Bill Text: MN SF626 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Miscellaneous commerce technical modifications and housekeeping changes and adjustments to statutory dollar amounts
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-02 - HF substituted on General Orders HF1221 [SF626 Detail]
Download: Minnesota-2013-SF626-Introduced.html
1.2relating to commerce; making various technical and housekeeping changes
1.3related to staff adjusters, canceled licenses, and transfer fees; providing producer
1.4training requirements for flood insurance products; eliminating the membership
1.5camping license requirement; repealing an obsolete collection agency rule;
1.6correcting cross-references; making adjustments to various dollar amounts as
1.7required by state law; providing for a method to periodically update Minnesota
1.8Statutes to reflect the current dollar amounts as adjusted; amending Minnesota
1.9Statutes 2012, sections 47.59, subdivisions 3, 6; 56.12; 56.125, subdivision 2;
1.1056.131, subdivisions 2, 6; 72B.10; 82.62, subdivision 7; 82.63, subdivision
1.118; 82A.06, subdivision 2; 82A.13, subdivision 1; 82A.18, subdivision 2;
1.1282C.16, subdivision 1; 325G.22, subdivision 1; 510.02, subdivision 1; 550.37,
1.13subdivisions 4, 4a, 6, 10, 12a, 23, 24; proposing coding for new law in Minnesota
1.14Statutes, chapter 60K; repealing Minnesota Statutes 2012, sections 82A.16;
1.1582A.17; Minnesota Rules, part 2870.1500.
1.16BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.19 Section 1. [60K.366] PRODUCER TRAINING REQUIREMENTS FOR FLOOD
1.20INSURANCE PRODUCTS.
1.21An individual may not sell, solicit, or negotiate flood insurance through the National
1.22Flood Insurance Program (NFIP) unless the individual is licensed as an insurance producer
1.23for one or more lines of authority under section 60K.38, subdivision 1, paragraph (b),
1.24clauses (3), (4), and (6), and has in addition to the training otherwise required by this
1.25chapter, satisfied the minimum training and education requirements established by the
1.26Federal Emergency Management Agency (FEMA) for all insurance producers who sell
1.27insurance through the NFIP and published at 70 Federal Register 52, 117.
2.1Upon request of the commissioner, an issuer must demonstrate to the commissioner
2.2that its appointed producers who sell flood insurance through the NFIP have complied
2.3with the minimum training and education requirements established by FEMA.
2.4 Sec. 2. Minnesota Statutes 2012, section 72B.10, is amended to read:
2.572B.10 STAFF ADJUSTERS.
2.6A staff adjuster who adjusts losses or claims in this state shall not be subject to
2.7the application, licensing, or examination requirements or other qualifications set forth
2.8in sections72B.01 to
72B.14 . Such a staff adjuster shall not, however, engage in any
2.9of the practices forbidden to a licensee under section72B.08, subdivision 1 , clause
2.10 clauses (3), (4), (5), (6), (7), or (8) through (15). If the commissioner has information,
2.11which if true, would establish that a staff adjuster has engaged or is engaging in any such
2.12prohibited practices, the commissioner may issue an order for a hearing to determine the
2.13facts involved. The order shall fix the time and place for hearing. The staff adjuster
2.14and one or more representatives of the insurer or insurers employing the staff adjuster
2.15shall make an appearance at the hearing unless the commissioner expressly waives the
2.16appearance of one or more such parties. If, following the hearing, the commissioner
2.17determines that the staff adjuster has engaged or is engaging in any prohibited practices,
2.18the commissioner may impose a fine, not in excess of $500, on the staff adjuster or on the
2.19employing insurer or insurers, or on both such parties. In addition, the commissioner may
2.20order the employing insurer to suspend the staff adjuster from all duties for such period as
2.21the commissioner may deem appropriate.
2.22Any final order of the commissioner shall be subject to judicial review. Any hearing
2.23or judicial review under this section shall be in accordance with the contested case
2.24provisions of chapter 14.
2.25 Sec. 3. Minnesota Statutes 2012, section 82.62, subdivision 7, is amended to read:
2.26 Subd. 7.Cancellation Reinstatement of canceled salesperson's or broker's
2.27license. A salesperson's or broker's license that has been canceled for failure of a licensee
2.28to complete postlicensing education requirementsmust be returned to the commissioner
2.29by the licensee's broker within ten days of receipt of notice of cancellation. The license
2.30 shall be reinstated without reexamination by completing the required instruction, filing
2.31an application, and paying the fee for a salesperson's or broker's license within two years
2.32of the cancellation date.
2.33 Sec. 4. Minnesota Statutes 2012, section 82.63, subdivision 8, is amended to read:
3.1 Subd. 8. Procedure. An application for automatic transfer shall be made only on
3.2the form prescribed by the commissioner. The transfer is ineffective if the form is not
3.3completed in its entirety.
3.4The form shall be accompanied by a$10 $20 transfer fee, and the license renewal
3.5fee, if applicable. Cash will not be accepted.
3.6The signature of the broker from whom the salesperson is transferring must predate
3.7the signature of the broker to whom the salesperson is transferring. The salesperson is
3.8unlicensed for the period of time between the times and dates of both signatures. The
3.9broker from whom the salesperson is transferring shall sign and date the transfer application
3.10upon the request of the salesperson and shall destroy the salesperson's license immediately.
3.11 Sec. 5. Minnesota Statutes 2012, section 82A.06, subdivision 2, is amended to read:
3.12 Subd. 2. Partial transactional exemptions. The following transactions are exempt
3.13from the provisions of sections82A.03 ;
82A.04 ;
82A.05 ;
82A.07 ;
82A.08 ;
82A.11 ,
3.14subdivisions 2 and 4; and82A.14 ;
82A.16; and
82A.17
3.15person who is not then physically present in this state, and any offer which invites an
3.16offeree to attend a sales presentation in another state if:
3.17(1) the offeror has given at least ten days prior written notice to the commissioner
3.18of its intention to offer or sell membership camping contracts to residents of this state
3.19pursuant to this exemption and paid a fee of $50;
3.20(2) the offeror has demonstrated that the sales presentation will be made, and the
3.21sale will be consummated, in a state which specifically regulates the offer and sale of
3.22membership camping contracts;
3.23(3) the offeror has demonstrated that it will deliver a disclosure statement to offerees
3.24who are residents of this state which contains substantially the same or greater disclosure
3.25as is required by section82A.05 ; and
3.26(4) the offeror has filed a consent to service of process pursuant to section82A.22 .
3.27 Sec. 6. Minnesota Statutes 2012, section 82A.13, subdivision 1, is amended to read:
3.28 Subdivision 1. Untrue statements filed in documents. No person shall make
3.29or cause to be made any untrue statement of a material fact in an application or other
3.30document filed with the commissioner under this chapter, or omit to state in the application
3.31or other document any material fact which is required to be stated therein, or fail to
3.32notify the commissioner of any material change as required bysections section
82A.07
3.33and
82A.16, subdivision 3
4.1 Sec. 7. Minnesota Statutes 2012, section 82A.18, subdivision 2, is amended to read:
4.2 Subd. 2. Civil penalty. Any person who materially or repeatedly violates section
4.382A.03
,
82A.05 ,
82A.09 ,
82A.13 , or
82A.14 , or
82A.16
4.4more than $1,000 for each violation provided, however, that the total recovery arising from
4.5the same failure to comply, but involving different purchasers, shall be limited to $5,000. A
4.6fine authorized by this subdivision may be imposed in a civil action brought by the attorney
4.7general on behalf of the state of Minnesota, and shall be deposited into the state treasury.
4.8 Sec. 8. Minnesota Statutes 2012, section 82C.16, subdivision 1, is amended to read:
4.9 Subdivision 1. Powers of commissioner. (a) The commissioner may by order
4.10take any or all of the following actions:
4.11(1) bar a person from serving as an officer, director, partner, controlling person, or
4.12any similar role at an appraisal management company, if such person has ever been the
4.13subject of a final order suspending, revoking, or denying a certification, registration, or
4.14license as a real estate agent, broker, or appraiser, or a final order barring involvement in
4.15any industry or profession issued by this or another state or federal regulatory agency;
4.16(2) deny, suspend, or revoke an appraisal management company license;
4.17(3) censure an appraisal management company license; and
4.18(4) impose a civil penalty as provided for in chapter45.027 .
