Engrossments
Introduction		Posted on 02/25/2008

A bill for an act
relating to real property; providing for the Foreclosure Crisis Intervention
Act; modifying certain landlord and tenant provisions; modifying provisions
relating to mortgage foreclosure procedures and process; providing for civil
and criminal enforcement to prevent predatory lending practices; providing
protections relating to manufactured homes and default; providing for data
practices; providing remedies; providing forms and notices; making technical,
clarifying, and conforming changes; requiring a report; amending Minnesota
Statutes 2006, sections 47.206, subdivision 7, by adding a subdivision; 58.02, by
adding a subdivision; 327.64; 327.65; 327.66; 327B.01, by adding subdivisions;
327B.08, by adding a subdivision; 327B.09, by adding a subdivision; 327B.12;
334.01, subdivision 2; 357.021, subdivision 1a; 363A.28, subdivision 3;
363A.29, subdivision 4; 484.014, by adding a subdivision; 504B.151;
504B.178, subdivision 8; 504B.215, subdivision 3; 504B.285, subdivision
1; 580.02; 580.03; 580.04; 580.041, subdivision 2; 580.06; 580.07; 580.12;
580.23, subdivision 1; 580.25; 580.28; 580.30; 581.10; 582.03; 582.031;
582.032, subdivision 2; Minnesota Statutes 2007 Supplement, sections 290.01,
subdivisions 19, 31; 290A.03, subdivision 15; 510.05; 550.19; 550.22; 550.24;
580.24; 609.822, subdivision 3; Laws 2004, chapter 263, section 26; proposing
coding for new law in Minnesota Statutes, chapters 325B; 580.

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

ARTICLE 1

FORECLOSURE CRISIS INTERVENTION ACT

Section 1. new text begin CITATION.
new text end

new text begin Articles 2 to 8 may be cited as the "Foreclosure Crisis Intervention Act."
new text end

ARTICLE 2

LANDLORD AND TENANT

Section 1.

Minnesota Statutes 2006, section 357.021, subdivision 1a, is amended to
read:

Subd. 1a.

Transmittal of fees to commissioner of finance.

(a) Every person,
including the state of Minnesota and all bodies politic and corporate, who shall transact
any business in the district court, shall pay to the court administrator of said court the
sundry fees prescribed in subdivision 2. Except as provided in paragraph (d), the court
administrator shall transmit the fees monthly to the commissioner of finance for deposit in
the state treasury and credit to the general fund. $30 of each fee collected in a dissolution
action under subdivision 2, clause (1), must be deposited by the commissioner of finance
in the special revenue fund and is appropriated to the commissioner of employment and
economic development for the displaced homemaker program under section 116L.96.

(b) In a county which has a screener-collector position, fees paid by a county
pursuant to this subdivision shall be transmitted monthly to the county treasurer, who
shall apply the fees first to reimburse the county for the amount of the salary paid for the
screener-collector position. The balance of the fees collected shall then be forwarded to
the commissioner of finance for deposit in the state treasury and credited to the general
fund. In a county in a judicial district under section 480.181, subdivision 1, paragraph
(b), which has a screener-collector position, the fees paid by a county shall be transmitted
monthly to the commissioner of finance for deposit in the state treasury and credited to the
general fund. A screener-collector position for purposes of this paragraph is an employee
whose function is to increase the collection of fines and to review the incomes of potential
clients of the public defender, in order to verify eligibility for that service.

(c) No fee is required under this section from the public authority or the party the
public authority represents in an action for:

(1) child support enforcement or modification, medical assistance enforcement, or
establishment of parentage in the district court, or in a proceeding under section 484.702;

(2) civil commitment under chapter 253B;

(3) the appointment of a public conservator or public guardian or any other action
under chapters 252A and 525;

(4) wrongfully obtaining public assistance under section 256.98 or 256D.07, or
recovery of overpayments of public assistance;

(5) court relief under chapters 260, 260A, 260B, and 260C;

(6) forfeiture of property under sections 169A.63 and 609.531 to 609.5317;

(7) recovery of amounts issued by political subdivisions or public institutions under
sections 246.52, 252.27, 256.045, 256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37,
260B.331, and 260C.331, or other sections referring to other forms of public assistance;

(8) restitution under section 611A.04; or

(9) actions seeking monetary relief in favor of the state pursuant to section 16D.14,
subdivision 5.

(d) new text begin No fee is required under this section from any party in an action initiated under
sections 504B.381 to 504B.471 if the case is initiated during the redemption period.
For the purposes of this section, "redemption period" is the period described in sections
580.23, subdivisions 1 and 2, and 581.10.
new text end

new text begin (e) new text end $20 from each fee collected for child support modifications under subdivision 2,
clause (13), must be transmitted to the county treasurer for deposit in the county general
fund and $35 from each fee shall be credited to the state general fund. The fees must be
used by the county to pay for child support enforcement efforts by county attorneys.

Sec. 2.

Minnesota Statutes 2006, section 484.014, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Mandatory expungement. new text end

new text begin The court shall order expungement of an
eviction case commenced solely on the grounds provided in section 504B.285, subdivision
1, clause (1), if the court finds that:
new text end

new text begin (a) the defendant occupied real property which was subject to contract for deed
cancellation or mortgage foreclosure; and
new text end

new text begin (b) either:
new text end

new text begin (1) the time for contract cancellation or foreclosure redemption has expired and the
defendant vacated the property prior to commencement of the eviction action; or
new text end

new text begin (2) the defendant was a tenant during the contract cancellation or foreclosure
redemption period and did not receive a notice under section 504B.285, subdivision 1,
clause (1), to vacate on a date prior to commencement of the eviction case.
new text end

Sec. 3.

Minnesota Statutes 2006, section 504B.151, is amended to read:

504B.151 RESTRICTION ON RESIDENTIAL LEASE TERMS FOR
BUILDINGS IN FINANCIAL DISTRESSnew text begin ; REQUIRED NOTICE OF PENDING
FORECLOSUREnew text end .

new text begin Subdivision 1. new text end

new text begin Limitation on lease and notice to tenant. new text end

new text begin (a) new text end Once a landlord
has received notice of a contract for deed cancellation under section 559.21 or notice of
a mortgage foreclosure sale under chapter 580 or 582, the landlord may new text begin only new text end enter into
new text begin (i) new text end a periodic residential lease agreement with a term of new text begin not more than new text end two months or
new text begin the time remaining in the contract cancellation period or the mortgagor's redemption
period, whichever is new text end less or new text begin (ii) new text end a fixed term residential tenancy not extending beyond the
cancellation period or the landlord's period of redemption until:

(1) the contract for deed has been reinstated or paid in full;

(2) the mortgage default has been cured and the mortgage reinstated;

(3) the mortgage has been satisfied;

(4) the property has been redeemed from a foreclosure sale; or

(5) a receiver has been appointed.

new text begin (b) Before entering into a lease under this section and accepting any rent or security
deposit from a tenant, the landlord must notify the prospective tenant in writing that the
landlord has received notice of a contract for deed cancellation or notice of a mortgage
foreclosure sale as appropriate, and the date on which the contract cancellation period or
the mortgagor's redemption period ends.
new text end

new text begin (c) new text end This section does not apply to a manufactured home park as defined in section
327C.01, subdivision 5.

new text begin Subd. 2. new text end

new text begin Exception allowing a longer term lease. new text end

new text begin This section does not apply if:
new text end

new text begin (1) the holder or the mortgagee agrees not to terminate the tenant's lease other than
for lease violations for at least one year from the commencement of the tenancy; and
new text end

new text begin (2) the lease does not require the tenant to prepay rent for any month commencing
after the end of the cancellation or redemption period, so that the rent payment would be
due prior to the end of the cancellation or redemption period.
new text end

new text begin For the purposes of this section, a holder means a contract for deed vendor or a
holder of the sheriff's certificate of sale or any assignee of the contract for deed vendor or
of the holder of the sheriff's certificate of sale.
new text end

new text begin Subd. 3. new text end

new text begin Attornment. new text end

new text begin (a) A tenant who enters into a lease under subdivision 2 is:
new text end

new text begin (1) deemed by operation of law to attorn to the holder immediately upon the holder
succeeding to the interest of the landlord under the lease; and
new text end

new text begin (2) bound to the holder under all the provisions of the lease for either the balance of
the lease term or for one year after the start of the tenancy, whichever occurs first.
new text end

new text begin (b) A tenant who attorns under this subdivision is not obligated to pay rent to the
holder until the holder provides and the tenant receives written notice that the holder has
succeeded to the interest of the landlord. A letter from the holder to the tenant to that
effect is prima facie evidence that the holder has succeeded to the interest of the landlord.
new text end

new text begin Subd. 4. new text end

new text begin Holder not bound by certain acts. new text end

new text begin A holder succeeding to an interest in a
lease lawfully entered into under subdivision 2 is not: (1) liable for any act or omission
of any prior landlord; (2) subject to any offset or defense which the tenant had against
any prior landlord; or (3) bound by any modification of the lease entered into under
subdivision 2, unless the modification is made with the holder's consent.
new text end

Sec. 4.

Minnesota Statutes 2006, section 504B.178, subdivision 8, is amended to read:

Subd. 8.

Withholding rent.

No tenant may withhold payment of all or any portion
of rent for the last payment period of a residential rental agreement, except an oral or
written month to month residential rental agreement concerning which neither the tenant
nor landlord has served a notice to quit, new text begin or for the last month of a contract for deed
cancellation period under section 559.21 or a mortgage foreclosure redemption period
under chapter 580 or 582, new text end on the grounds that the deposit should serve as payment for the
rent. Withholding all or any portion of rent for the last payment period of the residential
rental agreement creates a rebuttable presumption that the tenant withheld the last payment
on the grounds that the deposit should serve as payment for the rent. Any tenant who
remains in violation of this subdivision after written demand and notice of this subdivision
shall be liable to the landlord for the following:

(1) a penalty in an amount equal to the portion of the deposit which the landlord
is entitled to withhold under subdivision 3 other than to remedy the tenant's default in
the payment of rent; and

(2) interest on the whole deposit as provided in subdivision 2, in addition to the
amount of rent withheld by the tenant in violation of this subdivision.

Sec. 5.

Minnesota Statutes 2006, section 504B.215, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Proceduredeleted text end new text begin Right of tenants to pay utility billsnew text end .

(a) When a municipality,
utility company, or other company supplying home heating oil, propane, natural gas,
electricity, or water to a building has issued a final notice or has posted the building
proposing to disconnect or discontinue the service to the building because a landlord who
has contracted for the service has failed to pay for it or because a landlord is required by
law or contract to pay for the service and fails to do so, a tenant or group of tenants may
pay to have the service continued or reconnected as provided under this section. Before
paying for the service, the tenant or group of tenants shall give oral or written notice to
the landlord of the tenant's intention to pay after 48 hours, or a shorter period that is
reasonable under the circumstances, if the landlord has not already paid for the service. In
the case of oral notification, written notice shall be mailed or delivered to the landlord
within 24 hours after oral notice is given.

(b) In the case of natural gas, electricity, or water, if the landlord has not yet paid the
bill by the time of the tenant's intended payment, or if the service remains discontinueddeleted text begin ,deleted text end new text begin :
new text end

new text begin (1)new text end the tenant or tenants may pay the deleted text begin outstanding billdeleted text end new text begin current chargesnew text end for the most
recent billing period, deleted text begin ifdeleted text end new text begin andnew text end the utility company or municipality deleted text begin willdeleted text end new text begin mustnew text end restore the
service for at least one billing perioddeleted text begin .deleted text end new text begin ; or
new text end

new text begin (2) in a residential building with less than five units, and notwithstanding subdivision
2 or local law, one of the tenants may notify the utility company or municipality that the
tenant agrees to become the bill payer responsible and customer of record, and the utility
company or municipality must place the account disconnected or subject to disconnection
in the tenant's name and provide service prospectively, provided the tenant satisfies all
requirements for establishing service. The right to become the bill payer responsible and
the customer of record under this paragraph may be exercised only once in any 12-month
period.
new text end

new text begin Exercise of the right granted in paragraph (b), clause (1), does not preclude exercise
of the right granted in paragraph (b), clause (2).
new text end

new text begin In a single-metered residential building, other residential tenants in the building may
contribute payments to the utility company or municipality on the landlord's account under
paragraph (b), clause (1), or on the account of the tenant who is the customer or record
under paragraph (b), clause (2).
new text end

new text begin For the purposes of this subdivision, "current charges" shall not include any arrears
incurred by the landlord.
new text end

new text begin A landlord who satisfies all requirements for reestablishing service, including
paying, or entering into an agreement acceptable to the utility company or municipality to
pay, all arrears and all other lawful charges incurred by the landlord on the account that
was placed in the tenant's name, may reestablish service in the landlord's name.
new text end

(c) In the case of home heating oil or propane, if the landlord has not yet paid the
bill by the time of the tenant's intended payment, or if the service remains discontinued,
the tenant or tenants may order and pay for one month's supply of the proper grade and
quality of oil or propane.

