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HF 1221

as introduced - 88th Legislature (2013 - 2014) Posted on 04/29/2013 04:45pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to commerce; making various technical and housekeeping changes
related to staff adjusters, canceled licenses, and transfer fees; providing producer
training requirements for flood insurance products; eliminating the membership
camping license requirement; repealing an obsolete collection agency rule;
correcting cross-references; making adjustments to various dollar amounts as
required by state law; providing for a method to periodically update Minnesota
Statutes to reflect the current dollar amounts as adjusted; amending Minnesota
Statutes 2012, sections 47.59, subdivisions 3, 6; 56.12; 56.125, subdivision 2;
56.131, subdivisions 2, 6; 72B.10; 82.62, subdivision 7; 82.63, subdivision
8; 82A.06, subdivision 2; 82A.13, subdivision 1; 82A.18, subdivision 2;
82C.16, subdivision 1; 325G.22, subdivision 1; 510.02, subdivision 1; 550.37,
subdivisions 4, 4a, 6, 10, 12a, 23, 24; proposing coding for new law in Minnesota
Statutes, chapter 60K; repealing Minnesota Statutes 2012, sections 82A.16;
82A.17; Minnesota Rules, part 2870.1500.

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

ARTICLE 1

MISCELLANEOUS TECHNICAL CHANGES

Section 1.

new text begin [60K.366] PRODUCER TRAINING REQUIREMENTS FOR FLOOD
INSURANCE PRODUCTS.
new text end

new text begin An individual may not sell, solicit, or negotiate flood insurance through the National
Flood Insurance Program (NFIP) unless the individual is licensed as an insurance producer
for one or more lines of authority under section 60K.38, subdivision 1, paragraph (b),
clauses (3), (4), and (6), and has in addition to the training otherwise required by this
chapter, satisfied the minimum training and education requirements established by the
Federal Emergency Management Agency (FEMA) for all insurance producers who sell
insurance through the NFIP and published at 70 Federal Register 52, 117.
new text end

new text begin Upon request of the commissioner, an issuer must demonstrate to the commissioner
that its appointed producers who sell flood insurance through the NFIP have complied
with the minimum training and education requirements established by FEMA.
new text end

Sec. 2.

Minnesota Statutes 2012, section 72B.10, is amended to read:


72B.10 STAFF ADJUSTERS.

A staff adjuster who adjusts losses or claims in this state shall not be subject to
the application, licensing, or examination requirements or other qualifications set forth
in sections 72B.01 to 72B.14. Such a staff adjuster shall not, however, engage in any
of the practices forbidden to a licensee under section 72B.08, subdivision 1, deleted text beginclause
deleted text endnew text begin clausesnew text end (3)deleted text begin, (4), (5), (6), (7), or (8)deleted text endnew text begin through (15)new text end. If the commissioner has information,
which if true, would establish that a staff adjuster has engaged or is engaging in any such
prohibited practices, the commissioner may issue an order for a hearing to determine the
facts involved. The order shall fix the time and place for hearing. The staff adjuster
and one or more representatives of the insurer or insurers employing the staff adjuster
shall make an appearance at the hearing unless the commissioner expressly waives the
appearance of one or more such parties. If, following the hearing, the commissioner
determines that the staff adjuster has engaged or is engaging in any prohibited practices,
the commissioner may impose a fine, not in excess of $500, on the staff adjuster or on the
employing insurer or insurers, or on both such parties. In addition, the commissioner may
order the employing insurer to suspend the staff adjuster from all duties for such period as
the commissioner may deem appropriate.

Any final order of the commissioner shall be subject to judicial review. Any hearing
or judicial review under this section shall be in accordance with the contested case
provisions of chapter 14.

Sec. 3.

Minnesota Statutes 2012, section 82.62, subdivision 7, is amended to read:


Subd. 7.

deleted text beginCancellationdeleted text endnew text begin Reinstatementnew text end ofnew text begin cancelednew text end salesperson's or broker's
license.

A salesperson's or broker's license that has been canceled for failure of a licensee
to complete postlicensing education requirements deleted text beginmust be returned to the commissioner
by the licensee's broker within ten days of receipt of notice of cancellation. The license
deleted text end shall be reinstated without reexamination by completing the required instruction, filing
an application, and paying the fee for a salesperson's or broker's license within two years
of the cancellation date.

Sec. 4.

Minnesota Statutes 2012, section 82.63, subdivision 8, is amended to read:


Subd. 8.

