1.1                          A bill for an act 
  1.2             relating to financial institutions; regulating certain 
  1.3             loan charges and payments; establishing a foundation 
  1.4             loan portfolio pilot project; regulating detached 
  1.5             banking facilities; making various technical changes; 
  1.6             appropriating money; amending Minnesota Statutes 1998, 
  1.7             sections 47.59, subdivisions 1, 7, 10, and by adding a 
  1.8             subdivision; 47.60, subdivision 2; 48.56; 52.04, 
  1.9             subdivision 1; 56.131, subdivision 4; 58.02, 
  1.10            subdivision 10; 58.04, subdivisions 2 and 3; 58.05, by 
  1.11            adding a subdivision; 58.08, as amended; 58.10, 
  1.12            subdivision 1; and 168.72, by adding a subdivision; 
  1.13            Minnesota Statutes 1999 Supplement, sections 47.52; 
  1.14            and 58.04, subdivision 1; proposing coding for new law 
  1.15            in Minnesota Statutes, chapter 58; repealing Minnesota 
  1.16            Statutes 1998, sections 58.02, subdivision 15; and 
  1.17            58.05, subdivision 2; Minnesota Rules, parts 
  1.18            2675.4180; and 2675.6141, subpart 1. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.21  47.52, is amended to read: 
  1.22     47.52 [AUTHORIZATION.] 
  1.23     (a) With the prior approval of the commissioner, any bank 
  1.24  doing business in this state may establish and maintain detached 
  1.25  facilities provided the facilities are located within:  (1) the 
  1.26  municipality in which the principal office of the applicant bank 
  1.27  is located; or (2) 5,000 feet of its principal office measured 
  1.28  in a straight line from the closest points of the closest 
  1.29  structures involved; or (3) a municipality in which no bank is 
  1.30  located at the time of application; or (4) a municipality having 
  1.31  a population of more than 10,000; or (5) a municipality having a 
  1.32  population of 10,000 or less, as determined by the commissioner 
  2.1   from the latest available data from the state demographer, or 
  2.2   for municipalities located in the seven-county metropolitan area 
  2.3   from the metropolitan council, and all the banks having a 
  2.4   principal office in the municipality have consented in writing 
  2.5   to the establishment of the facility. 
  2.6      (b) A detached facility shall not be closer than 50 feet to 
  2.7   a detached facility operated by any other bank and shall not be 
  2.8   closer than 100 feet to the principal office of any other bank, 
  2.9   the measurement to be made in the same manner as provided 
  2.10  above.  This paragraph shall not be applicable if the proximity 
  2.11  to the facility or the bank is waived in writing by the other 
  2.12  bank and filed with the application to establish a detached 
  2.13  facility. 
  2.14     (c) A bank is allowed, in addition to other facilities, 
  2.15  part-time deposit-taking locations at elementary and secondary 
  2.16  schools located within the municipality in which the main 
  2.17  banking house or a detached facility is located if they are 
  2.18  established in connection with student education programs 
  2.19  approved by the school administration and consistent with safe, 
  2.20  sound banking practices. 
  2.21     (d) In addition to other facilities, a bank may operate 
  2.22  part-time locations at nursing homes and senior citizen housing 
  2.23  facilities located within the municipality in which the main 
  2.24  banking house or a detached facility is located, or within the 
  2.25  seven-county metropolitan area if the bank's main banking 
  2.26  facility or a detached facility is located within the 
  2.27  seven-county metropolitan area, if they are operated in a manner 
  2.28  consistent with safe, sound banking practices. 
  2.29     Sec. 2.  Minnesota Statutes 1998, section 47.59, 
  2.30  subdivision 1, is amended to read: 
  2.31     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  2.32  section, the following definitions shall apply. 
  2.33     (a) "Actuarial method" has the meaning given the term in 
  2.34  the Code of Federal Regulations, title 12, part 226, and 
  2.35  appendix J thereto. 
  2.36     (b) "Annual percentage rate" has the meaning given the term 
  3.1   in the Code of Federal Regulations, title 12, part 226, but 
  3.2   using the definition of "finance charge" used in this section. 
  3.3      (c) "Borrower" means a debtor under a loan or a purchaser 
  3.4   or debtor under a credit sale contract. 
  3.5      (d) "Business purpose" means a purpose other than a 
  3.6   personal, family, household, or agricultural purpose. 
  3.7      (e) "Cardholder" means a person to whom a credit card is 
  3.8   issued or who has agreed with the financial institution to pay 
  3.9   obligations arising from the issuance to or use of the card by 
  3.10  another person. 
  3.11     (f) "Consumer loan" means a loan made by a financial 
  3.12  institution in which: 
  3.13     (1) the debtor is a person other than an organization; 
  3.14     (2) the debt is incurred primarily for a personal, family, 
  3.15  or household purpose; and 
  3.16     (3) the debt is payable in installments or a finance charge 
  3.17  is made. 
  3.18     (g) "Credit" means the right granted by a financial 
  3.19  institution to a borrower to defer payment of a debt, to incur 
  3.20  debt and defer its payment, or to purchase property or services 
  3.21  and defer payment. 
  3.22     (h) "Credit card" means a card or device issued under an 
  3.23  arrangement pursuant to which a financial institution gives to a 
  3.24  cardholder the privilege of obtaining credit from the financial 
  3.25  institution or other person in purchasing or leasing property or 
  3.26  services, obtaining loans, or otherwise.  A transaction is 
  3.27  "pursuant to a credit card" only if credit is obtained according 
  3.28  to the terms of the arrangement by transmitting information 
  3.29  contained on the card or device orally, in writing, by 
  3.30  mechanical or electronic methods, or in any other manner.  A 
  3.31  transaction is not "pursuant to a credit card" if the card or 
  3.32  device is used solely in that transaction to: 
  3.33     (1) identify the cardholder or evidence the cardholder's 
  3.34  creditworthiness and credit is not obtained according to the 
  3.35  terms of the arrangement; 
  3.36     (2) obtain a guarantee of payment from the cardholder's 
  4.1   deposit account, whether or not the payment results in a credit 
  4.2   extension to the cardholder by the financial institution; or 
  4.3      (3) effect an immediate transfer of funds from the 
  4.4   cardholder's deposit account by electronic or other means, 
  4.5   whether or not the transfer results in a credit extension to the 
  4.6   cardholder by the financial institution. 
  4.7      (i) "Credit sale contract" means a contract evidencing a 
  4.8   credit sale.  "Credit sale" means a sale of goods or services, 
  4.9   or an interest in land, in which: 
  4.10     (1) credit is granted by a seller who regularly engages as 
  4.11  a seller in credit transactions of the same kind; and 
  4.12     (2) the debt is payable in installments or a finance charge 
  4.13  is made. 
