Mo. Code Regs. tit. 20 § 1140-6.031
Current through Register Vol. 49, No. 24, December 16, 2024
Section 20 CSR 1140-6.031 - Industrial Revenue BondsPURPOSE: The increasing use of revenue bonds as a vehicle for financing construction of business and industrial plants suggests a need for a policy statement by this office respecting the application of the loan limit statute to investments. Bonds are not backed by the taxing authority of any political subdivision and are payable only out of revenues derived from the completed project. Banks should consider these factors when assisting in financing.
(1) The purchase of industrial revenue bonds, which are generally of the kinds described in section 100.100 or 349.055, RSMo shall be considered an extension of credit subject to the loan limits of section 362.170, RSMo.(2) The amounts invested in industrial revenue bonds shall be treated as extensions of credit to the beneficiary of the project whose payments provide the funds to retire the bonds. The bank shall combine the amount invested in revenue bonds with amounts loaned directly to the respective beneficiaries for purposes of section 362.170, RSMo. AUTHORITY: sections 362.105 and 362.170, RSMo 1986.* This rule originally filed as 4 CSR 140-6.031. Original rule filed July 15, 1981, effective Oct. 25, 1981. Moved to 20 CSR 1140-6.031, effective Aug. 28, 2006. *Original authority: 362.105, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986; and 362.170, RSMo 1939, amended 1941, 1943, 1945, 1963, 1967, 1977, 1981, 1983, 1985.