PURPOSE: The comptroller of the currency has authorized national banks to engage in check guaranty services for their own customers. To the extent the state-chartered banks do not have the same power, they are at a competitive disadvantage. These services, whether offered to the bank’s customers or to others, appear to be among the incidental powers granted to banks. This rule authorizes state-chartered banks to engage in check guaranty services. State-chartered banks, directly or through a subsidiary, may authorize a subscribing merchant to accept personal checks tendered by the merchant’s customers in payment for goods and services, and purchase from the merchant validly authorized checks that are subsequently dishonored.

AUTHORITY: sections 361.105, 362.105.3 and 11, RSMo 1986.* This rule originally filed as 4 CSR 140-6.057. Original rule filed Jan. 5, 1987, effective April 1, 1987. Moved to 20 CSR 1140-6.057, effective Aug. 28, 2006. *Original authority: 361.105, RSMo 1967; and 362.105.3 and 362.105.11, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986.