  4.14     (j) "Finance charge" has the meaning given in the Code of 
  4.15  Federal Regulations, title 12, part 226, except that the 
  4.16  following will not in any event be considered a finance charge: 
  4.17     (1) a charge as a result of default or delinquency under 
  4.18  subdivision 6 if made for actual unanticipated late payment, 
  4.19  delinquency, default, or other similar occurrence, and a charge 
  4.20  made for an extension or deferment under subdivision 5, unless 
  4.21  the parties agree that these charges are finance charges; 
  4.22     (2) an additional charge under subdivision 6; 
  4.23     (3) a discount, if a financial institution purchases a loan 
  4.24  at less than the face amount of the obligation or purchases or 
  4.25  satisfies obligations of a cardholder pursuant to a credit card 
  4.26  and the purchase or satisfaction is made at less than the face 
  4.27  amount of the obligation; 
  4.28     (4) fees paid by a borrower to a broker, provided the 
  4.29  financial institution or a person described in subdivision 4 
  4.30  does not require use of the broker to obtain credit; or 
  4.31     (5) a commission, expense reimbursement, or other sum 
  4.32  received by a financial institution or a person described in 
  4.33  subdivision 4 in connection with insurance described in 
  4.34  subdivision 6. 
  4.35     (k) "Financial institution" means a state or federally 
  4.36  chartered bank, a state or federally chartered bank and trust, a 
  5.1   trust company with banking powers, a state or federally 
  5.2   chartered saving bank, a state or federally chartered savings 
  5.3   association, an industrial loan and thrift company, or a 
  5.4   regulated lender, or an operating subsidiary of any such 
  5.5   institution. 
  5.6      (l) "Loan" means: 
  5.7      (1) the creation of debt by the financial institution's 
  5.8   payment of money to the borrower or a third person for the 
  5.9   account of the borrower; 
  5.10     (2) the creation of debt pursuant to a credit card in any 
  5.11  manner, including a cash advance or the financial institution's 
  5.12  honoring a draft or similar order for the payment of money drawn 
  5.13  or accepted by the borrower, paying or agreeing to pay the 
  5.14  borrower's obligation, or purchasing or otherwise acquiring the 
  5.15  borrower's obligation from the obligee or the borrower's 
  5.16  assignee; 
  5.17     (3) the creation of debt by a cash advance to a borrower 
  5.18  pursuant to an overdraft line of credit arrangement; 
  5.19     (4) the creation of debt by a credit to an account with the 
  5.20  financial institution upon which the borrower is entitled to 
  5.21  draw immediately; 
  5.22     (5) the forbearance of debt arising from a loan; and 
  5.23     (6) the creation of debt pursuant to open-end credit. 
  5.24     "Loan" does not include the forbearance of debt arising 
  5.25  from a sale or lease, a credit sale contract, or an overdraft 
  5.26  from a person's deposit account with a financial institution 
  5.27  which is not pursuant to a written agreement to pay overdrafts 
  5.28  with the right to defer repayment thereof. 
  5.29     (m) "Official fees" means: 
  5.30     (1) fees and charges which actually are or will be paid to 
  5.31  public officials for determining the existence of or for 
  5.32  perfecting, releasing, terminating, or satisfying a security 
  5.33  interest or mortgage relating to a loan or credit sale, and any 
  5.34  separate fees or charges which actually are or will be paid to 
  5.35  public officials for recording a notice described in section 
  5.36  580.032, subdivision 1; and 
  6.1      (2) premiums payable for insurance in lieu of perfecting a 
  6.2   security interest or mortgage otherwise required by a financial 
  6.3   institution in connection with a loan or credit sale, if the 
  6.4   premium does not exceed the fees and charges described in clause 
  6.5   (1), which would otherwise be payable. 
  6.6      (n) "Organization" means a corporation, government, 
  6.7   government subdivision or agency, trust, estate, partnership, 
  6.8   joint venture, cooperative, limited liability company, limited 
  6.9   liability partnership, or association. 
  6.10     (o) "Person" means a natural person or an organization. 
  6.11     (p) "Principal" means the total of: 
  6.12     (1) the amount paid to, received by, or paid or repayable 
  6.13  for the account of, the borrower; and 
  6.14     (2) to the extent that payment is deferred: 
  6.15     (i) the amount actually paid or to be paid by the financial 
  6.16  institution for additional charges permitted under this section; 
  6.17  and 
  6.18     (ii) prepaid finance charges. 
  6.19     Sec. 3.  Minnesota Statutes 1998, section 47.59, 
  6.20  subdivision 7, is amended to read: 
  6.21     Subd. 7.  [ADVANCES TO PERFORM COVENANTS OF BORROWER OR 
  6.22  PURCHASER.] (a) If the agreement with respect to a loan or 
  6.23  credit sale contract contains covenants by the borrower or 
  6.24  purchaser to perform certain duties pertaining to insuring or 
  6.25  preserving collateral and the financial institution according to 
  6.26  the agreement pays for performance of the duties on behalf of 
  6.27  the borrower or purchaser, the financial institution may add to 
  6.28  the debt or contract balance the amounts so advanced.  Before or 
  6.29  within a reasonable time not less more than 30 days after 
  6.30  advancing any sums, the financial institution shall state to the 
  6.31  borrower or purchaser in writing the amount of sums advanced or 
  6.32  to be advanced, any charges with respect to this amount, and any 
  6.33  revised payment schedule and, if the duties of the borrower or 
  6.34  purchaser performed by the financial institution pertain to 
  6.35  insurance, a brief description of the insurance paid for or to 
  6.36  be paid for by the financial institution including the type and 
  7.1   amount of coverages.  Additional information need not be given.  
  7.2   The actions of the financial institution pursuant to this 
  7.3   subdivision shall not be deemed to cure the borrower's failure 
  7.4   to perform covenants in the loan or credit sale contract, unless 
  7.5   the loan or credit sale contract expressly provides otherwise. 
  7.6      (b) A finance charge equal to that specified in the loan 
  7.7   agreement or credit sale contract may be made for sums advanced 
  7.8   under paragraph (a). 
  7.9      Sec. 4.  Minnesota Statutes 1998, section 47.59, is amended 
  7.10  by adding a subdivision to read: 
  7.11     Subd. 9a.  [PROMPT CREDITING OF PAYMENTS.] (a) A financial 
  7.12  institution shall credit a payment to the consumer's account as 
  7.13  of the date of receipt except when a delay in crediting does not 
  7.14  result in a finance or other charge or except as provided in 
  7.15  paragraph (b). 
