Three notable pieces of Missouri legislation will become effective August 28, 2013, nullifying foreclosure mediation initiatives in St. Louis City and County, modifying certain provisions of the Missouri Uniform Commercial Code, and altering certain standard language required in all Missouri “credit agreements.”

Foreclosure Mediation:

Missouri House Bill 446, sponsored by Armstrong Teasdale partner Representative John Diehl and Representative Stanley Cox, will become effective August 28, 2013, due to the governor’s failure to veto or sign it. The bill explicitly prevents local municipalities from modifying foreclosure requirements. This will preempt the new foreclosure mediation programs implemented by St. Louis City and St. Louis County, which required mediation and imposed various fees/fines on banks seeking to foreclose.

Uniform Commercial Code 2010 Amendments:

Missouri House Bill 212 was enacted to address confusion regarding the name used for an individual in UCC searches and filings. Courts had both upheld and rejected use of nicknames and shortened names (e.g., Ronnie/Ron). Effective August 28, 2013, Missouri will require that UCC filings be in the name shown on the individual’s driver license (if they have one). Other notable changes include:

  • for companies, in the event of any discrepancy, the name shown on the most recently filed charter document should be used (rather than what may be shown on the Secretary of State’s website or even a certificate of good standing);
  • “correction statements” will now be known as “information statements” and can now be filed by secured parties to address unauthorized filings;
  • information required on financing statements will be simplified (entity type, jurisdiction, and ID number are no longer required); and
  • new forms will be available (http://www.sos.mo.gov/ucc/forms.asp) on August 28, 2013.

Statutory Language for Credit Agreements:

Lastly, the oral statements language required for "credit agreements" under RSMo 432.047 will change slightly due to Missouri Senate Bill No. 100. As to any loan documents or workout documents that are "credit agreements," the new language should be included after August 28, 2013 (at least 10 point boldface type):

ORAL OR UNEXECUTED AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

Changes are highlighted below:

ORAL OR UNEXECUTED AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.