as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:14am
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:
Minnesota Statutes 2008, section 47.59, is amended by adding a subdivision
to read:
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No financial institution may make
a consumer loan where:
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(1) the debt is unsecured;
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(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;
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(3) payments are typically due on or about the time of the receipt by the borrower
of wages; and
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(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.
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Minnesota Statutes 2008, section 47.60,
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is repealed.
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This act is effective January 1, 2010.
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