1.1                          A bill for an act 
  1.2             relating to financial institutions; regulating fees, 
  1.3             charges, and time periods; authorizing certain 
  1.4             part-time banking locations; authorizing reverse stock 
  1.5             splits; making corrections and conforming changes; 
  1.6             amending Minnesota Statutes 1998, sections 46.041, 
  1.7             subdivisions 1 and 3; 46.048, subdivisions 1 and 2b; 
  1.8             46.131, subdivision 10; 47.0156; 47.101, subdivision 
  1.9             3; 47.20, subdivision 6b; 47.203; 47.204, subdivision 
  1.10            1; 47.27, subdivision 3; 47.52; 47.54, subdivisions 2 
  1.11            and 3; 47.59, subdivision 12; 47.60, subdivision 3; 
  1.12            48.15, subdivisions 2a and 3; 48A.15, subdivision 1; 
  1.13            49.36, subdivision 1; 52.01; 53.03, subdivisions 1, 6, 
  1.14            and 7; 55.04, subdivision 2; 56.02; 56.131, 
  1.15            subdivision 1; 59A.03, subdivision 2; 168.67; 168.71; 
  1.16            303.25, subdivision 5; 332.15, subdivisions 2 and 3; 
  1.17            332.17; and 332.30; proposing coding for new law in 
  1.18            Minnesota Statutes, chapters 48; 52; and 334. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1998, section 46.041, 
  1.21  subdivision 1, is amended to read: 
  1.22     Subdivision 1.  [FILING; FEE; PUBLIC INSPECTION.] The 
  1.23  incorporators of a bank proposed to be organized under the laws 
  1.24  of this state shall execute and acknowledge a written 
  1.25  application in the form prescribed by the commissioner of 
  1.26  commerce.  The application must be signed by two or more of the 
  1.27  incorporators and request a certificate authorizing the proposed 
  1.28  bank to transact business at the place and in the name stated in 
  1.29  the application.  The applicant shall file the application with 
  1.30  the department with a $1,000 an $8,000 filing fee and a $500 
  1.31  investigation fee.  The commissioner may waive the fee for a 
  1.32  bank to be located in a low- or moderate-income area as defined 
  2.1   in Code of Federal Regulations, title 12, part 25(1), (n)(1) and 
  2.2   (n)(2) and where no other depository institution operates an 
  2.3   office.  If the proposed bank is being organized in connection 
  2.4   with a reorganization or merger of an existing bank, the filing 
  2.5   fee is $2,000.  The fees must be turned over by the commissioner 
  2.6   to the state treasurer and credited to the general fund.  The 
  2.7   application file must be public, with the exception of financial 
  2.8   data on individuals which is private under the Minnesota 
  2.9   Government Data Practices Act and data defined as trade secret 
  2.10  information under section 13.37, subdivision 1, paragraph (b), 
  2.11  which must be given nonpublic classification upon written 
  2.12  request by the applicant. 
  2.13     Sec. 2.  Minnesota Statutes 1998, section 46.041, 
  2.14  subdivision 3, is amended to read: 
  2.15     Subd. 3.  [COMMENTS, REQUESTS FOR HEARING.] Within 21 15 
  2.16  days after the notice of application has been published, any 
  2.17  person may submit to the commissioner either or both written 
  2.18  comments on an application and a written request for a hearing 
  2.19  on the application.  The request must state the nature of the 
  2.20  issues or facts to be presented and the reasons why written 
  2.21  submissions would be insufficient to make an adequate 
  2.22  presentation to the commissioner.  Comments challenging the 
  2.23  legality of an application should be submitted separately in 
  2.24  writing.  
  2.25     Written requests for hearing must be evaluated by the 
  2.26  commissioner who may grant or deny the request.  A hearing must 
  2.27  generally be granted only if it is determined that written 
  2.28  submissions would be inadequate or that a hearing would 
  2.29  otherwise be beneficial to the decision-making process.  A 
  2.30  hearing may be limited to issues considered material by the 
  2.31  commissioner.  
  2.32     If a request for a hearing has been denied, the 
  2.33  commissioner shall notify the applicant and all interested 
  2.34  persons stating the reasons for denial.  Interested parties may 
  2.35  submit to the commissioner with simultaneous copies to the 
  2.36  applicant additional written comments on the application within 
  3.1   14 days after the date of the notice of denial.  The applicant 
  3.2   shall be provided an additional seven days after the 14-day 
  3.3   deadline has expired within which to respond to any comments 
  3.4   submitted within the 14-day period.  A copy of any response 
  3.5   submitted by the applicant shall also be mailed simultaneously 
  3.6   by the applicant to the interested parties.  The commissioner 
  3.7   may waive the additional seven-day comment period if so 
  3.8   requested by the applicant. 
  3.9      Sec. 3.  Minnesota Statutes 1998, section 46.048, 
  3.10  subdivision 1, is amended to read: 
  3.11     Subdivision 1.  [REQUIREMENT.] Whenever a change in the 
  3.12  outstanding voting stock of a banking institution will result in 
  3.13  control or in a change in the control of the banking 
  3.14  institution, the person acquiring control of the banking 
  3.15  institution, including an out-of-state bank holding company, 
  3.16  shall file notice of the proposed acquisition of control with 
  3.17  the commissioner of commerce at least 60 days before the actual 
  3.18  effective date of the change, except that the commissioner may 
  3.19  extend the 60-day period an additional 30 days if in the 
  3.20  commissioner's judgment any material information submitted is 
  3.21  substantially inaccurate or the acquiring party has not 
  3.22  furnished all the information required.  The notice must be 
  3.23  accompanied by a filing fee of $3,000 payable to the 
  3.24  commissioner of commerce, unless the person filing the notice 
  3.25  has been associated with the banking institution as an officer 
  3.26  or director for at least three years, in which case the filing 
  3.27  fee is $1,000.  No filing fee is required of a person required 
  3.28  to file a notice because of a stock redemption or other 
  3.29  transaction by others that caused the change in control.  As 
  3.30  used in this section, the term "control" means the power to 
  3.31  directly or indirectly direct or cause the direction of the 
  3.32  management or policies of the banking institution.  A change in 
  3.33  ownership of capital stock that would result in direct or 
  3.34  indirect ownership by a stockholder or an affiliated group of 
  3.35  stockholders of less than 25 percent of the outstanding capital 
  3.36  stock is not considered a change of control.  If there is any 
  4.1   doubt as to whether a change in the outstanding voting stock is 
  4.2   sufficient to result in control or to effect a change in the 
  4.3   control, the doubt shall be resolved in favor of reporting the 
  4.4   facts to the commissioner.  The commissioner shall use the 
  4.5   criteria established by the Financial Institution Regulatory and 
  4.6   Interest Rate Control Act of 1978, United States Code, title 12, 
  4.7   section 1817(j), and the regulations adopted under it, when 
  4.8   reviewing the acquisition and determining if the acquisition 
  4.9   should or should not be disapproved.  Within three days after 
  4.10  making the decision to disapprove a proposed acquisition, the 
  4.11  commissioner shall notify the acquiring party in writing of the 
  4.12  disapproval.  The notice must provide a statement of the basis 
  4.13  for the disapproval. 
  4.14     Sec. 4.  Minnesota Statutes 1998, section 46.048, 
  4.15  subdivision 2b, is amended to read: 
  4.16     Subd. 2b.  [NOTICE.] Upon the filing of a notice: 
  4.17     (1) an acquiring party shall publish once in a newspaper of 
  4.18  general circulation notice of the proposed acquisition in a form 
  4.19  acceptable to the commissioner; and 
  4.20     (2) the commissioner shall accept public comment on a 
  4.21  notice for a period of not less than 30 21 days from the date of 
  4.22  the publication required by clause (1). 