  7.16     (b) If a financial institution, in the loan agreement or, 
  7.17  in the case of open-end credit, on or with a periodic statement 
  7.18  or similar document, specifies requirements for the consumer to 
  7.19  follow in making payments, but accepts a payment that does not 
  7.20  conform to the requirements, the creditor shall credit the 
  7.21  payment within five days of receipt. 
  7.22     (c) If a financial institution fails to credit a payment, 
  7.23  as required by paragraph (a) or (b) in time to avoid the 
  7.24  imposition of finance or other charges, the financial 
  7.25  institution shall adjust the consumer's account so that the 
  7.26  charges imposed are credited to the consumer's account promptly 
  7.27  or, in the case of open-end credit, no later than during the 
  7.28  next billing cycle. 
  7.29     Sec. 5.  Minnesota Statutes 1998, section 47.59, 
  7.30  subdivision 10, is amended to read: 
  7.31     Subd. 10.  [CREDIT INSURANCE.] (a) The sale of credit 
  7.32  insurance or mortgage insurance is subject to chapters 61A, 62A, 
  7.33  and 62B, as applicable, and the rules adopted under those 
  7.34  chapters, if any.  In case there are multiple consumers 
  7.35  obligated under a transaction subject to this chapter, no policy 
  7.36  or certificate of insurance providing credit life insurance may 
  8.1   be procured by or through a financial institution or person 
  8.2   described in subdivision 2 upon more than two of the consumers, 
  8.3   in which case they may be insured jointly.  
  8.4      (b) A financial institution that provides credit insurance 
  8.5   in relation to open-end credit may calculate the charge to the 
  8.6   borrower in each billing cycle by applying the current premium 
  8.7   rate to the balance in the manner permitted with respect to 
  8.8   finance charges by the provisions on finance charge in this 
  8.9   section.  
  8.10     (c) Upon prepayment in full of a consumer loan or credit 
  8.11  sale contract by the proceeds of credit insurance or mortgage 
  8.12  insurance, the consumer or the consumer's estate is entitled to 
  8.13  a refund of any portion of a separate charge for insurance that 
  8.14  by reason of prepayment is retained by the financial institution 
  8.15  or returned to it by the insurer, unless the charge was computed 
  8.16  from time to time on the basis of the balances of the consumer's 
  8.17  loan or credit sale contract.  
  8.18     (d) This section does not require a financial institution 
  8.19  to grant a refund to the consumer if all refunds due to the 
  8.20  consumer under paragraph (c) amount to less than $5 and, except 
  8.21  as provided in paragraph (c), does not require the financial 
  8.22  institution to account to the consumer for any portion of a 
  8.23  separate charge for insurance because:  
  8.24     (1) the insurance is terminated by performance of the 
  8.25  insurer's obligation; 
  8.26     (2) the financial institution pays or accounts for premiums 
  8.27  to the insurer in amounts and at times determined by the 
  8.28  agreement between them; or 
  8.29     (3) the financial institution receives directly or 
  8.30  indirectly under a policy of insurance a gain or advantage not 
  8.31  prohibited by law.  
  8.32     (e) Except as provided in paragraph (d), the financial 
  8.33  institution shall promptly make or cause to be made an 
  8.34  appropriate refund to the consumer with respect to a separate 
  8.35  charge made to the consumer for insurance if:  
  8.36     (1) the insurance is not provided or is provided for a 
  9.1   shorter term than for which the charge to the borrower for 
  9.2   insurance was computed; or 
  9.3      (2) the insurance terminates before the end of the term for 
  9.4   which it was written because of prepayment in full or otherwise. 
  9.5      (f) If a financial institution requires insurance, upon 
  9.6   notice to the borrower, the borrower has the option of providing 
  9.7   the required insurance through an existing policy of insurance 
  9.8   owned or controlled by the borrower, or through a policy to be 
  9.9   obtained and paid for by the borrower, but the financial 
  9.10  institution for reasonable cause may decline the insurance 
  9.11  provided by the borrower.  
  9.12     Sec. 6.  Minnesota Statutes 1998, section 47.60, 
  9.13  subdivision 2, is amended to read: 
  9.14     Subd. 2.  [AUTHORIZATION, TERMS, CONDITIONS, AND 
  9.15  PROHIBITIONS.] (a) In lieu of the interest, finance charges, or 
  9.16  fees in any other law, a consumer small loan lender may charge 
  9.17  the following:  
  9.18     (1) on any amount up to and including $50, a charge of 
  9.19  $5.50 may be added; 
  9.20     (2) on amounts in excess of $50, but not more than $100, a 
  9.21  charge may be added equal to ten percent of the loan proceeds 
  9.22  plus a $5 administrative fee; 
  9.23     (3) on amounts in excess of $100, but not more than $250, a 
  9.24  charge may be added equal to seven percent of the loan proceeds 
  9.25  with a minimum of $10 plus a $5 administrative fee; 
  9.26     (4) for amounts in excess of $250 and not greater than the 
  9.27  maximum in subdivision 1, paragraph (a), a charge may be added 
  9.28  equal to six percent of the loan proceeds with a minimum of 
  9.29  $17.50 plus a $5 administrative fee.  
  9.30     (b) The term of a loan made under this section shall be for 
  9.31  no more than 30 calendar days.  
  9.32     (c) After maturity, the contract rate must not exceed 2.75 
  9.33  percent per month of the remaining loan proceeds after the 
  9.34  maturity date calculated at a rate of 1/30 of the monthly rate 
  9.35  in the contract for each calendar day the balance is outstanding.
  9.36     (d) No insurance charges or other charges must be permitted 
 10.1   to be charged, collected, or imposed on a consumer small loan 
 10.2   except as authorized in this section.  
 10.3      (e) On a loan transaction in which cash is advanced in 
 10.4   exchange for a personal check, a return check charge may be 
 10.5   charged as authorized by section 332.50, subdivision 2, 
 10.6   paragraph (d) (a).  
 10.7      (f) A loan made under this section must not be repaid by 
 10.8   the proceeds of another loan made under this section by the same 
 10.9   lender or related interest.  The proceeds from a loan made under 
 10.10  this section must not be applied to another loan from the same 
 10.11  lender or related interest.  No loan to a single borrower made 
 10.12  pursuant to this section shall be split or divided and no single 
 10.13  borrower shall have outstanding more than one loan with the 
 10.14  result of collecting a higher charge than permitted by this 
 10.15  section or in an aggregate amount of principal exceed at any one 
 10.16  time the maximum of $350.  