Procedure.

An application for automatic transfer shall be made only on
the form prescribed by the commissioner. The transfer is ineffective if the form is not
completed in its entirety.

The form shall be accompanied by a deleted text begin$10deleted text endnew text begin $20new text end transfer fee, and the license renewal
fee, if applicable. Cash will not be accepted.

The signature of the broker from whom the salesperson is transferring must predate
the signature of the broker to whom the salesperson is transferring. The salesperson is
unlicensed for the period of time between the times and dates of both signatures. The
broker from whom the salesperson is transferring shall sign and date the transfer application
upon the request of the salesperson and shall destroy the salesperson's license immediately.

Sec. 5.

Minnesota Statutes 2012, section 82A.06, subdivision 2, is amended to read:


Subd. 2.

Partial transactional exemptions.

The following transactions are exempt
from the provisions of sections 82A.03; 82A.04; 82A.05; 82A.07; 82A.08; 82A.11,
subdivisions 2 and 4;new text begin andnew text end 82A.14deleted text begin; 82A.16; and 82A.17deleted text end: any sale which is made to a
person who is not then physically present in this state, and any offer which invites an
offeree to attend a sales presentation in another state if:

(1) the offeror has given at least ten days prior written notice to the commissioner
of its intention to offer or sell membership camping contracts to residents of this state
pursuant to this exemption and paid a fee of $50;

(2) the offeror has demonstrated that the sales presentation will be made, and the
sale will be consummated, in a state which specifically regulates the offer and sale of
membership camping contracts;

(3) the offeror has demonstrated that it will deliver a disclosure statement to offerees
who are residents of this state which contains substantially the same or greater disclosure
as is required by section 82A.05; and

(4) the offeror has filed a consent to service of process pursuant to section 82A.22.

Sec. 6.

Minnesota Statutes 2012, section 82A.13, subdivision 1, is amended to read:


Subdivision 1.

Untrue statements filed in documents.

No person shall make
or cause to be made any untrue statement of a material fact in an application or other
document filed with the commissioner under this chapter, or omit to state in the application
or other document any material fact which is required to be stated therein, or fail to
notify the commissioner of any material change as required by deleted text beginsectionsdeleted text endnew text begin sectionnew text end 82A.07
deleted text beginand 82A.16, subdivision 3deleted text end.

Sec. 7.

Minnesota Statutes 2012, section 82A.18, subdivision 2, is amended to read:


Subd. 2.

Civil penalty.

Any person who materially or repeatedly violates section
82A.03, 82A.05, 82A.09, 82A.13, new text beginor new text end82A.14deleted text begin, or 82A.16deleted text end shall be subject to a fine of not
more than $1,000 for each violation provided, however, that the total recovery arising from
the same failure to comply, but involving different purchasers, shall be limited to $5,000. A
fine authorized by this subdivision may be imposed in a civil action brought by the attorney
general on behalf of the state of Minnesota, and shall be deposited into the state treasury.

Sec. 8.

Minnesota Statutes 2012, section 82C.16, subdivision 1, is amended to read:


Subdivision 1.

Powers of commissioner.

(a) The commissioner may by order
take any or all of the following actions:

(1) bar a person from serving as an officer, director, partner, controlling person, or
any similar role at an appraisal management company, if such person has ever been the
subject of a final order suspending, revoking, or denying a certification, registration, or
license as a real estate agent, broker, or appraiser, or a final order barring involvement in
any industry or profession issued by this or another state or federal regulatory agency;

(2) deny, suspend, or revoke an appraisal management company license;

(3) censure an appraisal management company license; and

(4) impose a civil penalty as provided for in chapter 45.027.

(b) In order to take the action in paragraph (a), the commissioner must find:

(1) that the order is in the public interest; and

(2) that an officer, director, partner, employee, agent, controlling person or persons,
or any person occupying a similar status or performing similar functions, has:

(i) violated any provision of this chapter;

(ii) filed an application for a license that is incomplete in any material respect or
contains a statement that, in light of the circumstances under which it is made, is false or
misleading with respect to a material fact;

(iii) failed to maintain compliance with the affirmations made under section deleted text begin80C.03
deleted text endnew text begin 82C.03new text end, subdivision 5;

(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive,
or dishonest act or practice, whether or not the act or practice involves the appraisal
management company;

