Section 362.280

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 362

Effective - 28 Aug 1967, 2 histories, see footnote   (history) 

  362.280.  Examination by directors — exceptions. — 1.  The board of directors of every bank and trust company at least once in each year and whenever and as often as required by the director, and within thirty days after notice from him, shall examine or cause a committee of at least three of its members or stockholders to examine fully the books, papers and affairs of the bank, and the loans and discounts and acceptances thereof, and particularly the loans or discounts or acceptances made directly or indirectly to its officers or directors, or for the benefit of these officers or directors, or for the benefit of other corporations of which these officers or directors are also officers or directors, or in which they have a beneficial interest as stockholders, creditors, or otherwise, with the special view of ascertaining their safety and present value, and the value of the collateral security, if any, held in connection therewith, and into such other matters as the director may require; provided, however, that no examination shall be required of a bank or trust company which is a member of the Federal Reserve System or of a bank or trust company whose deposits are insured by the Federal Deposit Insurance Corporation.

  2.  The directors or committee of stockholders shall have the power to employ such assistance in making such examination as they may deem necessary.

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(RSMo 1939 § 7965, A.L. 1967 p. 445)

Prior revisions: 1929 § 5370; 1919 § 11753

(1974) Held that requiring borrower to borrow five thousand dollars at eight percent interest and place proceeds in a noninterest bearing certificate of deposit with lending bank as a condition of making subsequent loans tainted the subsequent loans making them usurious. Grundel v. Bank of Craig (A.), 515 S.W.2d 177.