Minnesota Legislature
HF 3774
1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - 1st Engrossment
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A bill for an act
relating to commerce; clarifying the application of the Minnesota Residential
Mortgage Originator and Servicer Licensing Act and modifying records retention
periods; clarifying the investment authority of certain insurers; amending
Minnesota Statutes 2006, sections 58.02, subdivisions 18, 21; 58.14, subdivisions
3, 4, 5; 60A.11, subdivision 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 58.02, subdivision 18, is amended to read:
Subd. 18.
Residential mortgage loan.
"Residential mortgage loan" means a loan
deleted text begin made primarily for personal, family, or household use anddeleted text end secured primarily by either:
(1) a mortgage on residential real property; or (2) certificates of stock or other evidence
of ownership interest in and proprietary lease from corporations, partnerships, or other
forms of business organizations formed for the purpose of cooperative ownership of
residential real property.
Sec. 2.
Minnesota Statutes 2006, section 58.02, subdivision 21, is amended to read:
Subd. 21.
Residential real property; residential real estate.
"Residential real
property" or "residential real estate" means real property improved or intended to be
improved by a structure designed principally for the occupancy of from one to four
familiesnew text begin , whether or not the owner occupies such real propertynew text end .
Sec. 3.
Minnesota Statutes 2006, section 58.14, subdivision 3, is amended to read:
Subd. 3.
Documentation and resolution of complaints.
A licensee or exempt
person must investigate and attempt to resolve complaints made regarding acts or practices
subject to the provisions of this chapter. If a complaint is received in writing, the licensee
or exempt person must maintain a file containing all materials relating to the complaint
and subsequent investigation for a period of deleted text begin 26deleted text end new text begin 60new text end months.
Sec. 4.
Minnesota Statutes 2006, section 58.14, subdivision 4, is amended to read:
Subd. 4.
Trust account records for mortgage originators.
A residential mortgage
originator shall keep and maintain for deleted text begin 26deleted text end new text begin 60new text end months a record of all trust funds, sufficient
to identify the transaction, date and source of receipt, and date and identification of
disbursement.
Sec. 5.
Minnesota Statutes 2006, section 58.14, subdivision 5, is amended to read:
Subd. 5.
Record retention.
A licensee or exempt person must keep and maintain
for deleted text begin 26deleted text end new text begin 60new text end months the business records, including advertisements, regarding residential
mortgage loans applied for, originated, or serviced in the course of its business.
Sec. 6.
Minnesota Statutes 2006, section 60A.11, subdivision 9, is amended to read:
Subd. 9.
General considerations.
The following considerations apply in the
interpretation of this section:
(a) This section applies to the investments of insurance companies other than lifenew text begin
and healthnew text end insurance companies;
(b) The purpose of this section is to protect and further the interests of policyholders,
claimants, creditors and the public by providing standards for the development and
administration of programs for the investment of the assets of domestic companies. These
standards and the investment programs developed by companies must take into account
the safety of company's principal, investment yield and growth, stability in the value of
the investment, the liquidity necessary to meet the company's expected business needs,
and investment diversification;
(c) All financial terms relating to insurance companies have the meanings assigned
to them under statutory accounting methods. All financial terms relating to noninsurance
companies have the meanings assigned to them under generally accepted accounting
principles;
(d) Investments must be valued in accordance with the valuation procedures
established by the National Association of Insurance Commissioners, unless the
commissioner requires or finds another method of valuation reasonable under the
circumstances. Another method of valuation permitted by the commissioner must be at
least as conservative as those prescribed in the association's manual. Other invested assets
must be valued according to the procedures promulgated by the National Association of
Insurance Commissioners, if not addressed in another section, unless the commissioner
requires or finds another method of valuation reasonable under the circumstances;
(e) A company may elect to hold an investment which qualifies under more than
one subdivision, under the subdivision of its choice. Nothing herein prevents a company
from electing to hold an investment under a subdivision different from the one in which it
previously held the investment; and
(f) An investment which qualifies under any provision of the law governing
investments of insurance companies when acquired will continue to be a qualified
investment for as long as it is held by the insurance company.