(v) engaged in an act or practice, whether or not the act or practice involves the
business of appraisal management, appraisal assignments, or real estate mortgage related
practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;

(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere,
or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral
turpitude;

(vii) paid a civil penalty or been the subject of disciplinary action by the
commissioner, or an order of suspension or revocation, cease and desist order, or
injunction order, or an order barring involvement in an industry or profession issued by
this or any other state or federal regulatory agency or government-sponsored enterprise,
or by the secretary of Housing and Urban Development;

(viii) been found by a court of competent jurisdiction to have engaged in conduct
evidencing gross negligence, fraud, misrepresentation, or deceit;

(ix) refused to cooperate with an investigation or examination by the commissioner;

(x) failed to pay any fee or assessment imposed by the commissioner; or

(xi) failed to comply with state and federal tax obligations.

Sec. 9. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Membership camping licensing requirement for salespersons or
brokers.
new text end

new text begin Minnesota Statutes 2012, sections 82A.16; and 82A.17, new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Collection agency license renewal; obsolete rule. new text end

new text begin Minnesota Rules, part
2870.1500,
new text end new text begin is repealed.
new text end

ARTICLE 2

ADJUSTMENTS TO STATUTORY DOLLAR AMOUNTS

Section 1.

Minnesota Statutes 2012, section 47.59, subdivision 3, is amended to read:


Subd. 3.

Finance charge for loans.

(a) With respect to a loan, including a loan
pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a
financial institution may contract for and receive a finance charge on the unpaid balance of
the principal amount not to exceed the greater of:

(1) an annual percentage rate not exceeding 21.75 percent; or

(2) the total of:

(i) 33 percent per year on that part of the unpaid balance of the principal amount
not exceeding deleted text begin$750deleted text endnew text begin $1,125new text end; and

(ii) 19 percent per year on that part of the unpaid balance of the principal amount
exceeding deleted text begin$750deleted text endnew text begin $1,125new text end.

With respect to open-end credit pursuant to a credit card, the financial institution
may contract for and receive a finance charge on the unpaid balance of the principal
amount at an annual percentage rate not exceeding 18 percent per year.

(b) On a loan where the finance charge is calculated according to the method
provided for in paragraph (a), clause (2), the finance charge must be contracted for and
earned as provided in that provision or at the single annual percentage rate computed to
the nearest one-tenth of one percent that would earn the same total finance charge at
maturity of the contract as would be earned by the application of the graduated rates
provided in paragraph (a), clause (2), when the debt is paid according to the agreed terms
and the calculations are made according to the actuarial method.

(c) With respect to a loan, the finance charge must be considered not to exceed
the maximum annual percentage rate permitted under this section if the finance charge
contracted for and received does not exceed the equivalent of the maximum annual
percentage rate calculated in accordance with Code of Federal Regulations, title 12, part
226, but using the definition of finance charge provided in this section.

(d) This subdivision does not limit or restrict the manner of calculating the finance
charge, whether by way of add-on, discount, discount points, precomputed charges, single
annual percentage rate, variable rate, interest in advance, compounding, average daily
balance method, or otherwise, if the annual percentage rate does not exceed that permitted
by this section. Discount points permitted by this paragraph and not collected but included
in the principal amount must not be included in the amount on which credit insurance
premiums are calculated and charged.

(e) With respect to a loan secured by real estate, if a finance charge is calculated or
collected in advance, or included in the principal amount of the loan, and the borrower
prepays the loan in full, the financial institution shall credit the borrower with a refund of
the charge to the extent that the annual percentage rate yield on the loan would exceed the
maximum rate permitted under paragraph (a), taking into account the prepayment. The
refund need not be made if it would be less than deleted text begin$5deleted text endnew text begin $7.50new text end.

(f) With respect to all other loans, if the finance charge is calculated or collected in
advance, or included in the principal amount of the loan, and the borrower prepays the
loan in full, the financial institution shall credit the borrower with a refund of the charge to
the extent the annual percentage rate yield on the loan would exceed the annual percentage
rate on the loan as originally determined under paragraph (a) and taking into account the
prepayment. The refund need not be made if it would be less than deleted text begin$5deleted text endnew text begin $7.50new text end.

(g) For the purpose of calculating the refund under this subdivision, the financial
institution may assume that the contract was paid before the date of prepayment according
to the schedule of payments under the loan and that all payments were paid on their due
dates.

