Insurance Co. (A.), 399 S.W.2d 230.

(1974) Held that amount due was readily ascertainable and interest from
original demand was part of measure of damages even though the sum
originally demanded was far in excess of the sum finally stipulated as
owing. Slay Warehousing Co., Inc. v. Reliance Insurance Co. (C.A. Mo.),
489 F.2d 214.

(1985) Issue of prejudgment interest and all the facts necessary for an
award must appear in the petitions. Folk v. Countryside Casualty Co. (Mo.
App. E.D.), 686 S.W.2d 882.

(1986) Prejudgment interest is not available for breach of a contract
where damages are based upon lost profits. Universal Power Systems v.
Godfather Pizza, 818 F.2d 667 (8th Cir.).

(1987) Where amount of debt was disputed and where one party claimed that
other party was estopped from claiming true debt, amount was not
liquidated or readily ascertainable by reference to recognized legal
standards as required by this section. Total Petroleum, Inc. v. Davis,
822 F.2d 734 (8th Cir.).

(2003) Insured's claim for uninsured motorist benefits is unliquidated
and not subject to prejudgment interest. McKinney v. State Farm Mutual
Insurance, 123 S.W.3d 242 (Mo.App. W.D.).

1. Parties may agree, in writing, to a rate of interest not
exceeding ten percent per annum on money due or to become due upon any
contract, including a contract for commitment; except that, when the
"market rate" exceeds ten percent per annum, parties may agree, in
writing, to a rate of interest not exceeding the "market rate". A
contract for commitment to lend money shall not exceed the maximum lawful
rate in effect on the date of such contract. A loan entered into pursuant
to a valid contract for commitment shall not exceed the maximum lawful
rate in effect on the date of such commitment. The "market rate" for any
calendar quarter shall be equal to the monthly index of long term United
States government bond yields for the second preceding calendar month
prior to the beginning of the calendar quarter plus an additional three
percentage points rounded off to the nearest tenth of one percent.
Calendar quarters begin on January first, April first, July first, and
October first.

2. If a rate of interest greater than permitted by law is paid, the
person paying the same or his legal representative may recover twice the
amount of the interest thus paid, provided that the action is brought
within five years from the time when said interest should have been paid.
The person so adjudged to have received a greater rate of interest shall
also be liable for the costs of the suit, including a reasonable
attorney's fee to be determined by the court.

3. On or before the twentieth day of the last month of each calendar
quarter the director of the division of finance shall determine the
monthly index of long term United States government bond yields for the
second month of that quarter and shall determine the market rate for the
next succeeding quarter. The director of the division of finance shall
cause such market rate to be posted pursuant to section 361.110, RSMo,
and to be published in appropriate publications; such market rate to be
effective on the first day of the next succeeding calendar quarter.

4. Any bank, trust company or savings and loan association may purchase
any note, bill of exchange, or other evidence of debt, payable in
installments or otherwise, regardless of where payable, at a price that
may be agreed upon. (RSMo 1939 § 3227, A.L. 1974 2d Ex. Sess. S.B. 1,
A.L. 1979 S.B. 305)

Prior revisions: 1929 § 2840; 1919 § 6492; 1909 § 7180

Effective 7-3-79

(1960) Equipment was purchased and chattel mortgage given therefor which
recited that the time price of the equipment was a specific amount, and
stated that the purchaser would pay to the order of the creditor in
thirty-six monthly installments the total amount of the time price, the
transaction was not usurious notwithstanding the difference between the
cash price and the time price was considerably in excess of the 8%
interest allowed by statute. Wyatt v. Commercial Credit Corp. (A.), 341
S.W.2d 348.

In lieu of the rate established under section 408.030, parties
may agree in writing to a fee of ten dollars on any loan; provided,
however, that no lender shall permit any borrower to be indebted to such
lender on two or more contracts at any given time for the purpose or with
the result of contracting for or receiving fees exceeding that permitted
by this section. (L. 1977 S.B. 420 § 2, A.L. 1979 S.B. 305)

1. Notwithstanding any provisions of law to the contrary, the
recording fees, including actual fees paid to a third party by a
creditor, may include the following:

(1) Any fee paid in processing the debtor's liens as provided in section
136.055, RSMo;

(2) Any fee paid to a third party for expediting the debtor's motor
vehicle or other title or lien with the department of revenue, provided:

(a) The creditor does not control the third party; and

(b) Both creditor and third party do not share common ownership.

2. Either fee provided for in subdivisions (1) and (2) of subsection 1 of
this section may be charged such debtor, and is not included as interest
or service charges for the purposes of state usury laws; except that the
expeditor fee as provided in subdivision (2) of subsection 1 of this
section may not exceed fifteen dollars. (L. 1997 H.B. 257, A.L. 2004 H.B.
959)

Notwithstanding the provisions of any other law to the contrary,
it is lawful for the parties to agree in writing to any rate of interest,
fees, and other terms and conditions in connection with any:

(1) Loan to a corporation, general partnership, limited partnership or
limited liability company;

(2) Business loan of five thousand dollars or more;

(3) Real estate loan, other than residential real estate loans and loans
of less than five thousand dollars secured by real estate used for an
agricultural activity; or

(4) Loan of five thousand dollars or more secured solely by certificates
of stock, bonds, bills of exchange, certificates of deposit, warehouse
receipts, or bills of lading pledged as collateral for the repayment of
such loans. (L. 1974 2d Ex. Sess. S.B. 1, A.L. 1980 H.B. 1195, A.L. 1981
S.B. 5 Revision, A.L. 1992 S.B. 688, A.L. 1997 H.B. 655 merged with S.B.
170)

Effective 6-24-97 (H.B. 655) 5-20-97 (S.B. 170)

(1994) Where statute allows unlimited interest on loans in excess of five
thousand dollars secured by real estate used for agricultural activity,
banking regulation, C.S.R. 140-6.050, relating to contingent interest and
limitations on its application to profitability and successful operations
of businesses, is not inconsistent and statute does not entitle bank to
ignore limitation of banking regulation. Contingent interest provision of
bank note was invalid and unenforceable. Killion v. Bank Midwest, N.A.,
886 S.W.2d 29 (Mo. App. W.D.).

Notwithstanding any other provision of this chapter to the
contrary, no prepayment penalty shall be charged or exacted by a lender
on any promissory note or other evidence of debt secured by residential
real estate when the full principal balance thereof is paid after five
years from the origination date and prior to maturity; and in no event
shall any prepayment penalty exceed two percent of the balance at the
time of prepayment, except for, when an existing mortgage loan is
replaced with a new mortgage loan made by another lender and the proceeds
from the new loan are used to either pay down or reduce the balance to a
smaller amount before paying in full and in order to avoid or reduce the
prepayment penalty. In such an occurrence the prepayment penalty shall
not be more than two percent of the average daily balance for the prior
six months, provided that the 1990 and 1992 reenactment of this section
shall not be construed to be action taken in accordance with Public Law
96.221, Section 501(b)(4). Any fees received in excess of those permitted
pursuant to this section shall be returned to the person from whom
received upon demand. Business and corporate loans are not subject to the
provisions of this section. (L. 1974 2d Ex. Sess. S.B. 1, A.L. 1979 S.B.
305, A.L. 1990 H.B. 1125, A.L. 1992 S.B. 688, A.L. 1998 H.B. 1189)

1. In all nontort actions, interest shall be allowed on all
money due upon any judgment or order of any court from the date judgment
is entered by the trial court until satisfaction be made by payment,
accord or sale of property; all such judgments and orders for money upon
contracts bearing more than nine percent interest shall bear the same
interest borne by such contracts, and all other judgments and orders for
money shall bear nine percent per annum until satisfaction made as
aforesaid.

2. Notwithstanding the provisions of subsection 1 of this section, in
tort actions, interest shall be allowed on all money due upon any
judgment or order of any court from the date of judgment is entered by
the trial court until full satisfaction. All such judgments and orders
for money shall bear a per annum interest rate equal to the intended
Federal Funds Rate, as established by the Federal Reserve Board, plus
five percent, until full satisfaction is made. The judgment shall state
the applicable interest rate, which shall not vary once entered. In tort
actions, if a claimant has made a demand for payment of a claim or an
offer of settlement of a claim, to the party, parties or their
representatives, and to such party's liability insurer if known to the
claimant, and the amount of the judgment or order exceeds the demand for
payment or offer of settlement, then prejudgment interest shall be
awarded, calculated from a date ninety days after the demand or offer was
received, as shown by the certified mail return receipt, or from the date
the demand or offer was rejected without counter offer, whichever is
earlier. In order to qualify as a demand or offer pursuant to this
section, such demand must:

(1) Be in writing and sent by certified mail return receipt requested; and

(2) Be accompanied by an affidavit of the claimant describing the nature
of the claim, the nature of any injuries claimed and a general
computation of any category of damages sought by the claimant with
supporting documentation, if any is reasonably available; and

(3) For wrongful death, personal injury, and bodily injury claims, be
accompanied by a list of the names and addresses of medical providers who
have provided treatment to the claimant or decedent for such injuries,
copies of all reasonably available medical bills, a list of employers if
the claimant is seeking damages for loss of wages or earning, and written
authorizations sufficient to allow the party, its representatives, and
liability insurer if known to the claimant to obtain records from all
employers and medical care providers; and

(4) Reference this section and be left open for ninety days.

Unless the parties agree in writing to a longer period of time, if the
claimant fails to file a cause of action in circuit court prior to a date
one hundred twenty days after the demand or offer was received, then the
court shall not award prejudgment interest to the claimant. If the
claimant is a minor or incompetent or deceased, the affidavit may be
signed by any person who reasonably appears to be qualified to act as
next friend or conservator or personal representative. If the claim is
one for wrongful death, the affidavit may be signed by any person
qualified pursuant to section 537.080, RSMo, to make claim for the death.
Nothing contained herein shall limit the right of a claimant, in actions
other than tort actions, to recover prejudgment interest as otherwise
provided by law or contract.

3. In tort actions, a judgment for prejudgment interest awarded pursuant
to this subsection should bear interest at a per annum interest rate
equal to the intended Federal Funds Rate, as established by the Federal
Reserve Board, plus three percent. The judgment shall state the
applicable interest rate, which shall not vary once entered. (RSMo 1939 §
3228, A.L. 1979 H.B. 85, A.L. 1987 H.B. 700, A.L. 2005 H.B. 393)

Prior revisions: 1929 § 2841; 1919 § 6493; 1909 § 7181

CROSS REFERENCES: Applicability of statute changes to cases filed after
August 28, 2005, RSMo 538.305 Interest as part of damages in action for
conversion of goods, RSMo 537.520 Medical and health care providers,
malpractice sections, 538.205 to 538.300; section 408.040 not applicable,
RSMo 538.300

(1953) Where insurance companies which disclaimed liability to mortgagor,
deposited proceeds of fire insurance policies in court during pendency of
litigation for sole use of mortgagee and claimed right of subrogation to
recover money back from mortgagor although he had paid premiums, they
were liable for interest from date of judgment of circuit court in favor
of mortgagor. City of New York Ins. Co. v. Stephens (Mo.), 260 S.W.2d 558.

(1957) Where allowance of claim by probate court was affirmed by circuit
court but reversed and remanded on appeal and thereafter again allowed by
judgment of circuit court, interest ran from date of last judgment of
circuit court only. Minor v. Lillard (Mo.), 306 S.W.2d 541.

(1960) Where city deposited amount of judgment in condemnation action in
court, it could enforce possession of the condemned land even though
interest on judgment was not so deposited. Mayor, etc. of Liberty v.
Boggess (A.), 332 S.W.2d 305.

(1964) Where prevailing plaintiff was required to remit part of judgment
and a new judgment for reduced amount was entered as of the date of the
original judgment, the plaintiff was entitled to interest on the amount
of the new judgment from the date of the original judgment. Walton v.
United States Steel Corp. (A.), 378 S.W.2d 240.

(1966) In suit for disbursement of funds paid into court, one
interpleader is not entitled to interest for the period he was denied
payment due to other interpleader's unsuccessful appeal. Winterton v. Van
Zandt (A.), 397 S.W.2d 693.

(1994) Where there is an offer of settlement for one dollar less than
insurance coverage, offer is not ambiguous for purposes of statute and
where judgment entered exceeded offer, statute mandates award of
prejudgment interest. Open-ended prayer for relief is sufficient for
plaintiff to be entitled to recover prejudgment interest. Specific
pleading for prejudgment interest is not necessary under statute. Gibson
v. Musil, 844 F.Supp. 1579 (W.D. Mo.).

(1998) Acknowledgment or actual notice of settlement offer is
insufficient to obtain prejudgment interest. Emery v. Wal-Mart Stores,
Inc., 976 S.W.2d 439 (Mo.banc), overruling Larabee v. Washington, 793
S.W.2d 357 (Mo.App. W.D.)

(2004) Section allows prejudgment interest on entire judgment, whether
for compensatory or punitive damages. Werremeyer v. K.C. Auto Salvage Co.
Inc., 134 S.W.3d 633 (Mo.banc), overruling Hoskins v. Business Men's
Assurance, 116 S.W.3d 557 (Mo.App. W.D. 2003).

No person shall directly or indirectly take, for the use or loan
of money or other commodity, above the rates of interest specified in
sections 408.020 to 408.040, for the forbearance or use of one hundred
dollars, or the value thereof, for one year, and so after those rates for
a greater or less sum, or for a longer or shorter time, or according to
those rates or proportions, for the loan of any money or other commodity.
Any person who shall violate the foregoing prohibition of this section
shall be subject to be sued, for any and all sums of money paid in excess
of the principal and legal rate of interest of any loan, by the borrower,
or in case of borrower's death, by the administrator or executor of his
estate, and shall be adjudged to pay the costs of suit, including a
reasonable attorney's fee to be determined by the court. (RSMo 1939 §
3229)

Prior revisions: 1929 § 2842; 1919 § 6494; 1909 § 7182

(1962) In action by borrower against bank to recover alleged usurious
interest, parol evidence to effect that loan was to be for one year and
that bank fraudulently induced borrowers to sign five year loan agreement
and required additional payment at end of one year to close out loan, was
inadmissible. Reich v. Pine Lawn Bank & Trust Co. (A.), 356 S.W.2d 545.

(1964) This section is not applicable to pawnbroker loans. McClure v.
Norwich (A.), 382 S.W.2d 731.

1. No lender shall charge, require or receive, on any
residential real estate loan, any points or other fees of any nature
whatsoever, excepting insurance, including insurance for involuntary
unemployment coverage, and a one-percent origination fee, whether from
the buyer or the seller or any other person, except that the lender may
charge bona fide expenses paid by the lender to any other person or
entity except to an officer, employee, or director of the lender or to
any business in which any officer, employee or director of the lender
owns any substantial interest for services actually performed in
connection with a loan. In addition to the foregoing, if the loan is for
the construction, repair, or improvement of residential real estate, the
lender may charge a fee not to exceed one percent of the loan amount for
inspection and disbursement of the proceeds of the loan to third parties.
Notwithstanding the foregoing, the parties may contract for a default
charge for any installment not paid in full within fifteen days of its
scheduled due date. The restrictions of this section shall not apply:

(1) To any loan which is insured or covered by guarantee made by any
department, board, bureau, commission, agency or establishment of the
United States, pursuant to the authority of any act of Congress
heretofore or hereafter adopted; and

(2) To any loan for which an offer or commitment or agreement to purchase
has been received from and which is made with the intention of reselling
such loan to the Federal Housing Administration, Farmers Home
Administration, Federal National Mortgage Association, Government
National Mortgage Association, Federal Home Loan Mortgage Corporation, or
to any successor to the above-mentioned organizations, to any other state
or federal governmental or quasi-governmental organization; and

(3) Provided that the 1994 reenactment of this section shall not be
construed to be action taken in accordance with Public Law 96-221,
Section 501(b)(4). Any points or fees received in excess of those
permitted under this section shall be returned to the person from whom
received upon demand.

