PURPOSE: Senate Bill 688 of the 86th General Assembly added subdivision (14) to subsection 1. of section 362.105, RSMo authorizing banks to make limited investments in community development corporations. This rule sets guidelines for these investments.

1. (1) A bank or trust company may invest in the debt or equity instruments of a community development corporation. Unless this investment meets the requirements of section (2) of this rule, it should be treated as a charitable contribution and charged off the bank’s books.

2. (2) A bank may carry an investment as is described in section (1) as an asset on its books; provided—

   1. (A) The total amount invested by the bank in any one (1) community development corporation project does not exceed two percent (2%) of the bank’s unimpaired capital and the aggregate amount invested by the bank’s unimpaired capital and the aggregate amount invested by the bank in all these projects does not exceed five percent (5%) of the bank’s unimpaired capital; and
   2. (B) The project must be of civic, community or public nature and should not be exclusively private or entrepreneurial.

AUTHORITY: sections 361.105, RSMo 2000 and 362.105.1, RSMo Supp. 2001.* This rule originally filed as 4 CSR 140-2.067. Emergency rule filed May 20, 1992, effective June 1, 1992, expired Sept. 29, 1992. Emergency rule filed Sept. 10, 1992, effective Sept. 29, 1992, expired Jan. 26, 1993. Emergency rule filed Jan. 15, 1993, effective Jan. 27, 1993, expired May 8, 1993. Original rule filed July 30, 1992, effective Feb. 26, 1993. Amended: Filed Feb. 15, 2002, effective Aug. 30, 2002. Moved to 20 CSR 1140-2.067, effective Aug. 28, 2006.

*Original authority: 361.105, RSMo 1967, amended 1993, 1994, 1995 and 362.105.1, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992, 1995, 2000, 2001.