PURPOSE: To the extent that a state-chartered bank or trust company has the ability to form an agricultural credit corporation capable of making loans to farmers and ranchers for agricultural purposes and discounting these loans to the Federal Intermediate Credit Bank in its district, that bank or trust company will be better able to serve the credit needs of its community. National banks are authorized by federal law (12 U.S.C. 24(7)) to form these corporations. State chartered banks and trust companies should be granted the same power to permit them to compete with their federally-chartered counterparts.

1. (1) A bank or trust company, subject to the provisions of this rule, may invest in the stock of an agricultural credit corporation.
2. (2) An agricultural credit corporation is a corporation whose stock is owned entirely by one (1) or more banking organizations and which is formed solely to make loans to farmers and ranchers for agricultural purposes.

3. (3) A bank which owns less than eighty percent (80%) of the stock of an agricultural credit corporation shall— 20 CSR 1140-2

   1. (A) Not invest in the stock of an agricultural credit corporation more than an amount equal to its legal loan limit; and
   2. (B) Obtain the approval of the commissioner of finance before investing in the stock of an agricultural credit corporation.
4. (4) No bank or trust company or agricultural credit corporation, eighty percent (80%) or more of whose voting stock is owned by a bank or trust company, shall extend credit to any borrower if the aggregate of all extensions of credit to that borrower, by the bank and its agricultural credit corporations, will exceed the bank’s legal loan limit.

AUTHORITY: sections 361.105, RSMo 1986, 362.105.3, RSMo Supp. 1992 and 362.170, RSMo Supp. 1989.* This rule originally filed as 4 CSR 140-2.030. Original rule filed July 15, 1981, effective Oct. 15, 1981. Moved to 20 CSR 1140-2.030, effective Aug. 28, 2006.

*Original authority: 361.105, RSMo 1967; 362.105.3, RSMo 1939 amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992; and 362.170, RSMo 1939, amended 1941, 1943, 1945, 1959, 1963, 1967, 1977, 1981, 1983, 1985, 1986, 1989.