361.160. Examination of banks and trust companies. - Missouri Statutes

Examination of banks and trust companies.

361.160. 1. The director of finance at least once each year, eitherpersonally or by a deputy or examiner appointed by the director, shallvisit and examine every bank and trust company organized and doing businessunder the laws of this state, and every other corporation which is by lawrequired to report to the director; except, for banks or trust companiesreceiving a Camel 1 or Camel 2 rating from the division of finance, thedirector of finance at least once each eighteen calendar months, eitherpersonally or by a deputy or examiner appointed by the director, shallvisit and examine such bank or trust company, and the director of finance,at the director's discretion, may conduct the director's examination, orany part thereof, on the basis of information contained in examinationreports of other states, the Federal Deposit Insurance Corporation or theFederal Reserve Board or in audits performed by certified publicaccountants. The director shall be afforded prompt and free access to anyworkpapers upon which a certified public accountant bases an audit. Acertified public accountant shall retain workpapers for a minimum of threeyears after the date of issuance of the certified public accountant'sreport to the bank or trust company. The director or the director's agentmay concentrate the examinations on institutions which the directorbelieves have safety or soundness concerns.

2. The director, or the deputy or examiners designated by thedirector for that purpose, shall have power to examine any such corporationwhenever, in the director's judgment, it may be deemed necessary orexpedient, and shall have power to examine every agency located in thisstate of any foreign banking corporation and every branch in this state ofany out-of-state bank, for the purpose of ascertaining whether it hasviolated any law of this state, and for such other purposes and as to suchother matters as the director may prescribe.

3. The director and the director's deputy and examiners shall havepower to administer oaths to any person whose testimony may be required insuch examination or investigation of any such corporation or agency, and tocompel the appearance and attendance of any person for the purpose of anysuch examination or investigation.

4. On every such examination inquiry shall be made as to thecondition and resources of such corporation, the mode of conducting andmanaging its affairs, the actions of its directors or trustees, theinvestment of its funds, the safety and prudence of its management, thesecurity afforded to its creditors, and whether the requirements of itscharter and of law have been complied with in the administration of itsaffairs, and as to such other matters as the director may prescribe.

5. The director may also make such special investigations as thedirector deems necessary to determine whether any individual or corporationhas violated any of the provisions of this law.

6. Such examination may be made and such inquiry instituted orcontinued in the discretion of the director after the director has takenpossession of the property and business of any such corporation, until itshall resume business or its affairs shall be finally liquidated inaccordance with the provisions of this chapter.

7. The result of each examination shall be certified by the directoror the examiner upon the records of the corporation examined and the resultof all examinations during the biennial period shall be embodied in thereport to be made by the director of the department of insurance, financialinstitutions and professional registration to the legislature.

8. The director may contract with regulators in other states toprovide for the examination of Missouri branches of out-of-state banks andbranches of banks whose home state is Missouri. The agreements may providefor the payment by the home state of the cost of examinations conducted bythe host state at the request of the home state regulators.

(RSMo 1939 § 7895, A. 1949 H.B. 2084, A.L. 1977 S.B. 420, A.L. 1995 H.B. 63, et al. merged with S.B. 178, A.L. 1996 H.B. 1432, A.L. 2003 H.B. 221 merged with S.B. 346, A.L. 2008 S.B. 788)

Prior revisions: 1929 § 5301; 1919 § 11689; 1909 § 1080

(1999) Statements made during routine bank examinations receive qualified, not absolute, immunity. Rockwood Bank v. Gaia, 170 F.3d 833 (8th Cir.).