 10.17     Sec. 7.  Minnesota Statutes 1998, section 48.56, is amended 
 10.18  to read: 
 10.19     48.56 [BANKING INSTITUTIONS MAY USE FEDERAL BANKING ACT 
 10.20  LAWS.] 
 10.21     Any banking institution now or hereafter organized under 
 10.22  the laws of this state is hereby empowered, on the authority of 
 10.23  its board of directors, or a majority thereof, to enter into 
 10.24  such contracts, incur such obligations and generally to do and 
 10.25  perform any and all such acts and things as may be necessary or 
 10.26  appropriate in order to take advantage of any and all 
 10.27  memberships, loans, subscriptions, contracts, grants, rights, or 
 10.28  privileges which may at any time be available or enure to 
 10.29  banking institutions or to their depositors, creditors, 
 10.30  stockholders, receivers, or liquidators, by virtue of those 
 10.31  provisions of Section 8 of the federal "Banking Acts of 1933" 
 10.32  (Section 12B of the Federal Reserve Act, as amended (Mason's 
 10.33  United States Code Annotated, title 12, s 264)), which establish 
 10.34  the Federal Deposit Insurance Corporation and provide for the 
 10.35  insurance of deposits, or of any other provisions of that or of 
 10.36  any other act or resolution of Congress to aid, regulate, or 
 11.1   safeguard banking institutions and their depositors, including 
 11.2   any amendments of the same or any substitutions therefor; and to 
 11.3   subscribe for and acquire any stock, debentures, bonds, or other 
 11.4   types of securities of the Federal Deposit Insurance 
 11.5   Corporation, and to comply with the lawful regulations and 
 11.6   requirements from time to time issued or made by such 
 11.7   corporation.  Subdivision 1.  [GENERAL POWERS.] The board of 
 11.8   directors of a banking institution may enter into a contract, 
 11.9   incur an obligation, or generally do what is necessary or 
 11.10  appropriate to make use of United States Code, title 12, section 
 11.11  1811, or any act or resolution of Congress enacted or resolved 
 11.12  to aid, regulate, or safeguard banking institutions and their 
 11.13  depositors.  
 11.14     Subd. 2.  [GENERAL RIGHTS AND PRIVILEGES.] Memberships, 
 11.15  loans, subscriptions, contracts, grants, rights, or privileges 
 11.16  that, under the act or resolution, are available to or enure to 
 11.17  banking institutions, or their depositors, creditors, 
 11.18  stockholders, receivers, or liquidators may be taken advantage 
 11.19  of under this section. 
 11.20     Subd. 3.  [PURCHASE OF FDIC SECURITIES.] The board may 
 11.21  subscribe for and acquire securities of the Federal Deposit 
 11.22  Insurance Corporation. 
 11.23     Subd. 4.  [COMPLYING WITH FDIC REQUIREMENTS.] The board may 
 11.24  comply with the corporation's requirements. 
 11.25     Sec. 8.  Minnesota Statutes 1998, section 52.04, 
 11.26  subdivision 1, is amended to read: 
 11.27     Subdivision 1.  A credit union has the following powers: 
 11.28     (1) to offer its members and other credit unions various 
 11.29  classes of shares, share certificates, deposits, or deposit 
 11.30  certificates; 
 11.31     (2) to receive the savings of its members either as payment 
 11.32  on shares or as deposits, including the right to conduct 
 11.33  Christmas clubs, vacation clubs, and other thrift organizations 
 11.34  within its membership.  Trust funds received by a real estate 
 11.35  broker or the broker's salespersons in trust may be deposited in 
 11.36  a credit union; 
 12.1      (3) to make loans to members for provident or productive 
 12.2   purposes as provided in section 52.16; 
 12.3      (4) to make loans to a cooperative society or other 
 12.4   organization having membership in the credit union; 
 12.5      (5) to deposit in state and national banks and trust 
 12.6   companies authorized to receive deposits; 
 12.7      (6) to invest in any investment legal for savings banks or 
 12.8   for trust funds in the state and, notwithstanding clause (3), to 
 12.9   invest in and make loans of unsecured days funds (federal funds 
 12.10  or similar unsecured loans) to financial institutions insured by 
 12.11  an agency of the federal government and a member of the Federal 
 12.12  Reserve System or required to maintain reserves at the Federal 
 12.13  Reserve; 
 12.14     (7) to borrow money as hereinafter indicated; 
 12.15     (8) to adopt and use a common seal and alter the same at 
 12.16  pleasure; 
 12.17     (9) to make payments on shares of and deposit with any 
 12.18  other credit union chartered by this or any other state or 
 12.19  operating under the provisions of the Federal Credit Union Act, 
 12.20  in amounts not exceeding in the aggregate 25 percent of its 
 12.21  unimpaired assets.  However, payments on shares of and deposit 
 12.22  with credit unions chartered by other states are restricted to 
 12.23  credit unions insured by the National Credit Union 
 12.24  Administration.  The restrictions imposed by this clause do not 
 12.25  apply to share accounts and deposit accounts of the Minnesota 
 12.26  corporate credit union in United States central credit union or 
 12.27  to share accounts and deposit accounts of credit unions in the 
 12.28  Minnesota corporate credit union; 
 12.29     (10) to contract with any licensed insurance company or 
 12.30  society to insure the lives of members to the extent of their 
 12.31  share accounts, in whole or in part, and to pay all or a portion 
 12.32  of the premium therefor; 
 12.33     (11) to indemnify each director, officer, or committee 
 12.34  member, or former director, officer, or committee member against 
 12.35  all expenses, including attorney's fees but excluding amounts 
 12.36  paid pursuant to a judgment or settlement agreement, reasonably 
 13.1   incurred in connection with or arising out of any action, suit, 
 13.2   or proceeding to which that person is a party by reason of being 
 13.3   or having been a director, officer, or committee member of the 
 13.4   credit union, except with respect to matters as to which that 
 13.5   person is finally adjudged in the action, suit, or proceeding to 
 13.6   be liable for negligence or misconduct in the performance of 
 13.7   duties.  The indemnification is not exclusive of any other 
 13.8   rights to which that person may be entitled under any bylaw, 
 13.9   agreement, vote of members, or otherwise; 
 13.10     (12) upon written authorization from a member, retained at 
 13.11  the credit union, to make payments to third parties by 
 13.12  withdrawals from the member's share or deposit accounts or 
 13.13  through proceeds of loans made to such member, or by permitting 
 13.14  the credit union to make those payments from the member's funds 
 13.15  prior to deposit; to permit draft withdrawals from member 
 13.16  accounts, but a credit union proposing to permit draft 
 13.17  withdrawals shall notify the commissioner of commerce, in the 
 13.18  form prescribed, of its intent not less than 90 days prior to 
 13.19  authorizing draft withdrawals.  The board of directors of a 
 13.20  credit union may restrict one class of shares to the extent that 
 13.21  it may not be redeemed, withdrawn, or transferred except upon 
 13.22  termination of membership in the credit union; 
 13.23     (13) to inform its members as to the availability of 
 13.24  various group purchasing plans which are related to the 
 13.25  promotion of thrift or the borrowing of money for provident and 
 13.26  productive purposes by means of informational materials placed 