(h) For loans repayable in substantially equal successive monthly installments, the
financial institution may calculate the refund under paragraph (f) as the portion of the
finance charge allocable on an actuarial basis to all wholly unexpired payment periods
following the date of prepayment, based on the annual percentage rate on the loan as
originally determined under paragraph (a), and for the purpose of calculating the refund
may assume that all payments are made on the due date.

(i) The dollar amounts in this subdivision deleted text beginanddeleted text endnew text begin,new text end subdivision 6, paragraph (a), clause
(4), new text beginand the dollar amount of original principal amount of closed-end credit in subdivision
6, paragraph (d),
new text endshall change periodically, as provided in this section, according to and to
the extent of changes in the implicit price deflator for the gross domestic product, deleted text begin1987
deleted text endnew text begin 2005new text end = 100, compiled by the United States Department of Commerce, and hereafter
referred to as the index. The index for December deleted text begin1991deleted text end new text begin2011 new text endis the reference base index for
adjustments of dollar amounts.

(j) The designated dollar amounts shall change on July 1 of each even-numbered
year if the percentage of change, calculated to the nearest whole percentage point,
between the index for December of the preceding year and the reference base index is
ten percent or more; but

(1) the portion of the percentage change in the index in excess of a multiple of ten
percent shall be disregarded and the dollar amounts shall change only in multiples of ten
percent of the amounts appearing in Laws 1995, chapter 202, on May 24, 1995; and

(2) the dollar amounts shall not change if the amounts required by this section
are those currently in effect pursuant to Laws 1995, chapter 202, as a result of earlier
application of this section.

(k) If the index is revised, the percentage of change pursuant to this section shall
be calculated on the basis of the revised index. If a revision of the index changes the
reference base index, a revised reference base index shall be determined by multiplying the
reference base index then applicable by the rebasing factor furnished by the Department
of Commerce. If the index is superseded, the index referred to in this section is the one
represented by the Department of Commerce as reflecting most accurately changes in the
purchasing power of the dollar for consumers.

(l) The commissioner shall deleted text beginannounce and publishdeleted text end:

(1) new text beginannounce and publish new text endon or before April 30 of each year in which dollar amounts
are to change, the changes in dollar amounts required by paragraph (j); deleted text beginand
deleted text end

(2) new text beginannounce and publish new text endpromptly after the changes occur, changes in the index
required by paragraph (k) including, if applicable, the numerical equivalent of the
reference base index under a revised reference base index and the designation or title
of any index superseding the indexdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (3) promptly notify the revisor of statutes in writing of the changes announced and
published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
the changes in the next edition of Minnesota Statutes.
new text end

(m) A person does not violate this chapter with respect to a transaction otherwise
complying with this chapter if that person relies on dollar amounts either determined
according to paragraph (j), clause (2), or appearing in the last publication of the
commissioner announcing the then current dollar amounts.

(n) The adjustments provided in this section shall not be affected unless explicitly
provided otherwise by law.

Sec. 2.

Minnesota Statutes 2012, section 47.59, subdivision 6, is amended to read:


Subd. 6.

Additional charges.

(a) For purposes of this subdivision, "financial
institution" includes a person described in subdivision 4, paragraph (a). In addition to the
finance charges permitted by this section, a financial institution may contract for and
receive the following additional charges that may be included in the principal amount
of the loan or credit sale unpaid balances:

(1) official fees and taxes;

(2) charges for insurance as described in paragraph (b);

(3) with respect to a loan or credit sale contract secured by real estate, the following
"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
circumvention or evasion of this section:

(i) fees or premiums for title examination, abstract of title, title insurance, surveys,
or similar purposes;

(ii) fees for preparation of a deed, mortgage, settlement statement, or other
documents, if not paid to the financial institution;

(iii) escrows for future payments of taxes, including assessments for improvements,
insurance, and water, sewer, and land rents;

(iv) fees for notarizing deeds and other documents;

(v) appraisal and credit report fees; and

(vi) fees for determining whether any portion of the property is located in a flood
zone and fees for ongoing monitoring of the property to determine changes, if any,
in flood zone status;

(4) a delinquency charge on a payment, including the minimum payment due in
connection with open-end credit, not paid in full on or before the tenth day after its due
date in an amount not to exceed five percent of the amount of the payment or deleted text begin$5.20deleted text endnew text begin $7.80new text end,
whichever is greater;

(5) for a returned check or returned automatic payment withdrawal request, an
amount not in excess of the service charge limitation in section 604.113, except that, on
a loan transaction that is a consumer small loan as defined in section 47.60, subdivision
1
, paragraph (a), in which cash is advanced in exchange for a personal check, the civil
penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded
or assessed against the borrower; and

(6) charges for other benefits, including insurance, conferred on the borrower that
are of a type that is not for credit.