  4.23     Sec. 5.  Minnesota Statutes 1998, section 46.131, 
  4.24  subdivision 10, is amended to read: 
  4.25     Subd. 10.  Each financial institution described in 
  4.26  subdivision 2 shall pay a fee of $25 $50 to the commissioner of 
  4.27  commerce upon application to the commissioner for approval of a 
  4.28  change in its certificate, charter, articles of incorporation, 
  4.29  bylaws, powers or license.  Money collected by the commissioner 
  4.30  under this subdivision shall be deposited in the general fund. 
  4.31     Sec. 6.  Minnesota Statutes 1998, section 47.0156, is 
  4.32  amended to read: 
  4.33     47.0156 [CLOSING EFFECTING A PERMANENT CESSATION OF 
  4.34  BUSINESS.] 
  4.35     The permanent closing of a financial institution as defined 
  4.36  in section 47.015 or 47.0151 for purposes, or with a result, 
  5.1   other than authorized in sections 47.015 to 47.0155 is unlawful 
  5.2   unless at least 90 60 days' written notice is given to the 
  5.3   commissioner. 
  5.4      Sec. 7.  Minnesota Statutes 1998, section 47.101, 
  5.5   subdivision 3, is amended to read: 
  5.6      Subd. 3.  [APPLICATIONS TO DEPARTMENT OF COMMERCE.] An 
  5.7   application by a banking institution to relocate its main office 
  5.8   other than those provided for in subdivision 2 shall 
  5.9   be accompanied by a filing fee of $3,000 payable to the 
  5.10  commissioner of commerce and approved or disapproved by the 
  5.11  commissioner of commerce as provided for in sections 46.041 and 
  5.12  46.044. 
  5.13     Sec. 8.  Minnesota Statutes 1998, section 47.20, 
  5.14  subdivision 6b, is amended to read: 
  5.15     Subd. 6b.  [DELINQUENCY OR LATE PAYMENT FEES.] Charges or 
  5.16  fees for late payments on conventional loans shall be governed 
  5.17  by chapter 51A for all lenders.  A lender making a conventional 
  5.18  loan may assess and collect fees for late payments according to 
  5.19  the provision of section 47.59. 
  5.20     Sec. 9.  Minnesota Statutes 1998, section 47.203, is 
  5.21  amended to read: 
  5.22     47.203 [FEDERAL PREEMPTION OVERRIDE.] 
  5.23     The provisions of Public Law Number 96-221, title V, part 
  5.24  A, section 501(a)(1) (United States Code, title 12, section 
  5.25  1735f-7a), do not apply with respect to a loan, mortgage, credit 
  5.26  sale or advance made in this state after June 2, 1981, nor with 
  5.27  respect to a loan, mortgage, credit sale or advance secured by 
  5.28  real property located in this state and made after June 2, 1981. 
  5.29     Sec. 10.  Minnesota Statutes 1998, section 47.204, 
  5.30  subdivision 1, is amended to read: 
  5.31     Subdivision 1.  [NO USURY LIMITS.] Notwithstanding any law 
  5.32  to the contrary, no limitation on the rate or amount of 
  5.33  interest, discount points, finance charges, or other charges 
  5.34  shall apply to a loan, mortgage, credit sale, or advance which 
  5.35  would have been exempt from the laws of this state pursuant to 
  5.36  Public Law Number 96-221, title V, part A, section 501 (United 
  6.1   States Code, title 12, section 1735f-7a), as amended as of June 
  6.2   2, 1981, but for section 47.203 and which is made in this state 
  6.3   after June 2, 1981. 
  6.4      Sec. 11.  Minnesota Statutes 1998, section 47.27, 
  6.5   subdivision 3, is amended to read: 
  6.6      Subd. 3.  "Savings association" shall have the meaning set 
  6.7   forth in section 51.01 51A.02, subdivision 2 7.  
  6.8      Sec. 12.  Minnesota Statutes 1998, section 47.52, is 
  6.9   amended to read: 
  6.10     47.52 [AUTHORIZATION.] 
  6.11     (a) With the prior approval of the commissioner, any bank 
  6.12  doing business in this state may establish and maintain detached 
  6.13  facilities provided the facilities are located within:  (1) the 
  6.14  municipality in which the principal office of the applicant bank 
  6.15  is located; or (2) 5,000 feet of its principal office measured 
  6.16  in a straight line from the closest points of the closest 
  6.17  structures involved; or (3) a municipality in which no bank is 
  6.18  located at the time of application; or (4) a municipality having 
  6.19  a population of more than 10,000; or (5) a municipality having a 
  6.20  population of 10,000 or less, as determined by the commissioner 
  6.21  from the latest available data from the state demographer, or 
  6.22  for municipalities located in the seven-county metropolitan area 
  6.23  from the metropolitan council, and all the banks having a 
  6.24  principal office in the municipality have consented in writing 
  6.25  to the establishment of the facility. 
  6.26     (b) A detached facility shall not be closer than 50 feet to 
  6.27  a detached facility operated by any other bank and shall not be 
  6.28  closer than 100 feet to the principal office of any other bank, 
  6.29  the measurement to be made in the same manner as provided 
  6.30  above.  This paragraph shall not be applicable if the proximity 
  6.31  to the facility or the bank is waived in writing by the other 
  6.32  bank and filed with the application to establish a detached 
  6.33  facility. 
  6.34     (c) A bank is allowed, in addition to other facilities, 
  6.35  part-time deposit-taking locations at elementary and secondary 
  6.36  schools located within the municipality in which the main 
  7.1   banking house or a detached facility is located if they are 
  7.2   established in connection with student education programs 
  7.3   approved by the school administration and consistent with safe, 
  7.4   sound banking practices. 
  7.5      (e) In addition to other facilities, a bank may operate 
  7.6   part-time locations at nursing homes and senior citizen housing 
  7.7   facilities located within the municipality in which the main 
  7.8   banking house or a detached facility is located, if they are 
  7.9   operated in a manner consistent with safe, sound banking 
  7.10  practices. 
  7.11     Sec. 13.  Minnesota Statutes 1998, section 47.54, 
  7.12  subdivision 2, is amended to read: 
  7.13     Subd. 2.  [APPROVAL ORDER.] If no objection is received by 
  7.14  the commissioner within 21 15 days after the publication and 
  7.15  mailing of the notices, the commissioner shall issue an order 
  7.16  approving the application without a hearing if it is found that 
  7.17  (a) the applicant bank meets current industry standards of 
  7.18  capital adequacy, management quality, and asset condition, (b) 
  7.19  the establishment of the proposed detached facility will improve 
  7.20  the quality or increase the availability of banking services in 
  7.21  the community to be served, and (c) the establishment of the 
  7.22  proposed detached facility will not have an undue adverse effect 
  7.23  upon the solvency of existing financial institutions in the 
  7.24  community to be served.  Otherwise, the commissioner shall deny 
  7.25  the application.  Any proceedings for judicial review of an 
  7.26  order of the commissioner issued under this subdivision without 
  7.27  a contested case hearing shall be conducted pursuant to the 
  7.28  provisions of the Administrative Procedure Act relating to 
  7.29  judicial review of agency decisions, sections 14.63 to 14.69, 
  7.30  and the scope of judicial review in such proceedings shall be as 
  7.31  provided therein.  Nothing herein shall be construed as 
  7.32  requiring the commissioner to conduct a contested case hearing 
  7.33  if no written objection is timely received by the commissioner 
  7.34  from a bank within three miles of the proposed location of the 
  7.35  detached facility.  
