Treasurer Malek is pleased to announce the MOBUCK$ linked deposit loan package application portal (herein “portal”) will open on Monday, July 29, 2024 at 10:00 a.m.
Please read the following for important details and updates about the MOBUCK$ program and portal reopening process:
Portal Open from July 29 to August 29
- The portal for new loan package applications (herein “applications”) will open on Monday, July 29, 2024 at 10:00 a.m. It will remain open until Thursday, August 29, 2024 at 3:00 p.m. Keeping the application portal open for one month will allow all participating lending institutions ample time to complete and submit applications for prospective borrowers.
Loan Limits
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Loan amounts will be limited to $2 million per application.
Amount of Available Funds
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An aggregate amount of $500 million in new MOBUCK$ linked deposits will be made available. The aggregate of all new deposits will not exceed this amount.
Random Selection
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Again, the portal will close on Thursday, August 29, 2024. After the portal closes, all applications will be assigned a random number. Numbers will then be randomly chosen until the supply of available deposits is exhausted. Deposits will be pulled for initial processing by STO staff in the order they are selected. Submitting complete applications and promptly responding to supplemental documentation requests from the STO will facilitate faster application processing. The STO cannot guarantee the order in which applications are actually approved since it largely depends on a lending institution’s responsiveness to inquiries from the STO and on responses from other government agencies involved in the due diligence process.
The random selection process will end once the aggregate amount reaches $500 million. Demand for deposits may exceed available supply. If so, applications not selected will not be processed, and no deposits will be placed for those loan packages. While the prospect of any loan packages not receiving funding is unfortunate, it is important that all prospective borrowers have an opportunity to apply. In times past, demand drastically exceeded supply, resulting in many prospective borrowers being denied the opportunity to apply before the portal closed, and a significant number of applications submitted were substantially incomplete. Lending institutions are expected to submit completed applications. Failure to do so may cause an application to be rejected.
Processing Times
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Lending institutions and borrowers should expect longer than average processing times since demand for deposits is expected to be high. Lenders and borrowers should consider this fact when structuring transactions. Applicants with unselected applications will be notified first, beginning in or around the first week of September. After that, processing will begin for applications that were selected.
Renewals
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Renewals of active MOBUCK$ linked deposits will not be impacted by the reopening process. Eligible lending institutions will be able to submit renewal requests as usual and regardless of whether the $500 million supply of deposits is exhausted.
Participating in the MOBUCK$ Linked Deposit Program
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To participate in the MOBUCK$ program, eligible lending institutions must have an active depository contract with the STO. Institutions who do not currently have an active depository contract with the STO should begin the registration process as soon as possible if they want to participate in MOBUCK$. Review and approval of these contracts takes time due to requirements under state law. Please send an email indicating interest in acquiring a depository contract to the following address: LinkedDeposits@treasurer.mo.gov.
Additionally, lending institutions must have an active account to participate in the MOBUCK$ program. More information is available here for institutions that do not yet have an active account.
Both of the above items should be accomplished as soon as possible. Depository contracts and MOBUCK$ participation approvals submitted close to the portal reopening date are unlikely to be processed before the portal closes on August 29, 2024.
