20 CSR 1140-20.075 - Line-of-Credit Construction Loans

PURPOSE: This rule authorizes associations to make construction loans without the security of real property and specifies the conditions and limitations for unsecured construction loans.

An association (pursuant to a plan adopted by the board of directors) may originate, invest in, sell, purchase, participate or otherwise deal in loans for constructing, adding to, improving, altering, repairing, equipping or furnishing what is or is to become real estate used primarily for residential purposes, relying substantially for repayment on the borrower's general credit standing and forecast of income, with or without other security, or on third-party guarantees or similar assurances for repayment. The aggregate amount of an association's investment in these loans shall not exceed the greater of five percent (5%) of the association's assets or the sum of its surplus, undivided profits and reserves. Investments under this regulation shall not be included in any other percentage of assets limitation referred to in this chapter.

Notes

20 CSR 1140-20.075

AUTHORITY: sections 369.144, 369.229, 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.075. This rule previously filed as 4 CSR 140-20.075. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.075, effective July 6, 1994. Moved to 20 CSR 1140-20.075, effective Aug. 28, 2006.

AUTHORITY: sections 369.144, 369.229, 369.249 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-8.075. This rule previously filed as 4 CSR 140-20.075. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-20.075, effective July 6, 1994. Moved to 20 CSR 1140-20.075, effective Aug. 28, 2006.