Bill Text: MN HF648 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Motor vehicle title loans regulated.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Passed) 2013-05-10 - Secretary of State Chapter 40 05/07/13 [HF648 Detail]
Download: Minnesota-2013-HF648-Engrossed.html
1.2relating to commerce; regulating certain lenders that use motor vehicle titles of
1.3the borrower as collateral;proposing coding for new law in Minnesota Statutes,
1.4chapter 47.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [47.602] MOTOR VEHICLE TITLE LOANS.
1.7 Subdivision 1. Definitions. (a) The terms defined in this section have the meanings
1.8given them.
1.9(b) "Automobile dealer" means a dealer, as defined in section 168.002, subdivision
1.106, and a used motor vehicle dealer.
1.11(c) "Banking institution" means a banking institution, as defined in section 48.01,
1.12subdivision 2, and includes any bank, savings bank, savings association, or any subsidiary
1.13of any of them, that is subject to supervision by a federal regulatory agency.
1.14(d) "Consumer loan" means a loan to a borrower which has a principal amount, or an
1.15advance on a credit limit, of $1,000 or less and requires a minimum payment within 60
1.16days of loan origination or credit advance of more than 25 percent of the principal balance
1.17or credit advance. For the purposes of this section, each new advance of money to a
1.18borrower under a consumer loan agreement constitutes a new consumer loan.
1.19(e) "Credit union" includes a credit union, as defined under section 52.001,
1.20subdivision 4, and a federal credit union, as defined under section 52.001, subdivision 7.
1.21 Subd. 2. Requirements. A lender who is not a pawnbroker, as defined in section
1.22325J.01, subdivision 4, and uses a title to a motor vehicle as collateral for making a
1.23consumer loan:
2.1(1) must possess a valid license from the Department of Commerce as either an
2.2industrial loan and thrift company under chapter 53 or a regulated lender under chapter 56;
2.3(2) must comply with all provisions of section 325J.095; and
2.4(3) may not demand or collect interest, fees, or any other charges that in the aggregate
2.5exceed the amounts allowed to be demanded and collected under section 325J.07.
2.6 Subd. 3. Exemptions. This section does not apply to a banking institution, a credit
2.7union, an automobile dealer, or any transaction conducted under chapter 53C.
2.8EFFECTIVE DATE.This section is effective August 1, 2013, and applies to credit
2.9extended on or after that date.
1.3the borrower as collateral;proposing coding for new law in Minnesota Statutes,
1.4chapter 47.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [47.602] MOTOR VEHICLE TITLE LOANS.
1.7 Subdivision 1. Definitions. (a) The terms defined in this section have the meanings
1.8given them.
1.9(b) "Automobile dealer" means a dealer, as defined in section 168.002, subdivision
1.106, and a used motor vehicle dealer.
1.11(c) "Banking institution" means a banking institution, as defined in section 48.01,
1.12subdivision 2, and includes any bank, savings bank, savings association, or any subsidiary
1.13of any of them, that is subject to supervision by a federal regulatory agency.
1.14(d) "Consumer loan" means a loan to a borrower which has a principal amount, or an
1.15advance on a credit limit, of $1,000 or less and requires a minimum payment within 60
1.16days of loan origination or credit advance of more than 25 percent of the principal balance
1.17or credit advance. For the purposes of this section, each new advance of money to a
1.18borrower under a consumer loan agreement constitutes a new consumer loan.
1.19(e) "Credit union" includes a credit union, as defined under section 52.001,
1.20subdivision 4, and a federal credit union, as defined under section 52.001, subdivision 7.
1.21 Subd. 2. Requirements. A lender who is not a pawnbroker, as defined in section
1.22325J.01, subdivision 4, and uses a title to a motor vehicle as collateral for making a
1.23consumer loan:
2.1(1) must possess a valid license from the Department of Commerce as either an
2.2industrial loan and thrift company under chapter 53 or a regulated lender under chapter 56;
2.3(2) must comply with all provisions of section 325J.095; and
2.4(3) may not demand or collect interest, fees, or any other charges that in the aggregate
2.5exceed the amounts allowed to be demanded and collected under section 325J.07.
2.6 Subd. 3. Exemptions. This section does not apply to a banking institution, a credit
2.7union, an automobile dealer, or any transaction conducted under chapter 53C.
2.8EFFECTIVE DATE.This section is effective August 1, 2013, and applies to credit
2.9extended on or after that date.