2. Notwithstanding the language in subsection 1 of this section, a lender
may pay to an officer, employee or director of the lender, or to any
business in which such person has an interest, bona fide fees for
services actually and necessarily performed in good faith in connection
with a residential real estate loan, provided:

(1) Such services are individually listed by amount and payee on the
loan-closing documents; and

(2) Such lender may use the preemption of Public Law 96-221, Section 501
with respect to the residential real estate loan in question.

When fees charged need not be disclosed in the annual percentage rate
required by Title 15, U.S.C. Sections 1601, et seq., and regulations
thereunder because such fees are de minimis amounts or for other reasons,
such fees need not be included in the annual percentage rate for state
examination purposes.

3. The lender may charge and collect bona fide fees for services actually
and necessarily performed in good faith in connection with a residential
real estate loan as provided in subsection 2 of this section; however,
the lender's board of directors shall determine whether such bona fide
fees shall be paid to the lender or businesses related to the lender in
subsection 2 of this section, but may allow current contractual
relationships to continue for up to two years.

4. If any points or fees are charged, required or received, which are in
excess of those permitted by this section, or which are not returned upon
demand when required by this section, then the person paying the same
points or fees or his or her legal representative may recover twice the
amount paid together with costs of the suit and reasonable attorney's
fees, provided that the action is brought within five years of such
payment.

5. Any lender who knowingly violates the provisions of this section is
guilty of a class B misdemeanor. (L. 1974 2d Ex. Sess. S.B. 1, A.L. 1979
S.B. 305, A.L. 1989 H.B. 615 & 563 merged with S.B. 258, A.L. 1994 S.B.
701, A.L. 2000 S.B. 896, A.L. 2001 H.B. 738 merged with S.B. 186)

Usury may be pleaded as a defense in civil actions in the courts
of this state, and upon proof that usurious interest has been paid, the
same, in excess of the legal rate of interest, shall be deemed payment,
shall be credited upon the principal debt, and all costs of the action
shall be taxed against the party guilty of exacting usurious interest,
who shall in no case recover judgment for more than the amount found due
upon the principal debt, with legal interest, after deducting therefrom
all payments of usurious interest made by the debtor, whether paid as
commissions or brokerage, or as payment upon the principal, or as
interest on said indebtedness; provided, however, that no corporation
shall, after this section takes effect, interpose the defense of usury in
any such action, nor shall any bond, note, debt, contract or obligation
of any corporation or any security therefor, be set aside, impaired or
adjudged invalid by reason of the rate of interest which the corporation
may have paid or agreed to pay hereon. (RSMo 1939 § 3230)

Prior revisions: 1929 § 2843; 1919 § 6495; 1909 § 7183

In actions for the enforcement of liens upon personal property
subjected to a security agreement to secure indebtedness, or to maintain
or secure possession of property so subjected to a security agreement, or
in any other case when the validity of such lien is drawn in question,
proof upon the trial that the party holding or claiming to hold the lien
has received or exacted usurious interest for the indebtedness shall
render any security agreement of personal property, or any lien
whatsoever thereon given to secure the indebtedness, invalid and illegal.
(RSMo 1939 § 3231, A.L. 1965 p. 114)

Prior revisions: 1929 § 2844; 1919 § 6496; 1909 § 7184

(1977) Lender is not precluded from showing that charge of interest in
excess of legal rate was unintentional or inadvertent and without
existence of intent is not usurious. Wyckoff v. Commerce Bank of Kansas
City (A.), 561 S.W.2d 399.

Parties may contract, in writing, for the payment of interest
upon interest; but the interest shall not be compounded more often than
once a month. Where a different rate is not expressed, interest upon
interest shall be at the same rate as interest on the principal debt.
Loans governed by section 408.035 are not subject to the provisions of
this section. (RSMo 1939 § 3232, A.L. 1982 H.B. 1341, et al., A.L. 1992
S.B. 688)

Nothing in sections 408.035, 408.036 and 408.080 shall affect
the validity of any contract in existence on August 28, 1992. (L. 1992
S.B. 688)

Notwithstanding any other provision of law to the contrary, all
credit contracts with interest or time price differential calculated on
an add-on basis entered into after August 28, 2002, the proceeds of which
are used for personal, family or household purposes, shall provide that
the amount of interest or time price differential earned upon prepayment
in full will be computed on the basis of the rate or rate formula
originally contracted for on the actual unpaid principal balances for the
time actually outstanding. (L. 1988 S.B. 426 § 1, A.L. 2002 S.B. 895)

Effective 7-1-03

Any other laws to the contrary notwithstanding, in any case in
which advances of money, repayable on demand, are made solely upon
securities, as defined in section 400.8-102(a) RSMo 1969, pledged as
collateral for such repayment and in which such advances are used by the
borrower only for the purchase of securities, as so defined, it shall be
lawful to receive or to contract to receive and collect, as compensation
for making such advances, any sum agreed upon by the parties to such
transaction. (L. 1974 S.B. 455 § 1)

1. Notwithstanding any other provision of law to the contrary,
attorneys' fees are permitted to enforce a credit agreement provided the
enforcing attorney is a licensed member of the Missouri bar or is
authorized to practice law in Missouri, and such fees meet one of the
following requirements:

(1) Such fees are included in the written credit agreement, and are not
otherwise prohibited by law; or

(2) Such fees do not exceed fifteen percent of the outstanding credit
balance in default, provided such credit was extended by a for-profit
business or credit union.

2. At the court's discretion, additional fees may be awarded to the
attorney for the prevailing party.

3. For the purposes of this section, a credit agreement shall have the
same meaning as provided in subsection 1 of section 432.045, RSMo.

4. No provision of this section shall be construed to authorize or limit
attorney's fees permitted parties and transactions not covered by this
section. (L. 1997 H.B. 257)

Every person or persons, company, corporation or firm, and every
agent of any person, persons, company, corporation** or firm, who shall
take or receive, or agree to take or receive, directly or indirectly, by
means of commissions of brokerage charges, or otherwise, for the
forbearance or use of money or other commodities, any interest at a rate
greater than two percent per month, except as permitted by the laws of
this state, shall be deemed guilty of a misdemeanor. Nothing herein
contained shall be construed as authorizing a higher rate of interest
than is now provided by law. (RSMo 1939 § 4813, A.L. 1974 2d Ex. Sess.
S.B. 1)

Prior revisions: 1929 § 4421; 1919 § 3680; 1909 § 4892

Effective 1-9-75

*Transferred 1978; formerly 563.800

**Word "corporations" appears in original rolls.

No person, firm or corporation shall receive or impose any fee
or charge, other than one expressly provided for by statute, for
arranging credit in the amount of one thousand dollars or less the
proceeds of which are intended to be used by the borrower primarily for
personal, family or household purposes. Any contract evidencing such
excess fee or charge and any note evidencing credit so arranged is void.
Any person, firm or corporation who receives or imposes a fee or charge
prohibited by this section is guilty of a class B misdemeanor. (L. 1979
S.B. 305)

This section shall apply to all loans which are not made as
permitted by other laws of this state except that it shall not apply to
loans which are secured by a lien on real estate, nonprocessed farm
products, livestock, farm machinery or crops or to loans to corporations.
On any loan subject to this section, any person, firm, or corporation may
charge, contract for and receive interest on the unpaid principal balance
at rates agreed to by the parties. (L. 1951 p. 875 § 408.031, A.L. 1959
H.B. 320, A.L. 1979 S.B. 305, A.L. 1985 H.B. 358 & 440, A.L. 1998 S.B.
792)

1. Extensions on precomputed loans made pursuant to section
408.100 shall be calculated on an actuarial basis or as follows and shall
not be considered an additional charge or fee within the meaning of
section 408.140:

Total Finance Charge

UNIT CHARGE (UC) = ..................................

Sum of the Digits of Original Term

EXTENSION FEE = UC Times Number of Full Remaining Installments

2. The following limitations regarding extensions on precomputed loans
shall apply:

(1) No extension may be taken on the first installment;

(2) No extension fee shall be collected more than one month prior to the
due date of the earliest installment being deferred;

(3) No extension shall be collected for any partial payment; however, two
dollars or less shall not be considered a partial payment;

(4) A minimum extension fee of one dollar will be allowed;

(5) In the event of* prepayment in full of the note or contract, the
extensions shall be counted as months and computed as provided in section
408.170, based on this total, applied to all of the interest contracted
for, plus the extension fees collected. (L. 1985 S.B. 183)

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

Sections 408.120 to 408.190 shall apply only to loans made
pursuant to section 408.100, and shall be known as the "Consumer Loan
Act". (L. 1951 p. 875 § 408.032, A.L. 1981 S.B. 326, A.L. 1996 H.B. 1432)

The total interest for payment according to schedule may be
added to the principal of the loan, but interest shall not be discounted
or deducted from the principal of the loan, or paid or received at the
time the loan is made, and shall not be compounded. Loan contracts may be
calculated and repaid as follows:

(1) A loan contract may provide for repayment in consecutive monthly
installments, but the first installment may be payable at any time within
forty-five days from the date of the loan and no installment shall be
substantially greater than any other installment. Interest for any
fractional portion of a month may be computed for each elapsed day at
one-thirtieth of the monthly rate contracted for.

(2) A loan contract may provide for repayment as the parties may agree;
however, any such loan contract shall provide for the payment of simple
interest on such loans at rates not to exceed those authorized by
sections 408.100 and 408.200. (L. 1951 p. 875 § 408.032(a), A.L. 1981
S.B. 326)

1. At the time the loan is made, there shall be delivered to the
borrower, or, if there are two or more borrowers, to one of them, a
written statement or copy of the loan contract showing in clear and
distinct terms:

(1) The name and address of the lender and of one of the borrowers;

(2) The date of the loan contract;

(3) The schedule of installments or description thereof;

(4) The type of any instrument securing the loan;

(5) The principal amount of the loan excluding interest;

(6) The rate or amount of interest as the contract may provide;

(7) That the borrower may prepay the loan, in whole or in part, at any
time, and in case interest has been added to the principal of the loan;

(8) That the interest is subject to the refund requirements of section
408.170 if the loan is prepaid in full.

2. A receipt shall be given for the amount of each payment made in
currency. Any note paid in full, or a copy thereof, shall be so marked
"paid" and returned, and any security interest which no longer secures a
loan shall be restored, canceled or released. (L. 1951 p. 875 §
408.032(b), A.L. 1965 p. 114, A.L. 1994 H.B. 963)

1. No further or other charge or amount whatsoever shall be
directly or indirectly charged, contracted for or received for interest,
service charges or other fees as an incident to any such extension of
credit except as provided and regulated by sections 367.100 to 367.200,
RSMo, and except:

(1) On loans for thirty days or longer which are other than "open-end
credit" as such term is defined in the federal Consumer Credit Protection
Act and regulations thereunder, a fee, not to exceed five percent of the
principal amount loaned not to exceed seventy-five dollars may be charged
by the lender; however, no such fee shall be permitted on any extension,
refinance, restructure or renewal of any such loan, unless any
investigation is made on the application to extend, refinance,
restructure or renew the loan;

(2) The lawful fees actually and necessarily paid out by the lender to
any public officer for filing, recording, or releasing in any public
office any instrument securing the loan, which fees may be collected when
the loan is made or at any time thereafter; however, premiums for
insurance in lieu of perfecting a security interest required by the
lender may be charged if the premium does not exceed the fees which would
otherwise be payable;

(3) If the contract so provides, a charge for late payment on each
installment or minimum payment in default for a period of not less than
fifteen days in an amount not to exceed five percent of each installment
due or the minimum payment due or fifteen dollars, whichever is greater,
not to exceed fifty dollars. If the contract so provides, a charge for
late payment on each twenty-five dollars or less installment in default
for a period of not less than fifteen days shall not exceed five dollars;

(4) If the contract so provides, a charge for late payment for a single
payment note in default for a period of not less than fifteen days in an
amount not to exceed five percent of the payment due; provided that, the
late charge for a single payment note shall not exceed fifty dollars;

(5) Charges or premiums for insurance written in connection with any loan
against loss of or damage to property or against liability arising out of
ownership or use of property as provided in section 367.170, RSMo;
however, notwithstanding any other provision of law, with the consent of
the borrower, such insurance may cover property all or part of which is
pledged as security for the loan, and charges or premiums for insurance
providing life, health, accident, or involuntary unemployment coverage;

(6) Reasonable towing costs and expenses of retaking, holding, preparing
for sale, and selling any personal property in accordance with section
400.9, RSMo;

(7) Charges assessed by any institution for processing a refused
instrument plus a handling fee of not more than twenty-five dollars;

(8) If the contract or promissory note, signed by the borrower, provides
for attorney fees, and if it is necessary to bring suit, such attorney
fees may not exceed fifteen percent of the amount due and payable under
such contract or promissory note, together with any court costs assessed.
The attorney fees shall only be applicable where the contract or
promissory note is referred for collection to an attorney, and is not
handled by a salaried employee of the holder of the contract;

(9) Provided the debtor agrees in writing, the lender may collect a fee
in advance for allowing the debtor to defer up to three monthly loan
payments, so long as the fee is no more than the lesser of fifty dollars
or ten percent of the loan payments deferred, no extensions are made
until the first loan payment is collected and no more than one deferral
in a twelve-month period is agreed to and collected on any one loan; this
subdivision applies to nonprecomputed loans only and does not affect any
other subdivision;

(10) If the open-end credit contract is tied to a transaction account in
a depository institution, such account is in the institution's assets and
such contract provides for loans of thirty-one days or longer which are
"open-end credit", as such term is defined in the federal Consumer Credit
Protection Act and regulations thereunder, the creditor may charge a
credit advance fee of the lesser of twenty-five dollars or five percent
of the credit advanced from time to time from the line of credit; such
credit advance fee may be added to the open-end credit outstanding along
with any interest, and shall not be considered the unlawful compounding
of interest as that term is defined in section 408.120.

2. Other provisions of law to the contrary notwithstanding, an open-end
credit contract under which a credit card is issued by a company,
financial institution, savings and loan or other credit issuing company
whose credit card operations are located in Missouri may charge an annual
fee, provided that no finance charge shall be assessed on new purchases
other than cash advances if such purchases are paid for within
twenty-five days of the date of the periodic statement therefor.

3. Notwithstanding any other provision of law to the contrary, in
addition to charges allowed pursuant to section 408.100, an open-end
credit contract provided by a company, financial institution, savings and
loan or other credit issuing company which is regulated pursuant to this
chapter may charge an annual fee not to exceed fifty dollars. (L. 1951 p.
875 § 408.032 (c), A.L. 1979 S.B. 305, A.L. 1980 H.B. 1195, A.L. 1981
S.B. 5 Revision, S.B. 326, A.L. 1984 S.B. 686, A.L. 1986 H.B. 1207, A.L.
1989 H.B. 386 merged with H.B. 615 & 563 merged with S.B. 192, A.L. 1990
H.B. 1630 merged with S.B. 768, A.L. 1992 S.B. 705 merged with S.B. 688,
A.L. 1994 H.B. 1312, A.L. 1996 S.B. 683, A.L. 1998 S.B. 792, A.L. 2001
H.B. 738 merged with S.B. 186, A.L. 2002 S.B. 895, A.L. 2003 S.B. 346,
A.L. 2004 H.B. 959 merged with S.B. 1233, et al.)

1. To encourage competitive equality, lenders issuing credit
cards in this state pursuant to the authority of section 408.100 or
408.200, may in addition to lawful interest, contract for, charge and
collect fees for such credit cards which any lender in any contiguous
state is permitted to charge for credit cards issued in such contiguous
state by such state's statutes. State-chartered lenders charging such
fees in reliance on this subsection shall file a copy of the pertinent
statutes of one contiguous state authorizing credit card fees with the
director of finance or such lender's principal state regulator. The
director of finance or other principal state regulator shall, within
thirty days after receipt of the filing, approve or disapprove of such
fees on the sole basis of whether the statutes of such contiguous state
permit such fees, and without regard to the restrictions placed upon
credit cards by subsection 2 of this section. When the lender is
chartered by the federal government, or any agency thereunder, or is
unregulated, such lender shall file with and be approved by the Missouri
attorney general under the same provision as provided a state-chartered
lender.