(d) After submitting deleted text begin receipts fordeleted text end new text begin documentation to the landlord ofnew text end the new text begin tenant's
new text end payment to the deleted text begin landlorddeleted text end new text begin utility company or municipalitynew text end , a tenant may deduct the amount
of the tenant's payment new text begin to the utility company or municipality new text end from the rental payment
next paid to the landlord. Any amount paid to the municipality, utility company, or other
company by a tenant under this subdivision is considered payment of rent to the landlord
for purposes of section 504B.291.

Sec. 6.

Minnesota Statutes 2006, section 504B.285, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

The person entitled to the premises may recover
possession by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment;new text begin or
new text end

(ii) deleted text begin on foreclosure of a mortgage anddeleted text end new text begin after thenew text end expiration of the time for redemptiondeleted text begin ;deleted text end new text begin
on foreclosure of a mortgage,new text end or

deleted text begin (iii)deleted text end after termination of contract to convey the property, provided that if the person
holding the real property after the expiration of the time for redemption or termination
deleted text begin isdeleted text end new text begin wasnew text end a tenantnew text begin during the redemption or termination periodnew text end , the person new text begin entered into the
lease of any duration after the date of the notice of mortgage foreclosure or contract for
deed cancellation and prior to the expiration of the time for redemption or termination,
and the person new text end has received:

(A) at least deleted text begin one month'sdeleted text end new text begin two months' new text end written notice to vacate no sooner than one
month after the expiration of the time for redemption or termination, provided that the
tenant pays the rent and abides by all terms of the lease; or

(B) at least deleted text begin one month'sdeleted text end new text begin two months' new text end written notice to vacate no later than the date of
the expiration of the time for redemption or termination, which notice shall also state that
the sender will hold the tenant harmless for breaching the lease by vacating the premises
if the mortgage is redeemed or the contract is reinstated;

(2) any person holds over real property after termination of the time for which
it is demised or leased to that person or to the persons under whom that person holds
possession, contrary to the conditions or covenants of the lease or agreement under which
that person holds, or after any rent becomes due according to the terms of such lease or
agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

Sec. 7.

new text begin [580.042] FORECLOSURE ADVICE NOTICE TO TENANT.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to foreclosure of mortgages
under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Form of delivery of notice. new text end

new text begin The notice required by this section must be in
14-point boldface type and must be printed on colored paper that is other than the color of
the notice of foreclosure and of the notice to be given under section 580.041, subdivision
1b, and that does not obscure or overshadow the content of the notice. The title of the
notice must be in 20-point boldface type. The notice must be on its own page.
new text end

new text begin Subd. 3. new text end

new text begin Content of notice. new text end

new text begin The notice required by this section must appear
substantially as follows.
new text end

new text begin Foreclosure: Advice to Tenants
new text end

new text begin You are renting in a property that is in foreclosure. Minnesota law requires that we
send you this notice about the foreclosure process. Please read it carefully.
new text end

new text begin The mortgage foreclosure does not change the terms of your lease. You and
your landlord must continue to follow the terms of your lease, including the rights
and responsibilities of you and your landlord. You must keep paying rent unless you
have a legal reason to withhold it. Your landlord must keep the property repaired.
Utilities must be paid under the terms of your lease or under state law.
new text end

new text begin Moving out of the property early might be a violation of your lease. The date
of the sheriff's foreclosure sale is in the attached foreclosure notice. In most cases you
do not need to move from the property before the sheriff's foreclosure sale. Read your
lease to see if it says anything about foreclosure and about the rights you may have if the
property is in foreclosure. If you have a month-to-month lease, the foreclosure notice does
not change the rules for ending your lease. You and your landlord must still give legal
notice to end your lease.
new text end

new text begin In most cases, your landlord has six months after the date of the sheriff's foreclosure
sale to pay off the mortgage. This is called the redemption period. Read the attached
foreclosure notice to determine the length of the redemption period. You cannot be asked
to move during the redemption period except for lease violations or if your lease expires
during the redemption period. If your landlord stops the foreclosure, you may not have to
move from the property. If your landlord does not stop the foreclosure, there will be a new
owner of the property at the end of the redemption period.
new text end

new text begin The new owner may have the legal right to ask you to move even if your lease is
not over. But, the new owner must still give you a written notice stating that the new
owner wants you to move.
new text end

new text begin Do not wait to get information about foreclosure. Mortgage foreclosure is a
complicated process. It is important you learn about your rights as a renter when there
is a mortgage foreclosure. You may have fewer options if you wait too long. There
are government agencies and nonprofit organizations that you may contact for helpful
information about the foreclosure process. For the name and telephone number of an
organization near you, please call the legal aid office or bar association office in your
county. You also can find information on tenant rights at HOME Line at (866) 866-3546
and Law Help Minnesota at http://www.LawHelpMN.org. The state of Minnesota does
not guarantee the advice of these agencies and organizations.
new text end

new text begin Subd. 4. new text end

new text begin Affidavit. new text end

new text begin Any person may establish compliance with or inapplicability of
this section by recording, with the county recorder or registrar of titles, an affidavit by
a person having knowledge of the facts, stating that the notice required by this section
has been delivered in compliance with this section. The affidavit and a certified copy of a
recorded affidavit shall be prima facie evidence of the facts stated in the affidavit. The
affidavit may be recorded regarding any foreclosure sale, including foreclosure sales
which occurred prior to August 1, 2008, and may recorded separately or as part of the
record of a foreclosure.
new text end

new text begin Subd. 5. new text end

new text begin Validation of foreclosure sales; remedy for violation. new text end

new text begin (a) No mortgage
foreclosure sale under this chapter shall be invalid because of failure to comply with
this section.
new text end

new text begin (b) The remedy for a violation of this section shall be limited to actual damages
caused by such violation, not to exceed $1,000, and shall be available only to the tenant
of the mortgaged premises who occupied the mortgaged premises during the redemption
period of the mortgagor. Any legal action brought to enforce the provisions of this section
must be commenced by the last day of the redemption period of the mortgagor. A plaintiff
shall have no cause of action if the defendant has complied with section 580.03.
new text end

ARTICLE 3

PREFORECLOSURE

Section 1.

Minnesota Statutes 2006, section 580.02, is amended to read:

580.02 REQUISITES FOR FORECLOSURE.

To entitle any party to make such foreclosure, it is requisite:

(1) that some default in a condition of such mortgage has occurred, by which the
power to sell has become operative;

(2) that no action or proceeding has been instituted at law to recover the debt then
remaining secured by such mortgage, or any part thereof, or, if the action or proceeding
has been instituted, that the same has been discontinued, or that an execution upon the
judgment rendered therein has been returned unsatisfied, in whole or in part;

(3) that the mortgage has been recorded and, if it has been assigned, that all
assignments thereof have been recorded; provided, that, if the mortgage is upon registered
land, it shall be sufficient if the mortgage and all assignments thereof have been duly
registereddeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) before the notice of pendency as required under section 580.032 is recorded, the
party has complied with section 580.021.
new text end

Sec. 2.

new text begin [580.021] OFFER OF FORECLOSURE PREVENTION COUNSELING.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to foreclosure of mortgages under
this chapter on property consisting of one to four family dwelling units, one of which
the owner occupies as the owner's principal place of residency on the date of service of
the notice of sale of the owner.
new text end

new text begin Subd. 2. new text end

new text begin Requirement to provide notice of opportunity for counseling. new text end

new text begin When
the written notice required under section 47.20, subdivision 8, is provided and before the
notice of pendency under section 580.032, subdivision 3, is filed, a party foreclosing on a
mortgage must provide to the mortgagor information contained in a form prescribed in
section 580.022, subdivision 1, that:
new text end

new text begin (1) foreclosure prevention counseling services provided by an authorized foreclosure
prevention agency are available; and
new text end

new text begin (2) notice that if the form is not returned within the stated time period, the party
will transmit the homeowner's name, address, and telephone number to an approved
foreclosure prevention agency.
new text end

new text begin Nothing in this subdivision prohibits the notices required by this subdivision
from being provided concurrently with the written notice required under section 47.20,
subdivision 8.
new text end

new text begin For the purposes of this section, an "authorized foreclosure counseling agency" is
a nonprofit agency approved by the Minnesota Housing Finance Agency or the United
States Department of Housing and Urban Development to provide foreclosure prevention
counseling services.
new text end

new text begin Subd. 3. new text end

new text begin Option to decline counseling. new text end

new text begin In order to decline counseling, a mortgagor
shall have three weeks from the date of mailing of the information required under
subdivision 2 to return the form prescribed in section 580.022, subdivision 1, to the person
and address identified on the form.
new text end

new text begin Subd. 4. new text end

new text begin Notification to authorized counseling agency. new text end

new text begin If the form prescribed in
section 580.022, subdivision 1, is not returned within the time period, the party entitled
to foreclose shall, within one week of the expiration of the time period, provide to the
appropriate authorized foreclosure prevention agency the mortgagor's name, address,
and most recent known telephone number.
new text end

new text begin Subd. 5. new text end

new text begin Notice of provision of counseling; request for contact information. new text end

new text begin (a)
An authorized foreclosure prevention agency that contacts or is contacted by a mortgagor
or the mortgagor's authorized representative and agrees to provide foreclosure prevention
assistance services to the mortgagor or representative must provide the form prescribed in
section 580.022 to the mortgagee. The form serves as notice to the mortgagee that the
mortgagor is receiving foreclosure prevention counseling assistance.
new text end

new text begin (b) The mortgagee must return the form to the authorized foreclosure prevention
agency within 15 days of receipt of the form with the name and telephone number of the
mortgagee's agent. The agent must be a person authorized by the mortgagee to:
new text end

new text begin (1) discuss with the authorized foreclosure prevention agency or the mortgagor
the terms of the mortgage; and
new text end

new text begin (2) negotiate any resolution to the mortgagor's default.
new text end

new text begin (c) Nothing in this subdivision requires a mortgagee to reach a resolution relating to
the mortgagor's default.
new text end

Sec. 3.

new text begin [580.022] FORMS.
new text end

new text begin Subdivision 1. new text end

new text begin Option to Decline Counseling form. new text end

new text begin The notice required under
section 580.021, subdivision 2, clause (2), must be printed on colored paper that is other
than the color of any other document provided with it and must appear substantially
as follows:
new text end

new text begin "PREFORECLOSURE NOTICE
new text end

new text begin Option to Decline Foreclosure Prevention Counseling
new text end

new text begin Why You Are Getting This Notice
new text end

new text begin We do not want you to lose your home and your equity. Government-approved
nonprofit agencies are available to, if possible, help you prevent foreclosure.
new text end

new text begin We want your permission to allow an authorized foreclosure prevention counseling
agency to contact you to help you prevent foreclosure.
new text end

new text begin What Happens If You Don't Do Anything
new text end

new text begin If we do not receive this form back by [insert date], we will give your contact
information to a foreclosure prevention counseling agency that will contact you to start the
process of helping you prevent foreclosure.
new text end

new text begin What Happens If You Check the Box and Send This Notice Back
new text end

new text begin We will not send your contact information to a foreclosure prevention counseling
agency.
new text end

new text begin Who Are These Foreclosure Prevention Counseling Agencies
new text end

new text begin They are nonprofit agencies who are experts in housing and foreclosure prevention
counseling and assistance. They are experienced in dealing with lenders and homeowners
who are behind on mortgage payments and can help you understand your options and
work with you to address your delinquency. They are approved by either the Minnesota
Housing Finance Agency or the United States Department of Housing and Urban
Development. They are not connected with us in any way.
new text end

new text begin Which Agency Will Contact You
new text end

new text begin [insert name, address, and telephone number of agency]
new text end

new text begin You can also contact them instead.
new text end

new text begin Summary of Your Options
new text end

	new text begin 1. new text end	new text begin If you WANT to be contacted by an authorized foreclosure prevention counseling agency, DO NOTHING. new text end
	new text begin 2. new text end	new text begin If you DON'T WANT to be contacted by an authorized foreclosure prevention counseling agency, SEND BACK THE FORM BY [insert date.] new text end
	new text begin □ new text end	new text begin I wish to decline foreclosure prevention counseling and ask you not to give my contact information to any foreclosure prevention counseling agency. new text end

new text begin Signed, new text end

_		_
new text begin (Name of Homeowner) new text end		new text begin Date new text end

