PURPOSE: House Bill 105/480 of the 87th General Assembly amended section 362.550.5., RSMo to allow a bank or trust company to purchase, in a fiduciary capacity, state or political subdivision securities underwritten by it, its parent or affiliated companies, but subject to investment standards set by the director of the Division of Finance. The purpose of this rule is to set those standards.

1. (1) The standards of prudence and care established by subsection 456.520.1., RSMo, must be followed by a bank or trust company when purchasing, in a fiduciary capacity, state or political subdivision securities (securities) underwritten by it, its parent or affiliated companies.
2. (2) This prudence and care will require such determinations as are appropriate for the type of transaction involved including a consideration of the resource and liabilities of the obligor and a determination that the obligor possesses the capacity to make all required payments.
3. (3) The securities must be general obligations or revenue bonds of the issuing entity.
4. (4) These securities, at the time of purchase, must be rated in the two (2) highest grades by a nationally recognized bond rating service.

AUTHORITY: sections 361.105, RSMo 1986 and 362.550, RSMo Supp. 1991.* This rule originally filed as 4 CSR 140-2.095. Emergency rule filed Aug. 6, 1993, effective Aug. 28, 1993, expired Dec. 25, 1993. Original rule filed Aug. 23, 1993, effective Jan. 31, 1994. Moved to 20 CSR 1140-2.095, effective Aug. 28, 2006. AUTHORITY: sections 361.105 and 362.295, RSMo 1986 and 361.130, RSMo Supp. 1988.* This rule originally filed as 4 CSR 140-2.100. Original rule filed Oct. 8, 1982, effective Jan. 15, 1983. Moved to 20 CSR 1140-2.100, effective Aug. 28, 2006. *Original authority: 361.105, RSMo 1967; 361.130, RSMo 1939, amended 1949, 1988; and 362.295, RSMo 1939, amended 1967.

*Original authority: 361.105, RSMo 1967 and 362.550, RSMo 1967, amended 1972, 1983, 1991. 204 CSR 1140-2.100 Reports of Condition (Call Reports) PURPOSE: Sections 361.130 and 362.295, RSMo together require regular periodic Reports of Condition (Call Reports) be made to the commissioner of finance, that these reports be published by the reporting institution and that this publication be certified to the commissioner. This rule eliminates unnecessary duplications of effort by declaring the Reports of Conditions required by the Federal Deposit Insurance Corporation or the Federal Reserve System acceptable for state reporting purposes. (1) A state bank may satisfy the Report of Condition (Call Report) filing requirement by filing with the commissioner of finance an originally signed copy of the Report of Condition filed with the Federal Deposit Insurance Corporation (FDIC) or the Federal Reserve System provided that report corresponds with the date of the commissioner’s request. (2) Requirements that the report be published and that the publication be certified to the commissioner according to section 362.295, RSMo remain unchanged.