2. "Credit card" as used in this section shall mean a credit device
defined as such in the federal Consumer Credit Protection Act and
regulations thereunder, except:

(1) The term shall be limited to credit devices which permit the holder
to purchase goods and service upon presentation to third parties whether
or not the credit card also permits the holder to obtain loans of any
other type; and

(2) Such credit device shall only provide credit which is not secured by
real or personal property.

3. "Lender" as used in this section shall mean any category of depository
or nondepository creditor. Notwithstanding the provisions of section
408.140, the lender shall declare on each credit card contract whether
the credit card fees are governed by section 408.140, or by this section.
(L. 1998 S.B. 792 merged with S.B. 852 & 913)

Effective 1-1-99

If any amount in excess of the interest permitted by sections
408.100 to 408.190 is charged or received on any loan except as the
result of a bona fide error, the lender shall be barred from recovery of
any interest on the contract and shall upon demand return all interest
received to the person from* whom received. If such interest is not
returned upon written demand, then the person paying the same or his
legal representative may recover twice the amount paid together with
costs of the suit and reasonable attorney's fees, provided that the
action is brought within five years of such written demand. (L. 1951 p.
875 § 408.032(d), A.L. 1982 H.B. 1341, et al.)

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

No person, firm, or corporation shall print, publish, distribute
or cause the same to be done in any manner whatsoever, any written or
printed statement with regard to interest or charges, terms or conditions
for the lending of money which is false or calculated to deceive. (L.
1951 p. 875 § 408.032(e))

1. If a note or loan contract providing for amount of interest,
added to the principal of the loan, is prepaid in full (by cash, renewal,
or refinancing) one month or more before the final installment date, the
lender shall either:

(1) Recompute the amount of interest earned to the date of prepayment in
full on the basis of the rate of interest originally contracted for
computed on the actual unpaid principal balances for the time actually
outstanding; or

(2) If the initial term of the contract is sixty-one months or less and
it is a contract for five thousand dollars or less, give a refund of a
portion of the amount of interest originally contracted for which shall
be computed as follows: The amount of the refund shall be at least as
great a proportion of such amount of interest as the sum of the full
monthly balances of the contract scheduled to follow the installment date
after the date of prepayment in full bears to the sum of all the monthly
balances of the contract, both sums to be determined according to the
payment schedule provided by the contract; except that, if prepayment in
full occurs during the first installment period, interest shall be
recomputed and charged only for the actual number of days elapsed. When
the period before the first installment is more or less than one month,
the portion of the interest earned for such period shall be determined by
counting each day in such period as one-thirtieth of a month and one
three hundred and sixtieth of a year.

2. No refund shall be required for any partial prepayment.

3. For a contract for more than five thousand dollars, the word "refund"
as used herein shall mean a credit or deduction from the amount of
interest originally contracted for at any time by cash, renewal or
refinancing, the buyer shall receive a refund which shall be calculated
by the actuarial method. The lender shall retain no more interest than is
actually earned whenever a note or loan contract is prepaid. (L. 1951 p.
875 § 408.032(f), A.L. 1986 H.B. 1207, A.L. 2002 S.B. 895)

Effective 7-1-03

If the maturity of a note or loan contract providing for an
amount of interest added to the principal of the loan is accelerated, the
unpaid balance shall be reduced by the refund of that portion of the
amount of interest originally contracted for which would be required for
prepayment in full on the date of acceleration, and thereafter the note
or loan contract shall bear interest at the rate originally contracted
for, computed on unpaid balances for the time actually outstanding from
the installment date following the date of acceleration until paid. (L.
1959 H.B. 321)

Notwithstanding any other law to the contrary, on loans with an
original amount of six hundred dollars or more, and provided the debtor
agrees in writing, the lender may collect a fee in advance for allowing
the debtor to defer monthly loan payments, so long as the fee on each
deferred period is no more than the lesser of fifty dollars or ten
percent of the loan payments deferred, however, a minimum fee of
twenty-five dollars is permitted, and no extensions are made until the
first loan payment is collected on any one loan. This section applies to
nonprecomputed loans only. (L. 2004 H.B. 959)

The director of finance shall have the power and duty to verify
the correctness of the rate and amount of interest charged or received
and the refund of interest made on any loan which is subject to section
408.100. (L. 1951 p. 875 § 408.032(g))

Sections 408.120 to 408.180 and 408.200 shall not apply to any
loan on which the rate or amount of interest and fees charged or received
are lawful under Missouri law without regard to the rates permitted in
section 408.100 and the fees permitted in sections 408.140, 408.145, and
408.178. (L. 1951 p. 875 § 408.032(h), A.L. 1974 2d Ex. Sess. S.B. 1,
A.L. 1980 H.B. 1195, A.L. 1981 S.B. 5 Revision, A.L. 2004 H.B. 959)

1. For the purposes of this section, the term "credit card"
shall mean a credit device defined as such in the federal Consumer Credit
Protection Act.

2. Any entity that issues credit cards in this state, delivers credit
cards in this state or causes credit cards to be delivered in this state
shall not make any derogatory report to a credit reporting agency on any
credit card holder solely because such credit card holder has paid the
entire outstanding balance on such credit card by the payment date.

3. Nothing herein shall authorize or prohibit an entity from suspending
credit card privileges or recalling the issued credit card for any
purpose. (L. 1998 S.B. 852 & 913 § 1)

Effective 1-1-99

No lender shall permit any borrower to be indebted to such
lender on two or more contracts at any time for the purpose or with the
result of contracting for or receiving more interest on the multiple
notes or contracts than would have been permissible on a single note or
contract entered into in accordance with section 408.100. (L. 1951 p. 875
§ 408.033, A.L. 1959 H.B. 320, A.L. 1974 2d Ex. Sess. S.B. 1, A.L. 1977
S.B. 317, A.L. 1979 S.B. 305, A.L. 1985 H.B. 358 & 440, A.L. 1998 S.B.
792)

The payment of four hundred dollars or less in money, credit,
goods, or things in action, as consideration for any sale or assignment
of, or order for the payment of wages, salary, commissions, or other
compensation for services, whether earned or to be earned, shall for the
purpose of this chapter and any act regulating loans or punishing usury
be deemed a loan secured by such assignment, and the amount by which such
assigned compensation exceeds the amount of such consideration actually
paid shall for the purposes of this chapter and any act regulating loans
or punishing usury be deemed interest or charges upon such loan from the
date of such payment to the date such compensation is payable, and such
transaction shall be governed by and subject to the provisions of this
chapter, provided that nothing in this section contained shall be
construed as authorizing the assignment of wages, salaries, commissions,
or other compensation for services not earned at the time when such
purported sale or assignment thereof is made. In case any transaction
defined in this section results in a greater rate or amount of interest
or charges than is permitted by law, all contracts taken in connection
with such transaction shall be void and the lender shall have no right to
collect, receive, or retain any principal, interest or charges. (L. 1951
p. 875 § 408.034)

The changes in sections 408.140, 408.145, 408.190, and 408.232
are remedial and should be given that construction; however, this section
shall have no effect, favorably or unfavorably, on any case filed in
court prior to January 1, 2004. (L. 2004 H.B. 959 § 408.480)

1. A "second mortgage loan" shall mean a loan secured in whole
or in part by a lien upon any interest in residential real estate created
by a security instrument, including a mortgage, trust deed, or other
similar instrument or document, which provides for interest to be
calculated at the rate allowed by the provisions of section 408.232,
which residential real estate is subject to one or more prior mortgage
loans.

2. "Principal" of a second mortgage loan means 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 section 408.233.

3. "Residential real estate" shall mean any real estate used or intended
to be used as a residence by not more than four families, notwithstanding
the provisions of section 408.015. (L. 1979 S.B. 305, A.L. 1980 H.B.
1195, A.L. 1981 S.B. 5 Revision, A.L. 1985 S.B. 183, A.L. 1986 S.B. 667,
A.L. 1994 H.B. 1312 merged with S.B. 718)

1. With respect to a second mortgage loan, any person, firm or
corporation may charge, contract for, and receive interest in any manner
at rates agreed to by the parties computed on unpaid balances of the
principal for the time actually outstanding.

2. The term of the loan, for purposes of this section, commences with the
date the loan is made. Differences in the lengths of months are
disregarded, and a day may be counted as one-thirtieth of a month and
one-three hundred sixtieth of a year. When a second mortgage loan
contract provides for monthly installments, the first installment may be
payable at any time within one month and fifteen days of the date of the
loan.

3. For revolving loans, charges may be computed at a daily rate of
one-thirtieth of the monthly rate on actual daily balances or at a
monthly rate on the average daily balance in each monthly billing cycle.

4. Sections 408.231 to 408.241 shall not apply to any loans on which the
rate of interest and fees charged are lawful under Missouri law without
regard to the rates permitted in subsection 1 of this section and the
fees permitted in section 408.233. (L. 1979 S.B. 305, A.L. 1980 H.B.
1195, A.L. 1981 S.B. 5 Revision, A.L. 1994 H.B. 1312 merged with S.B.
718, A.L. 1998 S.B. 792, A.L. 2004 H.B. 959)

1. No charge other than that permitted by section 408.232 shall
be directly or indirectly charged, contracted for or received in
connection with any second mortgage loan, except as provided in this
section:

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

(2) Taxes;

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

(a) Fees or premiums for title examination, title insurance, or similar
purposes including survey;

(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;

(4) Charges for insurance as described in subsection 2 of this section;

(5) A nonrefundable origination fee not to exceed five percent of the
principal which may be used by the lender to reduce the rate on a second
mortgage loan;

(6) Any amounts paid to the lender by any person, corporation or entity,
other than the borrower, to reduce the rate on a second mortgage loan or
to assist the borrower in qualifying for the loan;

(7) For revolving loans, an annual fee not to exceed fifty dollars may be
assessed.

2. An additional charge may be made for insurance written in connection
with the loan, including insurance protecting the lender against the
borrower's default or other credit loss, and:

(1) For insurance against loss of or damage to property where no such
coverage already exists; and

(2) For insurance providing life, accident, health or involuntary
unemployment coverage.

3. The cost of any insurance shall not exceed the rates filed with the
division of insurance, and the insurance shall be obtained from an
insurance company duly authorized to conduct business in this state. Any
person or entity making second mortgage loans, or any of its employees,
may be licensed to sell insurance permitted in this section.

4. On any second mortgage loan, a default charge may be contracted for
and received for any installment or minimum payment not paid in full
within fifteen days of its scheduled due date equal to five percent of
the amount or fifteen dollars, whichever is greater, not to exceed fifty
dollars. A default charge may be collected only once on an installment or
a payment due however long it remains in default. A default charge may be
collected at the time it accrues or at any time thereafter and for
purposes of subsection 3 of section 408.234 a default charge shall be
treated as a payment. No default charge may be collected on an
installment or a payment due which is paid in full within fifteen days of
its scheduled due date even though an earlier installment or payment or a
default charge on earlier installment or payments may not have been paid
in full.

5. The lender shall, in addition to the charge authorized by subsection 4
of this section, be allowed to assess the borrower or other maker of
refused instrument the actual charge made by any institution for
processing the negotiable instrument, plus a handling fee of not more
than twenty-five dollars; and, if the contract or promissory note, signed
by the borrower, provides for attorney fees, and if it is necessary to
bring suit, such attorney fees may not exceed fifteen percent of the
amount due and payable under such contract or promissory note, together
with any court costs assessed. The attorney fees shall only be applicable
where the contract or promissory note is referred for collection to an
attorney, and are not handled by a salaried employee of the holder of the
contract or note. (L. 1979 S.B. 305, A.L. 1982 H.B. 1341, et al., A.L.
1983 S.B. 70 § 408.233 merged with § 5, A.L. 1985 H.B. 826, A.L. 1986
S.B. 667 merged with H.B. 1207, A.L. 1989 S.B. 192, A.L. 1998 S.B. 792,
A.L. 2003 S.B. 346)

1. No lender shall make a second mortgage loan pursuant to
sections 408.231 to 408.241 in an initial principal amount of less than
two thousand five hundred dollars.

2. A lender may take a security interest in any collateral in conjunction
with residential real estate in connection with a second mortgage loan.

3. The borrower shall have an unconditional right to prepay any second
mortgage loan. If any such loan providing for interest being added to the
principal is prepaid in full one month or more before the final
installment date, the lender shall recompute the amount of interest
earned to the date of prepayment in full on the basis of the rate of
interest originally contracted for computed on the actual unpaid
principal balances for the time actually outstanding.

4. When fees charged need not be disclosed in the annual percentage rate
required by Title 15, U.S.C. Sections 1601, et seq., and regulations
thereunder because such fees are deminimus amounts or for other reasons,
such fees need not be included in the annual percentage rate for state
examination purposes. (L. 1979 S.B. 305, A.L. 1980 H.B. 1195, A.L. 1981
S.B. 5 Revision, A.L. 1994 H.B. 1312 merged with S.B. 718, A.L. 2000 S.B.
896)

The director of the division of finance shall have full power
and authority at any time and as often as reasonably necessary to
investigate and examine the books, records, and papers of any lender
making second mortgage loans pursuant to this act*, and may compel the
production of all relevant books, records, accounts, and documents with
respect to loans made under sections 408.231 to 408.241. Provided,
however, this section shall not apply to those corporations whose powers
emanate from the laws of the United States and those which are subject to
the divisions of credit unions and finance. (L. 1979 S.B. 305, A.L. 1994
H.B. 1312 merged with S.B. 718)

*"This act" (H.B. 1312, 1994, and S.B. 718, 1994) contained numerous
sections. Consult Disposition of Sections table for a definitive listing.