  7.36     Sec. 14.  Minnesota Statutes 1998, section 47.54, 
  8.1   subdivision 3, is amended to read: 
  8.2      Subd. 3.  [OBJECTIONS; HEARING.] If any bank within three 
  8.3   miles of the proposed location of the detached facility objects 
  8.4   in writing within 21 15 days, the commissioner shall consider 
  8.5   the objection.  If the objection also requests a hearing, the 
  8.6   objector must include the nature of the issues or facts to be 
  8.7   presented and the reasons why written submissions would be 
  8.8   insufficient to make an adequate presentation to the 
  8.9   commissioner.  Comments challenging the legality of an 
  8.10  application should be submitted separately in writing. 
  8.11     Written requests for hearing must be evaluated by the 
  8.12  commissioner who may grant or deny the request.  A hearing must 
  8.13  generally be granted only if it is determined that written 
  8.14  submissions would be inadequate or that a hearing would 
  8.15  otherwise be beneficial to the decision-making process.  A 
  8.16  hearing may be limited to issues considered material by the 
  8.17  commissioner. 
  8.18     If a request for a hearing has been denied, the 
  8.19  commissioner shall notify the applicant and all interested 
  8.20  persons stating the reasons for denial.  Interested parties may 
  8.21  submit to the commissioner with simultaneous copies to the 
  8.22  applicant additional written comments on the application within 
  8.23  14 days after the date of the notice of denial.  The applicant 
  8.24  shall be provided an additional seven days after the 14-day 
  8.25  deadline has expired within which to respond to any comments 
  8.26  submitted within the 14-day period.  A copy of any response 
  8.27  submitted by the applicant shall also be mailed simultaneously 
  8.28  by the applicant to the interested parties.  The commissioner 
  8.29  may waive the additional seven-day comment period if so 
  8.30  requested by the applicant. 
  8.31     Sec. 15.  Minnesota Statutes 1998, section 47.59, 
  8.32  subdivision 12, is amended to read: 
  8.33     Subd. 12.  [CONSUMER PROTECTIONS.] (a) Financial 
  8.34  institutions shall comply with the requirements of the federal 
  8.35  Truth in Lending Act, United States Code, title 15, sections 
  8.36  1601 to 1693, as the same may be amended from time to time, in 
  9.1   connection with a consumer loan or credit sale for a consumer 
  9.2   purpose where the federal Truth in Lending Act is applicable.  A 
  9.3   financial institution shall give the following disclosure to the 
  9.4   borrower in writing at the time an open-end credit account is 
  9.5   established if the financial institution imposes a loan fee, 
  9.6   points, or similar charge that relates to the opening of the 
  9.7   account which is not included in the annual percentage rate 
  9.8   given pursuant to the federal Truth in Lending Act:  "YOU HAVE 
  9.9   BEEN ASSESSED FINANCE CHARGES, OR POINTS, WHICH ARE NOT INCLUDED 
  9.10  IN THE ANNUAL PERCENTAGE RATE.  THESE CHARGES MAY BE REFUNDED, 
  9.11  IN WHOLE OR IN PART, IF YOU DO NOT USE YOUR LINE OF CREDIT OR IF 
  9.12  YOU REPAY YOUR LINE OF CREDIT EARLY.  THESE CHARGES INCREASE THE 
  9.13  COST OF YOUR CREDIT." 
  9.14     (b) Financial institutions shall comply with the following 
  9.15  consumer protection provisions in connection with a consumer 
  9.16  loan or credit sale for a consumer purpose:  sections 325G.02 to 
  9.17  325G.05; 325G.06 to 325G.11; 325G.15 to 325G.22; and 325G.29 to 
  9.18  325G.36, and Code of Federal Regulations, title 12, part 535, 
  9.19  where those statutes or regulations are applicable.  
  9.20     (c) An assignment of a consumer's earnings by the consumer 
  9.21  to a financial institution as payment or as security for payment 
  9.22  of a debt arising out of a consumer loan or consumer credit sale 
  9.23  is unenforceable by the financial institution except where the 
  9.24  assignment:  (1) by its terms is revocable at the will of the 
  9.25  consumer; (2) is a payroll deduction plan or preauthorized 
  9.26  payment plan, beginning at the time of the transaction, in which 
  9.27  the consumer authorizes a series of wage deductions as a method 
  9.28  of making each payment; or (3) applies only to wages or other 
  9.29  earnings already earned at the time of the assignment. 
  9.30     Sec. 16.  Minnesota Statutes 1998, section 47.60, 
  9.31  subdivision 3, is amended to read: 
  9.32     Subd. 3.  [FILING.] Before a person other than a financial 
  9.33  institution as defined by section 47.59 engages in the business 
  9.34  of making consumer small loans, the person shall file with the 
  9.35  commissioner as a consumer small loan lender.  The filing must 
  9.36  be on a form prescribed by the commissioner together with a fee 
 10.1   of $150 $250 for each place of business and contain the 
 10.2   following information in addition to the information required by 
 10.3   the commissioner:  
 10.4      (1) evidence that the filer has available for the operation 
 10.5   of the business at the location specified, liquid assets of at 
 10.6   least $50,000; and 
 10.7      (2) a biographical statement on the principal person 
 10.8   responsible for the operation and management of the business to 
 10.9   be certified.  
 10.10     Revocation of the filing and the right to engage in the 
 10.11  business of a consumer small loan lender is the same as in the 
 10.12  case of a regulated lender license in section 56.09.  
 10.13     Sec. 17.  [48.056] [REVERSE STOCK SPLIT.] 
 10.14     Subdivision 1.  [POWER TO EFFECT.] (a) A banking 
 10.15  institution may effect a reverse stock split by reducing its 
 10.16  outstanding shares of stock if the commissioner finds that the 
 10.17  transaction:  
 10.18     (1) has a legitimate business purpose including, but not 
 10.19  limited to, reducing corporate expenses, simplifying corporate 
 10.20  procedures, or becoming a qualified Subchapter S corporation; 
 10.21  and 
 10.22     (2) complies with safe and sound banking practices.  
 10.23     (b) The stock reduction is effective upon approval by the 
 10.24  shareholders and the commissioner and filing with the 
 10.25  commissioner and with the secretary of state, of the articles of 
 10.26  amendment to the certificate of incorporation of the banking 
 10.27  institution. 
 10.28     Subd. 2.  [FRACTIONAL SHARES.] A banking institution may 
 10.29  issue fractions of a share as a result of a reverse stock split 
 10.30  by reducing its outstanding shares of stock according to this 
 10.31  subdivision.  If a banking institution inserts into its 
 10.32  certificate of incorporation a provision prohibiting the issue 
 10.33  of fractions of a share, it shall pay in cash the value of 
 10.34  fractions of a share as of the time when persons entitled to 
 10.35  receive the fractions are determined. 
 10.36     Subd. 3.  [PAR VALUE.] Notwithstanding section 300.30, a 
 11.1   banking institution proceeding under this subdivision may divide 
 11.2   its capital into shares greater than $100 each. 
