HF 2590

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to landlords and tenants; providing for 
  1.3             interest rates on security deposits; amending 
  1.4             Minnesota Statutes 1996, section 504.20, subdivision 2.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 504.20, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  Any deposit of money shall not be considered 
  1.9   received in a fiduciary capacity within the meaning of section 
  1.10  82.17, subdivision 7, but shall be held by the landlord for the 
  1.11  tenant who is party to the agreement and shall bear simple 
  1.12  noncompounded interest at the rate of three percent per annum 
  1.13  until May 1, 1999, and four percent per annum thereafter, 
  1.14  computed from the first day of the next month following the full 
  1.15  payment of the deposit to the last day of the month in which the 
  1.16  landlord, in good faith, complies with the requirements of 
  1.17  subdivision 3 or to the date upon which judgment is entered in 
  1.18  any civil action involving the landlord's liability for the 
  1.19  deposit, whichever date is earlier.  Any interest amount less 
  1.20  than $1 shall be excluded from the provisions of this section. 
  1.21     Sec. 2.  [EFFECTIVE DATE.] 
  1.22     Section 1 is effective on the day following final enactment.