Any person violating the provisions of sections 408.231 to
408.241 shall be barred from recovery of any interest on the contract,
except where such violations occurred either:

(1) As a result of an accidental and bona fide error of computation; or

(2) As a result of any acts done or omitted in reliance on a written
interpretation of the provisions of sections 408.231 to 408.241 by the
division of finance. (L. 1979 S.B. 305, A.L. 1988 H.B. 1355, A.L. 1994
H.B. 1312 merged with S.B. 718)

Sections 408.231 to 408.241 shall not apply to any transaction
in which a single extension of credit is allocated between a first lien
and any number of subordinate liens, for the purpose or with the result
of contracting for or receiving a higher rate of interest than would have
been permitted if the loan had been made under section 408.030. (L. 1979
S.B. 305, A.L. 1994 H.B. 1312 merged with S.B. 718)

Any person, firm, or corporation who or which shall violate the
provisions of sections 408.100 to 408.241 and any member, officer,
director, agent or employee of such person, firm or corporation who shall
participate in such violation shall be guilty of a class A misdemeanor,
except where such violation occurred either:

(1) As a result of an accidental and bona fide error of computation; or

(2) As a result of any acts done or omitted in reliance on a written
interpretation of sections 408.231 to 408.241 by the division of finance.
Section 408.095 shall not apply to a loan which complies with sections
408.100 to 408.241. (L. 1979 S.B. 305, A.L. 1988 H.B. 1355, A.L. 1994
H.B. 1312 merged with S.B. 718)

Notwithstanding the provisions of sections 408.233 and 408.234,
a prepayment fee may be charged on second mortgage loans, as defined in
section 408.231, under the same provisions as is allowed under section
408.036. (L. 1991 H.B. 180 § 1)

Effective 3-7-91

Unless otherwise clearly indicated by the context, the following
words when used in sections 408.250 to 408.370, for the purposes of
sections 408.250 to 408.370, shall have the meanings respectively
ascribed to them in this section:

(1) "Cash sale price" means the price stated in a retail time transaction
for which the seller would have sold or furnished to the buyer, and the
buyer would have bought or obtained from the seller, the goods or
services which are the subject matter of the retail time transaction, if
such sale were for cash. The cash sale price may include the cost of
taxes, official fees, if any, and charges for accessories and their
installation and delivery, and for the servicing, repairing or improving
of goods. If a retail time transaction involves the repair,
modernization, alteration or rehabilitation of real property, the cash
sale price may include reasonable fees and costs actually to be paid for
construction permits and similar fees, the services of an attorney and
any title search and title insurance relating to any mortgage, lien or
other security interest taken, granted or reserved pursuant to contract;

(2) "Credit" means the right granted by a creditor to a debtor to defer
payment of a debt or to incur debt and defer its payment. It includes the
right to incur debt and defer its payment pursuant to the use of a card,
plate, coupon book, or other credit confirmation or identification device
or number or other identifying description;

(3) The term "creditor" refers only to creditors who regularly extend, or
arrange for the extension of, credit whether in connection with loans,
sales of property or services, or otherwise;

(4) "Goods" means all tangible chattels personal and merchandise
certificates or coupons issued by a retail seller exchangeable for
tangible chattels personal of such seller, but the term does not include
motor vehicles, nonprocessed farm products, livestock, money, things in
action, or intangible personal property. The term includes tangible
chattels personal which, at the time of the sale or subsequently, are to
be so affixed to realty as to become a part thereof whether or not
severable therefrom;

(5) "Holder" of a retail time contract means the retail seller of the
goods or services under the contract or, if the contract is purchased or
otherwise acquired, the person purchasing or otherwise acquiring the
contract;

(6) "Insurance company" means any form of lawfully authorized insurer in
this state;

(7) "Motor vehicle" means any new or used automobile, motor home,
motorcycle, truck, trailer, semitrailer, truck tractor, or bus, primarily
designed or used to transport persons or property on a public highway,
road or street, or a mobile or modular home or farm machinery or
implements;

(8) "Official fees" means the fees prescribed by law for filing,
recording or otherwise perfecting and releasing or satisfying any title
or lien retained or taken by a seller in connection with a retail time
transaction;

(9) "Person" means an individual, partnership, corporation, association,
and any other group however organized;

(10) "Principal balance" means the cash sale price of the goods or
services which are the subject matter of a retail time transaction plus
the amount, if any, included in a retail time contract, if a separate
identified charge is made therefor and stated in the contract, for
insurance and other benefits and official fees, minus the amount of the
buyer's down payment in money or goods;

(11) "Retail buyer" or "buyer" means a person who buys goods or obtains
services to be used primarily for personal, family, or household purposes
and not primarily for business, commercial, or agricultural purposes from
a retail seller in a retail time transaction;

(12) "Retail charge agreement" means an agreement entered into in this
state between a retail seller and a retail buyer prescribing the terms of
retail time transactions to be made from time to time pursuant to such
agreement, and which provides for a time charge to be computed on the
buyer's total unpaid balance from time to time;

(13) "Retail seller" or "seller" means a person who regularly sells or
offers to sell goods or services to a buyer primarily for the latter's
personal, family, or household use and not primarily for business,
commercial, or agricultural use. The term also includes a person who
regularly grants credit to retail buyers for the purpose of purchasing
goods or services from any person, pursuant to a retail charge agreement,
but shall not apply to any person licensed or chartered and regulated to
engage regularly in the business of making loans from or in this state;

(14) "Retail time contract" means an agreement evidencing one or more
retail time transactions entered into in this state pursuant to which a
buyer engages to pay in one or more deferred payments the time sale price
of goods or services. The term includes a chattel mortgage; conditional
sales contract; and a contract for the bailment or leasing of goods by
which the bailee or lessee contracts to pay as compensation for their use
a sum substantially equivalent to or in excess of their cash sale price
and by which it is agreed that the bailee or lessee is bound to become,
or, for no further or a merely nominal consideration has the option of
becoming, the owner of the goods upon full compliance with the provisions
of the contract;

(15) "Retail time transaction" means a contract to sell or furnish or the
sale of or furnishing of goods or services by a retail seller to a retail
buyer for which payment is to be made in one or more deferred payments
under and pursuant to a retail time contract or a retail charge agreement;

(16) "Services" means work, labor and services of any kind furnished or
agreed to be furnished by a retail seller but does not include
professional services including, but not limited to, services performed
by an accountant, physician, lawyer or the like, unless the furnishing of
such professional services is the subject of a signed retail time
transaction;

(17) "Time charge" means the amount, however denominated or expressed, in
excess of the cash sale price under a retail charge agreement or the
principal balance under a retail time contract which a retail buyer
contracts to pay or pays for goods or services. It includes the extension
to the buyer of the privilege of paying therefor in one or more deferred
payments;

(18) "Time sale price" means the total of the cash sale price of the
goods or services and the amount, if any, included for insurance and
other benefits if a separate identified charge is made therefor, and the
amounts of the official fees, and the time charge. (L. 1961 p. 638 § 2,
A.L. 1974 S.B. 427, A.L. 1975 S.B. 71, A.L. 1979 S.B. 305, A.L. 1982 H.B.
1341, et al., A.L. 1989 H.B. 346)

1. Each retail time contract shall be in writing, shall be
signed by both the buyer and the seller, and shall be completed prior to
the signing of the contract by the buyer. In addition to such retail time
contract, the seller may require the buyer to execute and deliver a
negotiable promissory note to evidence the obligation created by the
retail time contract, and the seller may require security for the payment
of such obligation or the performance of any other condition of the
contract, in which case the retail time contract may evidence such
security. The fact that a note given to evidence a retail time contract
contains the matters and things which sections 408.250 to 408.370 require
be included in a retail time contract shall not render such note
nonnegotiable under any of the provisions of article 3 of chapter 400,
RSMo, if such note is not otherwise nonnegotiable under said chapter. Any
such additional document or documents shall be completed prior to the
signing thereof by the buyer. No retail time contract shall require or
entail the execution by the buyer of any note or series of notes which,
when separately negotiated, will cut off as to third parties any right of
action or defense which the buyer may have against the seller.

2. The printed portion of the contract, other than instructions for
completion, shall be in at least eight point type. The contract shall
contain the following notice in a size equal to at least ten point bold
type:

"NOTICE TO THE BUYER:

(1) DO NOT SIGN THIS CONTRACT BEFORE YOU READ IT OR IF IT CONTAINS ANY
BLANK SPACES.

(2) YOU ARE ENTITLED TO AN EXACT COPY OF THE CONTRACT YOU SIGN.

(3) UNDER THE LAW YOU HAVE THE RIGHT TO PAY OFF IN ADVANCE THE FULL
AMOUNT DUE AND UNDER CERTAIN CIRCUMSTANCES TO OBTAIN A PARTIAL REFUND OF
THE TIME CHARGE."

3. The seller shall deliver to the buyer, or mail to him at his address
shown on the contract, a copy of the contract signed by the seller. Until
the seller does so, a buyer who has not received delivery of the goods or
been furnished the services shall have the right to rescind his agreement
and to receive a refund of all payments made and return of all goods
traded in to the seller on account of or in contemplation of the
contract, or if such goods cannot be returned, the value thereof. Any
acknowledgment by the buyer of delivery of a copy of the contract shall
be in a size equal to at least ten point bold type and, if contained in
the contract, shall appear directly above the buyer's signature. The
buyer's acknowledgment, conforming to the requirements of this subsection
3, of delivery of a copy of the contract shall be conclusive proof of
such delivery, and that the contract when signed did not contain any
blank spaces except as provided in subsection 7 or section 408.270, and
of compliance with this section in any action or proceeding by or against
a holder of the contract without knowledge to the contrary when he
purchases the contract.

4. The contract shall contain the names of the seller and the buyer, the
place of business of the seller, the residence of the buyer as specified
by the buyer and a brief description of the goods sold or services
furnished or to be furnished, and shall clearly state and describe any
collateral security taken for the buyer's obligation.

5. The contract shall contain the following items:

(1) The cash sale price of the goods or services;

(2) The amount of the buyer's down payment, and whether made in money or
goods, or partly in money and partly in goods, including a brief
description of the goods traded in;

(3) The difference between items (1) and (2);

(4) The amount, if any, if a separate charge is made therefor, included
for insurance and other benefits, specifying the types of coverage and
benefits and the coverage periods and separately stating each amount for
each insurance premium or benefit;

(5) The amount of official fees;

(6) The principal balance which is the sum of items (3), (4) and (5);

(7) The amount of the time charge;

(8) The amount of the time balance, which is the sum of items (6) and
(7), payable in one or more deferred payments by the buyer to the seller,
and the amount of each such payment and the due date or period thereof;

(9) The time sale price. The above items need not be stated in the
sequence or order set forth.

6. A retail time contract need not be contained in a single document. If
the contract is contained in more than one document, then one such
document may be an original document applicable to purchases of goods or
services to be made by the retail buyer from time to time and in such
case such document, together with the sales slip, account book or other
written statement relating to each purchase, shall set forth all of the
information required by this section and shall constitute the retail time
contract for each such purchase.

7. No retail time contract shall be signed by any party thereto when it
contains blank spaces to be filled in after it has been signed except
that, if delivery of the goods is not made at the time of the execution
of the contract, the identifying numbers or marks of the goods or similar
information and the due dates of the payments may be inserted in the
contract after its execution.

8. Upon written request from the buyer the holder of a retail time
contract shall give or forward to the buyer a written statement of the
dates and amounts of payments received and charges imposed and the total
amount unpaid under such contract. A buyer shall be given a written
receipt for any payments when made in cash.

9. No provision in a retail time contract relieving the seller from
liability for any legal remedies which the buyer may have against the
seller under the contract or any separate instrument executed in
connection therewith shall be enforceable.

10. After payment of all sums for which the buyer is obligated under a
contract and upon written demand made by the buyer the holder shall
deliver or mail to the buyer at his last known address one or more good
and sufficient instruments to acknowledge payment in full and shall
release all security in the goods or in any collateral security.

11. No retail time contract shall contain any provision by which the
buyer agrees to relieve the seller, assignee or holder of any
liabilities, or whereby the buyer agrees to waive any claim, rights or
legal remedies which the buyer may have against the seller, assignee or
holder under the retail time contract. (L. 1961 p. 638 § 4, A.L. 1965 p.
95, A.L. 1975 S.B. 71)

Retail time contracts negotiated and entered into by mail
without personal solicitation by salesmen or other representatives of the
seller and based upon the catalog of the seller or other printed
solicitation of business, which is distributed and made available
generally to the public, if such catalog or other printed solicitation
clearly sets forth the cash and time sale prices and other terms of sales
to be made through such medium, may be made as provided in this section.
All provisions of sections 408.250 to 408.370 shall apply to such sales
except that the seller shall not be required to deliver a copy of the
contract to the buyer as provided in section 408.260 and if the contract
when received by the seller contains any blank spaces the seller may
insert in the appropriate blank space the amounts of money and other
terms which are set forth in the seller's catalog or other printed
solicitation which is then in effect. In lieu of sending the buyer a copy
of the contract as provided in section 408.260, the seller shall furnish
to the buyer a written statement of any items inserted in the blank
spaces in the contract received from the buyer. (L. 1961 p. 638 § 4)

1. The amount, if any, included for insurance, if a separate
identified charge is made for the insurance, which insurance may be
purchased by the seller or other person holding a retail time contract or
account under a retail charge agreement, shall not exceed the applicable
premium chargeable in accordance with the rates approved by the
department of insurance of this state where such rates are required by
law to be approved by such department. All insurance shall be written by
an insurance company authorized to do business in this state and all
policies written in this state shall be countersigned by a duly licensed
resident agent authorized to engage in the insurance business in this
state, unless otherwise provided by law. A buyer may be required to
provide insurance on the goods at his own cost for the protection of the
seller or other person holding a retail time contract or account under a
retail charge agreement, as well as the buyer, but such insurance shall
be subject to limitations provided for in regulations promulgated and
issued by the director of finance pursuant to the provisions of
subsection 3 of this section. An additional charge may be made for
insurance written in connection with the retail time contract which
provides involuntary unemployment coverage.

2. The seller or other person holding a retail time contract or account
under a retail charge agreement shall, within thirty days after provision
for any insurance is agreed to by the buyer, send or cause to be sent to
the buyer a policy or policies or certificate or certificates of
insurance, clearly setting forth the amount of the premium, the kind or
kinds of insurance, the coverage and, if a policy, all the terms,
exceptions, limitations, restrictions and conditions of the contract or
contracts of insurance, or, if a certificate, a summary of the
certificate.

3. The amount of any life insurance shall not exceed the amount of the
total unpaid balance from time to time under a retail time contract or
under a retail charge agreement, except that where the buyer's obligation
under a retail time contract is repayable in payments which are not
substantially equal in amount, such insurance may be level term insurance
in an amount which shall not exceed by more than five dollars the time
balance as determined under subsection 5 of section 408.260. The director
of finance, or such agency or agencies as may exercise the powers and
duties now performed by such director, shall issue regulations providing
for and governing the types and limits of all other insurance and the
issuance of policies in connection with retail time transactions. Nothing
in this section shall alter or amend the statutes of this state relating
to insurance or affect the powers of the director of insurance under such
statutes.

4. The seller shall not decline existing insurance written by an
insurance company authorized to do business in this state and the buyer
shall have the privilege of purchasing insurance from an agent or broker
of his own selection and of selecting his insurance company, except that
the insurance company shall be acceptable to the holder, which acceptance
shall not be unreasonably or arbitrarily withheld, and further, that the
inclusion of the cost of the insurance premium in the retail time
contract when the buyer selects his agent, broker or company shall be
optional with the seller.

5. If any insurance is canceled, or the premium adjusted, any refund of
the insurance premium received by the holder shall be credited to the
final maturing payments of the contract except to the extent applied
toward payment for similar insurance protecting the interests of the
buyer and the holder or either of them. (L. 1961 p. 638 § 5, A.L. 1989
H.B. 615 & 563)

1. Every retail charge agreement shall be in writing and shall
be signed by the retail buyer. A copy of any such agreement executed on
or after October 13, 1961, shall be delivered or mailed to the retail
buyer by the retail seller prior to the date on which the first payment
is due thereunder. An acknowledgment of the delivery thereof contained in
the body of the agreement shall be conclusive proof of delivery in any
action. All agreements executed on or after said date shall state the
amount or rate of the time charge to be charged and paid pursuant thereto
or shall state that a time charge not in excess of that permitted by law
will be charged and paid pursuant thereto; and may in the event of
default of any payment required by the agreement, provide for the payment
of attorney fees not exceeding fifteen percent of the total unpaid
balance where such balance is referred for collection to an attorney not
a salaried employee of the seller and for court costs.

2. The retail seller under a retail charge agreement shall promptly
supply the retail buyer under such agreement with a statement at the time
of sale or as of the end of each monthly period (which need not be a
calendar month) or other regular period agreed upon by the retail seller
and the retail buyer in which there is any unpaid balance thereunder,
which shall recite the following:

(1) The total unpaid balance under the retail charge agreement at the
beginning and end of the period;

(2) Unless otherwise furnished by the retail seller to the retail buyer
by sales slip, memorandum, or otherwise, a description of the goods or
services purchased, the cash sale price and the date of each purchase;

(3) The payments made by the retail buyer to the retail seller and any
other credits to the retail buyer during the period;

(4) The amount of the time charge, if any;

(5) A legend to the effect that the retail buyer may at any time pay his
total unpaid balance. The above items need not be stated in the sequence
or order set forth. (L. 1961 p. 638 § 6, A.L. 1975 S.B. 71)

1. Notwithstanding the provisions of any other law, the seller
or other holder under a retail time contract may charge, receive and
collect a time charge, which shall be in lieu of any interest charges,
except such as may arise under the terms of sections 408.250 to 408.370
after maturity of the time contract and which charge shall not exceed the
amount agreed to by the parties to the retail time contract. The time
charge under this subsection shall be computed on the principal balance
of each transaction, as determined under subsection 5 of section 408.260,
on contracts payable in successive monthly payments substantially equal
in amount from the date of the contract to the maturity of the final
payment, notwithstanding that the total time balance thereof is required
to be paid in one or more deferred payments, or if goods are delivered or
services performed more than ten days after that date, with the date of
commencement of delivery of goods or performance of services to the
maturity of the final payment. When a retail time contract provides for
payment other than in substantially equal successive monthly payments,
the time charge shall not exceed the amount which will provide the same
return as is permitted on substantially equal monthly payment contracts.
Each day may be counted as one-thirtieth of a month. In lieu of any other
charge, a minimum time charge of twelve dollars may be charged, received,
and collected on each such contract.