 11.3      Subd. 4.  [RIGHTS OF DISSENTING STOCKHOLDERS.] A 
 11.4   stockholder of the banking institution not voting in favor of 
 11.5   the amendment of the certificate of incorporation of the banking 
 11.6   institution to effect a reverse stock split that will impact 
 11.7   upon the stockholder's voting rights in the banking institution 
 11.8   may, at the meeting of the stockholders held on the amendment, 
 11.9   or within 20 days after the meeting, object to the stock 
 11.10  reduction and demand payment for that person's stock.  If the 
 11.11  stock reduction takes effect at any time after this demand, the 
 11.12  stockholder may, at any time within 60 days after the demand, 
 11.13  apply to the district court in the county of the banking 
 11.14  institution's principal place of business for the appointment of 
 11.15  three persons to appraise the value of that person's stock.  The 
 11.16  court shall appoint the appraisers and designate the time and 
 11.17  place of their first meeting, give directions with regard to 
 11.18  their proceedings the court considers proper, and direct the 
 11.19  time and manner in which payment must be made of the value of 
 11.20  that person's stock to the stockholder.  The appraisers shall 
 11.21  meet at the time and place designated, after being duly sworn to 
 11.22  discharge their duties honestly and faithfully, make and certify 
 11.23  a written estimate of the value of the stock at the time of the 
 11.24  appraisal, and deliver one copy to the banking institution and 
 11.25  another to the stockholder.  The stockholder and the banking 
 11.26  institution shall each pay one-half of the charges and expenses 
 11.27  of the appraisers. 
 11.28     Sec. 18.  Minnesota Statutes 1998, section 48.15, 
 11.29  subdivision 2a, is amended to read: 
 11.30     Subd. 2a.  [AUTHORIZED ACTIVITIES.] The commissioner may 
 11.31  authorize a state bank to undertake any activities, exercise any 
 11.32  powers, or make any investments that are authorized activities, 
 11.33  powers, or investments by Minnesota Statutes, chapter 50, as of 
 11.34  August 1, 1995, for any state savings bank doing business in 
 11.35  this state, or that become authorized activities, powers, or 
 11.36  investments by Minnesota Statutes, chapter 50, for state savings 
 12.1   banks after August 1, 1995.  The commissioner may not authorize 
 12.2   state banks to engage in any banking activity prohibited by the 
 12.3   laws of this state. 
 12.4      Sec. 19.  Minnesota Statutes 1998, section 48.15, 
 12.5   subdivision 3, is amended to read: 
 12.6      Subd. 3.  [LIMITS ON AUTHORITY TO ACT AS PAYING AGENT FOR 
 12.7   PUBLIC ISSUERS.] No such bank shall act as paying agent of any 
 12.8   municipality or other public issuer of obligations, other than 
 12.9   an issuer within whose corporate limits the principal office of 
 12.10  the bank is situated, unless the bank is authorized to execute 
 12.11  the powers conferred in section 48.38 48A.07. 
 12.12     Sec. 20.  Minnesota Statutes 1998, section 48A.15, 
 12.13  subdivision 1, is amended to read: 
 12.14     Subdivision 1.  [AUTHORIZATION.] A trust company organized 
 12.15  under the laws of this state or a state bank and trust may, 
 12.16  after completing the notification procedure required by this 
 12.17  subdivision, establish and maintain a trust service office at 
 12.18  any office in this state or of any other state or national 
 12.19  bank.  A state bank may, after completing the notification 
 12.20  procedure required by this subdivision, permit a trust company 
 12.21  organized under the laws of this state or a state bank and trust 
 12.22  or a national bank in this state that is authorized to exercise 
 12.23  trust powers to establish and maintain a trust service office at 
 12.24  any of its banking offices. 
 12.25     The trust company or state bank and trust and a state bank 
 12.26  at which a trust service office is to be established according 
 12.27  to this section shall jointly file, on forms provided by the 
 12.28  commissioner, a notification of intent to establish a trust 
 12.29  service office.  The notification must be accompanied by a 
 12.30  filing fee of $100 payable to the commissioner, to be deposited 
 12.31  in the general fund of the state.  No trust service office shall 
 12.32  be established according to this section if disallowed by order 
 12.33  of the commissioner within 45 30 days of the filing of a 
 12.34  complete and acceptable notification of intent to establish a 
 12.35  trust service office.  An order of the commissioner to disallow 
 12.36  the establishment of a trust service office under this section 
 13.1   is subject to judicial review under sections 14.63 to 14.69. 
 13.2      Sec. 21.  Minnesota Statutes 1998, section 49.36, 
 13.3   subdivision 1, is amended to read: 
 13.4      Subdivision 1.  [REQUIREMENTS.] This consolidation or 
 13.5   merger agreement and certified copy of the proceedings of the 
 13.6   meetings of the respective boards of directors, at which the 
 13.7   making of the agreement was authorized, must be submitted to the 
 13.8   commissioner of commerce for approval with a fee of $250 $2,000 
 13.9   payable to the commissioner of commerce.  The agreement shall 
 13.10  not be effective until so approved by the commissioner.  The 
 13.11  commissioner shall take action after the documents are 
 13.12  submitted, and is entitled to further information from any party 
 13.13  to the transaction as may be requested by the commissioner, or 
 13.14  as may be obtained upon a hearing directed by the commissioner. 
 13.15     Sec. 22.  Minnesota Statutes 1998, section 52.01, is 
 13.16  amended to read: 
 13.17     52.01 [ORGANIZATION.] 
 13.18     Any seven residents of the state may apply to the 
 13.19  commissioner of commerce for permission to organize a credit 
 13.20  union. 
 13.21     A credit union is a cooperative society, incorporated for 
 13.22  the twofold purpose of promoting thrift among its members and 
 13.23  creating a source of credit for them at legitimate rates of 
 13.24  interest for provident purposes. 
 13.25     A credit union is organized in the following manner: 
 13.26     (1) The applicants execute, in duplicate, a certificate of 
 13.27  organization by the terms of which they agree to be bound, which 
 13.28  shall state: 
 13.29     (a) the name and location of the proposed credit union; 
 13.30     (b) the names and addresses of the subscribers to the 
 13.31  certificate and the number of shares subscribed by each; 
 13.32     (2) The applicants submit the following in the form 
 13.33  prescribed by the commissioner of commerce:  
 13.34     (a) a statement of the common bond of the proposed credit 
 13.35  union; 
 13.36     (b) the number of potential members; 
 14.1      (c) the geographic dispersion of the potential members; 
 14.2      (d) evidence of interest, including willingness of 
 14.3   potential members to assume responsibility for leadership and 
 14.4   service; 
 14.5      (e) a two-year forecast of probable levels of assets, 
 14.6   shares and deposits, and income and expense; 
 14.7      (f) the availability of other credit union services to the 
 14.8   potential members; 
 14.9      (g) other information the commissioner requires; 
 14.10     (3) They next prepare and adopt bylaws for the general 
 14.11  governance of the credit union consistent with the provisions of 
 14.12  this chapter, and execute them in duplicate; 
 14.13     (4) The certificate and the bylaws, both executed in 
 14.14  duplicate, are forwarded to the commissioner of commerce with a 
 14.15  $100 application fee $1,000 application fee, which may be waived 
 14.16  by the commissioner for a credit union to be located in a low- 
 14.17  or moderate-income area as defined in Code of Federal 
 14.18  Regulations, title 12, part 25(1), (n)(1) and (n)(2) and where 
 14.19  no other depository institution operates an office; 
 14.20     (5) The commissioner of commerce shall, within 60 days of 
 14.21  the receipt of the certificate, the information required by 
 14.22  paragraph (2), and the bylaws determine whether they comply with 
 14.23  the provisions of this chapter, and whether or not the 
 14.24  organization of the credit union in question would benefit its 
 14.25  members, be economically feasible, and be consistent with the 
 14.26  purposes of this chapter; 
 14.27     (6) Thereupon the commissioner of commerce shall notify the 
 14.28  applicants of the decision.  If it is favorable, the 
 14.29  commissioner shall upon receipt of a commitment for insurance of 
 14.30  accounts as required by section 52.24, subdivision 2, issue a 
 14.31  certificate of approval, attached to the duplicate certificate 
 14.32  of organization, and return them with the duplicate bylaws to 
 14.33  the applicants.  If it is unfavorable, the applicants may, 
 14.34  within 60 days after the decision, appeal for a review in a 
 14.35  court of competent jurisdiction; 
 14.36     (7) The applicants shall thereupon file the duplicate of 
 15.1   the certificate of organization, with the certificate of 
 15.2   approval attached thereto, with the secretary of state, who 
 15.3   shall make a record of the certificate and return it, with a 
 15.4   certificate of record attached thereto, to the commissioner of 
 15.5   commerce for permanent records; and 
 15.6      (8) Thereupon the applicants shall be a credit union 
 15.7   incorporated in accordance with the provisions of this chapter. 
