Background

The MBA Bankers Service Corporation was formed in 1981 when the Missouri Bankers Association began expanding its services to member banks beyond its traditional legislative and educational programs. Because the IRS limits the activities that a trade association can engage in, several of the MBA's programs and products are housed in this for-profit subsidiary. Since June 1993, the Service Corporation has been led by volunteer Missouri bankers serving on the board of directors.

There are three primary functions of the Service Corporation:

• Offer products and programs in conjunction with outside vendors to meet needs of banks and/or bank customers and help support the activities of the Missouri Bankers Association
  
• Manage the Farm Product Security Notification System (FPSNS)
• Manage the MBA Title Service

Products & Services (Endorsements/Outside Vendors)

The Service Corporation currently has existing relationships with several firms to sell and/or endorse their services. The level of Service Corp. staff and marketing efforts varies, and the revenue agreements also vary by company. Revenue provided by these companies helps support the activities of the Association. The following products and services are currently offered in this manner:

• Check Rebate Program -- Deluxe Financial Services, Inc.
  
• Executive and Director Compensation Plans -- Clark Consulting
• IRA Products (forms, manuals, newsletters, marketing materials, prototypes, and more) -- Ascensus (formerly BISYS Retirement Services)
• Coins of America 50 State Quarter Program and other collectible coin products -- MPI Coin
• Overdraft Privilege Program -- Strunk and Associates
• Text Messaging Marketing Program -- TextCaster
  

Farm Product Security Notification System

Known as FPSNS, this program was begun in early 1991 as a result of five years of unsuccessful efforts to enact central notification legislation in the Missouri General Assembly. Its basic concept is that the MBA Bankers Service Corporation serves as the clearinghouse for agricultural lenders' liens on farm products; Service Corporation, in turn, then notifies all MBA-known buyers of farm products of those liens.

Eighty-five bankers began the program with an initial investment of $1,000. Today, dozens of banking locations and two nonbank lenders are using the program to protect their interests in agricultural collateral and save themselves time and money.

MBA Title Service

The Title Service staff examines title applications and Notices of Lien submitted by banks to catch and correct errors prior to hand carrying the paperwork to the Department of Revenue. On a daily basis, title work is processed and delivered to the appropriate section of DOR, and issued titles and validated lien perfection copies are mailed to banks. In addition, Title Service staff serves as a go-between in researching problems or questions that banks have regarding their title work -- either in person at DOR or online directly to the DOR database. This saves the banks time and hassles in attempting to get answers from DOR.

Banks pay to use the Title Service -- a yearly fee to use the service and a per-transaction fee for processing paperwork. Over 100 banking locations are now using the Title Service.