 13.27  in the credit union's office, through its publications, or by 
 13.28  direct mailings to members by the credit union; 
 13.29     (14) to facilitate its members' voluntary purchase of types 
 13.30  of insurance incidental to promotion of thrift or the borrowing 
 13.31  of money for provident and productive purposes including, but 
 13.32  not limited to the following types of group or individual 
 13.33  insurance:  Fire, theft, automobile, life and temporary 
 13.34  disability; to be the policy holder of a group insurance plan or 
 13.35  a subgroup under a master policy plan and to disseminate 
 13.36  information to its members concerning the insurance provided 
 14.1   thereunder; to remit premiums to an insurer or the holder of a 
 14.2   master policy on behalf of a credit union member, if the credit 
 14.3   union obtains written authorization from the member for 
 14.4   remittance by share or deposit withdrawals or through proceeds 
 14.5   of loans made by the members, or by permitting the credit union 
 14.6   to make the payments from the member's funds prior to deposit; 
 14.7   and to accept from the insurer reimbursement for expenses 
 14.8   incurred or in the case of credit life, accident and health, and 
 14.9   involuntary unemployment insurance within the meaning of chapter 
 14.10  62B commissions for the handling of the insurance.  The amount 
 14.11  reimbursed or the commissions received may constitute the 
 14.12  general income of the credit union.  The directors, officers, 
 14.13  committee members and employees of a credit union shall not 
 14.14  profit on any insurance sale facilitated through the credit 
 14.15  unions; 
 14.16     (15) to contract with another credit union to furnish 
 14.17  services which either could otherwise perform.  Contracted 
 14.18  services under this clause are subject to regulation and 
 14.19  examination by the commissioner of commerce like other services; 
 14.20     (16) in furtherance of the twofold purpose of promoting 
 14.21  thrift among its members and creating a source of credit for 
 14.22  them at legitimate rates of interest for provident purposes, and 
 14.23  not in limitation of the specific powers hereinbefore conferred, 
 14.24  to have all the powers enumerated, authorized, and permitted by 
 14.25  this chapter, and such other rights, privileges and powers 
 14.26  incidental to, or necessary for, the accomplishment of the 
 14.27  objectives and purposes of the credit union; 
 14.28     (17) to rent safe deposit boxes to its members if the 
 14.29  credit union obtains adequate insurance or bonding coverage for 
 14.30  losses which might result from the rental of safe deposit boxes; 
 14.31     (18) notwithstanding the provisions of section 52.05, to 
 14.32  accept deposits of public funds in an amount secured by 
 14.33  insurance or other means pursuant to chapter 118 or section 
 14.34  9.031 or other applicable law and to receive deposits of trust 
 14.35  funds provided that either the provider or the beneficial owner 
 14.36  of the funds is a member of the credit union accepting the 
 15.1   deposit; 
 15.2      (19) to accept and maintain treasury tax and loan accounts 
 15.3   of the United States and to pledge collateral to secure the 
 15.4   treasury tax or loan accounts, in accordance with the 
 15.5   regulations of the Department of Treasury of the United States; 
 15.6      (20) to accept deposits pursuant to section 149A.97, 
 15.7   subdivision 5, notwithstanding the provisions of section 52.05, 
 15.8   if the deposits represent funding of prepaid funeral plans of 
 15.9   members; 
 15.10     (21) to sell, in whole or in part, real estate secured 
 15.11  loans provided that:  
 15.12     (a) the loan is secured by a first lien; 
 15.13     (b) the board of directors approves the sale; 
 15.14     (c) if the sale is partial, the agreement to sell a partial 
 15.15  interest shall, at a minimum:  
 15.16     (i) identify the loan or loans covered by the agreement; 
 15.17     (ii) provide for the collection, processing, remittance of 
 15.18  payments of principal and interest, taxes and insurance premiums 
 15.19  and other charges or escrows, if any; 
 15.20     (iii) define the responsibilities of each party in the 
 15.21  event the loan becomes subject to collection, loss or 
 15.22  foreclosure; 
 15.23     (iv) provide that in the event of loss, each owner shall 
 15.24  share in the loss in proportion to its interest in the loan or 
 15.25  loans; 
 15.26     (v) provide for the distribution of payments of principal 
 15.27  to each owner proportionate to its interest in the loan or 
 15.28  loans; 
 15.29     (vi) provide for loan status reports; 
 15.30     (vii) state the terms and conditions under which the 
 15.31  agreement may be terminated or modified; and 
 15.32     (d) the sale is without recourse or repurchase unless the 
 15.33  agreement:  
 15.34     (i) requires repurchase of a loan because of any breach of 
 15.35  warranty or misrepresentation; 
 15.36     (ii) allows the seller to repurchase at its discretion; or 
 16.1      (iii) allows substitution of one loan for another; 
 16.2      (22) in addition to the sale of loans secured by a first 
 16.3   lien on real estate, to sell, pledge, discount, or otherwise 
 16.4   dispose of, in whole or in part, to any source, a loan or group 
 16.5   of loans, other than a self-replenishing line of credit; 
 16.6   provided, that within a calendar year beginning January 1 the 
 16.7   total dollar value of loans sold, other than loans secured by 
 16.8   real estate or insured by a state or federal agency, shall not 
 16.9   exceed 25 percent of the dollar amount of all loans and 
 16.10  participating interests in loans held by the credit union at the 
 16.11  beginning of the calendar year, unless otherwise authorized in 
 16.12  writing by the commissioner; 
 16.13     (23) to designate the par value of the shares of the credit 
 16.14  union by board resolution; 
 16.15     (24) to exercise by resolution the powers set forth in 
 16.16  United States Code, title 12, section 1757, as amended through 
 16.17  December 31, 1992.  Before exercising each power, the board must 
 16.18  submit a plan to the commissioner of commerce detailing 
 16.19  implementation of the power to be used; 
 16.20     (25) to offer self-directed individual retirement accounts 
 16.21  and Keogh accounts and act as custodian and trustee of these 
 16.22  accounts if: 
 16.23     (1) all contributions of funds are initially made to a 
 16.24  deposit, share or share certificate account in the credit union; 
 16.25     (2) any subsequent transfer of funds to other assets is 
 16.26  solely at the direction of the member and the credit union 
 16.27  exercises no investment discretion and provides no investment 
 16.28  advice with respect to plan assets; and 
 16.29     (3) the member is clearly notified of the fact that 
 16.30  National Credit Union Share Insurance Fund coverage is limited 
 16.31  to funds held in deposit, share or share certificate accounts of 
 16.32  National Credit Union Share Insurance Fund-insured credit unions.
 16.33     Sec. 9.  Minnesota Statutes 1998, section 56.131, 
 16.34  subdivision 4, is amended to read: 
 16.35     Subd. 4.  [ADJUSTMENT OF DOLLAR AMOUNTS.] The dollar 
 16.36  amounts in subdivisions 2 and 6, sections 53.04, subdivision 3a, 
 17.1   paragraph (c), 56.01, 56.12, and 56.125 shall change 
 17.2   periodically, as provided in section 47.59, subdivision 3. 
