<a id="pl.1.3"></a><var>1.3</var>with certain loan transactions;amending Minnesota Statutes 2010, section 47.59, <br/>
<a id="pl.1.4"></a><var>1.4</var>subdivision 6.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. Minnesota Statutes 2010, section 47.59, subdivision 6, is amended to read:<br/>
<a id="pl.1.7"></a><var>1.7</var>    Subd. 6. <b>Additional charges.</b> (a) For purposes of this subdivision, "financial <br/>
<a id="pl.1.8"></a><var>1.8</var>institution" includes a person described in subdivision 4, paragraph (a). In addition to the <br/>
<a id="pl.1.9"></a><var>1.9</var>finance charges permitted by this section, a financial institution may contract for and <br/>
<a id="pl.1.10"></a><var>1.10</var>receive the following additional charges that may be included in the principal amount <br/>
<a id="pl.1.11"></a><var>1.11</var>of the loan or credit sale unpaid balances:<br/>
<a id="pl.1.12"></a><var>1.12</var>(1) official fees and taxes;<br/>
<a id="pl.1.13"></a><var>1.13</var>(2) charges for insurance as described in paragraph (b);<br/>
<a id="pl.1.14"></a><var>1.14</var>(3) with respect to a loan or credit sale contract secured by real estate, the following <br/>
<a id="pl.1.15"></a><var>1.15</var>"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of <br/>
<a id="pl.1.16"></a><var>1.16</var>circumvention or evasion of this section:<br/>
<a id="pl.1.17"></a><var>1.17</var>(i) fees or premiums for title examination, abstract of title, title insurance, surveys, <br/>
<a id="pl.1.18"></a><var>1.18</var>or similar purposes;<br/>
<a id="pl.1.19"></a><var>1.19</var>(ii) fees for preparation of a deed, mortgage, settlement statement, or other <br/>
<a id="pl.1.20"></a><var>1.20</var>documents, if not paid to the financial institution;<br/>
<a id="pl.1.21"></a><var>1.21</var>(iii) escrows for future payments of taxes, including assessments for improvements, <br/>
<a id="pl.1.22"></a><var>1.22</var>insurance, and water, sewer, and land rents;<br/>
<a id="pl.1.23"></a><var>1.23</var>(iv) fees for notarizing deeds and other documents;<br/>
<a id="pl.1.24"></a><var>1.24</var>(v) appraisal and credit report fees; and<br/>
<a id="pl.2.1"></a><var>2.1</var>(vi) fees for determining whether any portion of the property is located in a flood <br/>
<a id="pl.2.2"></a><var>2.2</var>zone and fees for ongoing monitoring of the property to determine changes, if any, <br/>
<a id="pl.2.3"></a><var>2.3</var>in flood zone status;<br/>
<a id="pl.2.4"></a><var>2.4</var>(4) a delinquency charge on a payment, including the minimum payment due in <br/>
<a id="pl.2.5"></a><var>2.5</var>connection with open-end credit, not paid in full on or before the tenth day after its due <br/>
<a id="pl.2.6"></a><var>2.6</var>date in an amount not to exceed five percent of the amount of the payment or $5.20, <br/>
<a id="pl.2.7"></a><var>2.7</var>whichever is greater;<br/>
<a id="pl.2.8"></a><var>2.8</var>(5) for a returned check or returned automatic payment withdrawal request, an <br/>
<a id="pl.2.9"></a><var>2.9</var>amount not in excess of the service charge limitation in section 
         <statute_ref>604.113, except that, on <br/>
<a id="pl.2.10"></a><var>2.10</var>a loan transaction that is a consumer small loan as defined in section 47.60, subdivision <br/>
<a id="pl.2.11"></a><var>2.11</var>1, paragraph (a), in which cash is advanced in exchange for a personal check, the civil <br/>
<a id="pl.2.12"></a><var>2.12</var>penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded <br/>
<a id="pl.2.13"></a><var>2.13</var>or assessed against the borrower
         </statute_ref>; and<br/>
<a id="pl.2.14"></a><var>2.14</var>(6) charges for other benefits, including insurance, conferred on the borrower that <br/>
<a id="pl.2.15"></a><var>2.15</var>are of a type that is not for credit; and<br/>
<a id="pl.2.16"></a><var>2.16</var>(7) except on an unsecured loan transaction that is either a consumer small loan, <br/>
<a id="pl.2.17"></a><var>2.17</var>as defined in section 47.60, subdivision 1, paragraph (a), or a loan transaction that is a <br/>
<a id="pl.2.18"></a><var>2.18</var>consumer short-term loan, as defined in section 47.601, subdivision 1, paragraph (d), <br/>
<a id="pl.2.19"></a><var>2.19</var>the following reasonable fees and charges that are contracted for between a financial <br/>
<a id="pl.2.20"></a><var>2.20</var>institution organized under chapter 53 and a borrower with respect to a non-recourse <br/>
<a id="pl.2.21"></a><var>2.21</var>collateralized loan: fees for transporting, storing, securing, insuring, and maintaining <br/>
<a id="pl.2.22"></a><var>2.22</var>the collateral for the loan.<br/>
<a id="pl.2.23"></a><var>2.23</var>(b) An additional charge may be made for insurance written in connection with the <br/>
<a id="pl.2.24"></a><var>2.24</var>loan or credit sale contract, which may be included in the principal amount of the loan or <br/>
<a id="pl.2.25"></a><var>2.25</var>credit sale unpaid balances:<br/>
<a id="pl.2.26"></a><var>2.26</var>(1) with respect to insurance against loss of or damage to property, or against <br/>
<a id="pl.2.27"></a><var>2.27</var>liability arising out of the ownership or use of property, if the financial institution furnishes <br/>