Mail to:

[Name of person to whom form is to be returned, if applicable]

[Name of entity to which form is to be returned]

[Address of entity to which form is to be returned]

[Phone number of entity to which form is to be returned]"

new text begin Subd. 2. new text end

new text begin Notice of Counseling and Request for Contact Information form. new text end

new text begin The
notice required in section 580.021, subdivision 5, must be substantially in the following
form:
new text end

new text begin "PREFORECLOSURE NOTICE
new text end

new text begin NOTICE OF PROVISION OF FORECLOSURE PREVENTION COUNSELING
AND REQUEST FOR MORTGAGEE CONTACT INFORMATION
new text end

new text begin [Insert agency name] has been contacted by your customer regarding foreclosure
prevention counseling in response to the current foreclosure proceedings involving the
customer's real property. Please provide the following contact information pursuant to
Minnesota Statutes, section 580.021, subdivision 5, by completing and returning this form
via fax [insert fax number] or via e-mail at [insert e-mail address].
new text end

To be completed by Counseling Agency

Consumer Name:
_

CONSUMER CONTACT INFORMATION:

Address:
_

City, State, Zip Code:
_

Daytime Phone:
_

Nighttime Phone:
_

PROPERTY AT RISK FOR FORECLOSURE (if differs from above):

Address:
_

City, State, Zip Code:
_

COUNSELING AGENCY CONTACT:

Name:
_

Agency:
_

Phone:
_

Fax:
_

E-mail:
_

new text begin To be completed by Lender
new text end

Contact Name:
_

Address:
_

City, State, Zip Code:
_

Phone:
_

Fax:
_

E-mail: _ "

Sec. 4.

Minnesota Statutes 2006, section 580.041, subdivision 2, is amended to read:

Subd. 2.

Content of notice.

The notice required by this section must appear
substantially as follows:

"Help For Homeowners in Foreclosure

deleted text begin Minnesota law requires that we send you this notice about the foreclosure process.
Please read it carefully.
deleted text end

The attorney preparing this foreclosure is:
_

(Attorney name, address, phone)

It is being prepared for:

(Lender name, loss mitigation phone number)

new text begin AS OF [insert date], this lender says that you owe $[insert dollar amount] to bring
your mortgage up to date. You must pay this amount to keep your house from going
through a sheriff's sale. The sheriff's sale is scheduled for [insert date] at [insert
time] at [insert place].
new text end

Mortgage foreclosure is a complex process. deleted text begin Somedeleted text end People may deleted text begin approachdeleted text end new text begin contactnew text end you
deleted text begin about "saving"deleted text end new text begin with advice and offers to help "save"new text end your home. deleted text begin You should be
careful about any such promises.
deleted text end

deleted text begin The state encourages you to become informed about your options in foreclosure
before entering into any agreements with anyone in connection with the foreclosure
of your home. There are government agencies and nonprofit organizations that you
may contact for helpful information about the foreclosure process. For the name and
telephone number of an organization near you please call the Minnesota Housing
Finance Agency (MHFA) at (insert telephone number). The state does not guarantee
the advice of these agencies.
deleted text end

deleted text begin Do not delay dealing with the foreclosure because your options may become more
limited as time passes."
deleted text end

new text begin Remember: It is important that you learn as much as you can about foreclosure and
your situation. Find out about all your options before you make any agreements with
anyone about the foreclosure of your home.
new text end

new text begin Getting Help
new text end

new text begin As soon as possible, you should contact your lender at the above number to talk
about things you might be able to do to prevent foreclosure. You should also
consider contacting the foreclosure prevention counselor in your area. A foreclosure
prevention counselor can answer your questions, offer free advice, and help you
create a plan which makes sense for your situation.
new text end

new text begin Contact the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466
or www.hocmn.org to get the phone number and location of the nearest counseling
organization. Call today. The longer you wait, the fewer options you may have for
a desirable result.
new text end

new text begin Information About the Foreclosure Process
new text end

new text begin You do not need to move at the time of the sheriff's sale. After the sheriff's sale you
have the right to "redeem." Redeem means that you pay off the entire loan amount
plus fees to keep your house. You can keep living in your home for a period of time.
This is called a "redemption period." The redemption period is [insert number of
months] months after the sheriff's sale. This redemption period is your chance to
try and sell your home or refinance it with a different loan. You can also pay the
redemption amount with any other funds you have available. At the end of the
redemption period you will have to leave your home. If you do not, the person or
company that bid on your home at the sheriff's sale has the right to file an eviction
against you in district court."
new text end

ARTICLE 4

FORECLOSURE PROCESS

Section 1.

Minnesota Statutes 2007 Supplement, section 510.05, is amended to read:

510.05 LIMITATIONS.

The amount of the homestead exemption shall not be reduced by and shall not extend
to any mortgage lawfully obtained thereon, to any valid lien for taxes or assessments, to a
claim filed pursuant to section 246.53 or 256B.15, to any charge arising under the laws
relating to laborers or material suppliers' liens or to any charge obtained new text begin under section
481.13 new text end pursuant to a valid waiver of the homestead exemption.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 550.19, is amended to read:

550.19 SERVICE ON JUDGMENT DEBTOR.

new text begin If the sale is of personal property, at or before the time of posting notice of sale, the
officer shall serve a copy of the execution and inventory, and of such notice, upon the
judgment debtor, if the debtor is a resident of the county, in the manner required by law
for the service of a summons in a civil action. If the sale is of real property, new text end a judgment
creditor must, at least four weeks before the appointed time of sale, serve a copy of the
notice of sale in like manner as a summons in a civil action in the district court upon the
judgment debtor if the judgment debtor is a resident of the county and upon any person
in possession of the homestead other than the judgment debtor. In addition, the notice
of sale must also be served upon all persons who have recorded a request for notice in
accordance with section 580.032.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 550.22, is amended to read:

550.22 CERTIFICATE OF SALE OF REALTY.

When a sale of real property is made upon execution, or pursuant to a judgment or
order of a court, unless otherwise specified therein, the officer shall execute and deliver
to the purchaser a certificate containing:

(1) a description of the execution, judgment, or order;

(2) a description of the property;

(3) the date of the sale and the name of the purchaser;

(4) the price paid for each parcel separately;

(5) if subject to redemption, the time allowed by law therefor;

new text begin (6) the interest rate in effect on the date of the sheriff's sale; new text end and

deleted text begin (6)deleted text end new text begin (7)new text end the amount of the debtor's homestead exemption, if any, as determined under
section 550.175.

Such certificate shall be executed, acknowledged, and recorded in the manner
provided by law for a conveyance of real property, shall be prima facie evidence of the
facts stated, and, upon expiration of the time for redemption, shall operate as a conveyance
to the purchaser of all the right, title, and interest of the person whose property is sold in
and to the same, at the date of the lien upon which the same was sold. Any person desiring
to perpetuate evidence that any real property sold under this section was not homestead
real property may procure an affidavit by the person enforcing the judgment, or that
person's attorney, or someone having knowledge of the facts, setting forth that the real
property was not homestead real property. The affidavit shall be recorded by the county
recorder or registrar of titles, and the affidavit and certified copies of the affidavit shall
be prima facie evidence of the facts stated in the affidavit.

Sec. 4.

Minnesota Statutes 2007 Supplement, section 550.24, is amended to read:

550.24 REDEMPTION OF REALTY.

(a) Upon the sale of real property, if the estate sold is less than a leasehold of two
years' unexpired term, the sale is absolute. In all other cases the property sold, or any
portion thereof which has been sold separately, is subject to redemption as provided
in this section.

(b) The judgment debtor, the debtor's heirs, successors, legal representatives, or
assigns may redeem within one year after the day of sale, or order confirming sale if the
property is a homestead, by paying, to the purchaser or the officer making the sale, the
amount for which the property was sold with interestnew text begin at the rate stated in the certificate of
salenew text end , on the amount of the sale in excess of the homestead exemption, at the judgment rate
and if the purchaser is a creditor having a prior lien, the amount thereof, with interest, on
the amount of the sale in excess of the homestead exemption, at the judgment rate together
with any costs as provided in sections 582.03 and 582.031.

(c) If there is no redemption during the debtor's redemption period, creditors having
a lien, legal or equitable, on the property or some part thereof, subsequent to that on
which it was sold may redeem in the manner provided for redemption by creditors of the
mortgagor in section 580.24, in the order of their respective liens.

(d) If the property is abandoned during the judgment debtor's redemption period,
the person holding the sheriff's certificate may request that the court reduce the judgment
debtor's redemption period to five weeks using the procedures provided for a foreclosure
by action in section 582.032, subdivision 5.

Sec. 5.

Minnesota Statutes 2006, section 580.03, is amended to read:

580.03 NOTICE OF SALE; SERVICE ON OCCUPANT.

deleted text begin Sixdeleted text end new text begin Commencing six weeks before the appointed time of sale a threenew text end weeks'
published notice shall be given that such mortgage will be foreclosed by sale of the
mortgaged premises or some part thereof, and at least four weeks before the appointed
time of sale a copy of such notice shall be served in like manner as a summons in a civil
action in the district court upon the person in possession of the mortgaged premises, if the
same are actually occupied. If there be a building on such premises used by a church or
religious corporation, for its usual meetings, service upon any officer or trustee of such
corporation shall be a sufficient service upon it. The notice required by section 580.041
must be served simultaneously with the notice of foreclosure required by this section.

Sec. 6.

Minnesota Statutes 2006, section 580.06, is amended to read:

580.06 SALE, HOW AND BY WHOM MADE.

The sale shall be made by the sheriff or the sheriff's deputy at public vendue to the
highest bidder, in the county in which the premises to be sold, or some part thereof, are
situated, between 9:00 a.m. and deleted text begin the setting of the sundeleted text end new text begin 4:00 p.mnew text end .

Sec. 7.

Minnesota Statutes 2006, section 580.07, is amended to read:

580.07 POSTPONEMENT.

The sale may be postponed, from time to time, by the party conducting the
foreclosure, by inserting a notice of the postponement, as soon as practicable, in the
newspaper in which the original advertisement was published, deleted text begin and continuing the
publication until the time to which the sale is postponed,deleted text end at the expense of the party
requesting the postponement.

Sec. 8.

Minnesota Statutes 2006, section 580.12, is amended to read:

580.12 CERTIFICATE OF SALE; RECORD; EFFECT.

When any sale of real property is made under a power of sale contained in any
mortgage, the officer shall make and deliver to the purchaser a certificate, executed in the
same manner as a conveyance, containing:

(1) a description of the mortgage;

(2) a description of the property sold;

(3) the price paid for each parcel sold;

(4) the time and place of the sale, and the name of the purchaser;

new text begin (5) the interest rate in effect on the date of the sheriff's sale;new text end and

deleted text begin (5)deleted text end new text begin (6)new text end the time allowed by law for redemption, provided that if the redemption
period stated in the certificate is five weeks and a longer redemption period was stated in
the published notice of foreclosure sale, a certified copy of the court order entered under
section 582.032, authorizing reduction of the redemption period to five weeks, must be
attached to the certificate.

A certificate which states a five-week redemption period must be recorded within
ten days after the sale; any other certificate must be recorded within 20 days after the
sale. When so recorded, upon expiration of the time for redemption, the certificate shall
operate as a conveyance to the purchaser or the purchaser's assignee of all the right, title,
and interest of the mortgagor in and to the premises named therein at the date of such
mortgage, without any other conveyance. A certificate must not contain a time allowed
for redemption that is less than the time specified by section 580.23, 582.032, or 582.32,
whichever applies.

Sec. 9.

Minnesota Statutes 2006, section 580.23, subdivision 1, is amended to read:

Subdivision 1.

Six-month redemption period.