2. Notwithstanding the provisions of any other law, the seller and
assignee under a retail charge agreement may charge, receive and collect
a time charge which shall not exceed the amount agreed to by the parties
to the retail charge agreement. The time charge under this subsection
shall be computed on an amount not exceeding the greater of either:

(1) The average daily balance of the account in the billing cycle for
which the charge is made, which is the sum of the amount unpaid each day
during that cycle divided by the number of days in that cycle; amount
unpaid on a day is determined by adding to any balance unpaid as of the
beginning of that day all purchases and other debits and deducting all
payments and other credits made or received as of that day; or

(2) The unpaid balance of the account on the last day of the billing
cycle after first deducting all payments, credits and refunds during the
billing cycle; or for all unpaid balances within a range of not in excess
of ten dollars on the basis of the median amount within such range, if as
so computed such time charge is applied to all unpaid balances within
such range. A minimum time charge not in excess of seventy cents per
month may be charged, received and collected.

3. The time charge shall include all charges incident to investigating
and making any retail time transaction. No fee, expense, delinquency
charge, collection charge, or other charge whatsoever, shall be charged,
received, or collected except as provided in sections 408.250 to 408.370.
(L. 1961 p. 638 § 7, A.L. 1975 S.B. 71, A.L. 1979 S.B. 305, A.L. 1980
H.B. 1195, A.L. 1981 S.B. 5 Revision, A.L. 1981 H.B. 256, A.L. 1985 H.B.
358 & 440, A.L. 1996 S.B. 898)

Any person may purchase or acquire or agree to purchase or
acquire from any seller any retail time contract or account under a
retail charge agreement on such terms and conditions and at such price as
may be agreed upon between them. Filing of the assignment, notice to the
buyer of the assignment, and any requirement that the purchaser or other
assignee maintain dominion over the payments or the goods if repossessed
shall not be necessary to the validity of a written assignment of such a
contract or account as against creditors, subsequent purchasers, pledges,
mortgagees and lien claimants of the seller. Unless the buyer has notice
of the assignment of his contract or account, payment thereunder made by
the buyer to the seller or to the last known purchaser or other assignee
of such contract or account shall be binding upon all subsequent
purchasers or other assignees. (L. 1961 p. 638 § 8)

Notwithstanding the provisions of any retail time contract to
the contrary, any buyer may prepay in full at any time before maturity
the debt of any retail time contract and on so paying such debt shall
receive a refund credit thereof for such anticipation of payments. The
amount of such refund shall be calculated by the actuarial method. The
lender shall retain no more interest than is actually earned whenever a
retail time contract is prepaid. (L. 1961 p. 638 § 9, A.L. 1986 H.B.
1207, A.L. 2002 S.B. 895)

Effective 7-1-03

1. If a retail time contract or a retail charge agreement so
provides, the holder thereof may charge and collect:

(1) A premium for insurance in lieu of charges for perfecting a security
interest required by the lender if the premium does not exceed the fees
which would otherwise be payable;

(2) Charges assessed by any institution for processing a refused
instrument plus a handling fee of not more than fifteen dollars;

(3) A delinquency and collection charge on each installment in default
for a period of not less than ten days in an amount not to exceed ten
dollars or five dollars when the monthly installment is less than
twenty-five dollars; or

(4) Interest on each delinquent payment thereunder at a rate which will
not exceed the highest lawful contract rate. In addition to such
delinquency charge, the contract may provide for the payment of attorney
fees not exceeding fifteen percent of the amount due and payable under
such contract where such contract is referred for collection to an
attorney not a salaried employee of the holder of the contract and for
court costs.

2. The parties to a retail time contract who have entered into more than
one contract at substantially different times may agree to consolidate
such contracts resulting in a single schedule of payments; provided,
however, that the time charge on the new unpaid balance shall not exceed
the maximum specified in section 408.300. (L. 1961 p. 638 § 10, A.L. 1975
S.B. 71, A.L. 1989 H.B. 386 merged with S.B. 192, A.L. 1990 H.B. 1788,
A.L. 1992 S.B. 705, A.L. 1994 S.B. 718)

The provisions of sections 408.250 to 408.370 shall not apply to
retail time transactions consummated prior to the effective date hereof;
provided, however, that with respect to any sale made subsequent to the
effective date hereof pursuant to a retail charge agreement entered into
prior to the effective date hereof, the provisions of sections 408.250 to
408.370 shall apply if (1) prior to the making of such sale the seller
shall have delivered or mailed to the buyer a copy of a retail charge
agreement, duly executed on behalf of the seller, conforming, except for
the buyer's signature, with the provisions of section 408.290, and (2)
the seller thereafter complies with all the other provisions of sections
408.250 to 408.370. (L. 1961 p. 638 § 13)

Any waiver of the provisions of sections 408.250 to 408.370
shall be unenforceable and void. (L. 1961 p. 638 § 12)

Sections 408.250 to 408.370 may be cited as the "Missouri Retail
Credit Sales Law". (L. 1961 p. 638 § 1)

1. No retail time contract shall contain any provision by which
in the absence of the buyer's default in the performance of any of his
obligations, the seller or holder may arbitrarily and without reasonable
cause accelerate the maturity of any part or all of the amount owing
thereunder.

2. No retail time contract or retail charge agreement shall contain any
provision by which:

(1) A power of attorney is given to confess judgment, or an assignment of
wages is given;

(2) The seller or holder of the contract or other person acting on his
behalf is given authority to enter upon the buyer's premises unlawfully
or to commit any breach of the peace in the repossession of goods;

(3) The buyer waives any right of action against the seller or holder of
the contract or other person acting on his behalf, as the buyer's agent
in the collection of payments under the contract or in the repossession
of goods; or

(4) The buyer executes a power of attorney appointing the seller or
holder of the contract, or other person acting on his behalf, as the
buyer's agent in collection of payments under the contract or in the
repossession of goods. (L. 1975 S.B. 71)

1. Any person who shall knowingly violate any provision of
section 408.250 and sections 408.260 to 408.370 shall be deemed guilty of
a misdemeanor and, upon conviction, shall be punished by a fine of not
more than five hundred dollars or by imprisonment for not more than six
months or both.

2. Any person violating sections 408.260 to and including 408.330, except
as the result of an accidental and bona fide error of computation, shall
be barred from recovery of any time charge, delinquency or collection
charge on the contract.

3. Notwithstanding the other provisions of this section, the failure to
comply with any provision of section 408.250 and sections 408.260 to
408.370 with respect to any retail time transaction may be corrected by
the seller, or other person holding the retail time contract or account
under a retail charge agreement, at any time after the execution thereof,
but in any event not later than ten days after such person shall have
been notified thereof in writing by the buyer, and, if so corrected, such
person shall not be subject to any criminal penalty, civil forfeiture, or
private cause of action under sections 408.250 to 408.370 for such
failure.

4. Any buyer, who suffers an ascertainable loss of money or property,
real or personal, as a result of the use or employment of any method, act
or practice in violation of section 408.250 and sections 408.260 to
408.370, which is not restored by action taken pursuant to subsection 3
of this section, may bring a private cause of action pursuant to section
407.025, RSMo.

5. No private action for the recovery of damages under the provisions of
subsection 4 of this section shall be commenced after three years from
the date of the last method, act, or practice in violation of sections
408.250 to 408.260, 408.290, 408.300, 408.330, 408.365 and 408.370. The
limitation on the commencement of action provided in this subsection
shall be tolled for the same reason and in the same manner as other
limitations on the bringing of actions under the provisions of chapter
516, RSMo. (L. 1961 p. 638 § 11, A.L. 1975 S.B. 71)

As used in sections 408.250 to 408.370, a retail installment
agreement shall be deemed to be signed or accepted by the buyer, if after
a request for a retail installment account, the agreement or application
for a retail installment account is in fact signed by the buyer, or if
the retail installment account is used by the buyer, or if the retail
installment account is used by another person authorized by the buyer to
use it. (L. 1998 H.B. 1189 § 1)

1. As used in sections 408.400 to 408.415, unless the context
otherwise requires:

(1) "Arranged" means to provide or offer to provide a loan which is or
will be extended by another person under a business or other relationship
pursuant to which the person arranging such loan receives or will receive
a fee, compensation, or other consideration for such service or has
knowledge of the terms of the loan and participates in the preparation of
the instruments required in connection with the extension of the loan;

(2) "Consumer goods or services" means goods or services for use
primarily for personal, family or household purposes.

2. The definitions in Articles 1, 3 and 9 of chapter 400, RSMo, are
applicable to sections 408.400 to 408.415. (L. 1974 H.B. 1047, et al. §
1, A.L. 1983 H.B. 713 Revision)

The rights of a holder or assignee of an instrument, account,
contract, right, chattel paper or other writing other than a check or
draft, which evidences the obligation of a natural person as buyer,
lessee, or borrower in connection with the purchase or lease of consumer
goods or services, are subject to all defenses and setoffs of the debtor
arising from or out of such sale or lease, notwithstanding any agreement
to the contrary, only as to amounts then owing and as a matter of defense
to or setoff against a claim by the holder or assignee; provided,
however, with respect to goods only, the rights of the debtor under this
section may be asserted to the seller at the address at which he did
business at the time of the sale and must be so asserted within ninety
days after receipt of the goods. (L. 1974 H.B. 1047, et al. § 2)

(1986) Home improvements held to be "consumer goods" within the meaning
of this section. Roosevelt Federal Savings & Loan Ass'n. v. Crider, 722
S.W.2d 325 (Mo.App. S.D.)

Sections 408.400 to 408.415 are not applicable to:

(1) An instrument or other writing which evidences a loan or indebtedness
to a lender or person, other than a seller or lessor, which was not
arranged by a seller or lessor, the proceeds of which are used by the
buyer or lessee to satisfy an obligation to a seller or lessor;

(2) Credit card sales on a credit card issued by an issuer other than the
seller. (L. 1974 H.B. 1047, et al. § 3)

Subject to the provisions of sections 408.400 to 408.415, the
provisions of chapter 400, RSMo 1969, shall be applicable to any consumer
credit transaction. (L. 1974 H.B. 1047, et al. § 4)

All contracts or agreements originally subject to sections
408.450 to 408.470, existing on August 28, 2003, shall remain subject to
the provisions of sections 408.140, 408.150, 408.160 and 408.550 to
408.562, even if the contract or agreement is converted into another form
of credit. (L. 1984 H.B. 1170, A.L. 2003 H.B. 221 merged with S.B. 346)

1. Lenders, other than banks, trust companies, credit unions,
savings banks and savings and loan companies, in the business of making
unsecured loans of five hundred dollars or less shall obtain a license
from the director of the division of finance. An annual license fee of
three hundred dollars per location shall be required. The license year
shall commence on January first each year and the license fee may be
prorated for expired months. The director may establish a biennial
licensing arrangement but in no case shall the fees be payable for more
than one year at a time. The provisions of this section shall not apply
to pawnbroker loans, consumer credit loans as authorized under chapter
367, RSMo, nor to a check accepted and deposited or cashed by the payee
business on the same or the following business day. The disclosures
required by the federal Truth in Lending Act and regulation Z shall be
provided on any loan, renewal or extension made pursuant to this section
and the loan, renewal or extension documents shall be signed by the
borrower.

2. Entities making loans pursuant to this section shall contract for and
receive simple interest and fees in accordance with sections 408.100 and
408.140. Any contract evidencing any fee or charge of any kind
whatsoever, except for bona fide clerical errors, in violation of this
section shall be void. Any person, firm or corporation who receives or
imposes a fee or charge in violation of this section shall be guilty of a
class A misdemeanor.

3. Notwithstanding any other law to the contrary, cost of collection
expenses, which include court costs and reasonable attorneys fees,
awarded by the court in suit to recover on a bad check or breach of
contract shall not be considered as a fee or charge for purposes of this
section.

4. Lenders licensed pursuant to this section shall conspicuously post in
the lobby of the office, in at least fourteen-point bold type, the
maximum annual percentage rates such licensee is currently charging and
the statement: NOTICE:

This lender offers short-term loans. Please read and understand the terms
of the loan agreement before signing.

5. The lender shall provide the borrower with a notice in substantially
the following form set forth in at least ten-point bold type, and receipt
thereof shall be acknowledged by signature of the borrower:

(1) This lender offers short-term loans. Please read and understand the
terms of the loan agreement before signing.

(2) You may cancel this loan without costs by returning the full
principal balance to the lender by the close of the lender's next full
business day.

6. The lender shall renew the loan upon the borrower's written request
and the payment of any interest and fees due at the time of such renewal;
however, upon the first renewal of the loan agreement, and each
subsequent renewal thereafter, the borrower shall reduce the principal
amount of the loan by not less than five percent of the original amount
of the loan until such loan is paid in full. However, no loan may be
renewed more than six times.

7. When making or negotiating loans, a licensee shall consider the
financial ability of the borrower to reasonably repay the loan in the
time and manner specified in the loan contract. All records shall be
retained at least two years.

8. A licensee who ceases business pursuant to this section must notify
the director to request an examination of all records within ten business
days prior to cessation. All records must be retained at least two years.

9. Any lender licensed pursuant to this section who fails, refuses or
neglects to comply with the provisions of this section, or any laws
relating to consumer loans or commits any criminal act may have its
license suspended or revoked by the director of finance after a hearing
before the director on an order of the director to show cause why such
order of suspension or revocation should not be entered specifying the
grounds therefor which shall be served on the licensee at least ten days
prior to the hearing.

10. Whenever it shall appear to the director that any lender licensed
pursuant to this section is failing, refusing or neglecting to make a
good faith effort to comply with the provisions of this section, or any
laws relating to consumer loans, the director may issue an order to cease
and desist which order may be enforceable by a civil penalty of not more
than one thousand dollars per day for each day that the neglect, failure
or refusal shall continue. The penalty shall be assessed and collected by
the director. In determining the amount of the penalty, the director
shall take into account the appropriateness of the penalty with respect
to the gravity of the violation, the history of previous violations, and
such other matters as justice may require. (L. 1990 H.B. 961, A.L. 1998
H.B. 1189, A.L. 2001 H.B. 738 merged with S.B. 186, A.L. 2002 S.B. 884,
A.L. 2003 S.B. 346)

1. This section shall apply to:

(1) Unsecured loans made by lenders licensed or who should have been
licensed pursuant to section 408.500;

(2) Any person that the Missouri division of finance determines that has
entered into a transaction that, in substance, is a disguised loan; and

(3) Any person that the Missouri division of finance determines has
engaged in subterfuge for the purpose of avoiding the provisions of this
section.

2. All loans made pursuant to this section and section 408.500, shall
have a minimum term of fourteen days and a maximum term of thirty-one
days, regardless of whether the loan is an original loan or renewed loan.

3. A lender may only charge simple interest and fees in accordance with
sections 408.100 and 408.140. No other charges of any nature shall be
permitted except as provided by this section, including any charges for
cashing the loan proceeds if they are given in check form. However, no
borrower shall be required to pay a total amount of accumulated interest
and fees in excess of seventy-five percent of the initial loan amount on
any single loan authorized pursuant to this section for the entire term
of that loan and all renewals authorized by section 408.500 and this
section.

4. A loan made pursuant to the provisions of section 408.500 and this
section shall be deemed completed and shall not be considered a renewed
loan when the lender presents the instrument for payment or the payee
redeems the instrument by paying the full amount of the instrument to the
lender. Once the payee has completed the loan, the payee may enter into a
new loan with a lender.

