Section 362.107

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 362

Effective - 28 Aug 2005   

  362.107.  Branch banking allowed, requirements — director of finance to approve, appeals. — 1.  Every bank and every trust company organized under Missouri law may, upon compliance with this section, establish, maintain and operate branches separate and apart from the location designated in its articles of agreement.

  2.  No bank or trust company may establish, maintain or operate any branch without having first obtained the approval of the director of finance; provided that a drop box for deposit purposes shall not be considered a branch.

  3.  All those services which a bank or trust company is authorized by law to provide may be provided at any of its branches.

  4.  Whenever any bank or trust company desires to establish, maintain and operate a branch, or to move a branch previously established to another location, it shall apply to the director of finance for such authority and provide the director of finance with such relevant information as he may reasonably request.  In determining whether or not to approve the application, the director of finance shall consider:

  (1)  The convenience, needs and welfare of the people of the community and area to be served;

  (2)  The financial strength of the bank or trust company making application for the branch in relation to the cost of establishing, maintaining and operating the branch;

  (3)  Whether any other banks or trust companies will be seriously injured by the approval of the application for the branch; provided, however, any bank which purchases assets of a closed bank or a failed savings and loan association closed by its chartering authority may establish, maintain and operate branches at all locations which were operated by the closed bank or failed savings and loan association.  For purposes of this section, the terms "closed bank" or "failed savings and loan association" shall include a bank or savings and loan association whose sale is arranged by the Federal Deposit Insurance Corporation or similar agency in order to avoid failure.

  5.  The decision of the director of finance granting or denying any such application may be appealed in the same manner as decisions by him pursuant to section 362.040 may be appealed.

  6.  National banking associations located in Missouri shall have the same but no greater right under or by virtue of this section as banks and trust companies which are organized under Missouri law.

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(L. 1959 H.B. 568 §§ 1, 2, A.L. 1971 S.B. 146, A.L. 1972 H.B. 1062, A.L. 1978 S.B. 794, A.L. 1980 H.B. 1071, A.L. 1982 H.B. 1079, A.L. 1983 H.B. 565, A.L. 1985 S.B. 52 merged with H.B. 408, A.L. 1986 H.B. 1195 merged with S.B. 648, A.L. 1987 H.B. 426, A.L. 1990 H.B. 1456, A.L. 1991 H.B. 206, A.L. 2005 H.B. 707)

(1977) Bank of Belton v. State Banking Board, state of Missouri (554 S.W.2d 451) reaffirmed.  Held that action of director in granting or refusing an application is reviewable by state banking board. Bank of Crestwood v. State Banking Board. (A.), 554 S.W.2d 519.

(1981) When legislature used words "unincorporated community," "community and area to be served," and "community to be served" in banking statutes it had in mind "banking community" as opposed to a fixed geographic area. Bank of Crestwood v. Gravois Bank (Mo.), 616 S.W.2d 505.