(b) An additional charge may be made for insurance written in connection with the
loan or credit sale contract, which may be included in the principal amount of the loan or
credit sale unpaid balances:

(1) with respect to insurance against loss of or damage to property, or against
liability arising out of the ownership or use of property, if the financial institution furnishes
a clear, conspicuous, and specific statement in writing to the borrower setting forth the
cost of the insurance if obtained from or through the financial institution and stating that
the borrower may choose the person through whom the insurance is to be obtained;

(2) with respect to credit insurance or mortgage insurance providing life, accident,
health, or unemployment coverage, if the insurance coverage is not required by the
financial institution, and this fact is clearly and conspicuously disclosed in writing to
the borrower, and the borrower gives specific, dated, and separately signed affirmative
written indication of the borrower's desire to do so after written disclosure to the borrower
of the cost of the insurance; and

(3) with respect to the vendor's single interest insurance, but only (i) to the extent
that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
the insurance does not duplicate the coverage of other insurance under which loss is
payable to the financial institution as its interest may appear, against loss of or damage
to property for which a separate charge is made to the borrower according to clause (1);
and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
financial institution to the borrower setting forth the cost of the insurance if obtained from
or through the financial institution and stating that the borrower may choose the person
through whom the insurance is to be obtained.

(c) In addition to the finance charges and other additional charges permitted by
this section, a financial institution may contract for and receive the following additional
charges in connection with open-end credit, which may be included in the principal
amount of the loan or balance upon which the finance charge is computed:

(1) annual charges, not to exceed $50 per annum, payable in advance, for the
privilege of opening and maintaining open-end credit;

(2) charges for the use of an automated teller machine;

(3) charges for any monthly or other periodic payment period in which the borrower
has exceeded or, except for the financial institution's dishonor would have exceeded,
the maximum approved credit limit, in an amount not in excess of the service charge
permitted in section 604.113;

(4) charges for obtaining a cash advance in an amount not to exceed the service
charge permitted in section 604.113; and

(5) charges for check and draft copies and for the replacement of lost or stolen
credit cards.

(d) In addition to the finance charges and other additional charges permitted by this
section, a financial institution may contract for and receive a onetime loan administrative
fee not exceeding $25 in connection with closed-end credit, which may be included
in the principal balance upon which the finance charge is computed. This paragraph
applies only to closed-end credit in an original principal amount of deleted text begin$4,320deleted text end new text begin$6,480 new text endor less.
The determination of an original principal amount must exclude the administrative fee
contracted for and received according to this paragraph.

Sec. 3.

Minnesota Statutes 2012, section 56.12, is amended to read:


56.12 ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.

No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause
or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any
manner any statement or representation with regard to the rates, terms, or conditions for
the lending of money, credit, goods, or things in action which is false, misleading, or
deceptive. The commissioner may order any licensee to desist from any conduct which
the commissioner shall find to be a violation of the foregoing provisions.

The commissioner may require that rates of charge, if stated by a licensee, be stated
fully and clearly in such manner as the commissioner may deem necessary to prevent
misunderstanding thereof by prospective borrowers. In lieu of the disclosure requirements
of this section and section 56.14, a licensee may give the disclosures required by the
federal Truth-in-Lending Act.

A licensee may take a lien upon real estate as security for any loan exceeding deleted text begin$4,320
deleted text endnew text begin $6,480new text end in principal amount made under this chapter. The provisions of sections 47.20 and
47.21 do not apply to loans made under this chapter, except as provided in this section. No
loan secured by a first lien on a borrower's primary residence shall be made pursuant to
this section if the proceeds of the loan are used to finance the purchase of the borrower's
primary residence, unless:

(1) the proceeds of the loan are used to finance the purchase of a manufactured
home or a prefabricated building; or

(2) the proceeds of the loan are used in whole or in part to satisfy the balance owed
on a contract for deed.