When lands have been sold in
conformity with the preceding sections of this chapter, the mortgagor, the mortgagor's
personal representatives or assigns, within six months after such sale, except as otherwise
provided in subdivision 2 or section 582.032 or 582.32, may redeem such lands, as
hereinafter provided, by paying the sum of money for which the same were sold, with
interest from the time of sale at the rate provided to be paid on the mortgage debtnew text begin as stated
in the certificate of salenew text end and, if no rate be provided in the deleted text begin mortgage notedeleted text end new text begin certificate of
salenew text end , at the rate of six percent per annum, together with any further sums which may be
payable as provided in sections 582.03 and 582.031. new text begin Delivery of funds and documents for
redemption shall be made at the normal place of business of the recipient, on days other
than Sunday, Saturday, and legal holidays, between the hours of 9:00 a.m. and 4:00 p.m.
Regardless of the length of the redemption period, the sheriff may accept a specific sum
less than the full amount due for redemption by the mortgagor upon receipt by the sheriff
of written confirmation from the holder of the sheriff's certificate or the attorney for the
holder of the sheriff's certificate that the holder of the sheriff's certificate has agreed to
accept a specific sum less than the full amount due for redemption.
new text end

Sec. 10.

Minnesota Statutes 2007 Supplement, section 580.24, is amended to read:

580.24 REDEMPTION BY CREDITOR.

(a) If no redemption is made by the mortgagor, the mortgagor's personal
representatives or assigns, the most senior creditor having a legal or equitable lien upon
the mortgaged premises, or some part of it, subsequent to the foreclosed mortgage, may
redeem within seven days after the expiration of the redemption period determined under
section 580.23 or 582.032, whichever is applicable; and each subsequent creditor having a
lien may redeem, in the order of priority of their respective liens, within seven days after
the time allowed the prior lienholder by paying the amount required under this section.
However, no creditor is entitled to redeem unless, deleted text begin withindeleted text end new text begin more than two months prior to
the expiration ofnew text end the period allowed for redemption by the mortgagornew text begin if the period is six
or 12 months, or more than two weeks prior to the expiration of the period allowed for
redemption by the mortgagor if the period is five weeksnew text end , the creditor:

(1) records with each county recorder and registrar of titles where the foreclosed
mortgage is recorded a notice of the creditor's intention to redeem;

(2) records deleted text begin in each officedeleted text end new text begin with each county recorder and registrar of titlesnew text end where the
noticenew text begin of the creditor's intention to redeemnew text end is recorded all documents necessary to create
the lien on the mortgaged premises and to evidence the creditor's ownership of the liennew text begin ,
including a copy of any money judgment necessary to create the liennew text end ; and

(3) after complying with clauses (1) and (2), delivers to the sheriff who conducted the
foreclosure sale or the sheriff's successor in office a copy of each of the documents required
to be recorded under clauses (1) and (2), with the office, date and time of filing for record
stated on the first page of each document.new text begin If the creditor's lien is created or perfected two
months or less prior to the expiration of a six- or 12-month period allowed for redemption
by the mortgagor, or two weeks or less prior to the expiration of a five-week period
allowed for redemption by the mortgagor, the creditor may redeem if the creditor: (i)
commences a suit in the district court naming the foreclosing creditor, the mortgagor, any
known occupants, and any creditors who have recorded a notice of intention to redeem,
(ii) records with each county recorder and registrar of titles where the foreclosed mortgage
is recorded a lis pendens related to the suit, and (iii) records with each county recorder and
registrar of titles where the lis pendens is recorded all documents necessary to create the
lien on the mortgaged premises and to evidence the creditor's ownership of the lien; and
new text end

new text begin (4) after complying with clauses (1), (2), and (3), delivers to the sheriff who
conducted the foreclosure sale or the sheriff's successor in office a copy of each of the
documents required to be recorded under clauses (2) and (3), with the office, date, and
time of filing for record state on the first page of each document.
new text end

The sheriff shall maintain for public inspection all documents delivered to the sheriff
and shall note the date of delivery on each document. The sheriff may charge a fee of
$100 for the documents delivered to the sheriff relating to each lien. The sheriff shall
maintain copies of documents delivered to the sheriff for a period of six months after the
end of the mortgagor's redemption period.

(b) Saturdays, Sundays, legal holidays, and the first day following the expiration
of the prior redemption period must be included in computing the seven-day redemption
period. When the last day of the period falls on Saturday, Sunday, or a legal holiday,
that day must be omitted from the computation. The order of redemption by judgment
creditors subsequent to the foreclosed mortgage shall be determined by the order in which
their judgments were entered as memorials on the certificate of title for the foreclosed
premises or docketed in the office of the district court administrator if the property is not
registered under chapter 508 or 508A, regardless of the homestead status of the property.
All mechanic's lienholders who have coordinate liens shall have one combined seven-day
period to redeem.

(c) The amount required to redeem from the holder of the sheriff's certificate of sale
is the amount required under section 580.23. The amount required to redeem from a
person holding a certificate of redemption is:

(1) the amount paid to redeem as shown on the certificate of redemption; plus

(2) interest on that amount to the date of redemption; plus

(3) the amount claimed due on the person's lien, as shown on the affidavit under
section 580.25, clause (3).

The amount required to redeem may be paid to the holder of the sheriff's certificate
of sale or the certificate of redemption, as the case may be, or to the sheriff for the holder.

Sec. 11.

Minnesota Statutes 2006, section 580.25, is amended to read:

580.25 REDEMPTION, HOW MADE.

Redemption shall be made as provided in this section.

The person desiring to redeem shall pay the amount required by law for the
redemption, and shall produce to the person or officer receiving the redemption payment:

(1) a copy of the docket of the judgment, or of thenew text begin recordednew text end deed or mortgage, or
of the record or files evidencing any other lien under which the person claims a right to
redeemdeleted text begin , certified by the officer with custody of the docket, record, or files, or the original
deed or mortgage with the certificate of record endorsed on itdeleted text end ;

(2) a copy of any new text begin recorded new text end assignment necessary to evidence the person's ownership
of the liendeleted text begin , certified by the officer with custody of the assignment, or the original of each
instrument of assignment with the certificate of record endorsed on itdeleted text end . If the redemption is
under an assignment of a judgment, the assignment shall be filed in the court entering the
judgment, as provided by law, and the person so redeeming shall produce a deleted text begin certifieddeleted text end copy
of it and of the record of its filing, and the copy of the docket shall show that the proper
entry was made upon the docket. No further evidence of the assignment of the judgment is
required unless the mortgaged premises or part of it is registered property, in which case
the judgment and all assignments of the judgment must be entered as a memorial upon the
certificate of title to the mortgaged premises and deleted text begin the originaldeleted text end new text begin a copy of thenew text end judgment and
each assignment with the certificate of record endorsed on itdeleted text begin , or a copy certified by the
registrar of titles,deleted text end must be produced; and

(3) an affidavit of the person or the person's agent, showing the amount then actually
claimed due on the person's lien and required to be paid on the lien in order to redeem
from the person.new text begin No additional fees or charges shall be claimed due except as provided
in section 582.03.
new text end

If redemption is made to the sheriff, the sheriff may charge a fee of $250 for issuing
the certificate of redemption and any related service. No other fee may be charged by the
sheriff for a redemption.

Within 24 hours after a redemption is made, the person redeeming shall cause the
documents so required to be produced to be deleted text begin fileddeleted text end new text begin recordednew text end with the county recorder, or
registrar of titles, who may receive fees as prescribed in section 357.18 or 508.82. If the
redemption is made at any place other than the county seat, it is sufficient forthwith to
deposit the documents in the nearest post office, addressed to the recorder or registrar of
titles, with the postage prepaid. A person recording documents produced for redemption
shall, on the same day, deliver copies of the documents to the sheriff for public inspection.
The sheriff may receive a fee of $20 for the documents delivered following a redemption.
The sheriff shall note the date of delivery on the documents and shall maintain for public
inspection all documents delivered to the sheriff for a period of six months after the end of
the mortgagor's redemption period.

Sec. 12.

Minnesota Statutes 2006, section 580.28, is amended to read:

580.28 ACTION TO SET ASIDE MORTGAGE; FORECLOSURE;
REDEMPTION.

When an action is brought wherein it is claimed that any mortgage as to the plaintiff
or person for whose benefit the action is brought is fraudulent or void, or has been paid or
discharged, in whole or in partnew text begin , or the relative priority or the validity of liens is disputednew text end ,
if such mortgage has been foreclosed by advertisement, and the time for redemption
from the foreclosure sale will expire before final judgment in such action, the plaintiff or
beneficiary having the right to redeem, for the purpose of saving such right in case the
action fails, may deposit with the sheriff before the time of redemption expires the amount
for which the mortgaged premises were sold, with interest thereon to the time of deposit,
together with a bond to the holder of the sheriff's certificate of sale, in an amount and with
sureties to be approved by the sheriff, conditioned to pay all interest that may accrue or be
allowed on such deposit if the action fail. The person shall, in writing, notify such sheriff
that the person claims the mortgage to be fraudulent or void, or to have been paid or
discharged, in whole or in part, as the case may be, and that such action is pending, and
direct the sheriff to retain such money and bond until final judgment. In case such action
fails, such deposit shall operate as a redemption of the premises from such foreclosure
sale, and entitle the plaintiff to a certificate thereof. Such foreclosure, deposit, bond, and
notice shall be brought to the attention of the court by supplemental complaint in the
action, and the judgment shall determine the validity of the foreclosure sale, and the rights
of the parties to the moneys and bond so deposited, which shall be paid and delivered by
the sheriff as directed by such judgment upon delivery to the sheriff of a certified copy
thereof. The remedy herein provided shall be in addition to other remedies now existing.

Sec. 13.

Minnesota Statutes 2006, section 580.30, is amended to read:

580.30 MORTGAGES, WHEN REINSTATED.

new text begin Subdivision 1. new text end

new text begin Reinstatement. new text end

In any proceedings for the foreclosure of a real estate
mortgage, whether by action or by advertisement, if at any time before the sale of the
premises under such foreclosure the mortgagor, the owner, or any holder of any subsequent
encumbrance or lien, or any one for them, shall pay or cause to be paid to the holder of the
mortgage so being foreclosed, or to the attorney foreclosing the same, or to the sheriff of
the county, the amount actually due thereon and constituting the default actually existing
in the conditions of the mortgage at the time of the commencement of the foreclosure
proceedings, including insurance, delinquent taxes, if any, upon the premises, interest to
date of payment, cost of publication and services of process or notices, attorney's fees not
exceeding $150 or one-half of the attorney's fees authorized by section 582.01, whichever
is greater, together with other lawful disbursements necessarily incurred in connection
with the proceedings by the party foreclosing, then, and in that event, the mortgage shall be
fully reinstated and further proceedings in such foreclosure shall be thereupon abandoned.

new text begin Subd. 2. new text end

new text begin Request by sheriff. new text end

new text begin Upon written request by the sheriff, the holder of the
mortgage or the holder's legal representative shall provide to the sheriff within seven days
of the date of the request by the sheriff to the foreclosing attorney: (1) the current payoff
amount, showing outstanding principal, interest, and a daily interest accrual amount, (2)
an itemized schedule of the current amounts necessary to reinstate the mortgage, (3)
the identity of the person or entity with authority to act on behalf of the holder of the
mortgage or the holder's legal representative. If the request by the sheriff is made greater
than seven days before the sheriff's sale and the holder of the mortgage or the holder's
legal representative fails to respond to the sheriff's request within seven days of the date
of the request, then the sheriff shall postpone the sheriff's sale for seven days and the
sheriff shall announce at the sheriff's sale a postponement of seven days. The sheriff shall
continue to postpone the sheriff's sale and announce the postponement until the holder of
the mortgage or the holder's legal representative responds to the sheriff's request and seven
days elapse before the sale is conducted. The postponement does not need to be published.
If the request by the sheriff is made seven days or less before the sheriff's sale, the holder
of the mortgage or the holder's representative shall make a good faith effort to respond to
the sheriff before the sheriff's sale, but the sheriff may conduct the sheriff's sale without a
response from the holder of the mortgage or the holder's legal representative.
new text end

Sec. 14.

Minnesota Statutes 2006, section 581.10, is amended to read:

581.10 REDEMPTION BY MORTGAGOR, CREDITOR.

The mortgagor, or those claiming under the mortgagor, within the time specified in
section 580.23 or 582.032, whichever applies, after the date of the order of confirmation,
may redeem the premises sold, or any separate portion thereof, by paying the amount bid
therefor, with interest thereon from the time of sale deleted text begin at the rate provided to be paid on the
mortgage debt, not to exceed eight percent per annum, and, if no rate to be provided in
the mortgage,deleted text end at the rate deleted text begin of six percentdeleted text end new text begin stated in the certificate of salenew text end , together with any
further sum which may be payable pursuant to section 582.03 and 582.031. Creditors
having a lien may redeem in the order and manner specified in section 580.24.