4.19(b) In order to take the action in paragraph (a), the commissioner must find:
4.20(1) that the order is in the public interest; and
4.21(2) that an officer, director, partner, employee, agent, controlling person or persons,
4.22or any person occupying a similar status or performing similar functions, has:
4.23(i) violated any provision of this chapter;
4.24(ii) filed an application for a license that is incomplete in any material respect or
4.25contains a statement that, in light of the circumstances under which it is made, is false or
4.26misleading with respect to a material fact;
4.27(iii) failed to maintain compliance with the affirmations made under section80C.03
4.28
4.29(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive,
4.30or dishonest act or practice, whether or not the act or practice involves the appraisal
4.31management company;
4.32(v) engaged in an act or practice, whether or not the act or practice involves the
4.33business of appraisal management, appraisal assignments, or real estate mortgage related
4.34practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;
5.1(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere,
5.2or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral
5.3turpitude;
5.4(vii) paid a civil penalty or been the subject of disciplinary action by the
5.5commissioner, or an order of suspension or revocation, cease and desist order, or
5.6injunction order, or an order barring involvement in an industry or profession issued by
5.7this or any other state or federal regulatory agency or government-sponsored enterprise,
5.8or by the secretary of Housing and Urban Development;
5.9(viii) been found by a court of competent jurisdiction to have engaged in conduct
5.10evidencing gross negligence, fraud, misrepresentation, or deceit;
5.11(ix) refused to cooperate with an investigation or examination by the commissioner;
5.12(x) failed to pay any fee or assessment imposed by the commissioner; or
5.13(xi) failed to comply with state and federal tax obligations.
5.14 Sec. 9. REPEALER.
5.15 Subdivision 1. Membership camping licensing requirement for salespersons or
5.16brokers. Minnesota Statutes 2012, sections 82A.16; and 82A.17, are repealed.
5.17 Subd. 2. Collection agency license renewal; obsolete rule. Minnesota Rules, part
5.182870.1500, is repealed.
5.21 Section 1. Minnesota Statutes 2012, section 47.59, subdivision 3, is amended to read:
5.22 Subd. 3. Finance charge for loans. (a) With respect to a loan, including a loan
5.23pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a
5.24financial institution may contract for and receive a finance charge on the unpaid balance of
5.25the principal amount not to exceed the greater of:
5.26(1) an annual percentage rate not exceeding 21.75 percent; or
5.27(2) the total of:
5.28(i) 33 percent per year on that part of the unpaid balance of the principal amount
5.29not exceeding$750 $1,125; and
5.30(ii) 19 percent per year on that part of the unpaid balance of the principal amount
5.31exceeding$750 $1,125.
5.32With respect to open-end credit pursuant to a credit card, the financial institution
5.33may contract for and receive a finance charge on the unpaid balance of the principal
5.34amount at an annual percentage rate not exceeding 18 percent per year.
6.1(b) On a loan where the finance charge is calculated according to the method
6.2provided for in paragraph (a), clause (2), the finance charge must be contracted for and
6.3earned as provided in that provision or at the single annual percentage rate computed to
6.4the nearest one-tenth of one percent that would earn the same total finance charge at
6.5maturity of the contract as would be earned by the application of the graduated rates
6.6provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms
6.7and the calculations are made according to the actuarial method.
6.8(c) With respect to a loan, the finance charge must be considered not to exceed
6.9the maximum annual percentage rate permitted under this section if the finance charge
6.10contracted for and received does not exceed the equivalent of the maximum annual
6.11percentage rate calculated in accordance with Code of Federal Regulations, title 12, part
6.12226, but using the definition of finance charge provided in this section.
6.13(d) This subdivision does not limit or restrict the manner of calculating the finance
6.14charge, whether by way of add-on, discount, discount points, precomputed charges, single
6.15annual percentage rate, variable rate, interest in advance, compounding, average daily
6.16balance method, or otherwise, if the annual percentage rate does not exceed that permitted
6.17by this section. Discount points permitted by this paragraph and not collected but included
6.18in the principal amount must not be included in the amount on which credit insurance
6.19premiums are calculated and charged.
6.20(e) With respect to a loan secured by real estate, if a finance charge is calculated or
6.21collected in advance, or included in the principal amount of the loan, and the borrower
6.22prepays the loan in full, the financial institution shall credit the borrower with a refund of
6.23the charge to the extent that the annual percentage rate yield on the loan would exceed the
6.24maximum rate permitted under paragraph (a), taking into account the prepayment. The
6.25refund need not be made if it would be less than$5 $7.50.
6.26(f) With respect to all other loans, if the finance charge is calculated or collected in
6.27advance, or included in the principal amount of the loan, and the borrower prepays the
6.28loan in full, the financial institution shall credit the borrower with a refund of the charge to
6.29the extent the annual percentage rate yield on the loan would exceed the annual percentage
6.30rate on the loan as originally determined under paragraph (a) and taking into account the
6.31prepayment. The refund need not be made if it would be less than$5 $7.50.
6.32(g) For the purpose of calculating the refund under this subdivision, the financial
6.33institution may assume that the contract was paid before the date of prepayment according
6.34to the schedule of payments under the loan and that all payments were paid on their due
6.35dates.
7.1(h) For loans repayable in substantially equal successive monthly installments, the
7.2financial institution may calculate the refund under paragraph (f) as the portion of the
7.3finance charge allocable on an actuarial basis to all wholly unexpired payment periods
7.4following the date of prepayment, based on the annual percentage rate on the loan as
7.5originally determined under paragraph (a), and for the purpose of calculating the refund
7.6may assume that all payments are made on the due date.
7.7(i) The dollar amounts in this subdivisionand, subdivision 6, paragraph (a), clause
7.8(4), and the dollar amount of original principal amount of closed-end credit in subdivision
7.96, paragraph (d), shall change periodically, as provided in this section, according to and to
7.10the extent of changes in the implicit price deflator for the gross domestic product,1987
7.11 2005 = 100, compiled by the United States Department of Commerce, and hereafter
7.12referred to as the index. The index for December1991 2011 is the reference base index for
7.13adjustments of dollar amounts.
7.14(j) The designated dollar amounts shall change on July 1 of each even-numbered
7.15year if the percentage of change, calculated to the nearest whole percentage point,
7.16between the index for December of the preceding year and the reference base index is
7.17ten percent or more; but
7.18(1) the portion of the percentage change in the index in excess of a multiple of ten
7.19percent shall be disregarded and the dollar amounts shall change only in multiples of ten
7.20percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and
7.21(2) the dollar amounts shall not change if the amounts required by this section
7.22are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier
7.23application of this section.
7.24(k) If the index is revised, the percentage of change pursuant to this section shall
7.25be calculated on the basis of the revised index. If a revision of the index changes the
7.26reference base index, a revised reference base index shall be determined by multiplying the
7.27reference base index then applicable by the rebasing factor furnished by the Department
7.28of Commerce. If the index is superseded, the index referred to in this section is the one
7.29represented by the Department of Commerce as reflecting most accurately changes in the
7.30purchasing power of the dollar for consumers.
7.31(l) The commissioner shallannounce and publish:
7.32(1) announce and publish on or before April 30 of each year in which dollar amounts
7.33are to change, the changes in dollar amounts required by paragraph (j);and
7.34(2) announce and publish promptly after the changes occur, changes in the index
7.35required by paragraph (k) including, if applicable, the numerical equivalent of the
8.1reference base index under a revised reference base index and the designation or title
8.2of any index superseding the index.; and
8.3(3) promptly notify the revisor of statutes in writing of the changes announced and
8.4published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
8.5the changes in the next edition of Minnesota Statutes.
8.6(m) A person does not violate this chapter with respect to a transaction otherwise
8.7complying with this chapter if that person relies on dollar amounts either determined
8.8according to paragraph (j), clause (2), or appearing in the last publication of the
8.9commissioner announcing the then current dollar amounts.
8.10(n) The adjustments provided in this section shall not be affected unless explicitly
8.11provided otherwise by law.