 17.3      Sec. 10.  Minnesota Statutes 1998, section 58.02, 
 17.4   subdivision 10, is amended to read: 
 17.5      Subd. 10.  [FINANCIAL INSTITUTION.] "Financial institution" 
 17.6   means a bank, bank and trust, trust company with banking powers, 
 17.7   savings bank, savings association, or credit union, organized 
 17.8   under the laws of this state, any other state, or the United 
 17.9   States; a Minnesota host state branch of an out-of-state 
 17.10  state-chartered bank as provided for in section 49.411; an 
 17.11  industrial loan and thrift under chapter 53; or a regulated 
 17.12  lender under chapter 56.  The term "financial institution" also 
 17.13  includes a subsidiary or operating subsidiary of a financial 
 17.14  institution or of a bank holding company as defined in the 
 17.15  federal Bank Holding Company Act, United States Code, title 12, 
 17.16  section 1841 et seq., if the subsidiary or operating subsidiary 
 17.17  can demonstrate to the satisfaction of the commissioner that it 
 17.18  is regulated and subject to active and ongoing oversight and 
 17.19  supervision by a federal banking agency, as defined in the 
 17.20  Federal Deposit Insurance Act, United States Code, title 12, 
 17.21  section 1811 et seq., or the commissioner.  
 17.22     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 17.23  58.04, subdivision 1, is amended to read: 
 17.24     Subdivision 1.  [RESIDENTIAL MORTGAGE ORIGINATOR LICENSING 
 17.25  REQUIREMENTS.] (a) Beginning August 1, 1999, no person shall act 
 17.26  as a residential mortgage originator, or make residential 
 17.27  mortgage loans without first obtaining a license from the 
 17.28  commissioner according to the licensing procedures provided in 
 17.29  this chapter. 
 17.30     (b) The following persons are exempt from the residential 
 17.31  mortgage originator licensing requirements: 
 17.32     (1) an employee of one mortgage originator licensee or one 
 17.33  person holding a certificate of exemption; 
 17.34     (2) a person engaged solely in commercial mortgage 
 17.35  activities; 
 17.36     (3) a person licensed as a real estate broker under chapter 
 18.1   82, and who is not licensed to another real estate broker; 
 18.2      (3) an individual real estate licensee who is licensed to 
 18.3   the a real estate broker as described in clause (2) if: 
 18.4      (i) the individual licensee acts only under the name, 
 18.5   authority, and supervision of the broker to whom the licensee is 
 18.6   licensed; 
 18.7      (ii) the broker to whom the licensee is licensed obtains a 
 18.8   certificate of exemption according to section 58.05, subdivision 
 18.9   2; 
 18.10     (iii) the broker does not collect an advance fee for its 
 18.11  residential mortgage-related activities; and 
 18.12     (iv) the residential mortgage origination activities are 
 18.13  incidental to the real estate licensee's primary activities as a 
 18.14  real estate broker or salesperson; 
 18.15     (4) an individual licensed as a property/casualty or 
 18.16  life/health insurance agent under chapter 60K if: 
 18.17     (i) the insurance agent acts on behalf of only one 
 18.18  residential mortgage originator, which is in compliance with 
 18.19  chapter 58; 
 18.20     (ii) the insurance agent has entered into a written 
 18.21  contract with the mortgage originator under the terms of which 
 18.22  the mortgage originator agrees to accept responsibility for the 
 18.23  insurance agent's residential mortgage-related activities; 
 18.24     (iii) the insurance agent obtains a certificate of 
 18.25  exemption under section 58.05, subdivision 2; and 
 18.26     (iv) the insurance agent does not collect an advance fee 
 18.27  for the insurance agent's residential mortgage-related 
 18.28  activities; 
 18.29     (5) a person making who is not in the business of making 
 18.30  residential mortgage loans and who makes no more than five 
 18.31  residential mortgage three such loans, with its own funds, 
 18.32  during any 12-month period; 
 18.33     (6) a financial institution as defined in section 58.02, 
 18.34  subdivision 10; 
 18.35     (7) an agency of the federal government, or of a state or 
 18.36  municipal government; 
 19.1      (8) an employee or employer pension plan making loans only 
 19.2   to its participants; 
 19.3      (9) a person acting in a fiduciary capacity, such as a 
 19.4   trustee or receiver, as a result of a specific order issued by a 
 19.5   court of competent jurisdiction; or 
 19.6      (10) a person exempted by order of the commissioner.  
 19.7      Sec. 12.  Minnesota Statutes 1998, section 58.04, 
 19.8   subdivision 2, is amended to read: 
 19.9      Subd. 2.  [RESIDENTIAL MORTGAGE SERVICER LICENSING 
 19.10  REQUIREMENTS.] (a) Beginning August 1, 1999, no person shall 
 19.11  engage in activities or practices that fall within the 
 19.12  definition of "servicing a residential mortgage loan" under 
 19.13  section 58.02, subdivision 22, without first obtaining a license 
 19.14  from the commissioner according to the licensing procedures 
 19.15  provided in this chapter. 
 19.16     (b) The following persons are exempt from the residential 
 19.17  mortgage servicer licensing requirements: 
 19.18     (1) a person licensed as a residential mortgage originator; 
 19.19     (2) an employee of one licensee or one person holding a 
 19.20  certificate of exemption based on an exemption under this 
 19.21  subdivision; 
 19.22     (3) a person engaged solely in commercial mortgage 
 19.23  activities; 
 19.24     (4) a person servicing loans made with its own funds, if no 
 19.25  more than five three such loans are made in any 12-month period; 
 19.26     (5) (4) a financial institution as defined in section 
 19.27  58.02, subdivision 10; 
 19.28     (6) (5) an agency of the federal government, or of a state 
 19.29  or municipal government; 
 19.30     (7) (6) an employee or employer pension plan making loans 
 19.31  only to its participants; 
 19.32     (8) (7) a person acting in a fiduciary capacity, such as a 
 19.33  trustee or receiver, as a result of a specific order issued by a 
 19.34  court of competent jurisdiction; or 
 19.35     (9) (8) a person exempted by order of the commissioner. 
