Tag Archives: John J. Hall

ILN Today Post

Good News for Lenders: Missouri’s Future Advance Deed of Trust Statute Can Cover Interest (But What about Late Fees?)

Under Missouri’s future advance statute, Mo. Rev. Stat. § 443.055, a deed of trust may secure future advances by a lender, the principal amount of which may not exceed the “face amount stated in the security instrument.” What else, besides the “principal” amount, may be secured by such a deed of trust? The statute specifically allows advances “incurred … for the reasonable protection of the lender’s security interest” to be included, and that amount can exceed the stated amount of the deed of trust. A Missouri Court of Appeals has now confirmed that interest also can exceed the stated amount and remain secured, and property taxes and attorney’s fees may also be secured as advances for the protection of the security interest. Late fees, however, do not qualify as expenses protecting the lien. Manns v. SB RE Properties, LLC, et al., ED105820 (Mo. Ct. App. E. D. Mo., Nov. 13, 2018).

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