 15.8      In order to simplify the organization of credit unions, the 
 15.9   commissioner of commerce shall prepare approved forms of 
 15.10  certificate of organization and bylaws, consistent with this 
 15.11  chapter, which may be used by credit union incorporators for 
 15.12  their guidance, and on written application of seven residents of 
 15.13  the state, shall supply them without charge with a blank 
 15.14  certificate of organization and a copy of the form of suggested 
 15.15  bylaws. 
 15.16     Sec. 23.  [52.212] [SENIOR CITIZEN LOCATIONS.] 
 15.17     In addition to its primary member location, a credit union 
 15.18  may operate part-time locations in nursing homes and senior 
 15.19  citizen housing facilities if they are operated in a manner 
 15.20  consistent with safe and sound practices. 
 15.21     Sec. 24.  Minnesota Statutes 1998, section 53.03, 
 15.22  subdivision 1, is amended to read: 
 15.23     Subdivision 1.  [APPLICATION, FEE, NOTICE.] Any corporation 
 15.24  hereafter organized as an industrial loan and thrift company, 
 15.25  shall, after compliance with the requirements set forth in 
 15.26  sections 53.01 and 53.02, file a written application with the 
 15.27  department of commerce for a certificate of authorization.  A 
 15.28  corporation that will not sell or issue thrift certificates for 
 15.29  investment as permitted by this chapter need not comply with 
 15.30  subdivision 2b.  The application must be in the form prescribed 
 15.31  by the department of commerce.  The application must be made in 
 15.32  the name of the corporation, executed and acknowledged by an 
 15.33  officer designated by the board of directors of the corporation, 
 15.34  requesting a certificate authorizing the corporation to transact 
 15.35  business as an industrial loan and thrift company, at the place 
 15.36  and in the name stated in the application.  At the time of 
 16.1   filing the application the applicant shall pay a $1,000 filing 
 16.2   fee and a $500 investigation fee $1,500 filing fee if the 
 16.3   corporation will not sell or issue thrift certificates for 
 16.4   investment, and a filing fee of $8,000 if the corporation will 
 16.5   sell or issue thrift certificates for investment.  The fees must 
 16.6   be turned over by the commissioner to the state treasurer and 
 16.7   credited to the general fund.  The applicant shall also submit a 
 16.8   copy of the bylaws of the corporation, its articles of 
 16.9   incorporation and all amendments thereto at that time.  An 
 16.10  application for powers under subdivision 2b must also require 
 16.11  that a notice of the filing of the application must be published 
 16.12  once within 30 days of the receipt of the form prescribed by the 
 16.13  department of commerce, at the expense of the applicant, in a 
 16.14  qualified newspaper published in the municipality in which the 
 16.15  proposed industrial loan and thrift company is to be located, 
 16.16  or, if there be none, in a qualified newspaper likely to give 
 16.17  notice in the municipality in which the company is proposed to 
 16.18  be located.  If the department of commerce receives a written 
 16.19  objection to the application from any person within 21 15 days 
 16.20  of the notice having been fully published, the commissioner 
 16.21  shall proceed in the same manner as required under section 
 16.22  46.041, subdivisions 3 and 4, relating to state banks. 
 16.23     Sec. 25.  Minnesota Statutes 1998, section 53.03, 
 16.24  subdivision 6, is amended to read: 
 16.25     Subd. 6.  [AMENDED CERTIFICATES, THRIFT CERTIFICATES FOR 
 16.26  INVESTMENT, APPLICATION, FEE, NOTICE.] Upon approval by the 
 16.27  commissioner of commerce of a commitment for insurance or 
 16.28  guarantee of certificates to be held for investment as required 
 16.29  in section 53.10, subdivision 3, an industrial loan and thrift 
 16.30  company may apply to the department of commerce for an amended 
 16.31  certificate of authorization and consent to sell and issue 
 16.32  thrift certificates for investment.  
 16.33     The application, in triplicate, must be in the form 
 16.34  prescribed by the department of commerce and filed in its 
 16.35  office.  At the time of filing the application, the applicant 
 16.36  shall pay a filing fee of $500 $8,000 and if an application is 
 17.1   contested, 50 percent of an additional fee equal to the actual 
 17.2   costs incurred by the department of commerce in approving or 
 17.3   disapproving the application, payable to the state treasurer and 
 17.4   credited by the treasurer to the general fund, must be paid by 
 17.5   the applicant and 50 percent equally by the intervening 
 17.6   parties.  A notice of the filing of the application must be 
 17.7   published once within 30 days of the receipt of the form 
 17.8   prescribed by the department of commerce, at the expense of the 
 17.9   applicant, in a newspaper published in the municipality in which 
 17.10  the place of business under the application is located, or if 
 17.11  there is none, in a newspaper published at the county seat of 
 17.12  the county in which the place of business is located.  Not more 
 17.13  than one place of business maintained under a certificate of 
 17.14  authorization may be the subject of an application.  
 17.15     Sec. 26.  Minnesota Statutes 1998, section 53.03, 
 17.16  subdivision 7, is amended to read: 
 17.17     Subd. 7.  [OBJECTION TO APPLICATION.] Upon receiving 
 17.18  written objection to the application from any person within 20 
 17.19  15 days of the notice having been fully published, the 
 17.20  department of commerce shall order a contested case hearing to 
 17.21  be conducted on the application.  
 17.22     Sec. 27.  Minnesota Statutes 1998, section 55.04, 
 17.23  subdivision 2, is amended to read: 
 17.24     Subd. 2.  [APPLICATION FOR LICENSE.] Application for 
 17.25  license shall be in writing, under oath, and in the form 
 17.26  prescribed by the commissioner of commerce, and contain the name 
 17.27  and address, both of the residence and place of business, of the 
 17.28  applicant, and if the applicant is a partnership or 
 17.29  unincorporated association, of every member thereof, and if a 
 17.30  corporation, of each officer and director thereof; also the 
 17.31  county and municipality, with street and number, if any, where 
 17.32  the business is to be conducted; and further information the 
 17.33  commissioner of commerce requires.  The applicant at the time of 
 17.34  making application shall pay to the commissioner the sum of $250 
 17.35  as a fee for investigating the application, and the additional 
 17.36  sum of $150 as an annual license fee for a period terminating on 
 18.1   the last day of the current calendar year.  If the application 
 18.2   is filed after June 30 in any year the additional sum shall be 
 18.3   only $75. 
 18.4      Sec. 28.  Minnesota Statutes 1998, section 56.02, is 
 18.5   amended to read: 
 18.6      56.02 [APPLICATION FEE.] 