8.12 Sec. 2. Minnesota Statutes 2012, section 47.59, subdivision 6, is amended to read:
8.13 Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial
8.14institution" includes a person described in subdivision 4, paragraph (a). In addition to the
8.15finance charges permitted by this section, a financial institution may contract for and
8.16receive the following additional charges that may be included in the principal amount
8.17of the loan or credit sale unpaid balances:
8.18(1) official fees and taxes;
8.19(2) charges for insurance as described in paragraph (b);
8.20(3) with respect to a loan or credit sale contract secured by real estate, the following
8.21"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
8.22circumvention or evasion of this section:
8.23(i) fees or premiums for title examination, abstract of title, title insurance, surveys,
8.24or similar purposes;
8.25(ii) fees for preparation of a deed, mortgage, settlement statement, or other
8.26documents, if not paid to the financial institution;
8.27(iii) escrows for future payments of taxes, including assessments for improvements,
8.28insurance, and water, sewer, and land rents;
8.29(iv) fees for notarizing deeds and other documents;
8.30(v) appraisal and credit report fees; and
8.31(vi) fees for determining whether any portion of the property is located in a flood
8.32zone and fees for ongoing monitoring of the property to determine changes, if any,
8.33in flood zone status;
8.34(4) a delinquency charge on a payment, including the minimum payment due in
8.35connection with open-end credit, not paid in full on or before the tenth day after its due
9.1date in an amount not to exceed five percent of the amount of the payment or$5.20 $7.80,
9.2whichever is greater;
9.3(5) for a returned check or returned automatic payment withdrawal request, an
9.4amount not in excess of the service charge limitation in section604.113 , except that, on
9.5a loan transaction that is a consumer small loan as defined in section47.60
, subdivision
9.61 , paragraph (a), in which cash is advanced in exchange for a personal check, the civil
9.7penalty provisions of section604.113
, subdivision 2 , paragraph (b), may not be demanded
9.8or assessed against the borrower; and
9.9(6) charges for other benefits, including insurance, conferred on the borrower that
9.10are of a type that is not for credit.
9.11(b) An additional charge may be made for insurance written in connection with the
9.12loan or credit sale contract, which may be included in the principal amount of the loan or
9.13credit sale unpaid balances:
9.14(1) with respect to insurance against loss of or damage to property, or against
9.15liability arising out of the ownership or use of property, if the financial institution furnishes
9.16a clear, conspicuous, and specific statement in writing to the borrower setting forth the
9.17cost of the insurance if obtained from or through the financial institution and stating that
9.18the borrower may choose the person through whom the insurance is to be obtained;
9.19(2) with respect to credit insurance or mortgage insurance providing life, accident,
9.20health, or unemployment coverage, if the insurance coverage is not required by the
9.21financial institution, and this fact is clearly and conspicuously disclosed in writing to
9.22the borrower, and the borrower gives specific, dated, and separately signed affirmative
9.23written indication of the borrower's desire to do so after written disclosure to the borrower
9.24of the cost of the insurance; and
9.25(3) with respect to the vendor's single interest insurance, but only (i) to the extent
9.26that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
9.27the insurance does not duplicate the coverage of other insurance under which loss is
9.28payable to the financial institution as its interest may appear, against loss of or damage
9.29to property for which a separate charge is made to the borrower according to clause (1);
9.30and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
9.31financial institution to the borrower setting forth the cost of the insurance if obtained from
9.32or through the financial institution and stating that the borrower may choose the person
9.33through whom the insurance is to be obtained.
9.34(c) In addition to the finance charges and other additional charges permitted by
9.35this section, a financial institution may contract for and receive the following additional
10.1charges in connection with open-end credit, which may be included in the principal
10.2amount of the loan or balance upon which the finance charge is computed:
10.3(1) annual charges, not to exceed $50 per annum, payable in advance, for the
10.4privilege of opening and maintaining open-end credit;
10.5(2) charges for the use of an automated teller machine;
10.6(3) charges for any monthly or other periodic payment period in which the borrower
10.7has exceeded or, except for the financial institution's dishonor would have exceeded,
10.8the maximum approved credit limit, in an amount not in excess of the service charge
10.9permitted in section604.113 ;
10.10(4) charges for obtaining a cash advance in an amount not to exceed the service
10.11charge permitted in section604.113 ; and
10.12(5) charges for check and draft copies and for the replacement of lost or stolen
10.13credit cards.
10.14(d) In addition to the finance charges and other additional charges permitted by this
10.15section, a financial institution may contract for and receive a onetime loan administrative
10.16fee not exceeding $25 in connection with closed-end credit, which may be included
10.17in the principal balance upon which the finance charge is computed. This paragraph
10.18applies only to closed-end credit in an original principal amount of$4,320 $6,480 or less.
10.19The determination of an original principal amount must exclude the administrative fee
10.20contracted for and received according to this paragraph.
10.21 Sec. 3. Minnesota Statutes 2012, section 56.12, is amended to read:
10.2256.12 ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.
10.23No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause
10.24or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any
10.25manner any statement or representation with regard to the rates, terms, or conditions for
10.26the lending of money, credit, goods, or things in action which is false, misleading, or
10.27deceptive. The commissioner may order any licensee to desist from any conduct which
10.28the commissioner shall find to be a violation of the foregoing provisions.
10.29The commissioner may require that rates of charge, if stated by a licensee, be stated
10.30fully and clearly in such manner as the commissioner may deem necessary to prevent
10.31misunderstanding thereof by prospective borrowers. In lieu of the disclosure requirements
10.32of this section and section56.14 , a licensee may give the disclosures required by the
10.33federal Truth-in-Lending Act.
10.34A licensee may take a lien upon real estate as security for any loan exceeding$4,320
10.35 $6,480 in principal amount made under this chapter. The provisions of sections47.20 and
11.147.21
do not apply to loans made under this chapter, except as provided in this section. No
11.2loan secured by a first lien on a borrower's primary residence shall be made pursuant to
11.3this section if the proceeds of the loan are used to finance the purchase of the borrower's
11.4primary residence, unless:
11.5(1) the proceeds of the loan are used to finance the purchase of a manufactured
11.6home or a prefabricated building; or
11.7(2) the proceeds of the loan are used in whole or in part to satisfy the balance owed
11.8on a contract for deed.
11.9If the proceeds of the loan are used to finance the purchase of the borrower's
11.10primary residence, the licensee shall consent to the subsequent transfer of the real estate
11.11if the existing borrower continues after transfer to be obligated for repayment of the
11.12entire remaining indebtedness. The licensee shall release the existing borrower from all
11.13obligations under the loan instruments, if the transferee (1) meets the standards of credit
11.14worthiness normally used by persons in the business of making loans, including but not
11.15limited to the ability of the transferee to make the loan payments and satisfactorily maintain
11.16the property used as collateral, and (2) executes an agreement in writing with the licensee
11.17whereby the transferee assumes the obligations of the existing borrower under the loan
11.18instruments. Any such agreement shall not affect the priority, validity or enforceability
11.19of any loan instrument. A licensee may charge a fee not in excess of one-tenth of one
11.20percent of the remaining unpaid principal balance in the event the loan is assumed by
11.21the transferee and the existing borrower continues after the transfer to be obligated for
11.22repayment of the entire assumed indebtedness. A licensee may charge a fee not in excess
11.23of one percent of the remaining unpaid principal balance in the event the remaining
11.24indebtedness is assumed by the transferee and the existing borrower is released from all
11.25obligations under the loan instruments, but in no event shall the fee exceed$240 $360.
11.26A licensee making a loan under this chapter secured by a lien on real estate shall
11.27comply with the requirements of section47.20, subdivision 8 .
11.28No licensee shall conduct the business of making loans under this chapter within any
11.29office, room, or place of business in which any other business is solicited or engaged in,
11.30or in association or conjunction therewith, if the commissioner finds that the character
11.31of the other business is such that it would facilitate evasions of this chapter or of the
11.32rules lawfully made hereunder. The commissioner may promulgate rules dealing with
11.33such other businesses.
11.34No licensee shall transact the business or make any loan provided for by this chapter
11.35under any other name or at any other place of business than that named in the license. No
11.36licensee shall take any confession of judgment or any power of attorney. No licensee shall
12.1take any note or promise to pay that does not accurately disclose the principal amount
12.2of the loan, the time for which it is made, and the agreed rate or amount of charge, nor
12.3any instrument in which blanks are left to be filled in after execution. Nothing herein is
12.4deemed to prohibit the making of loans by mail or arranging for settlement and closing
12.5of real estate secured loans by an unrelated qualified closing agent at a location other
12.6than the licensed location.
12.7 Sec. 4. Minnesota Statutes 2012, section 56.125, subdivision 2, is amended to read:
12.8 Subd. 2. Real estate as security. A licensee may take a lien upon real estate as
12.9security for any open-end loan at or after such time as the outstanding balance first exceeds
12.10$4,320 $6,480. A subsequent reduction in the balance below $4,320 $6,480 has no effect
12.11on the lien. A licensee may retain the security interest until it terminates the open-end
12.12account. If there is no outstanding balance in the account and there is no commitment by
12.13the licensee to a line of credit in excess of$4,320 $6,480, the licensee shall, within 20
12.14days following written demand by the borrower, deliver to the borrower a release of the
12.15mortgage on any real property taken as security for the open-end loan agreement. A real
12.16estate mortgage authorized for a financial institution secures all advances and obligations
12.17thereunder from the date of recording.
