State Codes and Statutes
Statutes > Missouri > T24 > C362 > 362_280Examination by directors--exceptions.
362.280. 1. The board of directors of every bank and trustcompany at least once in each year and whenever and as often asrequired by the director, and within thirty days after noticefrom him, shall examine or cause a committee of at least three ofits members or stockholders to examine fully the books, papersand affairs of the bank, and the loans and discounts andacceptances thereof, and particularly the loans or discounts oracceptances made directly or indirectly to its officers ordirectors, or for the benefit of these officers or directors, orfor the benefit of other corporations of which these officers ordirectors are also officers or directors, or in which they have abeneficial interest as stockholders, creditors, or otherwise,with the special view of ascertaining their safety and presentvalue, and the value of the collateral security, if any, held inconnection therewith, and into such other matters as the directormay require; provided, however, that no examination shall berequired of a bank or trust company which is a member of theFederal Reserve System or of a bank or trust company whosedeposits are insured by the Federal Deposit InsuranceCorporation.
2. The directors or committee of stockholders shall have thepower to employ such assistance in making such examination asthey may deem necessary.
(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.