 18.7      Application for license shall be in writing, under oath, 
 18.8   and in the form prescribed by the commissioner, and contain the 
 18.9   name and the address, both of the residence and place of 
 18.10  business, of the applicant and, if the applicant is a 
 18.11  copartnership or association, of every member thereof, and if a 
 18.12  corporation, of each officer and director thereof; also the 
 18.13  county and municipality, with street and number, if any, where 
 18.14  the business is to be conducted, and such further information as 
 18.15  the commissioner may require.  The applicant at the time of 
 18.16  making application, shall pay to the commissioner the sum of 
 18.17  $250 $500 as a fee for investigating the application, and the 
 18.18  additional sum of $150 $250 as an annual license fee for a 
 18.19  period terminating on the last day of the current calendar year; 
 18.20  provided, that if the application is filed after June 30 in any 
 18.21  year the additional sum shall be only $75.  In addition to the 
 18.22  annual license fee, every licensee hereunder shall pay to the 
 18.23  commissioner the actual costs of each examination, as provided 
 18.24  for in section 56.10.  All moneys collected by the commissioner 
 18.25  under this chapter shall be turned over to the state treasurer 
 18.26  and credited by the treasurer to the general fund of the state. 
 18.27     Every applicant shall also prove, in form satisfactory to 
 18.28  the commissioner, that the applicant has available for the 
 18.29  operation of the business at the location specified in the 
 18.30  application, liquid assets of at least $50,000. 
 18.31     Sec. 29.  Minnesota Statutes 1998, section 56.131, 
 18.32  subdivision 1, is amended to read: 
 18.33     Subdivision 1.  [INTEREST RATES AND CHARGES.] (a) On any 
 18.34  loan in a principal amount not exceeding $100,000 or 15 percent 
 18.35  of a Minnesota corporate licensee's capital stock and surplus as 
 18.36  defined in section 53.015, if greater, a licensee may contract 
 19.1   for and receive interest, finance charges, and other charges as 
 19.2   provided in section 47.59. 
 19.3      (b) Loans may be interest-bearing or precomputed. 
 19.4      (c) Notwithstanding section 47.59 to the contrary, to 
 19.5   compute time on interest-bearing and precomputed loans, 
 19.6   including, but not limited to the calculation of interest, a day 
 19.7   is considered 1/30 of a month when calculation is made for a 
 19.8   fraction of a calendar month.  A year is 12 calendar months.  A 
 19.9   calendar month is that period from a given date in one month to 
 19.10  the same numbered date in the following month, and if there is 
 19.11  no same numbered date, to the last day of the following month.  
 19.12  When a period of time includes a whole month and a fraction of a 
 19.13  month, the fraction of a month is considered to follow the whole 
 19.14  month.  
 19.15     In the alternative, for interest-bearing loans, a licensee 
 19.16  may charge interest at the rate of 1/365 of the agreed annual 
 19.17  rate for each actual day elapsed.  
 19.18     (d) With respect to interest-bearing loans and 
 19.19  notwithstanding section 47.59: 
 19.20     (1) Interest must be computed on unpaid principal balances 
 19.21  outstanding from time to time, for the time outstanding.  Each 
 19.22  payment must be applied first to the accumulated interest and 
 19.23  the remainder of the payment applied to the unpaid principal 
 19.24  balance; provided however, that if the amount of the payment is 
 19.25  insufficient to pay the accumulated interest, the unpaid 
 19.26  interest continues to accumulate to be paid from the proceeds of 
 19.27  subsequent payments and is not added to the principal balance. 
 19.28     (2) Interest must not be payable in advance or compounded.  
 19.29  However, if part or all of the consideration for a new loan 
 19.30  contract is the unpaid principal balance of a prior loan, then 
 19.31  the principal amount payable under the new loan contract may 
 19.32  include any unpaid interest which has accrued.  The unpaid 
 19.33  principal balance of a precomputed loan is the balance due after 
 19.34  refund or credit of unearned interest as provided in paragraph 
 19.35  (e), clause (3).  The resulting loan contract is deemed a new 
 19.36  and separate loan transaction for all purposes. 
 20.1      (e) With respect to precomputed loans and notwithstanding 
 20.2   section 47.59 to the contrary: 
 20.3      (1) Loans must be repayable in substantially equal and 
 20.4   consecutive monthly installments of principal and interest 
 20.5   combined, except that the first installment period may be more 
 20.6   or less than one month by not more than 15 days, and the first 
 20.7   installment payment amount may be larger than the remaining 
 20.8   payments by the amount of interest charged for the extra days 
 20.9   and must be reduced by the amount of interest for the number of 
 20.10  days less than one month to the first installment payment; and 
 20.11  monthly installment payment dates may be omitted to accommodate 
 20.12  borrowers with seasonal income. 
 20.13     (2) Payments may be applied to the combined total of 
 20.14  principal and precomputed interest until the loan is fully 
 20.15  paid.  Payments must be applied in the order in which they 
 20.16  become due. 
 20.17     (3) If the maturity of the loan is accelerated for any 
 20.18  reason and judgment is entered, the licensee shall credit the 
 20.19  borrower with the same refund as if prepayment in full had been 
 20.20  made on the date the judgment is entered. 
 20.21     (4) Following the final installment as originally scheduled 
 20.22  or deferred, the licensee, for any loan contract which has not 
 20.23  previously been converted to interest-bearing under clause 
 20.24  (7) paragraph (g), may charge interest on any balance remaining 
 20.25  unpaid, including unpaid default or deferment charges, at the 
 20.26  single annual percentage rate permitted by this subdivision 
 20.27  until fully paid.  
 20.28     (5) With respect to a loan secured by an interest in real 
 20.29  estate, and having a maturity of more than 60 months, the 
 20.30  original schedule of installment payments must fully amortize 
 20.31  the principal and interest on the loan.  The original schedule 
 20.32  of installment payments for any other loan secured by an 
 20.33  interest in real estate must provide for payment amounts that 
 20.34  are sufficient to pay all interest scheduled to be due on the 
 20.35  loan. 
 20.36     (6) (f) A licensee may contract for and collect a 
 21.1   delinquency charge as provided for in section 47.59, subdivision 
 21.2   6, paragraph (a), clause (4). 
 21.3      (7) (g) A licensee may grant extensions, deferments, or 
 21.4   conversions to interest-bearing as provided in section 47.59, 
 21.5   subdivision 5. 
 21.6      Sec. 30.  Minnesota Statutes 1998, section 59A.03, 
 21.7   subdivision 2, is amended to read: 
 21.8      Subd. 2.  The applicant at the time of making application, 
 21.9   shall pay to the commissioner the sum of $250 as a fee for 
 21.10  investigating the application, and the additional sum 
 21.11  of $100 $200 as an annual licensee fee for a period terminating 
 21.12  on May 31 of each year.  In addition to the annual license fee, 
 21.13  every licensee shall pay to the commissioner the actual costs of 
 21.14  each examination as may be required to be conducted under the 
 21.15  terms of sections 59A.01 to 59A.15. 
 21.16     Sec. 31.  Minnesota Statutes 1998, section 168.67, is 
 21.17  amended to read: 
 21.18     168.67 [SALES FINANCE COMPANY; LICENSE, FEES, REFUND.] 
 21.19     (a) No person shall engage in the business of a sales 
 21.20  finance company in this state without a license therefor as 
 21.21  provided in sections 168.66 to 168.77 provided, however, that no 
 21.22  bank, trust company, savings bank, savings association, or 
 21.23  credit union, whether state or federally chartered, industrial 
 21.24  loan and thrift company, or licensee under the Minnesota 
 21.25  Regulated Loan Act authorized to do business in this state shall 
 21.26  be required to obtain a license under sections 168.66 to 168.77. 