Sec. 15.

Minnesota Statutes 2006, section 582.03, is amended to read:

582.03 PURCHASER MAY PAY TAXES AND OTHER EXPENSES DUE.

new text begin Subdivision 1. new text end

new text begin Allowable costs collectable upon redemption. new text end

The deleted text begin purchaser at
anydeleted text end new text begin holder of any sheriff's certificate of new text end sale, deleted text begin upondeleted text end new text begin from anew text end foreclosure new text begin by advertisement
or action new text end of new text begin a new text end mortgage new text begin or lien new text end or execution deleted text begin or at any judicial saledeleted text end new text begin , or the holder of any
certificate of redemption as a junior creditornew text end during the period of redemption, may pay
new text begin and claim the following on redemption: new text end any taxes or assessments on which any penalty
would otherwise accrue, and deleted text begin may pay the premium upon any policy of insurance procured
in renewal of any expiring policy upondeleted text end new text begin any costs of a hazard insurance policy for the
holder's interest in thenew text end mortgaged premisesnew text begin incurred for the period of holding the sheriff's
certificatenew text end , new text begin any costs incurred when an order to reduce a mortgagor's redemption period
under section 582.032 is entered; any fees paid to the county recorder, registrar of titles,
or sheriff to obtain or record the certificates of sale or redemption or notices of intention
to redeem, any deed tax paid to file a certificate of redemption, reasonable attorney fees
incurred after the foreclosure sale not to exceed one-half of the amount authorized by
section 582.01, new text end deleted text begin may paydeleted text end any costs incurred under section 582.031, and deleted text begin may, in casedeleted text end any
interest or installment of principal upon any prior or superior mortgage, lien, or contract
for deed deleted text begin isdeleted text end in default or deleted text begin shall becomedeleted text end new text begin that becomesnew text end due during the period of redemptiondeleted text begin ,
pay the same, and,deleted text end new text begin .new text end In all such cases, the deleted text begin sumdeleted text end new text begin costsnew text end so paidnew text begin and claimed duenew text end , with interest,
shall be a part of the sum required to be paid to redeem from such sale. new text begin No other costs,
fees, interest, or other amount may be added to the amount necessary to redeem.
new text end

new text begin Subd. 2. new text end

new text begin Affidavit of allowable costs. new text end

deleted text begin Suchdeleted text end new text begin Anynew text end payments new text begin made and claimed due
under subdivision 1 new text end shall be proved by the affidavit of the deleted text begin purchaser or the purchaser'sdeleted text end new text begin
holder of the sheriff's certificate or itsnew text end agent or attorney, deleted text begin stating the itemsdeleted text end new text begin itemizing each of
the allowable costsnew text end and describing the premisesdeleted text begin , which must be filed for record with the
county recorder or registrar of titles, and a copy thereof shall be furnished to the sheriff at
least ten days before the expiration of the period of redemption.deleted text end new text begin The affidavit shall be filed
with the sheriff of the county in which the sale was held at any time prior to expiration of
the mortgagor's redemption period. Upon written request by the sheriff, the holder of the
sheriff's certificate or certificate of redemption shall provide an affidavit of allowable costs
to the sheriff within seven days of the date of the request by the sheriff. If the holder of
the sheriff's certificate or certificate of redemption fails to respond to the sheriff's request
within seven days, then the sheriff may calculate a redemption amount pursuant to section
580.23, subdivision 1, and issue a certificate of redemption for that amount. If the time
allowed to redeem is less than seven days from the expiration of the redemption period,
then the sheriff shall make a reasonable effort to request the affidavit of allowable costs in
writing from the holder of the sheriff's certificate, its agent, or attorney before issuing a
certificate of redemption. If the affidavit of allowable costs is not provided more than one
business day before the expiration of the redemption period, then at any time one business
day or less before the expiration of the redemption period, the sheriff may calculate a
redemption amount pursuant to section 580.23, subdivision 1, and issue a certificate of
redemption for that amount. The amount calculated by the sheriff, absent malfeasance by
the sheriff, shall bind the holder of the sheriff's certificate even if the amount calculated by
the sheriff is less than the actual amount due.
new text end

new text begin Subd. 3. new text end

new text begin Penalty for excessive costs. new text end

new text begin At any time within one year after the
expiration of the mortgagor's redemption period, the redeeming party, heirs, or assigns
may recover from the holder of the sheriff's certificate three times the amount of any sums
declared as costs or disbursements on the affidavit of allowable costs but not actually paid
by the holder, or three times the amount of any sums determined to exceed a reasonable
cost for the declared item, unless the disputed amounts are paid to the redeeming party,
heirs, or assigns prior to entry of judgment.
new text end

Sec. 16.

Minnesota Statutes 2006, section 582.031, is amended to read:

582.031 LIMITED RIGHT OF ENTRY.

Subdivision 1.

Right of entry.

If premises described in a mortgage or sheriff's
certificate are vacant or unoccupied, the holder of the mortgage or sheriff's certificate or the
holder's agents and contractors may, but is under no obligation to, enter upon the premises
to protect the premises from waste, until the holder of the mortgage or sheriff's certificate
receives notice that the premises are occupied. The holder of the mortgage or sheriff's
certificate does not become a mortgagee in possession by taking actions authorized under
this section. An affidavit of the sheriff, the holder of the mortgage or sheriff's certificate, or
a person acting on behalf of the holder, describing the premises and stating that the same
are vacant or unoccupied, is prima facie evidence of the facts stated in the affidavit and is
entitled to be recorded in the office of the county recorder or the registrar of titles in the
county where the premises are located, if it contains a legal description of the premises.

Subd. 2.

Authorized actions.

The holder of the mortgage or sheriff's certificate
may take the following actions to protect the premises from wastedeleted text begin :deleted text end new text begin or from falling below
minimum community standards for public safety and sanitation: make reasonable periodic
inspections,new text end install or change locks on doors and windows, board windows, install an
alarm system, deleted text begin provide a resident caretaker,deleted text end and otherwise prevent or minimize damage
to the premises from the elements, vandalism, trespass, or other illegal activities. If the
holder of the mortgage or sheriff's certificate installs or changes locks under this section, a
key to the premises must be promptly delivered to the mortgagor or any person lawfully
claiming through the mortgagor, upon request.

Subd. 3.

Costs.

All costs incurred by the holder of the mortgage to protect the
premises from waste new text begin or from falling below minimum community standards for public
safety and sanitation new text end may be added to the principal balance of the mortgage. The costs
may bear interest to the extent provided in the mortgage and may be added to the
redemption price if the costs are incurred after a foreclosure sale. If the costs are incurred
after a foreclosure sale, the deleted text begin purchaser at the foreclosure saledeleted text end new text begin holder of any sheriff's
certificate of sale or certificate of redemptionnew text end must comply with the provisions of section
582.03. The provisions of this section are in addition to, and do not limit or replace, any
other rights or remedies available to holders of mortgages and sheriff's certificates, at law
or under the applicable mortgage agreements.

Sec. 17.

Minnesota Statutes 2006, section 582.032, subdivision 2, is amended to read:

Subd. 2.

Before foreclosure sale.

Notwithstanding section 580.23 or 581.10, if at
any time before the foreclosure sale but not more than 30 days before the first publication
of the notice of sale, a court order is entered reducing the mortgagor's redemption period to
five weeks under subdivision 7, after the mortgaged premises have been sold as provided
in chapter 580 or 581, the mortgagor, and the mortgagor's personal representatives or
assigns, within five weeks after the sale under chapter 580, or within five weeks after
the date of the order confirming the sale under chapter 581, may redeem the mortgaged
premises as provided in section 580.23, subdivision 1, or 581.10, as applicable. deleted text begin If an order
is obtained after the first publication of the notice of sale, the five-week redemption period
applies only if the notice of sale contained the statement required by section 580.04,
clause (7).deleted text end new text begin All publications of notice of sale must include the statement required by
section 580.04, clause (7). The last publication of notice of sale prior to the sale under
chapter 580 must state if the foreclosing party will petition to have the redemption period
reduced as provided in this section.
new text end

Sec. 18.

Laws 2004, chapter 263, section 26, is amended to read:

Sec. 26. EFFECTIVE DATE; EXPIRATION.

Sections 1 to 18, 22, 23, and 25 are effective August 1, 2004deleted text begin , and expire December
31, 2009deleted text end . Sections 19, 20, 21, and 24 are effective July 1, 2004.

ARTICLE 5

CIVIL AND CRIMINAL ENFORCEMENT

Section 1.

Minnesota Statutes 2006, section 47.206, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Advertising adjustable rate mortgages. new text end

new text begin A person, including a lender,
may not advertise an interest rate or estimated monthly payment for an adjustable rate
mortgage, unless the advertisement also clearly and conspicuously discloses the following
information:
new text end

new text begin (a) The duration and first change date of the advertised interest rate or estimated
monthly payment;
new text end

new text begin (b) the fully adjusted interest rate and estimated fully amortizing monthly payment;
new text end

new text begin (c) the term of the mortgage; and
new text end

new text begin (d) the estimated balloon payment amount, if any.
new text end

new text begin This subdivision shall include advertising on the Internet.
new text end

Sec. 2.

Minnesota Statutes 2006, section 47.206, subdivision 7, is amended to read:

Subd. 7.

Penalties.

(a) Except as provided in paragraph (c), a lender who violates
this section or who causes unreasonable delay in processing a loan application beyond the
expiration date of the agreement is liable to the borrower for a penalty in an amount not to
exceed the borrower's actual out-of-pocket damages, including the present value of the
increased interest costs over the normal life of the loan, or specific performance of the
agreement. This paragraph applies to an agreement entered into after January 1, 1987.

(b) In addition to the penalty in paragraph (a), a lender is liable to the borrower for
$500 for each violation of this section or for unreasonable delay in processing a loan
application which causes the agreement to expire before closing.

(c) A lender who violates subdivision 4 is jointly and severally liable to the borrower
for specific performance of the agreement or for a penalty in the amount of $500 or an
amount not to exceed the borrower's actual out-of-pocket damages, including the present
value of the increased costs over the normal life of the loan, whichever is greater, due to
the good faith reliance of the borrower on the lender's oral representation.

(d) For purposes of this subdivision, evidence of unreasonable delay includes, but is
not limited to:

(1) failure of the lender to return telephone calls or otherwise respond to the
borrower's inquiries concerning the status of the loan;

(2) the addition by the lender of new requirements for processing or approving the
loan that were not disclosed to the borrower under subdivision 2, clause (3), unless the
requirements result from governmental agency or secondary mortgage market changes,
other than changes in interest rates, that occur after the date of the agreement; or

(3) failure by the lender to take actions necessary to process or approve the loan
within a reasonable period of time, if the borrower provided information requested by the
lender in a timely manner.

new text begin (e) Any person who violates this chapter shall be subject to the penalties and
remedies provided by Minnesota Statutes, section 8.31.
new text end

Sec. 3.

Minnesota Statutes 2006, section 334.01, subdivision 2, is amended to read:

Subd. 2.

Contracts of $100,000 or more.

Notwithstanding any law to the contrary,
except as stated in section 58.137, no limitation on the rate or amount of interest, points,
finance charges, fees, or other charges applies to a loan, mortgage, credit sale, or advance
made under a written contract, signed by the debtor, for the extension of credit to the
debtor new text begin by a lender as defined in section 334.03 new text end in the amount of $100,000 or morenew text begin and a
person not included in the definition of lender found in section 334.03 in the amount of
$300,000 or morenew text end , or any written extension and other written modification of the written
contract. The written contract, written extension, and written modification are exempt
from the other provisions of this chapter.

Sec. 4.

Minnesota Statutes 2006, section 363A.28, subdivision 3, is amended to read:

Subd. 3.

For filing claim; filing options.

