Mo. Rev. Stat. » Chapter 408

Mo. Rev. Stat. § 408.232

Rates and terms

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  408.232.  Rates and terms. — 1.  With respect to a second mortgage loan, any person, firm or corporation may charge, contract for, and receive interest in any manner at rates agreed to by the parties computed on unpaid balances of the principal for the time actually outstanding.

  2.  The term of the loan, for purposes of this section, commences with the date the loan is made.  Differences in the lengths of months are disregarded, and a day may be counted as one-thirtieth of a month and one-three hundred sixtieth of a year.  When a second mortgage loan contract provides for monthly installments, the first installment may be payable at any time within one month and fifteen days of the date of the loan.

  3.  For revolving loans, charges may be computed at a daily rate of one-thirtieth of the monthly rate on actual daily balances or at a monthly rate on the average daily balance in each monthly billing cycle.

  4.  Sections 408.231 to 408.241 shall not apply to any loans on which the rate of interest and fees charged are lawful under Missouri law without regard to the rates permitted in subsection 1 of this section and the fees permitted in section 408.233.

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(L. 1979 S.B. 305, A.L. 1980 H.B. 1195, A.L. 1981 S.B. 5 Revision, A.L. 1994 H.B. 1312 merged with S.B. 718, A.L. 1998 S.B. 792, A.L. 2004 H.B. 959)

Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 1988–2025 · leading case: Mitchell v. Residential Funding Corp.
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Mitchell v. Residential Funding Corp. (2011) moctapp · cites it 10× “at 32 (citing § 408.232). The Act thus allows lenders to charge interest rates on second mortgages that exceed Missouri’s statutorily prescribed usury rate, but “[t]he limits on closing costs and fees .”
Avila v. Community Bank of Virginia (2003) moctapp · cites it 4× “Section 408.232 of the SMLA specifies the permissible interest rates and computation requirements for second mortgage loans governed by Missouri law.”
Michael D. v. GMAC Mortgage, LLC (2011) mowd · cites it 4× “The MSMLA defines a “second mortgage loan” as a loan secured in whole or in part by a lien upon any interest in residential real estate created by a security instrument, including a mortgage, trust deed, or other similar instrument or document, which provides for interest to be…”
Wong v. Bann-Cor Mortgage (2012) mowd · cites it 2× “1 provides: “No charge other than that permitted by section 408.232 [interest] shall be directly or indirectly charged, contracted for or received in connection with any second mortgage loan, except as provided in this section.”
Adkison v. First Plus Bank (2004) moctapp · cites it 2× “Section 408.232 was enacted in 1979. As originally enacted it stated as follows: 1.”
Commerce Bank of Kansas City, N.A. v. Missouri Division of Finance (1988) moctapp “, § 408.232 (second mortgage rates); § 408.”
Wong v. Mortgage (2013) mowd · cites it 2× “Under the MSMLA, “[n]o charge other than that permitted by section 408.232 [interest] shall be directly or indirectly charged, contracted for or received in connection with any second mortgage loan, except as provided in [section 408.”
Jeffrey Cox, et al. vs. The Bank of New York Mellon (2025) moctapp · cites it 2× “3 The Missouri Second Mortgage Loans Act (MSMLA) defines “second mortgage loan” as “a loan secured in whole or in part by a lien upon any interest in residential real estate created by a security instrument, including a mortgage, trust deed, or other similar instrument or…”
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