 21.27     (b) The application for a license shall be in writing, 
 21.28  under oath and in the form prescribed by the administrator.  The 
 21.29  application shall contain the name of the applicant; date of 
 21.30  incorporation, if incorporated; the address where the business 
 21.31  is or is to be conducted and similar information as to any 
 21.32  branch office of the applicant; the name and resident address of 
 21.33  the owner or partners, or, if a corporation or association, of 
 21.34  the directors, trustees and principal officers, and other 
 21.35  pertinent information the administrator requires. 
 21.36     (c) The licensee fee for the fiscal year beginning July 1 
 22.1   and ending June 30 of the following year, or any part thereof 
 22.2   shall be the sum of $150 $250 for the principal place of 
 22.3   business of the licensee, and the sum of $75 $125 for each 
 22.4   branch of the licensee, maintained in this state.  Any licensee 
 22.5   who proves to the satisfaction of the administrator, by 
 22.6   affidavit or other proof satisfactory to the administrator, that 
 22.7   during the 12 calendar months of the immediately preceding 
 22.8   fiscal year, for which the license has been paid that the 
 22.9   licensee has not held retail installment contracts exceeding 
 22.10  $15,000 in amount, shall be entitled to a refund of that portion 
 22.11  of each license fee paid in excess of $25.  The administrator 
 22.12  shall certify to the commissioner of finance that the licensee 
 22.13  is entitled to a refund, and payment thereof shall be made by 
 22.14  the state treasurer.  The amount necessary to pay for the 
 22.15  refundment of the license fee is appropriated out of the general 
 22.16  fund.  All license fees received by the administrator under 
 22.17  sections 168.66 to 168.77 shall be deposited with the state 
 22.18  treasurer. 
 22.19     (d) Each license shall specify the location of the office 
 22.20  or branch and must be conspicuously displayed there.  In case 
 22.21  the location be changed, the administrator shall endorse the 
 22.22  change of location on the license. 
 22.23     (e) Upon the filing of such application, and the payment of 
 22.24  the fee, the administrator shall issue a license to the 
 22.25  applicant to engage in the business of a sales finance company 
 22.26  under and in accordance with the provisions of sections 168.66 
 22.27  to 168.77 for a period which shall expire the last day of June 
 22.28  next following the date of its issuance.  The license shall not 
 22.29  be transferable or assignable.  No licensee shall transact any 
 22.30  business provided for by sections 168.66 to 168.77 under any 
 22.31  other name.  
 22.32     Sec. 32.  Minnesota Statutes 1998, section 168.71, is 
 22.33  amended to read: 
 22.34     168.71 [MOTOR VEHICLE RETAIL INSTALLMENT CONTRACT.] 
 22.35     (a)(1) Every retail installment contract shall be in 
 22.36  writing, shall contain all the agreements of the parties, shall 
 23.1   be signed by the retail buyer and seller, and a copy signed by 
 23.2   the retail buyer shall be furnished to such retail buyer at the 
 23.3   time the retail buyer executes the contract.  The copy signed by 
 23.4   both the retail buyer and retail seller shall be provided to the 
 23.5   retail buyer within seven days after delivery of the vehicle.  
 23.6   With respect to any contract executed prior to August 1, 1996, 
 23.7   which has not been paid in full by the retail buyer, the retail 
 23.8   seller shall provide such retail buyer a copy signed by both the 
 23.9   retail buyer and retail seller within 120 days after August 1, 
 23.10  1996. 
 23.11     (2) No provisions for confession of judgment or power of 
 23.12  attorney therefor contained in any retail installment contract 
 23.13  or contained in a separate agreement relating thereto, shall be 
 23.14  valid or enforceable.  
 23.15     (3) The holder of a precomputed retail installment contract 
 23.16  may, if the contract so provides, collect a delinquency and 
 23.17  collection charge on each installment in arrears for a period 
 23.18  not less than ten days in an amount not in excess of five 
 23.19  percent of each installment or $5, whichever is greater.  In 
 23.20  addition to such delinquency and collection charge, the retail 
 23.21  installment contract, whether interest-bearing or precomputed, 
 23.22  may provide for the payment of attorneys' fees not exceeding 15 
 23.23  percent of the amount due and payable under such contract where 
 23.24  such contract is referred to an attorney not a salaried employee 
 23.25  of the holder of the contract for collection plus the court 
 23.26  costs.  
 23.27     (4) Unless written notice has been given to the retail 
 23.28  buyer of actual or intended assignment of a retail installment 
 23.29  contract, payment thereunder or tender thereof made by the 
 23.30  retail buyer to the last known holder of such contract shall be 
 23.31  binding upon all subsequent holders or assignees.  
 23.32     (5) Upon written request from the retail buyer, the holder 
 23.33  of the retail installment contract shall give or forward to the 
 23.34  retail buyer a written statement of the dates and amounts of 
 23.35  payments and the total amount unpaid under such contract.  A 
 23.36  retail buyer shall be given a written receipt for any payment 
 24.1   when made in cash.  
 24.2      (b) The retail installment contract shall contain the 
 24.3   following items: 
 24.4      (1) the cash sale price of the motor vehicle which is the 
 24.5   subject matter of the retail installment contract; 
 24.6      (2) the total amount of the retail buyer's down payment, 
 24.7   whether made in money or goods, or partly in money or partly in 
 24.8   goods; 
 24.9      (3) the difference between items one and two; 
 24.10     (4) the charge, if any, included in the transaction to pay 
 24.11  the balance of an existing purchase money motor vehicle lien 
 24.12  which exceeds the value of the trade-in amount, or for any 
 24.13  insurance and other benefits not included in clause (1), 
 24.14  specifying the types of coverage and taxes, fees, and charges 
 24.15  that actually are or will be paid to public officials or 
 24.16  government agencies, including those for perfecting, releasing, 
 24.17  or satisfying a security interest if such taxes, fees, or 
 24.18  charges are not included in clause (1); 
 24.19     (5) principal balance, which is the sum of items three and 
 24.20  four; 
 24.21     (6) the amount of the finance charge; 
 24.22     (7) the total of payments payable by the retail buyer to 
 24.23  the retail seller and the number of installment payments 
 24.24  required and the amount of each installment expressed in dollars 
 24.25  or percentages, and date of each payment necessary finally to 
 24.26  pay the total of payments which is the sum of item five and item 
 24.27  six.  
 24.28     Provided, however, that said items one to seven inclusive 
 24.29  need not be stated in the terms, sequence or order set forth 
 24.30  above.  Provided further, that clauses (6) and (7) may be 
 24.31  disclosed on the assumption that all scheduled payments under 
 24.32  the contract will be made when due. 
 24.33     In lieu of the above clauses, the retail seller may give 
 24.34  the retail buyer disclosures which satisfy the requirements of 
 24.35  the Federal Truth-In-Lending Act in effect as of the time of the 
 24.36  contract, notwithstanding whether or not that act applies to the 
 25.1   transaction. 
 25.2      (c) Every retail seller or sales finance company, if a 
 25.3   charge for insurance on the motor vehicle is included in a 
 25.4   retail installment contract shall within 30 days after execution 
 25.5   of the retail installment contract send or cause to be sent to 
 25.6   the retail buyer a policy or policies or certificate of 
 25.7   insurance, which insurance shall be written by a company 
 25.8   authorized to do business in this state, clearly setting forth 
 25.9   the amount of the premium, the kind or kinds of insurance and 
 25.10  the scope of the coverage and all the terms, exceptions, 
 25.11  limitations, restrictions and conditions of the contract or 
 25.12  contracts of the insurance.  The buyer of a motor vehicle under 
 25.13  a retail installment contract shall have the privilege of 
 25.14  purchasing such insurance from an agent or broker of the buyer's 
 25.15  own selection and selecting an insurance company mutually 
 25.16  acceptable to the seller and the buyer; provided, however, that 
 25.17  the inclusion of the cost of the insurance premium in the retail 
 25.18  installment contract when the buyer selects the agent, broker or 
 25.19  company, shall be optional with the seller. 