 19.36     Sec. 13.  Minnesota Statutes 1998, section 58.04, 
 20.1   subdivision 3, is amended to read: 
 20.2      Subd. 3.  [CONDUCTING BUSINESS UNDER LICENSE.] No person 
 20.3   required to be licensed under this chapter may, without a 
 20.4   license, do business under a name or title or circulate or use 
 20.5   advertising or make representations or give information to a 
 20.6   person, that indicates or reasonably implies activity within the 
 20.7   scope of this chapter. 
 20.8      No person licensed under this chapter may do business under 
 20.9   more than one name or title. 
 20.10     Sec. 14.  Minnesota Statutes 1998, section 58.05, is 
 20.11  amended by adding a subdivision to read: 
 20.12     Subd. 3.  [CERTIFICATE OF EXEMPTION.] A person must obtain 
 20.13  a certificate of exemption from the commissioner to qualify as 
 20.14  an exempt person under section 58.04, subdivision 1, paragraph 
 20.15  (b), as a real estate broker under clause (2), an insurance 
 20.16  agent under clause (4), a financial institution under clause 
 20.17  (6), or by order of the commissioner under clause (10); or under 
 20.18  section 58.04, subdivision 2, paragraph (b), as a financial 
 20.19  institution under clause (4), or by order of the commissioner 
 20.20  under clause (8). 
 20.21     Sec. 15.  Minnesota Statutes 1998, section 58.08, as 
 20.22  amended by Laws 1999, chapter 151, section 36, is amended to 
 20.23  read: 
 20.24     58.08 [BONDS; LETTERS OF CREDIT.] 
 20.25     Subdivision 1.  [REQUIREMENT OF RESIDENTIAL MORTGAGE 
 20.26  ORIGINATORS.] A residential mortgage originator licensee 
 20.27  engaging in servicing a residential mortgage loan shall 
 20.28  continuously maintain a surety bond or irrevocable letter of 
 20.29  credit in an amount not less than $50,000 in a form approved by 
 20.30  the commissioner, issued by an insurance company or bank 
 20.31  authorized to do so in this state.  The bond or irrevocable 
 20.32  letter of credit must be available for the recovery of expenses, 
 20.33  fines, and fees levied by the commissioner under this chapter 
 20.34  relating to servicing, and for losses or damages incurred by 
 20.35  borrowers as the result of a licensee's servicing-related 
 20.36  noncompliance with the requirements of this chapter, sections 
 21.1   325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of 
 21.2   contract. 
 21.3      The bond or irrevocable letter of credit must be submitted 
 21.4   with the originator's license application, and evidence of 
 21.5   continued coverage must be submitted with each renewal.  Any 
 21.6   change in the bond or letter of credit must be submitted for 
 21.7   approval by the commissioner, within ten days of its execution. 
 21.8      Subd. 2.  [REQUIREMENT OF RESIDENTIAL MORTGAGE SERVICERS.] 
 21.9   A residential mortgage servicer licensee shall continuously 
 21.10  maintain a surety bond or irrevocable letter of credit in an 
 21.11  amount not less than $100,000 in a form approved by the 
 21.12  commissioner, issued by an insurance company or bank authorized 
 21.13  to do so in this state.  The bond or irrevocable letter of 
 21.14  credit must be available for the recovery of expenses, fines, 
 21.15  and fees levied by the commissioner under this chapter, and for 
 21.16  losses or damages incurred by borrowers or other aggrieved 
 21.17  parties as the result of a licensee's noncompliance with the 
 21.18  requirements of this chapter, sections 325D.43 to 325D.48, and 
 21.19  325F.67 to 325F.69, or breach of contract relating to activities 
 21.20  regulated by this chapter.  
 21.21     The bond or irrevocable letter of credit must be submitted 
 21.22  with the servicer's license application and evidence of 
 21.23  continued coverage must be submitted with each renewal.  Any 
 21.24  change in the bond or letter of credit must be submitted for 
 21.25  approval by the commissioner, within ten days of its execution. 
 21.26     Subd. 3.  [EXEMPTION.] Subdivisions 1 and 2 do not apply to 
 21.27  mortgage originators or mortgage servicers who are approved as 
 21.28  seller/servicers by the Federal National Mortgage Association or 
 21.29  the Federal Home Loan Mortgage Corporation. 
 21.30     Subd. 4.  [IRREVOCABLE LETTER OF CREDIT.] As used in this 
 21.31  chapter, an irrevocable letter of credit must be accepted only 
 21.32  if it is clean, irrevocable, and contains an evergreen clause. 
 21.33     (a) "Clean" means a letter of credit that is not 
 21.34  conditioned on the delivery of any other documents or materials. 
 21.35     (b) "Irrevocable" means a letter of credit that cannot be 
 21.36  modified or revoked without the consent of the beneficiary once 
 22.1   the beneficiary is established. 
 22.2      (c) "Evergreen clause" means one that specifically states 
 22.3   the expiration of a letter of credit will not take place without 
 22.4   a 60-day notice by the issuer and one that allows the issuer to 
 22.5   conduct an annual review of the account party's financial 
 22.6   condition.  If prior notice of expiration is not given by the 
 22.7   issuer, the letter of credit is automatically extended for one 
 22.8   year. 
 22.9      A clean irrevocable letter of credit must be accepted only 
 22.10  if it is issued by a financial institution that is authorized to 
 22.11  engage in banking in any of the 50 states or under the laws of 
 22.12  the United States, and whose business is substantially confined 
 22.13  to banking and supervised by the state commissioner of commerce 
 22.14  or similar official, and that has a long-term debt rating by a 
 22.15  recognized national rating agency of investment grade or 
 22.16  better.  If no long-term debt rating is available, the financial 
 22.17  institution must have the equivalent investment grade financial 
 22.18  characteristics. 
 22.19     Sec. 16.  Minnesota Statutes 1998, section 58.10, 
 22.20  subdivision 1, is amended to read: 
 22.21     Subdivision 1.  [AMOUNTS.] The following fees must be paid 
 22.22  to the commissioner: 
 22.23     (1) for an initial residential mortgage originator license, 
 22.24  $800; 
 22.25     (2) for a renewal license, $400; 
 22.26     (3) for an initial residential mortgage servicer's license, 
 22.27  $1,000; 
 22.28     (4) for a renewal license, $500; and 
 22.29     (5) license service fees as set forth in chapter 45; and 
 22.30     (6) for a certificate of exemption, $100. 