If the proceeds of the loan are used to finance the purchase of the borrower's
primary residence, the licensee shall consent to the subsequent transfer of the real estate
if the existing borrower continues after transfer to be obligated for repayment of the
entire remaining indebtedness. The licensee shall release the existing borrower from all
obligations under the loan instruments, if the transferee (1) meets the standards of credit
worthiness normally used by persons in the business of making loans, including but not
limited to the ability of the transferee to make the loan payments and satisfactorily maintain
the property used as collateral, and (2) executes an agreement in writing with the licensee
whereby the transferee assumes the obligations of the existing borrower under the loan
instruments. Any such agreement shall not affect the priority, validity or enforceability
of any loan instrument. A licensee may charge a fee not in excess of one-tenth of one
percent of the remaining unpaid principal balance in the event the loan is assumed by
the transferee and the existing borrower continues after the transfer to be obligated for
repayment of the entire assumed indebtedness. A licensee may charge a fee not in excess
of one percent of the remaining unpaid principal balance in the event the remaining
indebtedness is assumed by the transferee and the existing borrower is released from all
obligations under the loan instruments, but in no event shall the fee exceed deleted text begin$240deleted text endnew text begin $360new text end.

A licensee making a loan under this chapter secured by a lien on real estate shall
comply with the requirements of section 47.20, subdivision 8.

No licensee shall conduct the business of making loans under this chapter within any
office, room, or place of business in which any other business is solicited or engaged in,
or in association or conjunction therewith, if the commissioner finds that the character
of the other business is such that it would facilitate evasions of this chapter or of the
rules lawfully made hereunder. The commissioner may promulgate rules dealing with
such other businesses.

No licensee shall transact the business or make any loan provided for by this chapter
under any other name or at any other place of business than that named in the license. No
licensee shall take any confession of judgment or any power of attorney. No licensee shall
take any note or promise to pay that does not accurately disclose the principal amount
of the loan, the time for which it is made, and the agreed rate or amount of charge, nor
any instrument in which blanks are left to be filled in after execution. Nothing herein is
deemed to prohibit the making of loans by mail or arranging for settlement and closing
of real estate secured loans by an unrelated qualified closing agent at a location other
than the licensed location.

Sec. 4.

Minnesota Statutes 2012, section 56.125, subdivision 2, is amended to read:


Subd. 2.

Real estate as security.

A licensee may take a lien upon real estate as
security for any open-end loan at or after such time as the outstanding balance first exceeds
deleted text begin$4,320deleted text endnew text begin $6,480new text end. A subsequent reduction in the balance below deleted text begin$4,320deleted text end new text begin$6,480 new text endhas no effect
on the lien. A licensee may retain the security interest until it terminates the open-end
account. If there is no outstanding balance in the account and there is no commitment by
the licensee to a line of credit in excess of deleted text begin$4,320deleted text endnew text begin $6,480new text end, the licensee shall, within 20
days following written demand by the borrower, deliver to the borrower a release of the
mortgage on any real property taken as security for the open-end loan agreement. A real
estate mortgage authorized for a financial institution secures all advances and obligations
thereunder from the date of recording.

Sec. 5.

Minnesota Statutes 2012, section 56.131, subdivision 2, is amended to read:


Subd. 2.

Additional charges.

In addition to the charges provided for by this section
and section 56.155, and notwithstanding section 47.59, subdivision 6, to the contrary, no
further or other amount whatsoever, shall be directly or indirectly charged, contracted for,
or received for the loan made, except actual out of pocket expenses of the licensee to
realize on a security after default, and except for the following additional charges which
may be included in the principal amount of the loan:

(a) lawful fees and taxes paid to any public officer to record, file, or release security;

(b) with respect to a loan secured by an interest in real estate, the following closing
costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention
or evasion of this section; provided the costs do not exceed one percent of the principal
amount or deleted text begin$400deleted text endnew text begin $600new text end, whichever is greater:

(1) fees or premiums for title examination, abstract of title, title insurance, surveys,
or similar purposes;

(2) fees, if not paid to the licensee, an employee of the licensee, or a person related
to the licensee, for preparation of a mortgage, settlement statement, or other documents,
fees for notarizing mortgages and other documents, and appraisal fees;

(c) the premium for insurance in lieu of perfecting and releasing a security interest to
the extent that the premium does not exceed the fees described in paragraph (a);

(d) discount points and appraisal fees may not be included in the principal amount of
a loan secured by an interest in real estate when the loan is a refinancing for the purpose of
bringing the refinanced loan current and is made within 24 months of the original date of
the refinanced loan. For purposes of this paragraph, a refinancing is not considered to be for
the purpose of bringing the refinanced loan current if new funds advanced to the customer,
not including closing costs or delinquent installments, exceed deleted text begin$1,000deleted text endnew text begin $1,500new text end;new text begin and
new text end

(e) the onetime loan administrative fee in section 47.59, subdivision 6, paragraph (d).

