Mo. Code Regs. tit. 20 § 1140-20.075
PURPOSE: This rule authorizes associations to make construction loans without the security of real property and specifies the conditions and limitations for unsecured construction loans.
An association (pursuant to a plan adopted by the board of directors) may originate, invest in, sell, purchase, participate or otherwise deal in loans for constructing, adding to, improving, altering, repairing, equipping or furnishing what is or is to become real estate used primarily for residential purposes, relying substantially for repayment on the borrower's general credit standing and forecast of income, with or without other security, or on third-party guarantees or similar assurances for repayment. The aggregate amount of an association's investment in these loans shall not exceed the greater of five percent (5%) of the association's assets or the sum of its surplus, undivided profits and reserves. Investments under this regulation shall not be included in any other percentage of assets limitation referred to in this chapter.
20 CSR 1140-20.075
*Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994; 369.229, RSMo 1971, amended 1983, 1994; and 369.249 and 369.299, RSMo 1971, amended 1994.