<a id="pl.2.28"></a><var>2.28</var>a clear, conspicuous, and specific statement in writing to the borrower setting forth the <br/>
<a id="pl.2.29"></a><var>2.29</var>cost of the insurance if obtained from or through the financial institution and stating that <br/>
<a id="pl.2.30"></a><var>2.30</var>the borrower may choose the person through whom the insurance is to be obtained;<br/>
<a id="pl.2.31"></a><var>2.31</var>(2) with respect to credit insurance or mortgage insurance providing life, accident, <br/>
<a id="pl.2.32"></a><var>2.32</var>health, or unemployment coverage, if the insurance coverage is not required by the <br/>
<a id="pl.2.33"></a><var>2.33</var>financial institution, and this fact is clearly and conspicuously disclosed in writing to <br/>
<a id="pl.2.34"></a><var>2.34</var>the borrower, and the borrower gives specific, dated, and separately signed affirmative <br/>
<a id="pl.2.35"></a><var>2.35</var>written indication of the borrower's desire to do so after written disclosure to the borrower <br/>
<a id="pl.2.36"></a><var>2.36</var>of the cost of the insurance; and<br/>
<a id="pl.3.1"></a><var>3.1</var>(3) with respect to the vendor's single interest insurance, but only (i) to the extent <br/>
<a id="pl.3.2"></a><var>3.2</var>that the insurer has no right of subrogation against the borrower; and (ii) to the extent that <br/>
<a id="pl.3.3"></a><var>3.3</var>the insurance does not duplicate the coverage of other insurance under which loss is <br/>
<a id="pl.3.4"></a><var>3.4</var>payable to the financial institution as its interest may appear, against loss of or damage <br/>
<a id="pl.3.5"></a><var>3.5</var>to property for which a separate charge is made to the borrower according to clause (1); <br/>
<a id="pl.3.6"></a><var>3.6</var>and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the <br/>
<a id="pl.3.7"></a><var>3.7</var>financial institution to the borrower setting forth the cost of the insurance if obtained from <br/>
<a id="pl.3.8"></a><var>3.8</var>or through the financial institution and stating that the borrower may choose the person <br/>
<a id="pl.3.9"></a><var>3.9</var>through whom the insurance is to be obtained.<br/>
<a id="pl.3.10"></a><var>3.10</var>(c) In addition to the finance charges and other additional charges permitted by <br/>
<a id="pl.3.11"></a><var>3.11</var>this section, a financial institution may contract for and receive the following additional <br/>
<a id="pl.3.12"></a><var>3.12</var>charges in connection with open-end credit, which may be included in the principal <br/>
<a id="pl.3.13"></a><var>3.13</var>amount of the loan or balance upon which the finance charge is computed:<br/>
<a id="pl.3.14"></a><var>3.14</var>(1) annual charges, not to exceed $50 per annum, payable in advance, for the <br/>
<a id="pl.3.15"></a><var>3.15</var>privilege of opening and maintaining open-end credit;<br/>
<a id="pl.3.16"></a><var>3.16</var>(2) charges for the use of an automated teller machine;<br/>
<a id="pl.3.17"></a><var>3.17</var>(3) charges for any monthly or other periodic payment period in which the borrower <br/>
<a id="pl.3.18"></a><var>3.18</var>has exceeded or, except for the financial institution's dishonor would have exceeded, <br/>
<a id="pl.3.19"></a><var>3.19</var>the maximum approved credit limit, in an amount not in excess of the service charge <br/>
<a id="pl.3.20"></a><var>3.20</var>permitted in section 
         <statute_ref>604.113</statute_ref>;<br/>
<a id="pl.3.21"></a><var>3.21</var>(4) charges for obtaining a cash advance in an amount not to exceed the service <br/>
<a id="pl.3.22"></a><var>3.22</var>charge permitted in section 
         <statute_ref>604.113</statute_ref>; and<br/>
<a id="pl.3.23"></a><var>3.23</var>(5) charges for check and draft copies and for the replacement of lost or stolen <br/>
<a id="pl.3.24"></a><var>3.24</var>credit cards.<br/>
<a id="pl.3.25"></a><var>3.25</var>(d) In addition to the finance charges and other additional charges permitted by this <br/>
<a id="pl.3.26"></a><var>3.26</var>section, a financial institution may contract for and receive a onetime loan administrative <br/>
<a id="pl.3.27"></a><var>3.27</var>fee not exceeding $25 in connection with closed-end credit, which may be included in the <br/>
<a id="pl.3.28"></a><var>3.28</var>principal balance upon which the finance charge is computed. This paragraph applies only <br/>
<a id="pl.3.29"></a><var>3.29</var>to closed-end credit in an original principal amount of $4,320 or less. The determination <br/>
<a id="pl.3.30"></a><var>3.30</var>of an original principal amount must exclude the administrative fee contracted for and <br/>
<a id="pl.3.31"></a><var>3.31</var>received according to this paragraph.<br/>
<a id="pl.3.32"></a><var>3.32</var>(e) Upon written request by a borrower, the lender shall within seven days produce <br/>
<a id="pl.3.33"></a><var>3.33</var>to the borrower documentation showing the fees that have been paid by the lender for <br/>
<a id="pl.3.34"></a><var>3.34</var>transporting, storing, securing, insuring, and maintaining the collateral for the loan, <br/>
<a id="pl.3.35"></a><var>3.35</var>including to whom the fees have been paid, the date, the amount, and the reason. Failure <br/>
<a id="pl.3.36"></a><var>3.36</var>to produce said documentation shall result in a forfeiture of said fees.<br/>