Office of the Revisor of Statutes
HF 2014
Introduction - 94th Legislature (2025 - 2026)
Posted on 06/03/2025 10:23 a.m.
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2.19
A bill for an act
relating to financial institutions; modifying notice requirements for conventional
loan mortgage documents; amending Minnesota Statutes 2024, section 47.20,
subdivision 8.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
Subd. 8.
Conventional loan provisions.
new text begin (a) new text end A lender making a conventional loan shall
comply with the following:
(1) the promissory note and mortgage evidencing a conventional loan shall be printed
in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
typewritten numerals, or shall be legibly handwrittendeleted text begin .deleted text end new text begin ;
new text end
(2) the mortgage evidencing a conventional loan shall contain a provision whereby the
lender agrees to furnish the borrower with a conformed copy of the promissory note and
mortgage at the time they are executed or within a reasonable time after recordation of the
mortgagedeleted text begin .deleted text end new text begin ; and
new text end
(3) the mortgage evidencing a conventional loan shall contain a provision whereby the
lender, if it intends to foreclose, agrees to give the borrower written notice of any default
under the terms or conditions of the promissory note or mortgage, by sending the notice by
deleted text begin certifieddeleted text end new text begin : (i) first-classnew text end mail to the address of the mortgaged property or deleted text begin such otherdeleted text end new text begin a differentnew text end
address deleted text begin asdeleted text end the borrower deleted text begin may have designateddeleted text end new text begin designatesnew text end in writing to the lendernew text begin ; or (ii)
email or other electronic communication, if agreed to by the lender and the borrower in
writingnew text end . The lender need not give the borrower the notice required by this deleted text begin paragraphdeleted text end new text begin clausenew text end
if the default consists of the borrower selling the mortgaged property without the required
consent of the lender.
new text begin (b) new text end The mortgage shall further provide that the noticenew text begin under paragraph (a), clause (3),new text end
shall contain the following provisions:
deleted text begin (a)deleted text end new text begin (1)new text end the nature of the default by the borrower;
deleted text begin (b)deleted text end new text begin (2)new text end the action required to cure the default;
deleted text begin (c)deleted text end new text begin (3)new text end a date, not less than 30 days from the date the notice is mailed by which the
default must be cured;
deleted text begin (d)deleted text end new text begin (4)new text end that failure to cure the default on or before the date specified in the notice may
result in acceleration of the sums secured by the mortgage and sale of the mortgaged
premises;
deleted text begin (e)deleted text end new text begin (5)new text end that the borrower has the right to reinstate the mortgage after acceleration; and
deleted text begin (f)deleted text end new text begin (6)new text end that the borrower has the right to bring a court action to assert the nonexistence
of a default or any other defense of the borrower to acceleration and sale.
Sec. 2. new text begin CERTAIN COMPLIANCE OPTIONAL.
new text end
new text begin
A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
with respect to conventional loan mortgage documents dated between August 1, 2024, and
July 31, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from July 31, 2024.
new text end