as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 01:35pm
A bill for an act
relating to commerce; regulating certain lenders that use motor vehicle titles of
the borrower as collateral; proposing coding for new law in Minnesota Statutes, chapter 47.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
new text begin
A lender who is not a pawnbroker, as that term is defined in section 325J.01,
subdivision 4, and uses a title to a motor vehicle as collateral for extending credit:
new text end
new text begin
(1) must possess a valid license from the Department of Commerce as either an
industrial loan and thrift company under chapter 53 or a regulated lender under chapter 56;
new text end
new text begin
(2) must comply with all provisions of section 325J.095; and
new text end
new text begin
(3) may not demand or collect interest, fees, or any other charges that in the aggregate
exceed the amounts allowed to be demanded and collected under section 325J.07.
new text end
new text begin
This section is effective August 1, 2013, and applies to credit
extended on or after that date.
new text end