HF 40

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to banks; limiting a financial intermediary's 
  1.3             service charge to an issuer of a check in certain 
  1.4             circumstances; amending Minnesota Statutes 2000, 
  1.5             section 48.512, subdivision 7. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 48.512, 
  1.8   subdivision 7, is amended to read: 
  1.9      Subd. 7.  [TRANSACTION ACCOUNT SERVICE CHARGES AND CHARGES 
  1.10  RELATING TO DISHONORED CHECKS.] (a) The establishment of 
  1.11  transaction account service charges and the amounts of the 
  1.12  charges not otherwise limited or prescribed by law or rule is a 
  1.13  business decision to be made by each financial intermediary 
  1.14  according to sound business judgment and safe, sound financial 
  1.15  institution operational standards.  In establishing transaction 
  1.16  account service charges, the financial intermediary may 
  1.17  consider, but is not limited to considering: 
  1.18     (1) costs incurred by the institution, plus a profit 
  1.19  margin, in providing the service; 
  1.20     (2) the deterrence of misuse by customers of financial 
  1.21  institution services; 
  1.22     (3) the establishment of the competitive position of the 
  1.23  financial institution in accordance with the institution's 
  1.24  marketing strategy; and 
  1.25     (4) maintenance of the safety and soundness of the 
  2.1   institution. 
  2.2      (b) Transaction account service charges must be reasonable 
  2.3   in relation to these considerations and should be arrived at by 
  2.4   each financial intermediary on a competitive basis and not on 
  2.5   the basis of any agreement, arrangement, undertaking, or 
  2.6   discussion with other financial intermediaries or their officers.
  2.7      (c) A financial intermediary may not impose a service 
  2.8   charge in excess of $4 for a dishonored check on any person 
  2.9   other than the issuer of the check. 
  2.10     (d) Notwithstanding any law to the contrary, a financial 
  2.11  intermediary may not impose on the issuer of a check a service 
  2.12  charge in excess of $5 for an overdrawn transaction account if 
  2.13  the financial intermediary is authorized to offset an overdraft 
  2.14  of the transaction account with funds in other accounts with 
  2.15  that financial intermediary.