Sec. 6.

Minnesota Statutes 2012, section 56.131, subdivision 6, is amended to read:


Subd. 6.

Discount points.

A loan made under this section that is secured by real
estate and that is in a principal amount of deleted text begin$12,000deleted text end new text begin$18,000 new text endor more and has a maturity
of 60 months or more may contain a provision permitting discount points, if the loan
does not provide a loan yield in excess of the maximum rate of interest permitted by this
section. Loan yield means the annual rate of return obtained by a licensee computed as
the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid
in full, the licensee must make a refund to the borrower to the extent that the loan yield
will exceed the maximum rate of interest provided by this section when the prepayment is
taken into account. Discount points permitted by this subdivision and not collected but
included in the principal amount must not be included in the amount on which credit
insurance premiums are calculated and charged.

Sec. 7.

Minnesota Statutes 2012, section 325G.22, subdivision 1, is amended to read:


Subdivision 1.

Personal liability of buyer limited.

If the seller or lender
repossesses or voluntarily accepts surrender of personal property in which the seller or
lender has a security interest arising out of a consumer credit transaction and the aggregate
amount of the credit extended in the transaction was deleted text begin$3,000deleted text endnew text begin $6,900new text end or less, the buyer is not
personally liable to the seller or lender for the unpaid balance of the debt arising from the
consumer credit transaction, and the seller or lender is not obligated to resell the collateral.

Sec. 8.

Minnesota Statutes 2012, section 510.02, subdivision 1, is amended to read:


Subdivision 1.

Exemption.

The homestead may include any quantity of land not
exceeding 160 acres. The exemption per homestead, whether the exemption is claimed
by one or more debtors, may not exceed deleted text begin$300,000deleted text end new text begin$390,000 new text endor, if the homestead is used
primarily for agricultural purposes, deleted text begin$750,000deleted text endnew text begin $975,000new text end, exclusive of the limitations set
forth in section 510.05.

Sec. 9.

Minnesota Statutes 2012, section 550.37, subdivision 4, is amended to read:


Subd. 4.

Personal goods.

(a) All wearing apparel, one watch, utensils, and
foodstuffs of the debtor and the debtor's family.

(b) Household furniture, household appliances, phonographs, radio and television
receivers of the debtor and the debtor's family, not exceeding deleted text begin$4,500deleted text end new text begin$10,350 new text endin value.

(c) The debtor's aggregate interest, not exceeding deleted text begin$1,225deleted text end new text begin$2,817.50 new text endin value, in
wedding rings or other religious or culturally recognized symbols of marriage exchanged
between the debtor and spouse at the time of the marriage and in the debtor's possession.

The exemption provided by this subdivision may not be waived except with regard
to purchase money security interests. Except for a pawnbroker's possessory lien, a
nonpurchase money security interest in the property exempt under this subdivision is void.

If a debtor has property of the type which would qualify for the exemption under
clause (b), of a value in excess of deleted text begin$4,500deleted text end new text begin$10,350 new text endan itemized list of the exempt property,
together with the value of each item listed, shall be attached to the security agreement
at the time a security interest is taken, and a creditor may take a nonpurchase money
security interest in the excess over deleted text begin$4,500deleted text end new text begin$10,350 new text endby requiring the debtor to select the
exemption in writing at the time the loan is made.

Sec. 10.

Minnesota Statutes 2012, section 550.37, subdivision 4a, is amended to read:


Subd. 4a.

Adjustment of dollar amounts.

(a) Except for subdivisions 5 and 7, the
dollar amounts in this section shall change periodically as provided in this subdivision to
the extent of changes in the implicit price deflator for the gross deleted text beginnationaldeleted text end new text begindomestic new text endproduct,
deleted text begin1972deleted text endnew text begin 2005new text end = 100, compiled by the United States Department of Commerce, and hereafter
referred to as the index. The index for December deleted text begin1980deleted text end new text begin2011 new text endis the reference base index.