 22.31     Sec. 17.  [58.135] [RATES AND CHARGES.] 
 22.32     Subdivision 1.  [FIRST LIEN MORTGAGES.] A residential 
 22.33  mortgage originator making first lien residential mortgage loans 
 22.34  must comply with the applicable limits on residential mortgage 
 22.35  loan rates, fees, and charges as found in sections 47.20 and 
 22.36  47.204. 
 23.1      Nothing in this subdivision prevents a financial 
 23.2   institution under section 47.59, subdivision 1, paragraph (k), 
 23.3   from making first lien residential mortgage loans under section 
 23.4   47.59 or other provisions of law available to financial 
 23.5   institutions under that section. 
 23.6      Subd. 2.  [JUNIOR LIEN MORTGAGES.] (a) A residential 
 23.7   mortgage originator that is a bank, bank and trust, trust 
 23.8   company with banking powers, savings bank, savings association, 
 23.9   or credit union organized under the laws of this or any other 
 23.10  state or the United States, or an industrial loan and thrift 
 23.11  company under chapter 53 or a regulated lender under chapter 56 
 23.12  or an entity in another state subject to regulation 
 23.13  substantially similar to chapter 53 or 56, making junior lien 
 23.14  residential loans, must comply with the limits on residential 
 23.15  mortgage loan rates, fees, and charges as found in section 47.59.
 23.16     Nothing in this subdivision authorizes a mortgage 
 23.17  originator to make loans on terms and conditions that would not 
 23.18  be available to it in the absence of this section. 
 23.19     (b) A residential mortgage originator other than an entity 
 23.20  designated in paragraph (a) making junior lien residential 
 23.21  loans, must comply with the limits on residential mortgage loan 
 23.22  rates, fees, and charges as found in section 47.20. 
 23.23     Sec. 18.  Minnesota Statutes 1998, section 168.72, is 
 23.24  amended by adding a subdivision to read: 
 23.25     Subd. 1a.  [PROMPT CREDITING OF PAYMENTS.] (a) A contract 
 23.26  holder shall credit a payment to the customer's account as of 
 23.27  the date of receipt except when a delay in crediting does not 
 23.28  result in a finance or other charge or except as provided in 
 23.29  paragraph (b). 
 23.30     (b) If a retail installment contract or other instructions 
 23.31  specify requirements for the consumer to follow in making 
 23.32  payments, but the contract holder accepts a payment that does 
 23.33  not conform to the requirements, the contract holder shall 
 23.34  credit the payment within five days of receipt. 
 23.35     (c) If a contract holder fails to credit a payment, as 
 23.36  required by paragraphs (a) and (b), in time to avoid the 
 24.1   imposition of finance or other charges, the contract holder 
 24.2   shall adjust the consumer's account so that the charges imposed 
 24.3   are credited to the consumer's account promptly. 
 24.4      Sec. 19.  [COMMERCE DEPARTMENT EXAMINATION; FOUNDATION LOAN 
 24.5   PORTFOLIO PILOT PROJECT.] 
 24.6      (a) Any nonprofit charitable organization recognized as 
 24.7   exempt from federal income taxation under section 501(c) (3) of 
 24.8   the federal Internal Revenue Code of 1986, as amended, 
 24.9   participating as a regional organization under the challenge 
 24.10  grant program established under Minnesota Statutes, section 
 24.11  116J.415, and serving the counties of Aitkin, Cook, Lake, St. 
 24.12  Louis, Carlton, Itasca, and Koochiching as of the effective date 
 24.13  of this section, may enter into an agreement with the 
 24.14  commissioner of commerce to facilitate the charitable 
 24.15  organization's participation in the United States Small Business 
 24.16  Administration guaranteed lender program. 
 24.17     (b) The agreement referred to in paragraph (a) shall 
 24.18  provide for a level of examination and supervision by the 
 24.19  department of commerce necessary for the charitable organization 
 24.20  to meet United States Small Business Administration requirements 
 24.21  for guaranteed lender status, including an annual examination of 
 24.22  the books, accounts, records, and files related to the 
 24.23  charitable organization's portfolio of guaranteed loans.  
 24.24  Reports of the commissioner's annual examination shall be made 
 24.25  available to the United States Small Business Administration 
 24.26  upon request. 
 24.27     (c) The charitable organization shall pay the department's 
 24.28  cost, as determined by the commissioner of commerce, of the 
 24.29  supervision and examination required under an agreement entered 
 24.30  into pursuant to this section.  The charitable organization 
 24.31  shall also pay the department's cost, as determined by the 
 24.32  commissioner, of negotiating the agreement.  Money received by 
 24.33  the department under this subdivision must be deposited in the 
 24.34  state treasury and credited to an account in the special revenue 
 24.35  fund.  Money in this account is annually appropriated to the 
 24.36  commissioner for purposes of administering this section. 
 25.1      (d) This section expires December 31, 2003. 
 25.2      Sec. 20.  [VASA TOWNSHIP; DETACHED BANKING FACILITY.] 
 25.3      With the prior approval of the commissioner of commerce, a 
 25.4   bank operating its principal office in Cannon Falls may 
 25.5   establish and maintain not more than one detached facility in 
 25.6   Vasa township.  A bank desiring to establish such a detached 
 25.7   facility must follow the approval procedure prescribed in 
 25.8   Minnesota Statutes, section 47.54.  The establishment of a 
 25.9   detached facility under this section is subject to Minnesota 
 25.10  Statutes, sections 47.51 to 47.57, except to the extent those 
 25.11  sections are inconsistent with this section. 
 25.12     Sec. 21.  [REPEALER.] 
 25.13     (a) Minnesota Statutes 1998, sections 58.02, subdivision 
 25.14  15; and 58.05, subdivision 2, are repealed. 
 25.15     (b) Minnesota Rules, part 2675.4180, is repealed. 
 25.16     (c) Minnesota Rules, part 2675.6141, subpart 1, is repealed 
 25.17  effective the day following final enactment. 
 25.18     Sec. 22.  [EFFECTIVE DATES.] 
 25.19     Sections 1 to 3, 5 to 16, 19, and 21 are effective the day 
 25.20  after final enactment.  Sections 4, 17, and 18 are effective 
 25.21  July 1, 2000.  Section 20 is effective the day after compliance 
 25.22  by the governing body of Vasa township with Minnesota Statutes, 
 25.23  section 645.021, subdivision 3.