SF 3348

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/10/2025 09:30 a.m.

A bill for an act
relating to cannabis; establishing certain regulations on lenders to cannabis
businesses; proposing coding for new law in Minnesota Statutes, chapter 342.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [342.125] FAIR LENDING REQUIREMENTS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Borrower" means a person who is a prospective license holder, an applicant for a
license, or a current license holder under this chapter.
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new text begin (c) "Lender" means an individual or entity that offers or makes a secured or unsecured
loan or other extension of credit to a borrower. Lender does not include a bank, credit union,
or any other lender that is under the supervision of or regulated by the Office of the
Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit
Union Administration, or the Department of Commerce.
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new text begin (d) "Loan" means a loan offered or made by a lender to a borrower to obtain a license
under section 342.10 or to obtain real estate, operational funding, equipment, or other
business necessities to start or operate a cannabis business. For purposes of this section, a
loan does not include amounts under $10,000.
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new text begin (e) "Loan contract" means the loan agreement between a lender and a borrower.
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new text begin (f) "Person" means:
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new text begin (1) a natural person;
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new text begin (2) a partnership, as defined in section 323A.0101, clause (8);
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new text begin (3) a limited partnership, as defined in section 321.0102, clause (11);
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new text begin (4) a limited liability partnership, as defined in section 321.0102, clause (9);
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new text begin (5) a limited liability company, as defined in section 322C.0102, subdivision 12;
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new text begin (6) a cooperative, as defined in section 308A.005, subdivision 5, or 308B.005, subdivision
9;
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new text begin (7) a public benefit corporation, as defined in section 304A.021, subdivision 7;
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new text begin (8) a nonprofit corporation organized under chapter 317A; or
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new text begin (9) a privately held company or corporation.
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new text begin Subd. 2. new text end

new text begin Fair lending requirement. new text end

new text begin A lender is prohibited from making a loan to a
borrower unless the loan complies with this section.
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new text begin Subd. 3. new text end

new text begin Fair lending disclosures; notice; contents. new text end

new text begin (a) No less than five days before
a loan contract is executed, a lender must deliver to the borrower an itemized list of
disclosures. The list must be provided in writing and must clearly and conspicuously identify:
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new text begin (1) the loan's interest rate, expressed as an annual percentage;
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new text begin (2) the finance charges;
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new text begin (3) the payment schedule;
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new text begin (4) the total amount financed;
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new text begin (5) the dates and amounts of a balloon payment, if any; and
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new text begin (6) the total payment amount over the life of the loan.
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new text begin (b) A lender must provide notice of default and a reasonable opportunity to cure before
exercising an enforcement right granted under a loan contract.
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new text begin (c) The loan contract and all disclosures must be written in the language used to negotiate
the transaction.
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new text begin Subd. 4. new text end

new text begin False advertisements or solicitations prohibited. new text end

new text begin A lender or a person soliciting
loans on a lender's behalf is prohibited from soliciting a borrower for a loan through an
advertisement, print, display, publication, correspondence, electronic means, or other manner
that is false, misleading, or deceptive with respect to the rates, terms, or conditions for a
loan, credit, goods, or things in action.
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new text begin Subd. 5. new text end

new text begin Violations. new text end

new text begin A loan made by a lender in violation of this section is void and the
borrower is not obligated to pay any amounts owed on the loan.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to loans
offered or made on or after that date.
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