12.18 Sec. 5. Minnesota Statutes 2012, section 56.131, subdivision 2, is amended to read:
12.19 Subd. 2. Additional charges. In addition to the charges provided for by this section
12.20and section56.155 , and notwithstanding section
47.59, subdivision 6 , to the contrary, no
12.21further or other amount whatsoever, shall be directly or indirectly charged, contracted for,
12.22or received for the loan made, except actual out of pocket expenses of the licensee to
12.23realize on a security after default, and except for the following additional charges which
12.24may be included in the principal amount of the loan:
12.25(a) lawful fees and taxes paid to any public officer to record, file, or release security;
12.26(b) with respect to a loan secured by an interest in real estate, the following closing
12.27costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention
12.28or evasion of this section; provided the costs do not exceed one percent of the principal
12.29amount or$400 $600, whichever is greater:
12.30(1) fees or premiums for title examination, abstract of title, title insurance, surveys,
12.31or similar purposes;
12.32(2) fees, if not paid to the licensee, an employee of the licensee, or a person related
12.33to the licensee, for preparation of a mortgage, settlement statement, or other documents,
12.34fees for notarizing mortgages and other documents, and appraisal fees;
13.1(c) the premium for insurance in lieu of perfecting and releasing a security interest to
13.2the extent that the premium does not exceed the fees described in paragraph (a);
13.3(d) discount points and appraisal fees may not be included in the principal amount of
13.4a loan secured by an interest in real estate when the loan is a refinancing for the purpose of
13.5bringing the refinanced loan current and is made within 24 months of the original date of
13.6the refinanced loan. For purposes of this paragraph, a refinancing is not considered to be for
13.7the purpose of bringing the refinanced loan current if new funds advanced to the customer,
13.8not including closing costs or delinquent installments, exceed$1,000 $1,500; and
13.9(e) the onetime loan administrative fee in section47.59, subdivision 6 , paragraph (d).
13.10 Sec. 6. Minnesota Statutes 2012, section 56.131, subdivision 6, is amended to read:
13.11 Subd. 6. Discount points. A loan made under this section that is secured by real
13.12estate and that is in a principal amount of$12,000 $18,000 or more and has a maturity
13.13of 60 months or more may contain a provision permitting discount points, if the loan
13.14does not provide a loan yield in excess of the maximum rate of interest permitted by this
13.15section. Loan yield means the annual rate of return obtained by a licensee computed as
13.16the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid
13.17in full, the licensee must make a refund to the borrower to the extent that the loan yield
13.18will exceed the maximum rate of interest provided by this section when the prepayment is
13.19taken into account. Discount points permitted by this subdivision and not collected but
13.20included in the principal amount must not be included in the amount on which credit
13.21insurance premiums are calculated and charged.
13.22 Sec. 7. Minnesota Statutes 2012, section 325G.22, subdivision 1, is amended to read:
13.23 Subdivision 1. Personal liability of buyer limited. If the seller or lender
13.24repossesses or voluntarily accepts surrender of personal property in which the seller or
13.25lender has a security interest arising out of a consumer credit transaction and the aggregate
13.26amount of the credit extended in the transaction was$3,000 $6,900 or less, the buyer is not
13.27personally liable to the seller or lender for the unpaid balance of the debt arising from the
13.28consumer credit transaction, and the seller or lender is not obligated to resell the collateral.
13.29 Sec. 8. Minnesota Statutes 2012, section 510.02, subdivision 1, is amended to read:
13.30 Subdivision 1. Exemption. The homestead may include any quantity of land not
13.31exceeding 160 acres. The exemption per homestead, whether the exemption is claimed
13.32by one or more debtors, may not exceed$300,000 $390,000 or, if the homestead is used
14.1primarily for agricultural purposes,$750,000 $975,000, exclusive of the limitations set
14.2forth in section510.05 .
14.3 Sec. 9. Minnesota Statutes 2012, section 550.37, subdivision 4, is amended to read:
14.4 Subd. 4. Personal goods. (a) All wearing apparel, one watch, utensils, and
14.5foodstuffs of the debtor and the debtor's family.
14.6(b) Household furniture, household appliances, phonographs, radio and television
14.7receivers of the debtor and the debtor's family, not exceeding$4,500 $10,350 in value.
14.8(c) The debtor's aggregate interest, not exceeding$1,225 $2,817.50 in value, in
14.9wedding rings or other religious or culturally recognized symbols of marriage exchanged
14.10between the debtor and spouse at the time of the marriage and in the debtor's possession.
14.11The exemption provided by this subdivision may not be waived except with regard
14.12to purchase money security interests. Except for a pawnbroker's possessory lien, a
14.13nonpurchase money security interest in the property exempt under this subdivision is void.
14.14If a debtor has property of the type which would qualify for the exemption under
14.15clause (b), of a value in excess of$4,500 $10,350 an itemized list of the exempt property,
14.16together with the value of each item listed, shall be attached to the security agreement
14.17at the time a security interest is taken, and a creditor may take a nonpurchase money
14.18security interest in the excess over$4,500 $10,350 by requiring the debtor to select the
14.19exemption in writing at the time the loan is made.
14.20 Sec. 10. Minnesota Statutes 2012, section 550.37, subdivision 4a, is amended to read:
14.21 Subd. 4a. Adjustment of dollar amounts. (a) Except for subdivisions 5 and 7, the
14.22dollar amounts in this section shall change periodically as provided in this subdivision to
14.23the extent of changes in the implicit price deflator for the grossnational domestic product,
14.241972 2005 = 100, compiled by the United States Department of Commerce, and hereafter
14.25referred to as the index. The index for December1980 2011 is the reference base index.
14.26(b) The designated dollar amounts shall change on July 1 of each even-numbered
14.27year if the percentage of change, calculated to the nearest whole percentage point, between
14.28the index for December of the preceding year and the reference base index is ten percent
14.29or more. The portion of the percentage change in the index in excess of a multiple of ten
14.30percent shall be disregarded and the dollar amounts shall change only in multiples of ten
14.31percent of the amounts stated in this section.
14.32(c) If the index is revised, the percentage of change pursuant to this section shall
14.33be calculated on the basis of the revised index. If a revision of the index changes the
14.34reference base index, a revised reference base index shall be determined by multiplying the
15.1reference base index then applicable by the rebasing factor furnished by the Department
15.2of Commerce. If the index is superseded, the index referred to in this section is the one
15.3represented by the Department of Commerce as reflecting most accurately changes in the
15.4purchasing power of the dollar for consumers.
15.5(d) The commissioner of commerce shallannounce and publish:
15.6(1) announce and publish on or before April 30 of each year in which dollar amounts
15.7are to change, the changes in dollar amounts required by paragraph (b);and
15.8(2) announce and publish promptly after the changes occur, changes in the index
15.9required by paragraph (c) including, if applicable, the numerical equivalent of the
15.10reference base index under a revised reference base index and the designation or title
15.11of any index superseding the index.; and
15.12(3) promptly notify the revisor of statutes in writing of the changes announced and
15.13published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
15.14the changes in the next edition of Minnesota Statutes.
15.15(e) A person does not violate this chapter with respect to a transaction otherwise
15.16complying with this chapter if the person relies on dollar amounts either determined
15.17according to paragraph (b) or appearing in the last publication of the commissioner
15.18announcing the then current dollar amounts.
15.19 Sec. 11. Minnesota Statutes 2012, section 550.37, subdivision 6, is amended to read:
15.20 Subd. 6. Tools of trade. The tools, implements, machines, instruments, office
15.21furniture, stock in trade, and library reasonably necessary in the trade, business, or
15.22profession of the debtor, not exceeding$5,000 $11,500 in value.
15.23 Sec. 12. Minnesota Statutes 2012, section 550.37, subdivision 10, is amended to read:
15.24 Subd. 10. Insurance proceeds. All money received by, or payable to, a surviving
15.25spouse or child from insurance payable at the death of a spouse, or parent, not exceeding
15.26$20,000 $46,000. The $20,000 $46,000 exemption provided by this subdivision shall be
15.27increased by$5,000 $11,500 for each dependent of the surviving spouse or child.
15.28 Sec. 13. Minnesota Statutes 2012, section 550.37, subdivision 12a, is amended to read:
15.29 Subd. 12a. Motor vehicles. One motor vehicle to the extent of a value not
15.30exceeding$2,000 $4,600; or one motor vehicle to the extent of a value not exceeding
15.31$20,000 $46,000 that has been modified, at a cost of not less than $1,500 $3,450, to
15.32accommodate the physical disability making a disabled person eligible for a certificate
15.33authorized by section169.345 .
