Missouri Revised Statutes













Chapter 100

Industrial Development

←100.286

Section 100.287.1

100.291→

August 28, 2015

Default procedure--subrogation to rights of lender upon payment from fund, amount.

100.287. 1. The development and reserve fund shall be used to prevent a

default in payment of principal or interest or to defray losses which may be

incurred in connection with bonds, notes or loans secured by the development

and reserve fund in accordance with the terms and provisions of the

resolution or trust indenture of the board authorizing such bonds, notes or

loans.



2. Upon certification by a participating lender that a loan secured by

the development and reserve fund is in default and noncollectible, and that

the property which secured the loan has been liquidated and applied against

the debt, and after a review by the board and its determination of the same,

the board shall distribute, from funds available in the development and

reserve fund, an amount not to exceed ninety percent of the balance remaining

to be paid by the borrower to the participating lender. Upon payment to a

participating lender to repay any loan, the board shall become subrogated to

the extent of such payment to all rights which the participating lender had

against the borrower.



3. A loan or issue of bonds or notes secured by the development and

reserve fund shall in no case constitute or be construed as an obligation or

an indebtedness of this state or of the board, and neither the state nor the

board shall be liable to repay any such loan, bonds or notes upon any

condition.



(L. 1985 H.B. 416, A.L. 1986 S.B. 731)







Top



Missouri General Assembly



Copyright © Missouri Legislature, all rights reserved.