Section 368.070

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 368

Effective - 28 Aug 1943   

  368.070.  Limitation of powers. — No loan and investment company shall:

  (1)  Hold the obligation of any person, firm or corporation for money borrowed, for an amount exceeding ten percent of the paid-in capital stock of such loan and investment company, and its surplus and undivided profit combined.  The provisions of this section shall not apply to loans secured by collateral so long as the market value of such collateral shall exceed by twenty percent the total liabilities secured in each case by such collateral, but no loan on collateral shall at any time exceed twenty percent of the paid-in capital stock of such loan and investment company and its surplus and undivided profits combined.

  (2)  Make any loan under the provisions of this chapter for a longer period than eighteen months from the date thereof.

  (3)  Deposit any of its funds in any banking corporation, unless such corporation has been designated as such depositary by a vote of a majority of the directors or of the executive committee, exclusive of any director who is an officer, director or trustee of the depositary so designated, present at any meeting duly called at which a quorum is in attendance.

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(RSMo 1939 § 5423, A.L. 1943 p. 502)

Prior revisions: 1929 § 4983; 1919 § 10193