16.1 Sec. 14. Minnesota Statutes 2012, section 550.37, subdivision 23, is amended to read:
16.2 Subd. 23. Life insurance aggregate interest. The debtor's aggregate interest not to
16.3exceed in value$4,000 $9,200 in any accrued dividend or interest under or loan value of
16.4any unmatured life insurance contract owned by the debtor under which the insured is the
16.5debtor or an individual of whom the debtor is a dependent.
16.6 Sec. 15. Minnesota Statutes 2012, section 550.37, subdivision 24, is amended to read:
16.7 Subd. 24. Employee benefits. (a) The debtor's right to receive present or future
16.8payments, or payments received by the debtor, under a stock bonus, pension, profit
16.9sharing, annuity, individual retirement account, Roth IRA, individual retirement annuity,
16.10simplified employee pension, or similar plan or contract on account of illness, disability,
16.11death, age, or length of service, to the extent of the debtor's aggregate interest under all
16.12plans and contracts up to a present value of$30,000 $69,000 and additional amounts under
16.13all the plans and contracts to the extent reasonably necessary for the support of the debtor
16.14and any spouse or dependent of the debtor.
16.15(b) The exemptions in paragraph (a) do not apply when the debt is owed under a
16.16support order as defined in section518A.26, subdivision 21 .
16.17 Sec. 16. EFFECTIVE DATE.
16.18Sections 1 to 15 are effective the day following final enactment.
1.3related to staff adjusters, canceled licenses, and transfer fees; providing producer
1.4training requirements for flood insurance products; eliminating the membership
1.5camping license requirement; repealing an obsolete collection agency rule;
1.6correcting cross-references; making adjustments to various dollar amounts as
1.7required by state law; providing for a method to periodically update Minnesota
1.8Statutes to reflect the current dollar amounts as adjusted; amending Minnesota
1.9Statutes 2012, sections 47.59, subdivisions 3, 6; 56.12; 56.125, subdivision 2;
1.1056.131, subdivisions 2, 6; 72B.10; 82.62, subdivision 7; 82.63, subdivision
1.118; 82A.06, subdivision 2; 82A.13, subdivision 1; 82A.18, subdivision 2;
1.1282C.16, subdivision 1; 325G.22, subdivision 1; 510.02, subdivision 1; 550.37,
1.13subdivisions 4, 4a, 6, 10, 12a, 23, 24; proposing coding for new law in Minnesota
1.14Statutes, chapter 60K; repealing Minnesota Statutes 2012, sections 82A.16;
1.1582A.17; Minnesota Rules, part 2870.1500.
1.16BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.19 Section 1. [60K.366] PRODUCER TRAINING REQUIREMENTS FOR FLOOD
1.20INSURANCE PRODUCTS.
1.21An individual may not sell, solicit, or negotiate flood insurance through the National
1.22Flood Insurance Program (NFIP) unless the individual is licensed as an insurance producer
1.23for one or more lines of authority under section 60K.38, subdivision 1, paragraph (b),
1.24clauses (3), (4), and (6), and has in addition to the training otherwise required by this
1.25chapter, satisfied the minimum training and education requirements established by the
1.26Federal Emergency Management Agency (FEMA) for all insurance producers who sell
1.27insurance through the NFIP and published at 70 Federal Register 52, 117.
2.1Upon request of the commissioner, an issuer must demonstrate to the commissioner
2.2that its appointed producers who sell flood insurance through the NFIP have complied
2.3with the minimum training and education requirements established by FEMA.
2.4 Sec. 2. Minnesota Statutes 2012, section 72B.10, is amended to read:
2.572B.10 STAFF ADJUSTERS.
2.6A staff adjuster who adjusts losses or claims in this state shall not be subject to
2.7the application, licensing, or examination requirements or other qualifications set forth
2.8in sections
2.9of the practices forbidden to a licensee under section
2.10 clauses (3)
2.11which if true, would establish that a staff adjuster has engaged or is engaging in any such
2.12prohibited practices, the commissioner may issue an order for a hearing to determine the
2.13facts involved. The order shall fix the time and place for hearing. The staff adjuster
2.14and one or more representatives of the insurer or insurers employing the staff adjuster
2.15shall make an appearance at the hearing unless the commissioner expressly waives the
2.16appearance of one or more such parties. If, following the hearing, the commissioner
2.17determines that the staff adjuster has engaged or is engaging in any prohibited practices,
2.18the commissioner may impose a fine, not in excess of $500, on the staff adjuster or on the
2.19employing insurer or insurers, or on both such parties. In addition, the commissioner may
2.20order the employing insurer to suspend the staff adjuster from all duties for such period as
2.21the commissioner may deem appropriate.
2.22Any final order of the commissioner shall be subject to judicial review. Any hearing
2.23or judicial review under this section shall be in accordance with the contested case
2.24provisions of chapter 14.
2.25 Sec. 3. Minnesota Statutes 2012, section 82.62, subdivision 7, is amended to read:
2.26 Subd. 7.
2.27license. A salesperson's or broker's license that has been canceled for failure of a licensee
2.28to complete postlicensing education requirements
2.29
2.30 shall be reinstated without reexamination by completing the required instruction, filing
2.31an application, and paying the fee for a salesperson's or broker's license within two years
2.32of the cancellation date.
2.33 Sec. 4. Minnesota Statutes 2012, section 82.63, subdivision 8, is amended to read:
3.1 Subd. 8. Procedure. An application for automatic transfer shall be made only on
3.2the form prescribed by the commissioner. The transfer is ineffective if the form is not
3.3completed in its entirety.
3.4The form shall be accompanied by a
3.5fee, if applicable. Cash will not be accepted.
3.6The signature of the broker from whom the salesperson is transferring must predate
3.7the signature of the broker to whom the salesperson is transferring. The salesperson is
3.8unlicensed for the period of time between the times and dates of both signatures. The
3.9broker from whom the salesperson is transferring shall sign and date the transfer application
3.10upon the request of the salesperson and shall destroy the salesperson's license immediately.
3.11 Sec. 5. Minnesota Statutes 2012, section 82A.06, subdivision 2, is amended to read:
3.12 Subd. 2. Partial transactional exemptions. The following transactions are exempt
3.13from the provisions of sections
3.14subdivisions 2 and 4; and
3.15person who is not then physically present in this state, and any offer which invites an
3.16offeree to attend a sales presentation in another state if:
3.17(1) the offeror has given at least ten days prior written notice to the commissioner
3.18of its intention to offer or sell membership camping contracts to residents of this state
3.19pursuant to this exemption and paid a fee of $50;
3.20(2) the offeror has demonstrated that the sales presentation will be made, and the
3.21sale will be consummated, in a state which specifically regulates the offer and sale of
3.22membership camping contracts;
3.23(3) the offeror has demonstrated that it will deliver a disclosure statement to offerees
3.24who are residents of this state which contains substantially the same or greater disclosure
3.25as is required by section
3.26(4) the offeror has filed a consent to service of process pursuant to section
3.27 Sec. 6. Minnesota Statutes 2012, section 82A.13, subdivision 1, is amended to read:
3.28 Subdivision 1. Untrue statements filed in documents. No person shall make
3.29or cause to be made any untrue statement of a material fact in an application or other
3.30document filed with the commissioner under this chapter, or omit to state in the application
3.31or other document any material fact which is required to be stated therein, or fail to
3.32notify the commissioner of any material change as required by
3.33
4.1 Sec. 7. Minnesota Statutes 2012, section 82A.18, subdivision 2, is amended to read:
4.2 Subd. 2. Civil penalty. Any person who materially or repeatedly violates section
4.4more than $1,000 for each violation provided, however, that the total recovery arising from
4.5the same failure to comply, but involving different purchasers, shall be limited to $5,000. A
4.6fine authorized by this subdivision may be imposed in a civil action brought by the attorney
4.7general on behalf of the state of Minnesota, and shall be deposited into the state treasury.