5. Except as provided in subsection 3 of this section, no loan made
pursuant to this section shall be repaid by the proceeds of another loan
made by the same lender or any person or entity affiliated with the
lender. A lender, person or entity affiliated with the lender shall not
have more than five hundred dollars in loans made pursuant to section
408.500 and this section outstanding to the same borrower at any one
time. A lender complies with this subsection if:

(1) The consumer certifies in writing that the consumer does not have any
outstanding small loans with the lender which in the aggregate exceeds
five hundred dollars, and is not repaying the loan with the proceeds of
another loan made by the same lender; and

(2) The lender does not know, or have reason to believe, that the
consumer's written certification is false.

6. On a consumer loan transaction where cash is advanced in exchange for
a personal check, a return check charge may be charged in the amounts
provided by sections 408.653 and 408.654, as applicable.

7. No state or public employee or official, including a judge of any
court of this state, shall enforce the provisions of any contract for
payment of money subject to this section which violates the provisions of
section 408.500 and this section.

8. A person does not commit the crime of passing a bad check pursuant to
section 570.120, RSMo, if at the time the payee accepts a check or
similar sight order for the payment of money, he or she does so with the
understanding that the payee will not present it for payment until later
and the payee knows or has reason to believe that there are insufficient
funds on deposit with the drawee at the time of acceptance. However, this
section shall not apply if the person's account on which the instrument
was written was closed by the consumer before the agreed-upon date of
negotiation or the consumer has stopped payment on the check.

9. A lender shall not use a device or agreement that would have the
effect of charging or collecting more fees, charges, or interest than
allowed by this section, including, but not limited to:

(1) Entering into a different type of transaction;

(2) Entering into a sales lease back arrangement;

(3) Catalog sales;

(4) Entering into any other transaction with the consumer that is
designed to evade the applicability of this section.

10. The provisions of this section shall only apply to entities subject
to the provisions of section 408.500 and this section. (L. 2002 S.B. 884)

The division of finance shall report to the general assembly
beginning on January 1, 2003, and on the first day of January every other
year thereafter, the number of licenses issued by the director pursuant
to section 408.500, the number of loans issued by said lenders, the
average face value of such loans, the average number of times said loans
are renewed, the number of said loans that are defaulted on an annual
basis, and the number and nature of complaints made to the director by
customers on such licensees and the disposition of such complaints. Such
report shall also include the average interest and fees charged and
collected by lenders on such loans, and a comparison of such with similar
small loan lenders from adjoining states. (L. 2002 S.B. 884)

Notwithstanding any other law to the contrary, the phrase
"consumer installment loans" means secured or unsecured loans of any
amount and payable in not less than four substantially equal installments
over a period of not less than one hundred twenty days. The phrase
"consumer installment lender" means a person licensed to make consumer
installment loans. A consumer installment lender shall be licensed in the
same manner and upon the same terms as a lender making consumer credit
loans. Such consumer installment lenders shall contract for and receive
interest and fees in accordance with sections 408.100, 408.140, and
408.170. Consumer installment lenders shall be subject to the provisions
of sections 408.551 to 408.562. (L. 2001 S.B. 186, A.L. 2002 S.B. 895)

1. No person, upon proper application, shall be denied credit
under the provisions of sections 408.015 to 408.562 on the basis of sex,
marital status, age, race or religion. Any action which complies with the
provisions of the Equal Credit Opportunity Act, Public Law 93-495 (15
U.S.C. 1691 et seq.), and rules and regulations promulgated thereto shall
be deemed to be in compliance with this section. Any borrower
discriminated against on any of these prohibited bases may recover five
hundred dollars or actual damages, whichever is greater, court costs and
attorney's fees.

2. No person shall be denied credit under the provisions of sections
408.015 to 408.562 because of any exercise of his rights under law. (L.
1979 S.B. 305)

Sections 408.551 to 408.562 shall apply to any credit
transaction made primarily for personal, family or household purposes
pursuant to sections 365.010 to 365.160, RSMo, and sections 408.100 to
408.370. For the purposes of this section, unless the context requires
otherwise, "credit transaction" shall mean any retail installment
transaction as defined by section 365.020, RSMo, or any loan subject to
section 408.100 or any second mortgage loan as defined by section 408.231
or any retail time transaction as defined in section 408.250. (L. 1979
S.B. 305, A.L. 1984 H.B. 1170, A.L. 1998 S.B. 792)

An agreement of the parties to a credit transaction concerning
default by the borrower is enforceable only to the extent that:

(1) The borrower fails to make a payment as required by agreement; or

(2) The lender's prospect of payment, performance, or ability to realize
upon the collateral is significantly impaired; the burden of establishing
significant impairment is on the lender. (L. 1979 S.B. 305)

Upon default the lender shall be entitled to recover no more
than the amount which the borrower would have been required to pay upon
prepayment of the obligation on the date of final judgment together with
interest thereafter at the simple interest equivalent of the rate
provided in the contract. (L. 1979 S.B. 305)

1. After a borrower has been in default for ten days for failure
to make a required payment and has not voluntarily surrendered possession
of the collateral, a lender may give the borrower and all cosigners on
the credit transaction the notice described in this section. A lender
gives notice to the borrower and cosigners under this section when he
delivers the notice to the borrower or cosigner or mails the notice to
him at his last known address.

2. Except as provided in subsection 4 of this section, the notice shall
be in writing and conspicuously state: The name, address and telephone
number of the lender to whom payment is to be made, a brief
identification of the credit transaction, the borrower's right to cure
the default, and the amount of payment and date by which payment must be
made to cure the default. A notice in substantially the following form
complies with this subsection:

(name, address, and telephone number of lender)

(account number, if any)

(brief identification of credit transaction)

(amount) is the AMOUNT NOW DUE

(date) is the LAST DAY FOR PAYMENT

You are late in making your payment(s). If you pay the AMOUNT NOW DUE
(above) by the LAST DAY FOR PAYMENT (above), you may continue with the
contract as though you were not late. If you do not pay by that date, we
may exercise our rights under the law.

3. If the loan transaction is an insurance premium loan, the notice shall
conform to the requirements of subsection 2 of this section and a notice
in substantially the form specified in that subsection complies with this
subsection, except for the following:

(1) In lieu of a brief identification of the loan transaction, the notice
shall identify the transaction as an insurance premium loan and each
insurance policy or contract that may be canceled;

(2) In lieu of the statement in the form of notice specified in
subsection 2 of this section that the lender may exercise his rights
under the law, the statement that each policy or contract identified in
the notice may be canceled; and

(3) The last paragraph of the form of notice specified in subsection 2 of
this section shall be omitted.

4. If a credit transaction is secured, the notice described in this
section shall further state the following: "If you voluntarily surrender
possession of the following specified collateral, you could still owe
additional money after the money received from the sale of the collateral
is deducted from the total amount you owe."

5. In the case of a second default on the same loan made pursuant to
section 408.100 or on the same retail time transaction as defined in
section 408.250 or in the case of a third default on the same second
mortgage loan as defined in section 408.231, the notice described in
subsection 2 of this section shall indicate that in the case of further
default, the borrower will have no right to cure. (L. 1979 S.B. 305, A.L.
1992 S.B. 705)

1. Except as provided in subsection 2 of this section, after a
default consisting only of the borrower's failure to make a required
payment, a lender, because of that default, may neither accelerate
maturity of the unpaid balance nor take possession of or otherwise
enforce a security interest until twenty days after a notice of the
borrower's right to cure is given both to the borrower and to all
cosigners on the credit transaction nor, with respect to an insurance
premium loan, give notice of cancellation until thirteen days after a
notice of the borrower's right to cure is given; notice shall not be
given prior to default. Until expiration of the minimum applicable period
after the notice is given, the borrower or cosigner may cure all defaults
consisting of a failure to make the required payment by tendering the
amount of all unpaid sums due at the time of the tender, without
acceleration, plus any unpaid delinquency or deferral charges. Cure
restores the borrower to his rights as though the default had not
occurred.

2. This section does not prohibit a borrower from voluntarily
surrendering possession of property which is collateral and the lender
from thereafter accelerating maturity of the loan and enforcing the note
or loan and his security interest in the property at any time after
default. If the lender has not already given the notice described in
subsection 2 or 3 of section 408.554, he shall upon voluntary surrender
of the collateral notify the borrower either personally or by mail at the
borrower's last known address that he may owe additional money after the
money received from the sale of the collateral is deducted from the total
amount owed.

3. No lender is bound by the provisions of subsection 1 of this section
if default by the same borrower in connection with the same credit
transaction with the same lender has occurred twice notwithstanding the
cure of such defaults except as provided in subsection 4 of this section.

4. Default by a borrower on a second mortgage loan may be cured by
tendering the current obligation of the borrower at any time prior to the
completion of the judicial or extrajudicial proceedings for foreclosure
upon such real estate. For the purposes of this section, "current
obligation of the debtor" means the aggregate of all installments
scheduled to be due at the time of the tender, notwithstanding any
contractual provision for the acceleration of installment payments. A
lender may take no steps to enforce a security interest in real property
pursuant to a second mortgage loan until thirty days after notice of the
borrower's right to cure is given; notice shall not be given prior to
default. Cure restores the borrower's rights under the agreement as
though the default had not occurred, and any foreclosure in violation of
this section is a class B misdemeanor. This section shall not affect the
debtor's right otherwise to redeem such real property under any other
provision of law. (L. 1979 S.B. 305, A.L. 1983 S.B. 70, A.L. 1992 S.B.
705)

1. In any action brought by a lender against a borrower arising
from default, the petition shall allege the facts of the borrower's
default, facts sufficient to show compliance with the provisions of
sections 400.9-601 to 400.9-629, RSMo, which provisions are hereby deemed
applicable to all credit transactions, with respect to any sale or other
disposition of collateral for the credit transaction, the amount to which
the lender is entitled, and an indication of how that amount was
determined.

2. A default judgment may not be entered in the action in favor of the
lender unless the petition is verified by the lender, or sworn testimony,
by affidavit or otherwise, is adduced showing that the lender is entitled
to the relief demanded.

3. If a lender takes possession or voluntarily accepts surrender of goods
in which the lender has a purchase money security interest to secure a
credit transaction in the principal amount of less than five hundred
dollars, the borrower is not liable to the lender for the unpaid balance.

4. Following any disposition of collateral pursuant to the provisions of
sections 400.9-601 to 400.9-629, RSMo, the lender shall be entitled to
recover from the borrower the deficiency, if any, only if the amount
financed in the transaction was more than five hundred dollars and the
amount remaining unpaid at the time of default is three hundred dollars
or more. (L. 1979 S.B. 305, A.L. 1983 S.B. 70, A.L. 2002 S.B. 895)

When a lender sells or otherwise disposes of collateral in a
transaction in which an action for a deficiency may be commenced against
the borrower, prior to bringing any such action or upon written request
of the borrower, the lender shall give the borrower the notice provided
in section 400.9-614, RSMo, for consumer goods transactions or section
400.9- 613, RSMo, for all other transactions that are not consumer goods
transactions. (L. 1979 S.B. 305, A.L. 2002 S.B. 895)

1. No security interest, other than a purchase money security
interest, may be taken or acquired in household furnishings, appliances,
or clothing of the borrower or his dependents as security for a loan if
the amount financed is less than five hundred dollars.

2. No security interest may be taken or acquired in goods as security for
a credit transaction in the principal amount of less than one hundred
fifty dollars. (L. 1979 S.B. 305)

The following provisions when contained in any note or credit
contract or the contract of any guarantor of a credit transaction shall
be void and unenforceable:

(1) A power of attorney to confess judgment;

(2) An assignment of wages;

(3) A waiver or limitation of any exemption given by law to the borrower
exempting the borrower's property from attachment or execution, except
insofar as the waiver or limitation applies to property in which the
lender has been granted a security interest to secure the credit
transaction;

(4) A security interest in consumer goods which are identified only as a
general class of goods, such as "household goods" or "furniture"; and

(5) A waiver of any right of action against the lender or his assignee or
other person acting on behalf of the lender in the collection of payments
under the contract or in the repossession of goods. (L. 1979 S.B. 305)

In addition to any other civil remedies or penalties provided
for by law, any person who suffers any loss of money or property as a
result of any act, method or practice in violation of the provisions of
sections 408.100 to 408.561 may bring an action in the circuit court of
the county in which any of the defendants reside, in which the plaintiff
resides, or in which the transaction complained of occurred to recover
actual damages. The court may, in its discretion, award punitive damages
and may award to the prevailing party in such action attorney's fees,
based on the amount of time reasonably expended, and may provide such
equitable relief as it deems necessary and proper. (L. 1979 S.B. 305)

Unless otherwise clearly indicated by the context, the following
words and terms as used in sections 408.570 to 408.600 shall mean:

(1) "Department", the Missouri department of economic development;

(2) "Director", the director of the department of economic development;

(3) "Division director", the appropriate director of the division of
finance or the division of credit unions of the department of economic
development;

(4) "Financial institution", a bank, savings and loan association, credit
union, consumer credit lender, mortgage banker, or any other association
or institution which:

(a) Operates a place of business in Missouri; and

(b) As part of its business, makes residential real estate loans;

(5) "Residential real estate", any real estate used or intended to be
used as a residence by not more than four families;

(6) "Residential real estate loan", a loan made for the acquisition,
construction, repair, rehabilitation or remodeling of residential real
estate or any loan secured by residential real estate. The term shall
include any loan made to refinance or prepay in full or in part any such
loan;

(7) "State financial institution", any financial institution other than a
national banking association, a federal savings and loan association, and
a federal credit union;

(8) "Type" of residential real estate loan, conventional loans,
construction loans, loans insured by the Federal Housing Administration,
loans guaranteed by the Veterans Administration, home improvement loans.
(L. 1979 S.B. 305, A.L. 1994 H.B. 1165)

Effective 7-6-94

It shall be unlawful for any financial institution, or any
subsidiary or agent thereof, to deny a residential real estate loan to a
person because of any of the following factors or to discriminate against
any applicant for a residential real estate loan with respect to any
aspect of the loan transaction because of any of the following factors:

(1) The race, color, religion, national origin, handicap, age, marital
status, or sex, of the applicant or the race, religion or national origin
of persons living in the vicinity of the residential real estate;

(2) The specific geographic location of the residential real estate in
such financial institution's local community as defined by it pursuant to
the Community Reinvestment Act (12 U.S.C. 2901 et seq.) and the rules and
regulations promulgated thereunder. Any state financial institution not
regulated by the Community Reinvestment Act shall, subject to the
approval of the appropriate division director, delineate its local
community for the purposes of this section and shall make such
delineation available to the public upon request at each office where the
financial institution accepts applications for residential real estate
loans;

(3) The age of the residential real estate or the age of structures in
the immediate vicinity of the residential real estate. (L. 1979 S.B. 305)

Effective 1-1-80

1. No state financial institution shall refuse to provide, upon
request, an application form or refuse to accept or otherwise impede the
making of a written application for a residential real estate loan.

2. On receipt of a written application for a loan, every state financial
institution shall provide the applicant with a written statement of the
amount and purpose of each charge of the institution for the processing
of the application.

3. On receipt of an amount required by the state financial institution
for processing of the loan, said institution shall cause the application
to be processed to final determination. If the application is rejected,
said institution shall state in writing to the applicant its reason or
reasons for such rejection.

4. In the event that a state financial institution, at any time, is not
originating or purchasing residential real estate loans of the type for
which application is made other than to meet commitments not made in
violation of the provisions of sections 408.570 to 408.600 previously
made for such loans, that institution may satisfy the requirements of
subsections 1, 2, and 3 of this section by delivering to each prospective
applicant for such loan a written statement to that effect signed by a
representative of the institution.

5. Every state financial institution shall prominently display in the
lobby of each of its offices, a statement of the language of subsections
1, 2, 3, and 4 of this section and a statement that the annual report of
the division director made in accordance with the provisions of section
408.590 is available at the division office, on a form approved by the
division director who regulates such institution.