 25.20     (d) Any sales finance company hereunder may purchase or 
 25.21  acquire from any retail seller any retail installment contract 
 25.22  on such terms and conditions as may be mutually agreed upon 
 25.23  between them.  
 25.24     (e) An acknowledgment by the retail buyer of the delivery 
 25.25  of any such copy or notice as required in subsection (a) 
 25.26  contained in the body of the statement or contract shall be 
 25.27  conclusive proof of delivery in any action or proceeding by or 
 25.28  against any assignee of a retail installment contract. 
 25.29     Sec. 33.  Minnesota Statutes 1998, section 303.25, 
 25.30  subdivision 5, is amended to read: 
 25.31     Subd. 5.  [SOLICITATION OF BUSINESS.] A foreign trust 
 25.32  association may not maintain an office within this state, but it 
 25.33  may solicit business within this state if banking or trust 
 25.34  associations or corporations organized under the laws of this 
 25.35  state or national banking associations maintaining their 
 25.36  principal offices in this state may solicit business in the 
 26.1   state in which the foreign trust association maintains its 
 26.2   principal office.  For purposes of this subdivision, 
 26.3   solicitation of business includes the activities authorized for 
 26.4   state or national banking associations exercising fiduciary 
 26.5   powers maintaining their principal offices in this state 
 26.6   considered a representative trust office established under 
 26.7   section 48.476 48A.14.  A foreign trust association must follow 
 26.8   the procedures in section 48A.18 to establish a trust office and 
 26.9   the procedures in section 48A.19 to establish a representative 
 26.10  trust office. 
 26.11     Sec. 34.  Minnesota Statutes 1998, section 332.15, 
 26.12  subdivision 2, is amended to read: 
 26.13     Subd. 2.  [LICENSE FOR EACH LOCATION.] Each person 
 26.14  operating a debt prorating service shall obtain a license for 
 26.15  each location and place of business, including each branch 
 26.16  office.  Such person shall submit a separate application for 
 26.17  each place of business.  The full license fee shall be payable 
 26.18  only for one such place of business.  For each additional place 
 26.19  of business the license fee shall be $25 $100.  
 26.20     Sec. 35.  Minnesota Statutes 1998, section 332.15, 
 26.21  subdivision 3, is amended to read: 
 26.22     Subd. 3.  [FEES.] Each applicant, at the time of making 
 26.23  such application, shall pay to the commissioner the sum of $50 
 26.24  $100 as a fee for investigation of the applicant, and the 
 26.25  additional sum of $100 $250 as a license fee.  If the 
 26.26  application is denied, said license fee shall be returned to the 
 26.27  applicant.  
 26.28     Sec. 36.  Minnesota Statutes 1998, section 332.17, is 
 26.29  amended to read: 
 26.30     332.17 [RENEWAL OF LICENSE.] 
 26.31     Each licensee under the provisions of sections 332.12 to 
 26.32  332.29 shall, not more than 60 nor less than 30 days before its 
 26.33  license is to expire, make application to the commissioner for 
 26.34  renewal of its license.  Such application for renewal shall be 
 26.35  on a form prescribed by the commissioner and shall be 
 26.36  accompanied by payment of the sum of $25 as a fee for 
 27.1   investigation of the renewal applicant, the additional sum of 
 27.2   $100 $250 as a license fee, and a bond as required in the case 
 27.3   of an original application.  The commissioner may investigate 
 27.4   the licensee and determine its continued fitness as in the case 
 27.5   of an original application.  If the commissioner shall renew the 
 27.6   license, said renewal shall be effective for one year from the 
 27.7   date on which the previous license expired. 
 27.8      Sec. 37.  Minnesota Statutes 1998, section 332.30, is 
 27.9   amended to read: 
 27.10     332.30 [ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND 
 27.11  REQUIREMENTS.] 
 27.12     (a) Before beginning business in this state, an accelerated 
 27.13  mortgage payment provider, as defined in section 332.13, 
 27.14  subdivision 2, clause (10), shall submit to the commissioner of 
 27.15  commerce an authorization fee of $250 and either: 
 27.16     (1) a surety bond in which the accelerated mortgage payment 
 27.17  provider is the obligor, in an amount determined by the 
 27.18  commissioner; or 
 27.19     (2) if the commissioner agrees to accept it, a deposit: 
 27.20     (i) in cash in an amount equivalent to the bond amount; or 
 27.21     (ii) of authorized securities, as defined in section 50.14, 
 27.22  with an aggregate market value equal to the bond amount.  The 
 27.23  cash or securities must be deposited with the state treasurer. 
 27.24     (b) The amount of the bond required by the commissioner 
 27.25  shall vary with the amount of Minnesota client funds held or to 
 27.26  be held by the obligor.  For new businesses, the bond must be no 
 27.27  less than $100,000, except as provided in section 332.301.  The 
 27.28  commissioner may increase the required bond amount upon 30 days' 
 27.29  notice to the accelerated mortgage payment provider.  
 27.30     (c) If a bond is submitted, it must name as surety an 
 27.31  insurance company authorized to transact fidelity and surety 
 27.32  business in this state.  The bond must run to the state of 
 27.33  Minnesota for the use of the state and of any person who may 
 27.34  have a claim against the obligor arising out of the obligor's 
 27.35  activities as an accelerated mortgage payment provider.  The 
 27.36  bond must be conditioned that the obligor will not commit any 
 28.1   fraudulent act and will faithfully conform to and abide by the 
 28.2   provisions of accelerated mortgage payment agreements with 
 28.3   Minnesota residents.  
 28.4      If an accelerated mortgage payment provider has failed to 
 28.5   account to a mortgagor or distribute funds to the mortgagee as 
 28.6   required by an accelerated mortgage payment agreement, the 
 28.7   mortgagor or the mortgagor's legal representative or receiver or 
 28.8   the commissioner shall have, in addition to any other legal 
 28.9   remedies, a right of action in the name of the debtor on the 
 28.10  bond or the security given pursuant to this section. 
 28.11     Sec. 38.  [334.21] [MOTOR VEHICLE LEASE AGREEMENTS.] 
 28.12     A motor vehicle lease agreement may include the outstanding 
 28.13  balance from a prior motor vehicle loan or lease. 
 28.14     Sec. 39.  [CHISAGO LAKES TOWNSHIP; DETACHED BANKING 
 28.15  FACILITY.] 
 28.16     With the prior approval of the commissioner of commerce, a 
 28.17  bank operating its principal office in Marine on St. Croix may 
 28.18  establish and maintain not more than one detached facility in 
 28.19  Chisago Lakes township.  A bank desiring to establish such a 
 28.20  detached facility must follow the approval procedure prescribed 
 28.21  in Minnesota Statutes, section 47.54.  The establishment of a 
 28.22  detached facility under this section is subject to Minnesota 
 28.23  Statutes, sections 47.51 to 47.57, except to the extent those 
 28.24  sections are inconsistent with this section. 
 28.25     Sec. 40.  [EFFECTIVE DATE.] 
 28.26     Sections 1 to 7, 11 to 14, 16, 19 to 22, 24 to 28, 30, 31, 
 28.27  and 33 to 37 are effective July 1, 1999.  Section 39 takes 
 28.28  effect the day after compliance by the governing body of Chisago 
 28.29  Lakes township with Minnesota Statutes, section 645.021, 
 28.30  subdivision 3.