4.8 Sec. 8. Minnesota Statutes 2012, section 82C.16, subdivision 1, is amended to read:
4.9 Subdivision 1. Powers of commissioner. (a) The commissioner may by order
4.10take any or all of the following actions:
4.11(1) bar a person from serving as an officer, director, partner, controlling person, or
4.12any similar role at an appraisal management company, if such person has ever been the
4.13subject of a final order suspending, revoking, or denying a certification, registration, or
4.14license as a real estate agent, broker, or appraiser, or a final order barring involvement in
4.15any industry or profession issued by this or another state or federal regulatory agency;
4.16(2) deny, suspend, or revoke an appraisal management company license;
4.17(3) censure an appraisal management company license; and
4.18(4) impose a civil penalty as provided for in chapter
4.19(b) In order to take the action in paragraph (a), the commissioner must find:
4.20(1) that the order is in the public interest; and
4.21(2) that an officer, director, partner, employee, agent, controlling person or persons,
4.22or any person occupying a similar status or performing similar functions, has:
4.23(i) violated any provision of this chapter;
4.24(ii) filed an application for a license that is incomplete in any material respect or
4.25contains a statement that, in light of the circumstances under which it is made, is false or
4.26misleading with respect to a material fact;
4.27(iii) failed to maintain compliance with the affirmations made under section
4.28
4.29(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive,
4.30or dishonest act or practice, whether or not the act or practice involves the appraisal
4.31management company;
4.32(v) engaged in an act or practice, whether or not the act or practice involves the
4.33business of appraisal management, appraisal assignments, or real estate mortgage related
4.34practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;
5.1(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere,
5.2or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral
5.3turpitude;
5.4(vii) paid a civil penalty or been the subject of disciplinary action by the
5.5commissioner, or an order of suspension or revocation, cease and desist order, or
5.6injunction order, or an order barring involvement in an industry or profession issued by
5.7this or any other state or federal regulatory agency or government-sponsored enterprise,
5.8or by the secretary of Housing and Urban Development;
5.9(viii) been found by a court of competent jurisdiction to have engaged in conduct
5.10evidencing gross negligence, fraud, misrepresentation, or deceit;
5.11(ix) refused to cooperate with an investigation or examination by the commissioner;
5.12(x) failed to pay any fee or assessment imposed by the commissioner; or
5.13(xi) failed to comply with state and federal tax obligations.
5.14 Sec. 9. REPEALER.
5.15 Subdivision 1. Membership camping licensing requirement for salespersons or
5.16brokers. Minnesota Statutes 2012, sections 82A.16; and 82A.17, are repealed.
5.17 Subd. 2. Collection agency license renewal; obsolete rule. Minnesota Rules, part
5.182870.1500, is repealed.
5.21 Section 1. Minnesota Statutes 2012, section 47.59, subdivision 3, is amended to read:
5.22 Subd. 3. Finance charge for loans. (a) With respect to a loan, including a loan
5.23pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a
5.24financial institution may contract for and receive a finance charge on the unpaid balance of
5.25the principal amount not to exceed the greater of:
5.26(1) an annual percentage rate not exceeding 21.75 percent; or
5.27(2) the total of:
5.28(i) 33 percent per year on that part of the unpaid balance of the principal amount
5.29not exceeding
5.30(ii) 19 percent per year on that part of the unpaid balance of the principal amount
5.31exceeding
5.32With respect to open-end credit pursuant to a credit card, the financial institution
5.33may contract for and receive a finance charge on the unpaid balance of the principal
5.34amount at an annual percentage rate not exceeding 18 percent per year.
6.1(b) On a loan where the finance charge is calculated according to the method
6.2provided for in paragraph (a), clause (2), the finance charge must be contracted for and
6.3earned as provided in that provision or at the single annual percentage rate computed to
6.4the nearest one-tenth of one percent that would earn the same total finance charge at
6.5maturity of the contract as would be earned by the application of the graduated rates
6.6provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms
6.7and the calculations are made according to the actuarial method.
6.8(c) With respect to a loan, the finance charge must be considered not to exceed
6.9the maximum annual percentage rate permitted under this section if the finance charge
6.10contracted for and received does not exceed the equivalent of the maximum annual
6.11percentage rate calculated in accordance with Code of Federal Regulations, title 12, part
6.12226, but using the definition of finance charge provided in this section.
6.13(d) This subdivision does not limit or restrict the manner of calculating the finance
6.14charge, whether by way of add-on, discount, discount points, precomputed charges, single
6.15annual percentage rate, variable rate, interest in advance, compounding, average daily
6.16balance method, or otherwise, if the annual percentage rate does not exceed that permitted
6.17by this section. Discount points permitted by this paragraph and not collected but included
6.18in the principal amount must not be included in the amount on which credit insurance
6.19premiums are calculated and charged.
6.20(e) With respect to a loan secured by real estate, if a finance charge is calculated or
6.21collected in advance, or included in the principal amount of the loan, and the borrower
6.22prepays the loan in full, the financial institution shall credit the borrower with a refund of
6.23the charge to the extent that the annual percentage rate yield on the loan would exceed the
6.24maximum rate permitted under paragraph (a), taking into account the prepayment. The
6.25refund need not be made if it would be less than
6.26(f) With respect to all other loans, if the finance charge is calculated or collected in
6.27advance, or included in the principal amount of the loan, and the borrower prepays the
6.28loan in full, the financial institution shall credit the borrower with a refund of the charge to
6.29the extent the annual percentage rate yield on the loan would exceed the annual percentage
6.30rate on the loan as originally determined under paragraph (a) and taking into account the
6.31prepayment. The refund need not be made if it would be less than
6.32(g) For the purpose of calculating the refund under this subdivision, the financial
6.33institution may assume that the contract was paid before the date of prepayment according
6.34to the schedule of payments under the loan and that all payments were paid on their due
6.35dates.
7.1(h) For loans repayable in substantially equal successive monthly installments, the
7.2financial institution may calculate the refund under paragraph (f) as the portion of the
7.3finance charge allocable on an actuarial basis to all wholly unexpired payment periods
7.4following the date of prepayment, based on the annual percentage rate on the loan as
7.5originally determined under paragraph (a), and for the purpose of calculating the refund
7.6may assume that all payments are made on the due date.
7.7(i) The dollar amounts in this subdivision
7.8(4), and the dollar amount of original principal amount of closed-end credit in subdivision
7.96, paragraph (d), shall change periodically, as provided in this section, according to and to
7.10the extent of changes in the implicit price deflator for the gross domestic product,
7.11 2005 = 100, compiled by the United States Department of Commerce, and hereafter
7.12referred to as the index. The index for December
7.13adjustments of dollar amounts.
7.14(j) The designated dollar amounts shall change on July 1 of each even-numbered
7.15year if the percentage of change, calculated to the nearest whole percentage point,
7.16between the index for December of the preceding year and the reference base index is
7.17ten percent or more; but
7.18(1) the portion of the percentage change in the index in excess of a multiple of ten
7.19percent shall be disregarded and the dollar amounts shall change only in multiples of ten
7.20percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and
7.21(2) the dollar amounts shall not change if the amounts required by this section
7.22are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier
7.23application of this section.
7.24(k) If the index is revised, the percentage of change pursuant to this section shall
7.25be calculated on the basis of the revised index. If a revision of the index changes the
7.26reference base index, a revised reference base index shall be determined by multiplying the
7.27reference base index then applicable by the rebasing factor furnished by the Department
7.28of Commerce. If the index is superseded, the index referred to in this section is the one
7.29represented by the Department of Commerce as reflecting most accurately changes in the
7.30purchasing power of the dollar for consumers.
7.31(l) The commissioner shall
7.32(1) announce and publish on or before April 30 of each year in which dollar amounts
7.33are to change, the changes in dollar amounts required by paragraph (j);
7.34(2) announce and publish promptly after the changes occur, changes in the index
7.35required by paragraph (k) including, if applicable, the numerical equivalent of the
8.1reference base index under a revised reference base index and the designation or title
8.2of any index superseding the index
8.3(3) promptly notify the revisor of statutes in writing of the changes announced and
8.4published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
8.5the changes in the next edition of Minnesota Statutes.
8.6(m) A person does not violate this chapter with respect to a transaction otherwise
8.7complying with this chapter if that person relies on dollar amounts either determined
8.8according to paragraph (j), clause (2), or appearing in the last publication of the
8.9commissioner announcing the then current dollar amounts.
8.10(n) The adjustments provided in this section shall not be affected unless explicitly
8.11provided otherwise by law.