A claim of an unfair discriminatory
practice must be brought as a civil action pursuant to section 363A.33, subdivision 1, filed
in a charge with a local commission pursuant to section 363A.07, subdivision 3, or filed
in a charge with the commissioner within deleted text begin one yeardeleted text end new text begin two yearsnew text end after the occurrence of the
practice. The running of the deleted text begin one-yeardeleted text end limitation period is suspended during the time a
potential charging party and respondent are voluntarily engaged in a dispute resolution
process involving a claim of unlawful discrimination under this chapter, including
arbitration, conciliation, mediation or grievance procedures pursuant to a collective
bargaining agreement or statutory, charter, ordinance provisions for a civil service or
other employment system or a school board sexual harassment or sexual violence policy.
A potential respondent who participates in such a process with a potential charging
party before a charge is filed or a civil action is brought shall notify the department and
the charging party in writing of the participation in the process and the date the process
commenced and shall also notify the department and the charging party of the ending date
of the process. A respondent who fails to provide this notification is barred from raising
the defense that the statute of limitations has run unless deleted text begin one yeardeleted text end new text begin two yearsnew text end plus a period
of time equal to the suspension period has passed.

Sec. 5.

Minnesota Statutes 2006, section 363A.29, subdivision 4, is amended to read:

Subd. 4.

Civil penalty; punitive damages.

(a) The administrative law judge shall
order any respondent found to be in violation of any provision of sections 363A.08 to
363A.19 and 363A.28, subdivision 10, to pay a civil penalty to the state. This penalty is
in addition to compensatory and punitive damages to be paid to an aggrieved party. The
administrative law judge shall determine the amount of the civil penalty to be paid, taking
into account the seriousness and extent of the violation, the public harm occasioned by
the violation, whether the violation was intentional, and the financial resources of the
respondent. Any penalties imposed under this provision shall be paid into the general fund
of the state. In all cases where the administrative law judge finds that the respondent has
engaged in an unfair discriminatory practice, the administrative law judge shall order the
respondent to pay an aggrieved party, who has suffered discrimination, compensatory
damages in an amount up to three times the actual damages sustained. In all cases, the
administrative law judge may also order the respondent to pay an aggrieved party, who
has suffered discrimination, damages for mental anguish or suffering and reasonable
attorney's fees, in addition to punitive damages deleted text begin in an amount not more than $8,500.
Punitive damages shall be awardeddeleted text end pursuant to section 549.20.

(b) In any case where a political subdivision is a respondent, deleted text begin the total of punitive
damages awarded an aggrieved party may not exceed $8,500 and in that casedeleted text end if there are
two or more respondents the punitive damages may be apportioned among them. Punitive
damages may only be assessed against a political subdivision in its capacity as a corporate
entity and no regular or ex officio member of a governing body of a political subdivision
shall be personally liable for payment of punitive damages pursuant to subdivisions 3 to 6.

Sec. 6.

Minnesota Statutes 2006, section 580.02, is amended to read:

580.02 REQUISITES FOR FORECLOSURE.

To entitle any party to make such foreclosure, it is requisite:

(1) that some default in a condition of such mortgage has occurred, by which the
power to sell has become operative;

new text begin (4) that all Federal Housing Administration guidelines and requirements for loss
mitigation, including but not limited to the Loss Mitigation Program set forth in the
United States Department of Housing and Urban Development's Mortgagee Letter 00-05,
dated January 19, 2000, be followed for owner-occupied, homesteaded properties with a
mortgage or note containing the following characteristics or terms:
new text end

new text begin (i) a mortgage or note originated with no documentation or minimum documentation
related to the mortgagor's ability to pay or based upon the mortgagor's stated income with
no or minimal verifying documentation;
new text end

new text begin (ii) an adjustable interest rate; or
new text end

new text begin (iii) a fixed interest rate above eight percent.
new text end

new text begin Clause (4) sunsets on January 1, 2011.
new text end

Sec. 7.

Minnesota Statutes 2007 Supplement, section 609.822, subdivision 3, is
amended to read:

Subd. 3.

Sentence.

Whoever violates this section shall be sentenced as provided
in section 609.52, subdivision 3, based on the aggregate economic loss suffered by any
person as a result of the violation. However, the maximum sentence of imprisonment for
the offense may not exceed two years. A person convicted of a violation of this section
shall be ordered to pay restitution to persons aggrieved by the violation. Restitution shall
be ordered in addition to a fine or imprisonment but not in lieu of a fine or imprisonment.new text begin
Nothing in this section limits the power of the state to punish any person for conduct
which constitutes a crime under any other statute.
new text end

ARTICLE 6

MANUFACTURED HOUSING

Section 1.

new text begin [325B.095] INTEREST, POINTS, FINANCE CHARGES, FEES, AND
OTHER CHARGES.
new text end

new text begin Subdivision 1. new text end

new text begin Financed interest, points, finance charges, fees, and other
charges. new text end

new text begin A manufactured home lender making or modifying a manufactured home loan
to a borrower located in this state must not include in the principal amount of any loan
all or any portion of any lender fee in an aggregate amount exceeding five percent of the
loan amount. "Lender fee" means interest, points, finance charges, fees, and other charges
payable in connection with the manufactured home loan: (1) by the borrower to any
manufactured home lender or broker or to any assignee of any manufactured home lender
or broker; or (2) by the lender to a broker. Lender fee does not includes recording fees,
taxes, passthroughs, or other amounts that are paid by any person to any government
entity, filing office, or other third party that is not a manufactured home lender or broker
or to any assignee of any manufactured home lender or broker. Lender fee also does not
include any amount that is set aside to pay taxes or insurance on any property securing the
manufactured home loan. "Loan amount" means: (1) for a line of credit, the maximum
principal amount of the line of credit; and (2) for any other manufactured home loan, the
principal amount of the loan excluding all interest, points, finance charges, fees, and other
charges. A manufactured home lender or broker shall not charge, receive, or collect any
excess financed interest, points, finance charges, fees, or other charges described in this
subdivision, or any interest, points, finance charges, fees, or other charges with respect
to this excess.
new text end

new text begin Subd. 2. new text end

new text begin Prepayment penalties. new text end

new text begin A manufactured home lender or broker shall not
enter into a subprime loan that contains a provision requiring or permitting the imposition
of a penalty, fee, premium, or other charge in the event the manufactured home loan is
prepaid in whole or in part.
new text end

Sec. 2.

Minnesota Statutes 2006, section 327.64, is amended to read:

327.64 NOTICE OF DEFAULT; SERVICE.

Subdivision 1.

Generally.

When a default occurs under the terms of a security
agreement covering a manufactured home as collateral, and the secured party desires to
repossess the manufactured home, the secured party shall commence the repossession in a
manner authorized by this section.

new text begin Subd. 1a. new text end

new text begin First notice of default. new text end

new text begin At least 180 days prior to seeking a court order
pursuant to section 326.65, a secured party must send a first notice of default by registered
or certified mail to the occupant of the manufactured home, and if the occupant is not
the debtor, the debtor. The notice required by this section must be in at least 14-point
boldface type and must be printed on colored paper that does not obscure or overshadow
the content of the notice.
new text end

new text begin Subd. 1b. new text end

new text begin Contents of first notice of default. new text end

new text begin The notice required by this section
must appear substantially as follows:
new text end

new text begin A repossession is being prepared which could result in your loss of ownership of
your house and any accumulated value (equity) you may have in this property. As of .......
at ......., you owe $....... to bring your home loan current. You must pay this amount in
order to prevent your house from going through the repossession process.
new text end

new text begin As soon as possible, you are encouraged to contact your lender, (name of lender) at
(phone number) to discuss possible options for preventing repossession as well as seek
counseling with the foreclosure prevention counselor in your area. Nearby community
agencies will answer your questions, offer free advice, and help you create a plan. You
can contact the Minnesota Home Ownership Center at 651-659-6646 or www.hocmn.org
to get the phone number and location of the nearest counseling organization. Call today.
Waiting limits your options.
new text end

new text begin You will have 180 days to become current on your loan. If you do not do so, your
lender will get a court order for repossession and you will need to vacate the home.
new text end

Subd. 2.

new text begin Second new text end noticenew text begin of defaultnew text end ; service.

A secured party deleted text begin may commence
repossession of a manufactured home bydeleted text end new text begin must new text end personally deleted text begin servingdeleted text end new text begin serve new text end upon the occupant
of the deleted text begin mobiledeleted text end new text begin manufactured new text end home deleted text begin a noticedeleted text end and, if the occupant is not the debtor, deleted text begin by
sending a registered or certified letter to the last known address of the debtor under the
security agreement, both setting forth the circumstances constituting the default under the
security agreement and stating that the secured party will at the expiration of a 30-day
period following receipt of the notice seek a court order removing the occupant from the
manufactured home and repossessing the manufactured home, unless the debtor or the
occupant acting on behalf of the debtor cures the default prior to that time and in the
manner provided by section 327.66. If notice is mailed to a debtor in accordance with this
subdivision, the secured party by affidavit shall set forth the circumstances causing the
secured party to believe that the debtor could be reached at the address to which the notice
was mailed. The affidavit shall state that the secured party has no reason to believe that
the debtor might receive mailed notice at another addressdeleted text end new text begin by personally serve upon the
debtor, the second notice of default. This notice must be served upon the occupant and the
homeowner at least 120 days prior to seeking a court order pursuant to section 327.65new text end .

new text begin Subd. 3. new text end

new text begin Contents of second notice of default. new text end

new text begin The second notice of default must
be in at least 14-point boldface type and must be printed on colored paper that does not
obscure or overshadow the content of the notice. Each notice of default shall specify:
new text end

new text begin (1) the name of the secured party, the debtor, each assignee of the loan, if any, and
the original or maximum principal amount secured by the loan;
new text end

new text begin (2) the date of the loan;
new text end

new text begin (3) the circumstances constituting the default under the security agreement, including
the amount in arrears on the loans as of the date of the notice;
new text end

new text begin (4) a description of the manufactured home upon which the loan is secured,
conforming substantially to that contained in the loan documents;
new text end

new text begin (5) the notice must also state: Your loan is currently in default. Contact us
immediately at (phone number) to discuss possible options for preventing repossession.
We encourage you to seek counseling with the foreclosure prevention counselor in your
area. Nearby community agencies will answer your questions, offer free advice, and
help you create a plan. You can contact the Minnesota Home Ownership Center at
651-659-6646 or www.hocmn.org to get the phone number and location of the nearest
counseling organization. Call today. Waiting limits your options.
new text end

new text begin If you do not become current on your loan within 120 days, we will seek a court
order repossessing the home, and by court order you will have to vacate the home.
new text end

Sec. 3.

Minnesota Statutes 2006, section 327.65, is amended to read:

327.65 COURT ORDER.

Except in cases of voluntary repossession, upon expiration of the deleted text begin 30-daydeleted text end new text begin 180-daynew text end
period specified in the notices required by section 327.64, a secured party must apply to
the district court in the county in which the manufactured home is located for an order
pursuant to chapter 565 directing the seizure and delivery of the manufactured home.
The application shall be accompanied by a copy of the security agreement entitling the
secured party to repossession of the manufactured homenew text begin , a copy of the notices required
under 327.64,new text end and deleted text begin by thedeleted text end new text begin an new text end affidavit deleted text begin required by section 327.64 if notice is mailed to the
debtor.deleted text end new text begin of service stating that the notices required under section 327.46 were properly
served upon the occupant, and if the occupant of the home is not the debtor, the debtor.
new text end The notices required by section 327.64 shall not be considered as satisfying any of the
notice requirements under chapter 565.

Sec. 4.

Minnesota Statutes 2006, section 327.66, is amended to read:

327.66 CURE OF DEFAULT.

A debtor, or an occupant of a manufactured home acting on behalf of a debtor, may
within the deleted text begin 30 daydeleted text end new text begin 180-daynew text end period specified in the notices required by section 327.64, cure
a default by tendering full payment of the sums then in arrears under the terms of the
security agreement, or by otherwise remedying the default, and by paying the reasonable
costs, not to exceed the sum of $15, incurred by the secured party to enforce the security
agreement. Cure of a default in accordance with the provisions of this section shall
suspend the secured party's right to seek repossession of the manufactured home under the
provisions of sections 327.61 to 327.67.

Sec. 5.

Minnesota Statutes 2006, section 327B.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Borrower. new text end

new text begin "Borrower" means a person or persons applying for a
manufactured home loan.
new text end

Sec. 6.

Minnesota Statutes 2006, section 327B.01, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Commissioner of commerce. new text end

new text begin "Commissioner of commerce" means the
commissioner of the Department of Commerce.
new text end

Sec. 7.

