HF 2672

2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to landlords and tenants; changing the 
  1.3             interest rate on security deposits; providing for a 
  1.4             legislative review; amending Minnesota Statutes 1994, 
  1.5             section 504.20, subdivision 2; repealing Laws 1992, 
  1.6             chapter 555, article 2, section 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 504.20, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  Any deposit of money shall not be considered 
  1.11  received in a fiduciary capacity within the meaning of section 
  1.12  82.17, subdivision 7, but shall be held by the landlord for the 
  1.13  tenant who is party to the agreement and shall bear simple 
  1.14  noncompounded interest at the rate of four three percent per 
  1.15  annum until May 1, 1997 1999, and 5-1/2 four percent per annum 
  1.16  thereafter, computed from the first day of the next month 
  1.17  following the full payment of the deposit to the last day of the 
  1.18  month in which the landlord, in good faith, complies with the 
  1.19  requirements of subdivision 3 or to the date upon which judgment 
  1.20  is entered in any civil action involving the landlord's 
  1.21  liability for the deposit, whichever date is earlier.  Any 
  1.22  interest amount less than $1 shall be excluded from the 
  1.23  provisions of this section. 
  1.24     Sec. 2.  [REVIEW.] 
  1.25     The reversion of the interest rate to four percent in 
  1.26  section 1 is subject to review by the legislature in the 1998 
  2.1   session. 
  2.2      Sec. 3.  [REPEALER.] 
  2.3      Laws 1992, chapter 555, article 2, section 2, is repealed. 
  2.4      Sec. 4.  [EFFECTIVE DATE.] 
  2.5      This act is effective the day following final enactment.