8.12 Sec. 2. Minnesota Statutes 2012, section 47.59, subdivision 6, is amended to read:
8.13 Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial
8.14institution" includes a person described in subdivision 4, paragraph (a). In addition to the
8.15finance charges permitted by this section, a financial institution may contract for and
8.16receive the following additional charges that may be included in the principal amount
8.17of the loan or credit sale unpaid balances:
8.18(1) official fees and taxes;
8.19(2) charges for insurance as described in paragraph (b);
8.20(3) with respect to a loan or credit sale contract secured by real estate, the following
8.21"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
8.22circumvention or evasion of this section:
8.23(i) fees or premiums for title examination, abstract of title, title insurance, surveys,
8.24or similar purposes;
8.25(ii) fees for preparation of a deed, mortgage, settlement statement, or other
8.26documents, if not paid to the financial institution;
8.27(iii) escrows for future payments of taxes, including assessments for improvements,
8.28insurance, and water, sewer, and land rents;
8.29(iv) fees for notarizing deeds and other documents;
8.30(v) appraisal and credit report fees; and
8.31(vi) fees for determining whether any portion of the property is located in a flood
8.32zone and fees for ongoing monitoring of the property to determine changes, if any,
8.33in flood zone status;
8.34(4) a delinquency charge on a payment, including the minimum payment due in
8.35connection with open-end credit, not paid in full on or before the tenth day after its due
9.1date in an amount not to exceed five percent of the amount of the payment or
9.2whichever is greater;
9.3(5) for a returned check or returned automatic payment withdrawal request, an
9.4amount not in excess of the service charge limitation in section
9.5a loan transaction that is a consumer small loan as defined in section
9.61
9.7penalty provisions of section
9.8or assessed against the borrower; and
9.9(6) charges for other benefits, including insurance, conferred on the borrower that
9.10are of a type that is not for credit.
9.11(b) An additional charge may be made for insurance written in connection with the
9.12loan or credit sale contract, which may be included in the principal amount of the loan or
9.13credit sale unpaid balances:
9.14(1) with respect to insurance against loss of or damage to property, or against
9.15liability arising out of the ownership or use of property, if the financial institution furnishes
9.16a clear, conspicuous, and specific statement in writing to the borrower setting forth the
9.17cost of the insurance if obtained from or through the financial institution and stating that
9.18the borrower may choose the person through whom the insurance is to be obtained;
9.19(2) with respect to credit insurance or mortgage insurance providing life, accident,
9.20health, or unemployment coverage, if the insurance coverage is not required by the
9.21financial institution, and this fact is clearly and conspicuously disclosed in writing to
9.22the borrower, and the borrower gives specific, dated, and separately signed affirmative
9.23written indication of the borrower's desire to do so after written disclosure to the borrower
9.24of the cost of the insurance; and
9.25(3) with respect to the vendor's single interest insurance, but only (i) to the extent
9.26that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
9.27the insurance does not duplicate the coverage of other insurance under which loss is
9.28payable to the financial institution as its interest may appear, against loss of or damage
9.29to property for which a separate charge is made to the borrower according to clause (1);
9.30and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
9.31financial institution to the borrower setting forth the cost of the insurance if obtained from
9.32or through the financial institution and stating that the borrower may choose the person
9.33through whom the insurance is to be obtained.
9.34(c) In addition to the finance charges and other additional charges permitted by
9.35this section, a financial institution may contract for and receive the following additional
10.1charges in connection with open-end credit, which may be included in the principal
10.2amount of the loan or balance upon which the finance charge is computed:
10.3(1) annual charges, not to exceed $50 per annum, payable in advance, for the
10.4privilege of opening and maintaining open-end credit;
10.5(2) charges for the use of an automated teller machine;
10.6(3) charges for any monthly or other periodic payment period in which the borrower
10.7has exceeded or, except for the financial institution's dishonor would have exceeded,
10.8the maximum approved credit limit, in an amount not in excess of the service charge
10.9permitted in section
10.10(4) charges for obtaining a cash advance in an amount not to exceed the service
10.11charge permitted in section
10.12(5) charges for check and draft copies and for the replacement of lost or stolen
10.13credit cards.
10.14(d) In addition to the finance charges and other additional charges permitted by this
10.15section, a financial institution may contract for and receive a onetime loan administrative
10.16fee not exceeding $25 in connection with closed-end credit, which may be included
10.17in the principal balance upon which the finance charge is computed. This paragraph
10.18applies only to closed-end credit in an original principal amount of
10.19The determination of an original principal amount must exclude the administrative fee
10.20contracted for and received according to this paragraph.
10.21 Sec. 3. Minnesota Statutes 2012, section 56.12, is amended to read:
10.2256.12 ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.
10.23No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause
10.24or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any
10.25manner any statement or representation with regard to the rates, terms, or conditions for
10.26the lending of money, credit, goods, or things in action which is false, misleading, or
10.27deceptive. The commissioner may order any licensee to desist from any conduct which
10.28the commissioner shall find to be a violation of the foregoing provisions.
10.29The commissioner may require that rates of charge, if stated by a licensee, be stated
10.30fully and clearly in such manner as the commissioner may deem necessary to prevent
10.31misunderstanding thereof by prospective borrowers. In lieu of the disclosure requirements
10.32of this section and section
10.33federal Truth-in-Lending Act.
10.34A licensee may take a lien upon real estate as security for any loan exceeding
10.35 $6,480 in principal amount made under this chapter. The provisions of sections
11.2loan secured by a first lien on a borrower's primary residence shall be made pursuant to
11.3this section if the proceeds of the loan are used to finance the purchase of the borrower's
11.4primary residence, unless:
11.5(1) the proceeds of the loan are used to finance the purchase of a manufactured
11.6home or a prefabricated building; or
11.7(2) the proceeds of the loan are used in whole or in part to satisfy the balance owed
11.8on a contract for deed.
11.9If the proceeds of the loan are used to finance the purchase of the borrower's
11.10primary residence, the licensee shall consent to the subsequent transfer of the real estate
11.11if the existing borrower continues after transfer to be obligated for repayment of the
11.12entire remaining indebtedness. The licensee shall release the existing borrower from all
11.13obligations under the loan instruments, if the transferee (1) meets the standards of credit
11.14worthiness normally used by persons in the business of making loans, including but not
11.15limited to the ability of the transferee to make the loan payments and satisfactorily maintain
11.16the property used as collateral, and (2) executes an agreement in writing with the licensee
11.17whereby the transferee assumes the obligations of the existing borrower under the loan
11.18instruments. Any such agreement shall not affect the priority, validity or enforceability
11.19of any loan instrument. A licensee may charge a fee not in excess of one-tenth of one
11.20percent of the remaining unpaid principal balance in the event the loan is assumed by
11.21the transferee and the existing borrower continues after the transfer to be obligated for
11.22repayment of the entire assumed indebtedness. A licensee may charge a fee not in excess
11.23of one percent of the remaining unpaid principal balance in the event the remaining
11.24indebtedness is assumed by the transferee and the existing borrower is released from all
11.25obligations under the loan instruments, but in no event shall the fee exceed
11.26A licensee making a loan under this chapter secured by a lien on real estate shall
11.27comply with the requirements of section
11.28No licensee shall conduct the business of making loans under this chapter within any
11.29office, room, or place of business in which any other business is solicited or engaged in,
11.30or in association or conjunction therewith, if the commissioner finds that the character
11.31of the other business is such that it would facilitate evasions of this chapter or of the
11.32rules lawfully made hereunder. The commissioner may promulgate rules dealing with
11.33such other businesses.
11.34No licensee shall transact the business or make any loan provided for by this chapter
11.35under any other name or at any other place of business than that named in the license. No
11.36licensee shall take any confession of judgment or any power of attorney. No licensee shall
12.1take any note or promise to pay that does not accurately disclose the principal amount
12.2of the loan, the time for which it is made, and the agreed rate or amount of charge, nor
12.3any instrument in which blanks are left to be filled in after execution. Nothing herein is
12.4deemed to prohibit the making of loans by mail or arranging for settlement and closing
12.5of real estate secured loans by an unrelated qualified closing agent at a location other
12.6than the licensed location.
12.7 Sec. 4. Minnesota Statutes 2012, section 56.125, subdivision 2, is amended to read:
12.8 Subd. 2. Real estate as security. A licensee may take a lien upon real estate as
12.9security for any open-end loan at or after such time as the outstanding balance first exceeds
12.10
12.11on the lien. A licensee may retain the security interest until it terminates the open-end
12.12account. If there is no outstanding balance in the account and there is no commitment by
12.13the licensee to a line of credit in excess of
12.14days following written demand by the borrower, deliver to the borrower a release of the
12.15mortgage on any real property taken as security for the open-end loan agreement. A real
12.16estate mortgage authorized for a financial institution secures all advances and obligations
12.17thereunder from the date of recording.