6. Every state financial institution shall maintain a copy of each
document received or delivered under the provisions of subsections 1, 2,
3, and 4 of this section for a period of not less than twenty-five months
which period may be extended by order of the division director who
regulates such institution. Applications for which the processing fee is
not tendered or which are rejected by a state financial institution shall
be segregated in the records of the institution and shall be maintained
with a copy of each document originated, received or delivered regarding
such application.

7. Documents required to be received, maintained or delivered by
subsections 1, 2, 3, and 4 of this section may be on a form provided by
the state financial institution subject to the disapproval of the
division director who regulates such institution provided that each
division director shall to the extent possible authorize documents
otherwise required by law to be used to effect the purposes of this
section.

8. A state financial institution which maintains one or more full service
permanent offices in any county or city not within a county for the
receipt of deposits shall accept for processing loan applications in at
least one office within such county or city not within a county.

9. The division director regulating such state financial institution may
issue such regulations as are necessary to carry out the purposes of this
section. No rule or portion of a rule promulgated under the authority of
this chapter shall become effective unless it has been promulgated
pursuant to the provisions of section 536.024, RSMo. (L. 1979 S.B. 305,
A.L. 1994 H.B. 1165, A.L. 1995 S.B. 3)

1. No provision of sections 408.570 to 408.600 shall be
construed to require any financial institution to make any residential
real estate loan contrary to sound underwriting practices which shall
include but not be limited to the following:

(1) The credit worthiness of the applicant; and

(2) The market value of the residential real estate proposed as security
for the loans.

2. A financial institution may employ different loan application
procedures for loans to purchase or construct new dwellings as opposed to
the purchase of previously occupied dwellings. (L. 1979 S.B. 305)

Effective 1-1-80

1. Each division director shall cause each state financial
institution which he supervises, licenses or charters and which has an
office within a county or a city, such county or city having a population
in excess of two hundred fifty thousand, to be examined periodically
during which examination the following shall be determined:

(1) The number and total dollar amount of residential real estate loans
originated, purchased, or foreclosed by the financial institution after
January 1, 1980, in each of the following categories:

(a) Loans secured by residential real estate located outside the state of
Missouri other than in counties contiguous to the state of Missouri;

(b) Loans secured by residential real estate located in the state of
Missouri or in the counties of other states which counties are contiguous
to the border of the state of Missouri, which number and dollar amount
shall be further reported by the county in which the property is located;

(2) The number of residential real estate loan applications denied by the
institution in which the real estate which was to secure the loan is
situated in a county or city with a population in excess of two hundred
and fifty thousand by such county or city;

(3) By a method to be determined by each division director, such facts as
will enable the division director to conclude whether or not the
institution has engaged or is engaged in any practice in violation of
sections 408.570 to 408.600.

2. Each division director may issue such regulations as are necessary to
require the maintenance of records from which the conclusions required by
this section can be determined.

3. Each division director shall report annually to the governor and the
director of the department his findings made in accordance with the
provisions of this section and which shall include information reported
under the provisions of the Federal Home Mortgage Disclosure Act (12
U.S.C. 2801 et seq.), which findings shall be made as to the total
industry he regulates, and by each county or city with a population in
excess of two hundred fifty thousand. This report shall be maintained by
the division as a public document for a period of five years.

4. The annual reports of the division directors shall state the method or
methods used by the division director to reach his conclusions both in
examination and analysis; and shall contain such facts as he deems
necessary to support those conclusions, including but not limited to:

(1) The information required to be obtained by the provisions of
subsection 1 of this section;

(2) The number and type of violations of sections 408.570* to 408.600
which are found to have occurred, a statement of the action or actions
taken to enforce the provisions of said sections, and the names of the
financial institutions which have been found upon a hearing to have
violated the provisions of said sections;

(3) The number and nature of all complaints received by the department or
division regarding alleged violations of any provision of sections
408.570 to 408.600 and the action taken on each complaint by the
division. (L. 1979 S.B. 305)

Effective 1-1-80

*Original rolls contain section number 409.570.

1. Each state financial institution which is not supervised,
licensed or chartered by a division director, which operates or has a
place of business within a county having a population in excess of two
hundred fifty thousand or a city not within a county and which originated
an aggregate of five hundred thousand dollars or more in residential real
estate loans in Missouri during the last calendar year shall, on or
before a date of ninety days after the end of the fiscal year of the
institution, file with the director of the division of finance an annual
statement for each such county or city showing separately the number and
total dollar amount of residential real estate loans both within and
outside of that county or city which were:

(1) Originated by that institution during the preceding fiscal year;

(2) Purchased by that institution during the preceding fiscal year; and

(3) Foreclosed by that institution during the preceding fiscal year.

2. The information required to be filed under subsection 1 of this
section shall be further itemized in order to clearly and conspicuously
disclose the following:

(1) The number and dollar amount of each item by census tracts for
residential real estate loans on property located within that county or
city;

(2) The number and dollar amount of each item for all residential real
estate loans on property located outside that county or city.

3. The information required to be filed under subdivisions (1) and (2) of
subsection 1 shall also be itemized in order to clearly and conspicuously
disclose the following:

(1) The number and dollar amount of loans made for the purchase of
residential real estate which are insured under Title II of the National
Housing Act or under Title V of the Housing Act of 1949 or which are
guaranteed under Chapter 37 of Title 38, United States Code;

(2) The number and dollar amount of loans made for the purchase of
residential real estate, including loans insured under federal housing
insurance programs;

(3) The number and dollar amount of loans made for the repair,
rehabilitation or remodeling of residential real estate.

4. Each statement filed under the provisions of this section shall be
filed on forms approved or furnished by the director of the division of
finance and shall be verified by two officers of the institution.
Wherever possible, the director of the division of finance shall make the
forms consistent with the disclosure forms required under the Federal
Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.).

5. The director of the division of finance shall maintain the statements
filed under the provisions of this section for a period of not less than
five years and shall make the statements available to the public for
inspection during regular business hours and for copying at a cost not to
exceed the actual cost to the division. (L. 1979 S.B. 305)

Effective 1-1-80

Not later than sixty days following the close of each fiscal
year, every state financial institution which accepts savings deposits
shall certify to the appropriate division director the total savings
deposits of the institution accepted by the institution in the state of
Missouri as of the close of the fiscal year, and the total amount of the
institution's investments in loans, other than loans originated in the
state of Missouri and in negotiable instruments other than loans. (L.
1979 S.B. 305)

Effective 1-1-80

1. Each division director shall enforce the provisions of
sections 408.570 to 408.600. With respect to state financial institutions
which he supervises, licenses or charters, each division director shall
utilize the powers granted him under the general statutory authority by
which he regulates, supervises, licenses, or charters such institutions,
as well as the powers granted him by sections 408.570 to 408.600. The
director of the division of finance shall enforce the provisions of
sections 408.570 to 408.600 as they pertain to state financial
institutions not supervised, licensed or chartered by a division
director, and shall in that enforcement have such powers as are granted
in said sections. The enforcement powers granted by subsections 2 through
5 of this section shall be utilized by the director of the division of
finance concerning national banks, by the director of savings and loan
supervision concerning federal savings and loan associations, and by the
director of credit unions concerning federal credit unions.

2. Any person who alleges to have been aggrieved as a result of a
violation of section 408.575 or 408.580 may file a complaint with the
appropriate division director. Within ninety days of the receipt of such
complaint, the division director shall determine whether there is any
reason to believe that a violation of section 408.575 or 408.580 has
occurred. If the division director determines that there is such reason,
then he shall undertake to resolve the complaint by negotiation or he
shall conduct a hearing in accordance with the provisions of subsection 3
of this section, except that the hearing shall be held in the locality
where the alleged violation occurred.

3. If the division director, on the basis of an examination, an
investigation of a complaint which has not been resolved by negotiation,
a report required to be filed by section 408.592, or any public document
or information, has reason to believe that a violation of section 408.575
or 408.580 has occurred or does exist, the division director shall
conduct a hearing in accordance with chapter 536, RSMo. If the evidence
establishes a violation of any provision of section 408.575 or 408.580,
the division director may issue a cease and desist order stating
specifically the unlawful practice to be discontinued, which order shall
be served personally, or by certified mail. The decision of the division
director shall be appealable directly to the circuit court pursuant to
chapter 536, RSMo.

4. If, after an order of the division director has become final, the
director believes a violation of any provision of the order has occurred,
he may seek an injunction to prohibit such violations in any court of
competent jurisdiction. For each violation of such injunction, the court
may assess a fine which may be recovered with costs by the state in any
court of competent jurisdiction in an action to be prosecuted by the
attorney general.

5. The remedies provided by this section shall not be interpreted as
exclusive remedies but shall be in addition to remedies otherwise
available to the director or to any individual damaged by a violation of
sections 408.570 to 408.600. (L. 1979 S.B. 305)

Effective 1-1-80

1. Sections 408.675 to 408.700 shall be known and may be cited
as the "Missouri Right to Financial Privacy Act".

2. For the purposes of sections 408.675 to 408.700, the following terms
mean:

(1) "Customer", any person or his authorized representative who utilized
services of a financial institution, or for whom a financial institution
is acting or has acted as a fiduciary, in relation to an account
maintained in such person's name;

(2) "Financial institution", bank, savings and loan association, trust
company, credit union, consumer credit lender, consumer finance
institution, persons who act as lender on loans governed by sections
408.100 and 408.120 to 408.190, persons who are sellers under a retail
time contract or retail time transactions governed by sections 408.250 to
408.370, and any other persons, including, but not limited to,
stockbrokers and brokerage firms, which accept money for deposit to an
account on which checks may be drawn by the owner of such account;

(3) "Financial record", an original, a copy, or information derived from
any record held by a financial institution pertaining to a customer's
relationship with the financial institution;

(4) "Government authority", any agency or department of the state of
Missouri or any agent thereof;

(5) "Law enforcement inquiry", a lawful investigation, official
proceeding, or grand jury proceeding relating to the commission of any
crime;

(6) "Subpoena", a judicial subpoena, an administrative subpoena, or other
process expressly authorized by law;

(7) "Supervisory agency", any agency or department of Missouri having
statutory authority to examine the financial condition or business
operations of a financial institution;

(8) "Government investigation", a lawful proceeding inquiring into a
violation of any civil statute or any valid regulation, rule, or order
issued pursuant thereto. (L. 1989 H.B. 82 §§ 1, 2)

Except as provided in section 408.690, no government authority
may have access to or obtain copies of the information contained in the
financial records of any customer unless the financial records are
reasonably described and:

(1) Such customer has authorized such disclosure in accordance with
section 408.682;

(2) Such financial records are disclosed in response to a subpoena which
meets the requirements of section 408.683; or

(3) Such financial records are disclosed in response to a written request
which meets the requirements of section 408.683. (L. 1989 H.B. 82 § 3)

1. A financial institution, or officer, employee, or agent
thereof shall not provide to any government authority access to the
financial record of any customer except in accordance with the provisions
of sections 408.675 to 408.700.

2. A financial institution shall not release the financial records of a
customer until the government authority seeking such records gives notice
in writing to the financial institution that it has complied with the
applicable provisions of sections 408.675 to 408.700. (L. 1989 H.B. 82 §
4)

1. A customer may authorize disclosure of his financial records
if he furnishes to the financial institution and to the government
authority seeking to obtain such disclosure a signed and dated statement
which:

(1) Authorizes such disclosure for such period as may be agreed upon;

(2) States that the customer may revoke such authorization at any time
before the financial records are disclosed;

(3) Identifies the financial records which are authorized to be disclosed;

(4) Specifies the purpose and the government authority to which such
records may be disclosed; and

(5) States the customer's rights under sections 408.675 to 408.700.

2. Such authorization shall not be required as a condition of doing
business with any financial institution.

3. The customer has the right to obtain a copy of the information which
shall be disclosed to a government authority pursuant to sections 408.675
to 408.700, and the identity of the government authority to which such
disclosure was made. (L. 1989 H.B. 82 § 5)

A government authority may obtain financial records pursuant to
a subpoena if:

(1) There is reason to believe that the records sought are relevant to a
government investigation;

(2) A copy of the subpoena has been served upon the customer or mailed to
his last known address on or before the date on which the subpoena is
served on the financial institution together with the following notice:

"Records or information concerning your transactions held by the
financial institution named in the attached subpoena (or other process)
are being sought by the (agency or department) in accordance with the
Missouri Right to Financial Privacy Act for the following purpose: (state
purpose with reasonable specificity)

If you desire that such records or information not be made available, you
must:

1. State in writing that you are the customer whose records are being
requested and give the reasons you believe the records are not relevant
to the law enforcement inquiry stated in this subpoena or any other basis
for objecting to the release of the records;

2. File the statement by mailing or delivering it to the clerk of the
court which issued or has the power to enforce the subpoena;

3. Serve the government authority requesting the records by mailing or
delivering a copy of your statement to it at the address stated in the
notice; and

4. Be prepared to go to court or to the issuing authority and present
your position in further detail.

You do not need to have a lawyer to represent yourself, although you may
wish to employ one to represent you and protect your rights.

If you do not follow the above procedures, upon the expiration of ten
days from the date of service or fourteen days from the date of mailing
of this notice, the records or information requested therein will be made
available. These records may be transferred to other government
authorities for legitimate government investigations.";

and

(3) Ten days have expired from the date of service of the notice or
fourteen days have expired from the date of mailing the notice to the
customer and within such time period the customer has not filed a
statement or a motion to quash in an appropriate court, or the customer
challenge provisions of section 408.686 have been complied with. (L. 1989
H.B. 82 § 6)

1. Upon application of the government authority, the customer
notice required under section 408.682, 408.683, or 408.689 may be delayed
by order of circuit court of Cole County or the circuit court for the
principal office of the governmental agency if the court finds that:

(1) The investigation being conducted is within the lawful jurisdiction
of the government authority seeking the financial records;

(2) There is reason to believe that the records being sought are relevant
to a legitimate government investigation; and

(3) There is reason to believe that such notice will result in:

(a) Destruction of or tampering with evidence; or

(b) Intimidation of potential witnesses; or

(c) Otherwise seriously jeopardizing an investigation or official
proceeding or unduly delaying a trial or ongoing official proceeding.

An application for delay must be made with reasonable specificity.

2. If the court makes the findings required in subsection 1 of this
section, it may enter an order granting the requested delay for a period
not to exceed ninety days and an order prohibiting the financial
institution from disclosing that records have been obtained or that a
request for records has been made; except that, if the court finds that
there is reason to believe that such notice may endanger the lives or
physical safety of a person or group of persons, the court may specify
that the delay be indefinite.

3. Extensions of the delay of notice of up to ninety days each may be
granted by the court upon application, but only in accordance with this
section.

4. Upon expiration of the period of delay of notification under this
section, the customer shall be served with or mailed a copy of the
process or request together with the following notice:

"Records or information concerning your transactions which are held by
the financial institution named in the attached process or request were
supplied to or requested by the government authority named in the process
or request on (date). Notification was withheld pursuant to a
determination by the (title of court so ordering) under the Missouri
Right to Financial Privacy Act that such notice might (state reason). The
purpose of the investigation or official proceeding was (state purpose in
reasonable specificity).".

5. When access to financial records is obtained pursuant to section
408.692, the government authority shall, unless a court has authorized
delay of notice, as soon as practicable after such records are obtained,
serve upon the customer, or by mail to his last known address a copy of
the request to the financial institution together with the following
notice:

"Records concerning your transactions held by the financial institution
named in the attached request were obtained by the (agency or department)
under the Missouri Right to Financial Privacy Act on (date) for the
following purpose:

Emergency access to such records was obtained on the grounds that (state
purpose in reasonable specificity).".

