PURPOSE: National banks are permitted to purchase shares in federal home loan banks and have access to the loan funds available through the federal home loan bank system; that gives national banks a competitive advantage. This rule restores competitive equality by permitting state-chartered banks to purchase shares in the Federal Home Loan Bank of Des Moines.

1. (1) Any state-chartered bank may purchase the minimum number of shares of stock necessary to become a member of and to borrow from the Federal Home Loan Bank of Des Moines; provided, however, that in no case may that purchase be in an amount which exceeds the bank’s legal lending limit.

AUTHORITY: section 362.105.3, RSMo Supp. 1992.* This rule originally filed as 4 CSR 140-2.035. Original rule filed April 16, 1991, effective Aug. 30, 1991. Moved to 20 CSR 1140-2.035, effective Aug. 28, 2006.

*Original authority: 362.105.3, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992. AND INSURANCE