12.18 Sec. 5. Minnesota Statutes 2012, section 56.131, subdivision 2, is amended to read:
12.19 Subd. 2. Additional charges. In addition to the charges provided for by this section
12.20and section
12.21further or other amount whatsoever, shall be directly or indirectly charged, contracted for,
12.22or received for the loan made, except actual out of pocket expenses of the licensee to
12.23realize on a security after default, and except for the following additional charges which
12.24may be included in the principal amount of the loan:
12.25(a) lawful fees and taxes paid to any public officer to record, file, or release security;
12.26(b) with respect to a loan secured by an interest in real estate, the following closing
12.27costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention
12.28or evasion of this section; provided the costs do not exceed one percent of the principal
12.29amount or
12.30(1) fees or premiums for title examination, abstract of title, title insurance, surveys,
12.31or similar purposes;
12.32(2) fees, if not paid to the licensee, an employee of the licensee, or a person related
12.33to the licensee, for preparation of a mortgage, settlement statement, or other documents,
12.34fees for notarizing mortgages and other documents, and appraisal fees;
13.1(c) the premium for insurance in lieu of perfecting and releasing a security interest to
13.2the extent that the premium does not exceed the fees described in paragraph (a);
13.3(d) discount points and appraisal fees may not be included in the principal amount of
13.4a loan secured by an interest in real estate when the loan is a refinancing for the purpose of
13.5bringing the refinanced loan current and is made within 24 months of the original date of
13.6the refinanced loan. For purposes of this paragraph, a refinancing is not considered to be for
13.7the purpose of bringing the refinanced loan current if new funds advanced to the customer,
13.8not including closing costs or delinquent installments, exceed
13.9(e) the onetime loan administrative fee in section
13.10 Sec. 6. Minnesota Statutes 2012, section 56.131, subdivision 6, is amended to read:
13.11 Subd. 6. Discount points. A loan made under this section that is secured by real
13.12estate and that is in a principal amount of
13.13of 60 months or more may contain a provision permitting discount points, if the loan
13.14does not provide a loan yield in excess of the maximum rate of interest permitted by this
13.15section. Loan yield means the annual rate of return obtained by a licensee computed as
13.16the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid
13.17in full, the licensee must make a refund to the borrower to the extent that the loan yield
13.18will exceed the maximum rate of interest provided by this section when the prepayment is
13.19taken into account. Discount points permitted by this subdivision and not collected but
13.20included in the principal amount must not be included in the amount on which credit
13.21insurance premiums are calculated and charged.
13.22 Sec. 7. Minnesota Statutes 2012, section 325G.22, subdivision 1, is amended to read:
13.23 Subdivision 1. Personal liability of buyer limited. If the seller or lender
13.24repossesses or voluntarily accepts surrender of personal property in which the seller or
13.25lender has a security interest arising out of a consumer credit transaction and the aggregate
13.26amount of the credit extended in the transaction was
13.27personally liable to the seller or lender for the unpaid balance of the debt arising from the
13.28consumer credit transaction, and the seller or lender is not obligated to resell the collateral.
13.29 Sec. 8. Minnesota Statutes 2012, section 510.02, subdivision 1, is amended to read:
13.30 Subdivision 1. Exemption. The homestead may include any quantity of land not
13.31exceeding 160 acres. The exemption per homestead, whether the exemption is claimed
13.32by one or more debtors, may not exceed
14.1primarily for agricultural purposes,
14.2forth in section
14.3 Sec. 9. Minnesota Statutes 2012, section 550.37, subdivision 4, is amended to read:
14.4 Subd. 4. Personal goods. (a) All wearing apparel, one watch, utensils, and
14.5foodstuffs of the debtor and the debtor's family.
14.6(b) Household furniture, household appliances, phonographs, radio and television
14.7receivers of the debtor and the debtor's family, not exceeding
14.8(c) The debtor's aggregate interest, not exceeding
14.9wedding rings or other religious or culturally recognized symbols of marriage exchanged
14.10between the debtor and spouse at the time of the marriage and in the debtor's possession.
14.11The exemption provided by this subdivision may not be waived except with regard
14.12to purchase money security interests. Except for a pawnbroker's possessory lien, a
14.13nonpurchase money security interest in the property exempt under this subdivision is void.
14.14If a debtor has property of the type which would qualify for the exemption under
14.15clause (b), of a value in excess of
14.16together with the value of each item listed, shall be attached to the security agreement
14.17at the time a security interest is taken, and a creditor may take a nonpurchase money
14.18security interest in the excess over
14.19exemption in writing at the time the loan is made.
14.20 Sec. 10. Minnesota Statutes 2012, section 550.37, subdivision 4a, is amended to read:
14.21 Subd. 4a. Adjustment of dollar amounts. (a) Except for subdivisions 5 and 7, the
14.22dollar amounts in this section shall change periodically as provided in this subdivision to
14.23the extent of changes in the implicit price deflator for the gross
14.24
14.25referred to as the index. The index for December
14.26(b) The designated dollar amounts shall change on July 1 of each even-numbered
14.27year if the percentage of change, calculated to the nearest whole percentage point, between
14.28the index for December of the preceding year and the reference base index is ten percent
14.29or more. The portion of the percentage change in the index in excess of a multiple of ten
14.30percent shall be disregarded and the dollar amounts shall change only in multiples of ten
14.31percent of the amounts stated in this section.
14.32(c) If the index is revised, the percentage of change pursuant to this section shall
14.33be calculated on the basis of the revised index. If a revision of the index changes the
14.34reference base index, a revised reference base index shall be determined by multiplying the
15.1reference base index then applicable by the rebasing factor furnished by the Department
15.2of Commerce. If the index is superseded, the index referred to in this section is the one
15.3represented by the Department of Commerce as reflecting most accurately changes in the
15.4purchasing power of the dollar for consumers.
15.5(d) The commissioner of commerce shall
15.6(1) announce and publish on or before April 30 of each year in which dollar amounts
15.7are to change, the changes in dollar amounts required by paragraph (b);
15.8(2) announce and publish promptly after the changes occur, changes in the index
15.9required by paragraph (c) including, if applicable, the numerical equivalent of the
15.10reference base index under a revised reference base index and the designation or title
15.11of any index superseding the index
15.12(3) promptly notify the revisor of statutes in writing of the changes announced and
15.13published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
15.14the changes in the next edition of Minnesota Statutes.
15.15(e) A person does not violate this chapter with respect to a transaction otherwise
15.16complying with this chapter if the person relies on dollar amounts either determined
15.17according to paragraph (b) or appearing in the last publication of the commissioner
15.18announcing the then current dollar amounts.
15.19 Sec. 11. Minnesota Statutes 2012, section 550.37, subdivision 6, is amended to read:
15.20 Subd. 6. Tools of trade. The tools, implements, machines, instruments, office
15.21furniture, stock in trade, and library reasonably necessary in the trade, business, or
15.22profession of the debtor, not exceeding
15.23 Sec. 12. Minnesota Statutes 2012, section 550.37, subdivision 10, is amended to read:
15.24 Subd. 10. Insurance proceeds. All money received by, or payable to, a surviving
15.25spouse or child from insurance payable at the death of a spouse, or parent, not exceeding
15.26
15.27increased by
15.28 Sec. 13. Minnesota Statutes 2012, section 550.37, subdivision 12a, is amended to read:
15.29 Subd. 12a. Motor vehicles. One motor vehicle to the extent of a value not
15.30exceeding
15.31
15.32accommodate the physical disability making a disabled person eligible for a certificate
15.33authorized by section
16.1 Sec. 14. Minnesota Statutes 2012, section 550.37, subdivision 23, is amended to read:
16.2 Subd. 23. Life insurance aggregate interest. The debtor's aggregate interest not to
16.3exceed in value
16.4any unmatured life insurance contract owned by the debtor under which the insured is the
16.5debtor or an individual of whom the debtor is a dependent.
16.6 Sec. 15. Minnesota Statutes 2012, section 550.37, subdivision 24, is amended to read:
16.7 Subd. 24. Employee benefits. (a) The debtor's right to receive present or future
16.8payments, or payments received by the debtor, under a stock bonus, pension, profit
16.9sharing, annuity, individual retirement account, Roth IRA, individual retirement annuity,
16.10simplified employee pension, or similar plan or contract on account of illness, disability,
16.11death, age, or length of service, to the extent of the debtor's aggregate interest under all
16.12plans and contracts up to a present value of
16.13all the plans and contracts to the extent reasonably necessary for the support of the debtor
16.14and any spouse or dependent of the debtor.
16.15(b) The exemptions in paragraph (a) do not apply when the debt is owed under a
16.16support order as defined in section
16.17 Sec. 16. EFFECTIVE DATE.
16.18Sections 1 to 15 are effective the day following final enactment.
