1.1 	A bill for an act
1.2 	relating to commerce; eliminating the ability of financial institutions to make 
1.3 	payday loans;amending Minnesota Statutes 2008, section 47.59, by adding a 
1.4 	subdivision; repealing Minnesota Statutes 2008, section 47.60.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 47.59, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 15.Prohibition on certain loans. No financial institution may make 
1.9 	a consumer loan where:
1.10 	(1) the debt is unsecured;
1.11 	(2) repayment of principal and amounts other than principal are made in a single 
1.12 	installment or otherwise due within 90 days of entering into the loan transaction;
1.13 	(3) payments are typically due on or about the time of the receipt by the borrower 
1.14 	of wages; and
1.15 	(4) the indebtedness is evidenced by, but not limited to, a promissory note or 
1.16 	agreement to defer the presentation of a personal check or agreement to debit a checking, 
1.17 	savings, or other account held at a financial institution.

1.18 	Sec. 2.  REPEALER.
 1.19 	Minnesota Statutes 2008, section 47.60, is repealed.

1.20 	Sec. 3. EFFECTIVE DATE.
 1.21 	This act is effective January 1, 2010.