362.107. Branch banking allowed, requirements--director of finance to approve, appeals. - Missouri Statutes

Branch banking allowed, requirements--director of finance toapprove, appeals.

362.107. 1. Every bank and every trust company organized underMissouri law may, upon compliance with this section, establish, maintainand operate branches separate and apart from the location designated in itsarticles of agreement.

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

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

4. Whenever any bank or trust company desires to establish, maintainand operate a branch, or to move a branch previously established to anotherlocation, it shall apply to the director of finance for such authority andprovide the director of finance with such relevant information as he mayreasonably request. In determining whether or not to approve theapplication, the director of finance shall consider:

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

(2) The financial strength of the bank or trust company makingapplication 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 seriouslyinjured by the approval of the application for the branch; provided,however, any bank which purchases assets of a closed bank or a failedsavings and loan association closed by its chartering authority mayestablish, maintain and operate branches at all locations which wereoperated by the closed bank or failed savings and loan association. Forpurposes of this section, the terms "closed bank" or "failed savings andloan association" shall include a bank or savings and loan associationwhose sale is arranged by the Federal Deposit Insurance Corporation orsimilar agency in order to avoid failure.

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

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

(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.