Minnesota Statutes 2006, section 327B.01, is amended by adding a subdivision
to read:

new text begin Subd. 4b. new text end

new text begin Churning. new text end

new text begin "Churning" means knowingly or intentionally making,
providing, or arranging for a manufactured home loan when the new manufactured home
loan does not provide a reasonable, tangible net benefit to the borrower considering all of
the circumstances including the terms of both the new and refinanced loans, the cost of the
new loan, and the borrower's circumstances.
new text end

Sec. 8.

Minnesota Statutes 2006, section 327B.01, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Fully indexed rate. new text end

new text begin "Fully indexed rate" equals the index rate prevailing
at the time a loan to a borrower is originated, plus the margin that will apply after the
expiration of an introductory interest rate.
new text end

Sec. 9.

Minnesota Statutes 2006, section 327B.01, is amended by adding a subdivision
to read:

new text begin Subd. 10a. new text end

new text begin Individual. new text end

new text begin "Individual" means a human being.
new text end

Sec. 10.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 11a. new text end

new text begin Licensee. new text end

new text begin "Licensee" means a person who is licensed as a dealer, limited
dealer, or manufacturer by the Department of Labor and Industry.
new text end

Sec. 11.

Minnesota Statutes 2006, section 327B.01, is amended by adding a subdivision
to read:

new text begin Subd. 11b. new text end

new text begin Limited dealer or limited retailer. new text end

new text begin "Limited dealer" or "limited
retailer" means any person who is an owner of a manufactured home park, authorized as
principal only, to engage in the sale, offering for sale, soliciting, or advertising the sale
of used manufactured homes located in the owned manufactured home park, who is the
title holder and engages in no more than ten sales annually.
new text end

Sec. 12.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 13a. new text end

new text begin Manufactured home lender. new text end

new text begin "Manufactured home lender" means a
person who makes a manufactured home loan to a borrower, including a person who
provides table funding. A manufactured home lender includes an affiliate, subsidiary, or
any person acting as an agent of the lender.
new text end

Sec. 13.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 13b. new text end

new text begin Manufactured home loan. new text end

new text begin "Manufactured home loan" means a loan
made to a person or persons for the purchase, refinancing, improvement, or repair of a
manufactured home.
new text end

Sec. 14.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 14a. new text end

new text begin Manufacturing facility. new text end

new text begin "Manufacturing facility" means the physical
site where a manufacturer engages in the business of manufacturing, assembly, or
production of manufactured homes.
new text end

Sec. 15.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 14b. new text end

new text begin Negative amortization. new text end

new text begin "Negative amortization" occurs when the
borrower's compliance with any repayment option offered pursuant to the terms of the
manufactured home loan is insufficient to satisfy the interest accruing on the loan,
resulting in an increase in the loan balance. Negative amortization does not occur when a
manufactured home loan is originated, subsidized, or guaranteed by or through a state,
tribal, or local government, or nonprofit organization, and bears one or more of the
following nonstandard payment terms that substantially benefit the borrower: payments
vary with income; payments of principal and interest are deferred until the maturity date
of the loan or the sale of the residence; principal or interest is forgivable under specified
conditions; or where no interest or an annual interest rate of two percent or less is charged
in connection with the loan.
new text end

Sec. 16.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 16a. new text end

new text begin Owner. new text end

new text begin "Owner" means any person holding title to a manufactured
home park or manufactured homes.
new text end

Sec. 17.

Minnesota Statutes 2006, section 327B.01, is amended by adding a
subdivision to read:

new text begin Subd. 19a. new text end

new text begin Subprime loan. new text end

new text begin "Subprime loan" means, in the case of an adjustable rate
loan secured by a first lien on a manufactured home that can increase in interest rate but
not decrease in interest rate below the fully indexed rate at the time of origination, a loan
for which the annual percentage rate (APR) is greater than two percentage points above the
yield on United States Treasury securities having comparable periods of maturity, as of the
15th day of the preceding month if the rate is set between the first and the 14th day of the
month and as of the 15th day of the current month if the rate is set on or after the 15th day.
new text end

new text begin For all other loans secured by a first lien on a manufactured home, the term means a
loan for which the APR is greater than three percentage points above the yield on United
States Treasury securities having comparable periods of maturity, as of the 15th day of the
preceding month if the rate is set between the first and the 14th day of the month and as of
the 15th day of the current month if the rate is set on or after the 15th day.
new text end

new text begin For loans secured by a subordinate lien on a manufactured home, the term means a
loan for which the APR is greater than five percentage points above the yield on United
States Treasury securities having comparable periods of maturity, as of the 15th day of the
preceding month if the rate is set between the first and the 14th day of the month and as of
the 15th day of the current month if the rate is set on or after the 15th day.
new text end

new text begin For purposes of this section, the annual percentage rate has the meaning given in
Code of Federal Regulations, title 12, part 226.
new text end

Sec. 18.

Minnesota Statutes 2006, section 327B.08, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Duty of agency. new text end

new text begin (a) A person acting as a broker shall be considered to
have created an agency relationship with the borrower in all cases and shall comply with
the following duties:
new text end

new text begin (1) brokers shall act in the borrower's best interest and in the utmost good faith
toward borrowers, and shall not compromise a borrower's right or interest in favor of
another's right or interest, including a right or interest of the broker. A broker shall
not accept, give, or charge any undisclosed compensation or realize any undisclosed
remuneration, either through direct or indirect means, that inures to the benefit of the
broker on an expenditure made for the borrower;
new text end

new text begin (2) brokers will carry out all lawful instructions given by borrowers;
new text end

new text begin (3) brokers will disclose to borrowers all material facts of which the broker has
knowledge which might reasonably affect the borrower's rights, interests, and/or ability to
receive the borrower's intended benefit from the manufactured home loan, but not facts
which are reasonably susceptible to the knowledge of the borrower;
new text end

new text begin (4) brokers will use reasonable care in performing duties; and
new text end

new text begin (5) brokers will account to a borrower for all the borrower's money and property
received as an agent.
new text end

new text begin (b) The duty of agency between broker and borrower applies when the broker is
acting in the capacity of manufactured home loan broker as described in section 327B.01,
subdivision 3;
new text end

new text begin (c) Nothing in this section prohibits a broker from contracting for or collecting a
reasonable fee for services rendered and which had been disclosed to the borrower in
advance of the provision of such services.
new text end

new text begin (d) Nothing in this section requires a broker to obtain a loan containing terms or
conditions not available to the broker in the broker's usual course of business, or to obtain
a loan for the borrower from a manufactured home loan lender with whom the broker does
not have a business relationship.
new text end

Sec. 19.

Minnesota Statutes 2006, section 327B.09, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Standards of conduct. new text end

new text begin (a) No manufactured home lender shall:
new text end

new text begin (1) make or broker a manufactured home loan without being licensed by the
commissioner of commerce;
new text end

new text begin (2) fail to maintain a trust account to hold trust funds received in connection with a
manufactured home loan;
new text end

new text begin (3) fail to deposit all trust funds into a trust account within three business days of
receipt; comingle trust funds with funds belonging to the licensee or exempt person; or use
trust account funds for any purpose other than that for which they are received;
new text end

new text begin (4) unreasonably delay the processing of a manufactured home loan application,
or, if applicable, the closing of a manufactured home loan. For purposes of this clause,
evidence of unreasonable delay includes but is not limited to those factors identified in
section 47.206, subdivision 7, clause (d);
new text end

new text begin (5) fail to disburse funds according to its contractual or statutory obligations;
new text end

new text begin (6) fail to perform in conformance with its written agreements with borrowers,
investors, other licensees, or other parties;
new text end

new text begin (7) charge a fee for a product or service where the product or service is not actually
provided, or misrepresent the amount charged by or paid to a third party for a product
or service;
new text end

new text begin (8) violate any provision of any other state or federal law applicable to a person
making manufactured home loans;
new text end

new text begin (9) make or cause to be made, directly or indirectly, any false, deceptive, or
misleading statement or representation in connection with a manufactured home loan
transaction including, without limitation, a false, deceptive, or misleading statement or
representation regarding the borrower's ability to qualify for any manufactured home
loan product;
new text end

new text begin (10) compensate, whether directly or indirectly, coerce, or intimidate an appraiser
for the purpose of influencing the independent judgment of the appraiser with respect to
the value of personal property that is to be covered by a manufactured home loan or is
being offered as security according to an application for a manufactured home loan;
new text end

new text begin (11) issue any document indicating conditional qualification or conditional approval
for a manufactured home loan, unless the document also clearly indicates that final
qualification or approval is not guaranteed, and may be subject to additional review;
new text end

new text begin (12) make or assist in making any manufactured home loan without verifying the
reasonable ability of the borrower to repay the loan, taking into consideration taxes and
insurance in connection with the manufactured home. For loans in which the interest rate
may vary, the reasonable ability to pay shall be determined based on a fully indexed rate
and a repayment schedule which achieves full amortization over the life of the loan;
new text end

new text begin (13) provide or offer to provide for a borrower, any brokering or lending services
under an arrangement with a person other than a licensee or exempt person, provided that
a person may rely upon a written representation by the manufactured home lender that it is
in compliance with the applicable licensing requirements;
new text end

new text begin (14) claim to represent a broker or lender, unless the person is an employee of the
broker or lender, or unless the person has entered into a written agency agreement with
the broker or lender;
new text end

new text begin (15) fail to comply with the record keeping and notification requirements identified
in section 58.14, or fail to abide by the affirmations make on the application for licensure;
new text end

new text begin (16) make, provide, or arrange for a manufactured home loan for a higher interest
rate or on less favorable terms than the rate or terms for which the borrower qualifies
based on criteria typically used by that lender to evaluate rate and term offerings;
new text end

new text begin (17) make, publish, disseminate, circulate, place before the public, or cause to be
made, directly or indirectly, any advertisement or marketing materials of any type, or any
statement or representation relating to the business of manufactured home loans that is
false, deceptive, or misleading;
new text end

new text begin (18) advertise loan types or terms that are not available from or through the broker or
lender on the date advertised, or on the date specified in the advertisement. For purposes
of this clause, advertisement includes, but is not limited to, a list of sample loan terms,
including interest rates, discount, points, and closing costs provided by brokers or lenders
to a print or electronic medium that presents the information to the public;
new text end

new text begin (19) use or employ phrases, pictures, return addresses, geographic designations, or
other means that create the impression, directly or indirectly, that a broker or lender is a
governmental agency, or is associated with, sponsored by, or in any manner connected to,
related to, or endorsed by a governmental agency, if that is not the case;
new text end

new text begin (20) make, provide, or arrange for a manufactured home loan all or a portion of the
proceeds of which are used to fully or partially pay off a "special loan" unless the borrower
has obtained a written certification from an authorized independent loan counselor that
the borrower has received counseling on the advisability of the loan transaction. For
the purposes of this section, "special loan" means a loan for the purchase, refinance,
improvement, or repair of the manufactured home originated, subsidized, or guaranteed
by or through a state, tribal, or local government, or nonprofit organization, that bears
one or more of the following nonstandard payment terms which substantially benefit
the borrower: (i) payments vary with income; (ii) payments of principal or interest are
not required or can be deferred under specified conditions; (iii) principal or interest is
forgivable under specified conditions; or (iv) where no interest or an annual interest rate of
two percent or less is charged in connection with the loan. For the purposes of this section,
"authorized independent loan counselor" means a nonprofit, third-party individual or
organization providing homebuyer education programs, foreclosure prevention services,
loan counseling, or credit counseling certified by the United States Department of
Housing and Urban Development, the Minnesota Home Ownership Center, the Minnesota
Mortgage Foreclosure Prevention Association, AARP, or NeighborWorks America;
new text end

new text begin (21) engage in churning; and
new text end

new text begin (22) make, provide, or arrange for a manufactured home loan if the borrower's
compliance with any repayment option offered pursuant to the terms of the loan will result
in negative amortization during any six-month period.
new text end

new text begin (b) This subdivision shall not apply to a state or federally chartered bank, savings
bank, or credit union, an institution chartered by Congress under the Farm Credit Act,
or to a person making, providing, or arranging a manufactured home loan originated or
purchased by a state agency or a tribal or local unit of government.
new text end

Sec. 20.

Minnesota Statutes 2006, section 327B.12, is amended to read:

327B.12 ADDITIONAL REMEDIES AND ENFORCEMENT.

Subdivision 1.

