PURPOSE: Under the McFadden Act, 12 USC 36, national banks are authorized to branch only to the extent state banks may branch. Federal courts have recently ruled that national banks are no longer bound by Missouri branch banking laws. This rule grants equal branching rights to state banks and trust companies to ensure competitive equality with national banks.

Editor's Note: The secretary of state has determined that the publication of this rule in its entirety would be unduly cumbersome or expensive. The entire text of the material referenced has been filed with the secretary of state. This material may be found at the Office of the Secretary of State or at the head quarters of the agency and is available to any interested person at a cost established by state law

1. (1) Banks and trust companies, with the approval of the commissioner of finance, may establish, maintain and operate branches without restriction as to location or number.

2. (2) A bank or trust company seeking to establish a branch shall make application to the commissioner on forms as the commissioner may provide. The commissioner shall consider—

   1. (A) The convenience, needs and welfare of 20 CSR 1140-2

the people of the community and area served;

1. (B) The financial strength of the banking institution making application for the branch in relation to the cost of establishing and maintaining the branch; and
2. (C) Whether other banking institutions will be seriously injured by the approval of the application for a branch at the location specified.

AUTHORITY: section 362.105, RSMo Supp. 1992.* This rule originally filed as 4 CSR 140-2.126. Emergency rule filed Nov. 19, 1990, effective Nov. 29, 1990, expired March 28, 1991. Emergency rule filed March 19, 1991, effective March 29, 1991, expired May 1, 1991. Original rule filed Nov. 19, 1990, effective April 29, 1991. Moved to 20 CSR 1140-2.126, effective Aug. 28, 2006.

*Original authority: 362.105, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992. AND INSURANCE Division 1140—Division of Finance AND INSURANCE Division 1140—Division of Finance AND INSURANCE Division 1140—Division of Finance AND INSURANCE Division 1140—Division of Finance AND INSURANCE Division 1140—Division of Finance