(b) The designated dollar amounts shall change on July 1 of each even-numbered
year if the percentage of change, calculated to the nearest whole percentage point, between
the index for December of the preceding year and the reference base index is ten percent
or more. The portion of the percentage change in the index in excess of a multiple of ten
percent shall be disregarded and the dollar amounts shall change only in multiples of ten
percent of the amounts stated in this section.

(c) If the index is revised, the percentage of change pursuant to this section shall
be calculated on the basis of the revised index. If a revision of the index changes the
reference base index, a revised reference base index shall be determined by multiplying the
reference base index then applicable by the rebasing factor furnished by the Department
of Commerce. If the index is superseded, the index referred to in this section is the one
represented by the Department of Commerce as reflecting most accurately changes in the
purchasing power of the dollar for consumers.

(d) The commissioner of commerce shall deleted text beginannounce and publishdeleted text end:

(1) new text beginannounce and publish new text endon or before April 30 of each year in which dollar amounts
are to change, the changes in dollar amounts required by paragraph (b); deleted text beginand
deleted text end

(2) new text beginannounce and publish new text endpromptly after the changes occur, changes in the index
required by paragraph (c) including, if applicable, the numerical equivalent of the
reference base index under a revised reference base index and the designation or title
of any index superseding the indexdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (3) promptly notify the revisor of statutes in writing of the changes announced and
published by the commissioner pursuant to clauses (1) and (2). The revisor shall publish
the changes in the next edition of Minnesota Statutes.
new text end

(e) A person does not violate this chapter with respect to a transaction otherwise
complying with this chapter if the person relies on dollar amounts either determined
according to paragraph (b) or appearing in the last publication of the commissioner
announcing the then current dollar amounts.

Sec. 11.

Minnesota Statutes 2012, section 550.37, subdivision 6, is amended to read:


Subd. 6.

Tools of trade.

The tools, implements, machines, instruments, office
furniture, stock in trade, and library reasonably necessary in the trade, business, or
profession of the debtor, not exceeding deleted text begin$5,000deleted text end new text begin$11,500 new text endin value.

Sec. 12.

Minnesota Statutes 2012, section 550.37, subdivision 10, is amended to read:


Subd. 10.

Insurance proceeds.

All money received by, or payable to, a surviving
spouse or child from insurance payable at the death of a spouse, or parent, not exceeding
deleted text begin$20,000deleted text endnew text begin $46,000new text end. The deleted text begin$20,000deleted text endnew text begin $46,000new text end exemption provided by this subdivision shall be
increased by deleted text begin$5,000deleted text end new text begin$11,500 new text endfor each dependent of the surviving spouse or child.

Sec. 13.

Minnesota Statutes 2012, section 550.37, subdivision 12a, is amended to read:


Subd. 12a.

Motor vehicles.

One motor vehicle to the extent of a value not
exceeding deleted text begin$2,000deleted text endnew text begin $4,600new text end; or one motor vehicle to the extent of a value not exceeding
deleted text begin$20,000deleted text end new text begin$46,000 new text endthat has been modified, at a cost of not less than deleted text begin$1,500deleted text endnew text begin $3,450new text end, to
accommodate the physical disability making a disabled person eligible for a certificate
authorized by section 169.345.

Sec. 14.

Minnesota Statutes 2012, section 550.37, subdivision 23, is amended to read:


Subd. 23.

Life insurance aggregate interest.

The debtor's aggregate interest not to
exceed in value deleted text begin$4,000deleted text end new text begin$9,200 new text endin any accrued dividend or interest under or loan value of
any unmatured life insurance contract owned by the debtor under which the insured is the
debtor or an individual of whom the debtor is a dependent.

Sec. 15.

Minnesota Statutes 2012, section 550.37, subdivision 24, is amended to read:


Subd. 24.

Employee benefits.

(a) The debtor's right to receive present or future
payments, or payments received by the debtor, under a stock bonus, pension, profit
sharing, annuity, individual retirement account, Roth IRA, individual retirement annuity,
simplified employee pension, or similar plan or contract on account of illness, disability,
death, age, or length of service, to the extent of the debtor's aggregate interest under all
plans and contracts up to a present value of deleted text begin$30,000deleted text end new text begin$69,000 new text endand additional amounts under
all the plans and contracts to the extent reasonably necessary for the support of the debtor
and any spouse or dependent of the debtor.

(b) The exemptions in paragraph (a) do not apply when the debt is owed under a
support order as defined in section 518A.26, subdivision 21.

Sec. 16. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 15 are effective the day following final enactment.
new text end