HF 1471

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:51am

A bill for an act
relating to commerce; eliminating the ability of financial institutions to make
payday loans; amending Minnesota Statutes 2008, section 47.59, by adding a
subdivision; repealing Minnesota Statutes 2008, section 47.60.

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

Section 1.

Minnesota Statutes 2008, section 47.59, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Prohibition on certain loans. new text end

new text begin No financial institution may make
a consumer loan where:
new text end

new text begin (1) the debt is unsecured;
new text end

new text begin (2) repayment of principal and amounts other than principal are made in a single
installment or otherwise due within 90 days of entering into the loan transaction;
new text end

new text begin (3) payments are typically due on or about the time of the receipt by the borrower
of wages; and
new text end

new text begin (4) the indebtedness is evidenced by, but not limited to, a promissory note or
agreement to defer the presentation of a personal check or agreement to debit a checking,
savings, or other account held at a financial institution.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 47.60, new text end new text begin is repealed.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective January 1, 2010.
new text end