SF 2550

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to financial institutions; prohibiting 
  1.3             solicitation of loans by mailing a check payable to 
  1.4             the addressee; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 47. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [47.605] [LOAN SOLICITATION; UNREQUESTED CHECKS 
  1.8   PROHIBITED.] 
  1.9      (a) No financial institution or other lender may offer to 
  1.10  make a loan by mailing to a Minnesota resident a check payable 
  1.11  to the addressee, which the addressee is requested to endorse 
  1.12  and then cash, deposit, or otherwise negotiate as a means of 
  1.13  accepting the loan offered.  This section does not apply if the 
  1.14  addressee already has an open-end credit arrangement with the 
  1.15  financial institution or other lender or if the addressee has 
  1.16  requested in writing that the check be mailed to the addressee.  
  1.17     (b) The addressee is not liable for any loan contracted or 
  1.18  allegedly contracted by means of a check that violates this 
  1.19  section. 
  1.20     Sec. 2.  [EFFECTIVE DATE.] 
  1.21     Section 1 is effective January 1, 1998.