6. Any memorandum, affidavit, or other paper filed in connection with a
request for delay in notification shall be filed with the court. Upon
petition by the customer to whom such records pertain the court may order
disclosure of such papers to the petitioner unless the court makes the
findings required in subsection 1 of this section. (L. 1989 H.B. 82 § 7)

1. Within ten days of service or within fourteen days of mailing
of a subpoena, a customer may file a motion to quash the subpoena, or an
action to enjoin a government authority from obtaining financial records
pursuant to a written process. A motion to quash the subpoena shall be
filed in the court which issued the subpoena or with the court that has
the power to enforce the subpoena. Such motion or application shall
contain a sworn statement:

(1) Stating that the applicant is a customer of the financial institution
from which financial records pertaining to him have been sought; and

(2) Stating the applicant's reasons for believing that the financial
records sought are not relevant to the legitimate law enforcement inquiry
stated by the government authority in its notice, or that there has not
been substantial compliance with the provisions of sections 408.675 to
408.700.

Service shall be made under this section upon a government authority by
delivering or mailing a copy of the papers to the address in the notice
the customer received.

2. The government authority may file a response, which may be the subject
of a protective order if the government includes in its response the
reason such order is appropriate. The court may conduct such additional
proceedings as it deems appropriate.

3. If the court finds that there is substantial and competent evidence
that the government investigation is legitimate and a reasonable belief
that the records sought are relevant to that inquiry, it shall deny the
motion and order such process enforced; provided, the court may order a
limitation on the subpoena as a condition of enforcement. If the court
finds that there is not such evidence that the law enforcement inquiry is
legitimate, or that there is no such evidence that the records sought are
relevant to that inquiry, or that there has not been substantial
compliance with the provisions of sections 408.675 to 408.700, it shall
order the process quashed or shall enjoin the government authority's
subpoena.

4. Any appeal from an order issued under this section shall be in
accordance with the Missouri rules of civil procedure.

5. The governmental authority obtaining the records shall promptly notify
the customer if a determination has been made that no legal proceeding
against him is contemplated. If no such decision has been made within one
hundred eighty days from the date of the order granting access to the
financial records, the governmental authority shall so notify the court
and continue such notification at such intervals thereafter as the court
may order.

6. The challenge procedures of sections 408.655 and 408.675 to 408.700
constitute the sole judicial remedy available to a customer to oppose
disclosure of financial records pursuant to sections 408.675 to 408.700.

7. Nothing in sections 408.675 to 408.700 shall enlarge or restrict any
rights of a financial institution to challenge requests for records made
by a government authority under existing law. (L. 1989 H.B. 82 § 8)

Upon receipt of a request for financial records made by a
government authority under section 408.683, the financial institution
shall, unless otherwise provided by law proceed to assemble the records
requested and must be prepared to deliver the records to the government
authority upon receipt of the notice required under subsection 2 of
section 408.680. (L. 1989 H.B. 82 § 9)

1. Financial records originally obtained pursuant to sections
408.675 to 408.700 shall not be transferred to another agency or
department unless the transferring agency or department makes a written
finding that there is reason to believe that the records are relevant to
a legitimate law enforcement inquiry within the jurisdiction of the
receiving agency or department.

2. When financial records subject to sections 408.675 to 408.700 are
transferred pursuant to this section the transferring agency or
department shall within fourteen days send to the customer the following
notice:

"Copies of, or information contained in, your financial records lawfully
in possession of (the agency or department) have been furnished to (the
agency or department) pursuant to the Missouri Right to Financial Privacy
Act for the following purpose (state with reasonable specificity). If you
believe that this transfer has not been made to further a legitimate law
enforcement inquiry, you may have legal rights under the Missouri Right
to Financial Privacy Act.".

3. Notwithstanding subsection 2 of this section, notice to the customer
may be delayed if the transferring agency or department has obtained a
court order delaying notice, or if the receiving agency or department
obtains a court order authorizing a delay in notice. Upon the expiration
of any such period of delay, the transferring agency or department shall
serve the customer the notice specified in subsection 2 of this section
and the agency or department that obtained the court order authorizing a
delay in notice shall serve the notice. (L. 1989 H.B. 82 § 10)

1. Nothing in sections 408.675 to 408.700 prohibits any
supervisory agency from exchanging examination reports or other
information with another supervisory agency. Nothing in sections 408.675
to 408.700 prohibits the transfer of a customer's financial records
needed by counsel for a government authority to defend an action brought
by the customer. Nothing in sections 408.675 to 408.700 shall authorize
the withholding of information by any officer or employee of a
supervisory agency from a duly authorized committee of the general
assembly.

2. Nothing in sections 408.675 to 408.700 prohibits the exchange of
financial records or other information with respect to a financial
institution among and between the supervisory agencies of the federal
Financial Institutions Examination Council and the Missouri division of
finance.

3. Nothing in sections 408.675 to 408.700 prohibits the disclosure of any
financial records or information which is not identified with or
identifiable as being derived from the financial records of a particular
customer.

4. Nothing in sections 408.675 to 408.700 prohibits examination by or
disclosure to any supervisory agency of financial records or information
in the exercise of its supervisory, regulatory, or monetary functions
with respect to a financial institution.

5. Nothing in sections 408.675 to 408.700 shall prohibit the disclosure
of financial records or information required to be reported in accordance
with any federal statute or rule promulgated thereunder.

6. Nothing in sections 408.675 to 408.700 prohibits disclosure if the
financial records are sought by a government authority under the Missouri
rules of civil or criminal procedure or comparable rules of other courts
in connection with litigation to which a government authority is a party.

7. Nothing in sections 408.675 to 408.700 shall prohibit disclosure of
financial records to the department of social services pursuant to
sections 660.325 to 660.355, RSMo, or section 578.387, RSMo.

8. Nothing in sections 408.675 to 408.700 shall apply to requests made by
the department of social services of the state of Missouri to obtain
information from the federal parent locator service of the United States
Department of Health and Human Services.

9. Nothing in sections 408.675 to 408.700 shall apply to prohibit a
financial institution from complying with a properly served summons to
garnishee or to written interrogatories exhibited to a financial
institution which has been properly summoned as garnishee.

10. Nothing in sections 408.675 to 408.700 shall apply to prohibit a
financial institution from complying with a properly served income
withholding order issued pursuant to section 452.350 or 454.505, RSMo.

11. The requirements of sections 408.675 to 408.700 shall not apply when
a government authority by a means described in section 408.677 and for a
legitimate government investigation is seeking only the name, address,
account number, and type of account of any customer or ascertainable
group of customers associated with a financial transaction or class of
financial transactions.

12. Nothing in sections 408.675 to 408.700 shall preclude any financial
institution, or any officer, employee, or agent of a financial
institution, from notifying a government authority that such institution,
officer, employee, or agent has information which may be relevant to a
possible violation of any statute or regulation. Such information may be
disclosed notwithstanding any law, or regulation of this state or
political subdivision of this state to the contrary. Any financial
institution, officer, employee, or agent thereof, making a disclosure of
information pursuant to this subsection, shall not be liable to the
customer under any law or regulation of this state or political
subdivision of this state for such disclosure or for any failure to
notify the customer of such disclosure.

13. Nothing in sections 408.675 to 408.700 shall preclude a financial
institution, as an incident to perfecting a security interest or proving
a claim in bankruptcy, or collecting on a debt owing to the financial
institution itself or in its role as a fiduciary, from providing copies
of any financial record relevant to such action to any court of competent
jurisdiction or government authority. Nothing in sections 408.655 and
408.675 to 408.700 shall preclude a financial institution as an incident
to processing an application for assistance to a customer in the form of
a government loan, loan guaranty, loan insurance agreement, administering
or processing a default on a government guaranteed or insured loan, from
initiating contact with an appropriate government authority for the
purpose of providing any financial record necessary to permit such
authority to carry out its responsibilities under such loan, loan
guaranty, or loan insurance agreement.

14. Nothing in sections 408.675 to 408.700 shall preclude a governmental
authority from obtaining information that is a part of a public record
without regard to sections 408.675 to 408.700 even though such
information may have been derived from a financial institution.

15. Nothing in sections 408.675 to 408.700 will preclude a governmental
authority acting pursuant to sections 447.500 to 447.585, RSMo, from
obtaining any information required by such sections for the purpose of
administering sections 447.500 to 447.585, RSMo, without regard to
sections 408.675 to 408.700; provided however, any information so derived
shall not be used for any other purpose.

16. Nothing in sections 408.675 to 408.700 shall apply to a law
enforcement inquiry or to a government authority or government employee
engaged in a law enforcement inquiry.

17. Nothing in sections 408.675 to 408.700 shall apply to any requests
made by any United States agency or department or any official employee
or agent thereof authorized to obtain information from any financial
institution if such agency or agencies are authorized by the federal
Financial Privacy Act of 1978, as amended, to receive such information
without compliance with the federal Financial Privacy Act of 1978, as
amended.

18. The requirements of sections 408.675 to 408.700 shall not apply to
the state auditor or any person appointed by him when obtaining
information pursuant to section 29.235, RSMo.

19. Nothing in sections 408.655 and 408.675 to 408.700 shall apply to
requests made by the Division of Employment Security pursuant to chapter
288, RSMo.

20. Nothing in sections 408.675 to 408.700 shall apply to examinations or
audits of preneed trust accounts or joint accounts performed by staff of
the division of professional registration when ordered by the state board
of embalmers and funeral directors under the provisions of chapter 436,
RSMo. (L. 1989 H.B. 82 § 11)

1. Except for sections 408.680 and 408.700, nothing in sections
408.675 to 408.700 shall apply when financial records are sought by a
government authority:

(1) In connection with a lawful proceeding, investigation, examination,
or inspection directed at the financial institution in possession of such
records or at a legal entity which is not a customer; or

(2) In connection with the authority's consideration or administration of
assistance to the customer in the form of a government loan, loan
guaranty, or loan insurance program.

2. When financial records are sought pursuant to this section, the
government authority shall submit to the financial institution the notice
required by subsection 2 of section 408.680. For access pursuant to
subdivision (2) of subsection 1 of this section, no further certification
shall be required for the subsequent access by the applicable government
authority during the term of the loan, loan guaranty, or loan insurance
agreement.

3. After August 28, 1989, whenever a customer applies for participation
in a government loan, loan guaranty, or loan insurance program, the
government authority administering such program shall give the customer
written notice of the authority's access rights under this subsection. No
further notification shall be required for subsequent access by that
authority during the term of the loan, loan guaranty, or loan insurance
agreement.

4. Financial records obtained pursuant to this section may be used only
for the purpose for which they were originally obtained, and may be
transferred to another agency or department only when the transfer is to
facilitate a lawful proceeding, investigation, examination, or inspection
directed at the financial institution in possession of such records, or
at a legal entity which is not a customer, except that:

(1) Nothing in sections 408.675 to 408.700 prohibits the use or transfer
of a customer's financial records needed by counsel representing a
government authority in a civil action arising from a government loan,
loan guaranty, or loan insurance agreement;

(2) Nothing in sections 408.675 to 408.700 prohibits a government
authority providing assistance to a customer in the form of a loan, loan
guaranty, or loan insurance agreement from using or transferring
financial records necessary to process, service or foreclose a loan, or
to collect on an indebtedness to the government resulting from a
customer's default.

5. Notification that financial records obtained pursuant to this section
which may relate to a potential civil, criminal, or regulatory violation
by a customer may be given to an agency or department with jurisdiction
over that violation, and such agency or department may then seek access
to the records pursuant to the provisions of sections 408.675 to 408.700.

6. Each financial institution shall keep a notation of each disclosure
made pursuant to subdivision (2) of subsection 1 of this section,
including the date of such disclosure and the government authority to
which it was made. The customer shall be entitled to inspect this
information. Except for sections 408.696 and 408.700, nothing in sections
408.675 to 408.700 shall apply to any subpoena or court order issued in
connection with proceedings before a grand jury.

7. Nothing in sections 408.675 to 408.700 shall prohibit a government
authority from obtaining financial records from a financial institution
if the government authority determines that delay in obtaining access to
such records would create imminent danger of:

(1) Physical injury to any person;

(2) Serious property damage; or

(3) Flight to avoid prosecution.

Within five days of obtaining access to financial records under this
subsection the government authority shall file with the appropriate court
a signed, sworn statement of a supervisory official of a rank designated
by the head of the government authority setting forth the grounds for the
emergency access. The government authority shall thereafter comply with
the notice provisions of subsection 5 of section 408.685. The government
authority shall compile an annual tabulation of the occasions in which
this subsection was used. (L. 1989 H.B. 82 § 12)

Except for records obtained pursuant to section 408.690, a
government authority shall pay to the financial institution assembling or
providing financial records pertaining to a customer and in accordance
with procedures established by sections 408.675 to 408.700 a fee for
reimbursement for such costs as are reasonably necessary and which have
been directly incurred in searching for, reproducing, or transporting
books, papers, records, or other data required or requested to be
produced. The rates established by the board of governors of the Federal
Reserve System shall, by regulation, establish the rates and conditions
under which such payment may be made. (L. 1989 H.B. 82 § 13)

An action to enforce any provision of sections 408.675 to
408.700 may be brought in the circuit court within three years from the
date on which the violation occurs or on the date of discovery of such
violation, whichever is later. (L. 1989 H.B. 82 § 14)

1. Any financial institution or an agency or department of the
state of Missouri obtaining or disclosing financial records or
information contained therein in violation of sections 408.675 to 408.700
is liable to the customer to whom such records relate in an amount equal
to the sum of:

(1) One thousand dollars, without regard to the volume of records
involved;

(2) Any actual damages sustained by the customer as a result of the
disclosure; and

(3) In the case of any successful action to enforce liability under this
section, the costs of the action together with reasonable attorney's fees
may be allowed by the court.

2. Whenever the court determines that any employee of an agency or
department of the state of Missouri has violated any provision of
sections 408.675 to 408.700 and the court finds that the circumstances
surrounding the violation raise questions of whether an officer or
employee of the department or agency acted willfully or intentionally
with respect to the violation, the agency or department supervising said
violator shall promptly initiate a proceeding to determine whether
disciplinary action is warranted against the agent or employee who was
primarily responsible for the violation. The agency or department after
investigation and consideration of the evidence submitted shall submit
its findings and recommendations to the administrative authority of the
agency concerned and shall send copies of the findings and
recommendations to the officer or employee or his representative.

3. Any financial institution or agent or employee thereof making a
disclosure of financial records pursuant to sections 408.675 to 408.700
in good faith reliance upon a notice by any government authority shall
not be liable to the customer or any other person for such disclosure.

4. The remedies and sanctions described in sections 408.675 to 408.700
shall be the only judicially recognized remedies and sanctions for
violations of sections 408.675 to 408.700. (L. 1989 H.B. 82 § 15)

In addition to any other remedy contained in sections 408.675 to
408.700, injunctive relief shall be available to require that the
procedures of sections 408.675 to 408.700 are complied with. In the event
of a successful action, costs together with reasonable attorney's fees as
determined by the court may be recovered. (L. 1989 H.B. 82 § 16)

If any individual files a motion or application under sections
408.655 and 408.675 to 408.700 which has the effect of delaying the
access of a government authority to financial records pertaining to such
individual, any applicable statute of limitations shall be deemed to be
tolled for the period extending from the date such motion or application
was filed until the date upon which the motion or application is decided.
(L. 1989 H.B. 82 § 17)

Financial records relating to a customer obtained from a
financial institution pursuant to a subpoena issued under the authority
of a grand jury:

(1) Shall be returned and actually presented to the grand jury;

(2) Shall be used only for the purpose of considering whether to issue an
indictment or presentment by that grand jury, or of prosecuting a crime
for which that indictment or presentment is issued, or for a purpose
authorized by the applicable Missouri rules of criminal procedure;

(3) Shall be destroyed or returned to the financial institution if not
used for one of the purposes specified in subdivision (2) of this
section; and

(4) Shall not be maintained, or a description of the contents of such
records shall not be maintained by any government authority other than in
the sealed records of the grand jury, unless such record has been used in
the prosecution of a crime for which the grand jury issued an indictment
or presentment or for a purpose authorized by rules 5 and 6 of the
Missouri rules of criminal procedure. (L. 1989 H.B. 82 § 18)

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