Private remedies.

new text begin (a) new text end Any person injured or threatened with injury
by a dealer or manufacturer's violation of sections 327B.01 to 327B.12 may bring a private
action in any court of competent jurisdiction.

new text begin (b) A borrower injured by a violation of the standards, duties, prohibitions, or
requirements of sections 327B.08, subdivision 6; 325B.09, subdivision 6; or 325B.095
shall have a private right of action and the court shall award:
new text end

new text begin (1) actual, incidental, and consequential damages;
new text end

new text begin (2) statutory damages equal to the amount of all lender fees included in the amount of
the principal of the manufactured home loan as defined in section 325B.095, subdivision 1;
new text end

new text begin (3) punitive damages if appropriate, and as provided in sections 549.191 and 549.20;
and
new text end

new text begin (4) court costs and reasonable attorney fees.
new text end

Subd. 2.

Fraud remedies.

In addition to the remedies provided in sections 327B.01
to 327B.12, any violation of section 327B.08 or 327B.09 is a violation of section 325F.69,
subdivision 1 and the provisions of section 8.31 shall apply. new text begin A private right of action by a
borrower under this chapter is in the public interest.
new text end

new text begin Subd. 3. new text end

new text begin Remedies cumulative. new text end

new text begin The remedies provided in this section are
cumulative.
new text end

ARTICLE 7

DATA PRACTICES

Section 1.

Minnesota Statutes 2006, section 58.02, is amended by adding a subdivision
to read:

new text begin Subd. 30. new text end

new text begin Transaction agent. new text end

new text begin "Transaction agent" means the person identified in a
mortgage recorded with the county recorder or registrar of titles as the nominee or agent
for a third party also identified in the mortgage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices of pendency dated on or
after August 1, 2008, and expires July 31, 2013.
new text end

Sec. 2.

new text begin [580.025] FORECLOSURE DATA.
new text end

new text begin The notice of pendency required by section 580.032, subdivision 3, the notice of
sale required by section 580.04, and the certificate of sale required by section 580.12 shall
include the following information to the best of the knowledge of the party foreclosing
the mortgage:
new text end

new text begin (1) the physical street address, city, and zip code of the mortgaged premises;
new text end

new text begin (2) the name of the transaction agent, residential mortgage servicer, and the lender
or broker, as defined in section 58.02, if the person holding the mortgage is a transaction
agent as defined in section 58.02, subdivision 30, or the name of the residential mortgage
servicer and the lender or broker, as defined in section 58.02, if the person holding the
mortgage is not a transaction agent as defined in section 58.02, subdivision 30;
new text end

new text begin (3) the tax parcel identification number of the mortgaged premises;
new text end

new text begin (4) if stated on the mortgage, the transaction agent's mortgage identification number;
and
new text end

new text begin (5) if stated on the mortgage, the name of the mortgage originator as defined in
section 58.02.
new text end

new text begin No liability shall accrue to the party foreclosing the mortgage or the party's attorney
for de minimis, good faith, or commercially reasonable errors in this information. The
omission of all or some of the following information from the notice shall not invalidate
the foreclosure of the mortgage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices of pendency dated on or
after August 1, 2008, and expires July 31, 2013.
new text end

Sec. 3.

Minnesota Statutes 2006, section 580.04, is amended to read:

580.04 REQUISITES OF NOTICE.

new text begin (a) new text end Each notice shall specify:

(1) the name of the mortgagor, the mortgagee, each assignee of the mortgage, if any,
and the original or maximum principal amount secured by the mortgage;

(2) the date of the mortgage, and when and where recorded, except where the
mortgage is upon registered land, in which case the notice shall state that fact, and when
and where registered;

(3) the amount claimed to be due on the mortgage on the date of the notice;

(4) a description of the mortgaged premises, conforming substantially to that
contained in the mortgage;

(5) the time and place of sale;

(6) the time allowed by law for redemption by the mortgagor, the mortgagor's
personal representatives or assigns; and

(7) if the party foreclosing the mortgage desires to preserve the right to reduce the
redemption period under section 582.032 after the first publication of the notice, the notice
must also state in capital letters: "THE TIME ALLOWED BY LAW FOR REDEMPTION
BY THE MORTGAGOR, THE MORTGAGOR'S PERSONAL REPRESENTATIVES
OR ASSIGNS, MAY BE REDUCED TO FIVE WEEKS IF A JUDICIAL ORDER IS
ENTERED UNDER MINNESOTA STATUTES, SECTION 582.032, DETERMINING,
AMONG OTHER THINGS, THAT THE MORTGAGED PREMISES ARE IMPROVED
WITH A RESIDENTIAL DWELLING OF LESS THAN FIVE UNITS, ARE NOT
PROPERTY USED IN AGRICULTURAL PRODUCTION, AND ARE ABANDONED."new text begin ;
andnew text end

new text begin (b) For informational purposes only, the following shall be listed in each notice:
new text end

new text begin (1) the physical street address, in the format required by the Metropolitan Council
under section 473.241;
new text end

new text begin (2) the name of the residential mortgage servicer, the residential mortgage originator,
and the lender, as those terms are defined in section 58.02, unless the mortgagee of record
is a transaction agent, as defined in section 58.02, subdivision 30, in which case the name
of the residential mortgage servicer, the residential mortgage originator, and the lender, as
defined in section 58.02, on whose behalf the transaction agent is acting shall be listed
in the notice;
new text end

new text begin (3) whether the mortgaged premises is occupied by:
new text end

new text begin (i) the owner of the mortgaged premises;
new text end

new text begin (ii) a residential tenant of the owner of the mortgaged premises; or
new text end

new text begin (iii) a commercial tenant of the owner of the mortgaged premises;
new text end

new text begin (4) the tax parcel identification number of the property;
new text end

new text begin (5) if stated on the mortgage, the transaction agent's mortgage identification number;
and
new text end

new text begin (6) if stated on the mortgage, the name of the mortgage originator as defined in
section 58.02.
new text end

new text begin The information provided under paragraph (b) shall be to the best of the knowledge
of the party foreclosing the mortgage. No liability shall accrue to the party foreclosing the
mortgage or the party's attorney for de minimis or commercially reasonable errors or for
errors made in good faith. The omission in the notice of any of the information required in
paragraph (b) shall not invalidate the foreclosure of the mortgage.
new text end

Sec. 4. new text begin STUDY TO DEVELOP STATEWIDE FORECLOSURE DATA
COLLECTION AND REPORTING SYSTEM.
new text end

new text begin Subdivision 1. new text end

new text begin Study. new text end

new text begin The secretary of the state shall convene, chair, and facilitate a
statewide foreclosure data collection group to study the most efficient and cost-effective
way to develop and implement an electronic system for the submission, collection, entry,
retrieval, management, and assessment of statewide foreclosure data. The study shall
consider the applicability to the collection of foreclosure data of the electronic certificate
of real estate value and well certification programs.
new text end

new text begin Subd. 2. new text end

new text begin Working group. new text end

new text begin The study under subdivision 1 must be conducted in
consultation with a statewide working group including, but not limited to, representatives
from the Legislative Coordinating Commission's Geographic Information Services offices,
the University of Minnesota's housing studies program, the Association of Minnesota
Counties, the League of Minnesota Cities, the Metropolitan Council, the Governor's
Council on GIS, the Department of Revenue, the Department of Commerce, the Electronic
Real Estate Recording Task Force, the Minnesota Association of County Officers,
Minnesota Sheriffs' Association, and a nonprofit housing advocacy organization.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The secretary of state shall submit a report to the legislature
by February 15, 2009, containing the results of the study and any recommendations
regarding the development and implementation of a statewide foreclosure data collection
and reporting system.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires after the submission of the report as
required in subdivision 3.
new text end

ARTICLE 8

TAXES

Section 1.

Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19,
is amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through May 18, 2006,new text begin and by
section 2 of the Mortgage Forgiveness Debt Relief Act of 2007, Public Law 110-142,new text end shall
be in effect for taxable years beginning after December 31, 1996, and before January 1,
2006, and for taxable years beginning after December 31, 2006. The Internal Revenue
Code of 1986, as amended through December 31, 2006, is in effect for taxable years
beginning after December 31, 2005, and before January 1, 2007.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and at the same time the changes were effective for federal purposes.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 290.01, subdivision 31, is
amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, for
taxable years beginning before January 1, 2006, and after December 31, 2006, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through May 18,
2006new text begin , and by section 2 of the Mortgage Forgiveness Debt Relief Act of 2007, Public Law
110-142new text end ; and for taxable years beginning after December 31, 2005, and before January 1,
2007, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
through December 31, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and at the same time the changes were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2007 Supplement, section 290A.03, subdivision 15, is
amended to read:

Subd. 15.

Internal Revenue Code.

For taxable years beginning before January
1, 2006, and after December 31, 2006, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through May 18, 2006new text begin , and by section 2 of the
Mortgage Forgiveness Debt Relief Act of 2007, Public Law 110-142new text end ; and for taxable years
beginning after December 31, 2005, and before January 1, 2007, "Internal Revenue Code"
means the Internal Revenue Code of 1986, as amended through December 31, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and at the same time the changes were effective for federal purposes.
new text end

HF 3348

Bill Text Versions

Current Version - as introduced

ARTICLE 1

FORECLOSURE CRISIS INTERVENTION ACT

Section 1. new text begin CITATION.new text end

ARTICLE 2

LANDLORD AND TENANT

Section 1.

Subd. 1a.

Transmittal of fees to commissioner of finance.

Sec. 2.

new text begin Subd. 3. new text end

new text begin Mandatory expungement. new text end

Sec. 3.

504B.151 RESTRICTION ON RESIDENTIAL LEASE TERMS FOR BUILDINGS IN FINANCIAL DISTRESSnew text begin ; REQUIRED NOTICE OF PENDING FORECLOSUREnew text end .

new text begin Subdivision 1. new text end

new text begin Limitation on lease and notice to tenant. new text end

new text begin Subd. 2. new text end

new text begin Exception allowing a longer term lease. new text end

new text begin Subd. 3. new text end

new text begin Attornment. new text end

new text begin Subd. 4. new text end

new text begin Holder not bound by certain acts. new text end

Sec. 4.

Subd. 8.

Withholding rent.

Sec. 5.

Subd. 3.

deleted text begin Proceduredeleted text end new text begin Right of tenants to pay utility billsnew text end .

Sec. 6.

Subdivision 1.

Grounds.

Sec. 7.

new text begin [580.042] FORECLOSURE ADVICE NOTICE TO TENANT. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin Subd. 2. new text end

new text begin Form of delivery of notice. new text end

new text begin Subd. 3. new text end

new text begin Content of notice. new text end

new text begin Subd. 4. new text end

new text begin Affidavit. new text end

new text begin Subd. 5. new text end

new text begin Validation of foreclosure sales; remedy for violation. new text end

ARTICLE 3

PREFORECLOSURE

Section 1.

580.02 REQUISITES FOR FORECLOSURE.

Sec. 2.

new text begin [580.021] OFFER OF FORECLOSURE PREVENTION COUNSELING. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin Subd. 2. new text end

new text begin Requirement to provide notice of opportunity for counseling. new text end

new text begin Subd. 3. new text end

new text begin Option to decline counseling. new text end

new text begin Subd. 4. new text end

new text begin Notification to authorized counseling agency. new text end

new text begin Subd. 5. new text end

new text begin Notice of provision of counseling; request for contact information. new text end

Sec. 3.

new text begin [580.022] FORMS. new text end

new text begin Subdivision 1. new text end

new text begin Option to Decline Counseling form. new text end

new text begin Subd. 2. new text end

new text begin Notice of Counseling and Request for Contact Information form. new text end

Sec. 4.

Subd. 2.

Content of notice.

ARTICLE 4

FORECLOSURE PROCESS

Section 1.

510.05 LIMITATIONS.

Sec. 2.

550.19 SERVICE ON JUDGMENT DEBTOR.

Sec. 3.

550.22 CERTIFICATE OF SALE OF REALTY.

Sec. 4.

550.24 REDEMPTION OF REALTY.

Section 1. new text begin CITATION.
new text end

504B.151 RESTRICTION ON RESIDENTIAL LEASE TERMS FOR
BUILDINGS IN FINANCIAL DISTRESSnew text begin ; REQUIRED NOTICE OF PENDING
FORECLOSUREnew text end .

new text begin [580.042] FORECLOSURE ADVICE NOTICE TO TENANT.
new text end

new text begin [580.021] OFFER OF FORECLOSURE PREVENTION COUNSELING.
new text end

new text begin [580.022] FORMS.
new text end

580.28 ACTION TO SET ASIDE MORTGAGE; FORECLOSURE;
REDEMPTION.