PURPOSE: Section 362.105.1(9), RSMo requires banks and trust companies to obtain the approval of the commissioner of finance before acquiring real estate for use as bank premises. The Division of Finance has consistently followed two informal policies under this statute. First, a bank is normally required to limit its investment in fixed assets to fifty percent of its capital accounts. Second, a bank seeking to expend funds to remodel, refurnish or reequip its existing banking premises has been required to obtain approval from the commissioner. This rule formalizes the former policy and modifies the latter policy.

1. (1) An application under section 362.105.1(9), RSMo to purchase real property ordinarily will be approved if the applicant’s investment in fixed assets, including real estate, building and furniture and fixtures, after the proposed expenditure, will be less than fifty percent (50%) of its unimpaired capital as defined in section 362.170, RSMo. Each application will be decided after an analysis of safety and soundness factors including capital, assets, management, earnings and liquidity.
2. (2) Investments in programs to remodel previously acquired bank premises or to purchase furniture or equipment for use in the bank’s premises will not require the approval of the commissioner unless the aggregate of all investment in fixed assets, including real estate, building, furniture and fixtures, after the planned investment, will exceed fifty percent (50%) of unimpaired capital as defined in section 362.170, RSMo.
3. (3) Whether or not an application is required as described above, no bank or trust com pany may, without the approval of the commissioner, make any acquisition of real property which will result in its investment in fixed assets exceeding fifty percent (50%) of its unimpaired capital.

AUTHORITY: sections 361.105, 362.170 and 362.105, RSMo Supp. 1995.* This rule originally filed as 4 CSR 140-2.060. Original rule filed Dec. 10, 1981, effective April 1, 1982. Amended: Filed Sept. 15, 1995, effective March 30, 1996. Moved to 20 CSR 1140- 2.060, effective Aug. 28, 2006.

*Original authority: 361.105, RSMo 1967; 362.105, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992, 1995; and 362.170, RSMo 1941, amended 1943, 1945, 1959, 1963, 1967, 1977, 1981, 1983, 1985, 1989, 1993, 1994, 1995.