SF 3071

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; requiring separate licensure for 
  1.3             industrial loan and thrift companies acting as 
  1.4             currency exchanges; amending Minnesota Statutes 2002, 
  1.5             sections 53.05; 53A.01, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 53.05, is 
  1.8   amended to read: 
  1.9      53.05 [POWERS, LIMITATION.] 
  1.10     No industrial loan and thrift company may do any of the 
  1.11  following: 
  1.12     (1) carry demand banking accounts; use the word "savings" 
  1.13  unless the institution's investment certificates, savings 
  1.14  accounts, and savings deposits are insured by the Federal 
  1.15  Deposit Insurance Corporation and then only if the word is not 
  1.16  followed by the words "and loan" in its corporate name; use the 
  1.17  word "bank" or "banking" in its corporate name; operate as a 
  1.18  savings bank; 
  1.19     (2) have outstanding at any one time certificates of 
  1.20  indebtedness, savings accounts, and savings deposits 30 times 
  1.21  the sum of capital stock and surplus of the company; 
  1.22     (3) accept trusts, except as provided in section 47.75, 
  1.23  subdivision 1, or act as guardian, administrator, or judicial 
  1.24  trustee in any form; 
  1.25     (4) deposit any of its funds in any banking corporation, 
  2.1   unless that corporation has been designated by vote of a 
  2.2   majority of directors or of the executive committee present at a 
  2.3   meeting duly called, at which a quorum was in attendance; 
  2.4      (5) change any allocation of capital made pursuant to 
  2.5   section 53.03 or reduce or withdraw in any way any portion of 
  2.6   the capital stock and surplus without prior written approval of 
  2.7   the commissioner of commerce; 
  2.8      (6) take any instrument in which blanks are left to be 
  2.9   filled in after execution; 
  2.10     (7) lend money in excess of 20 percent of the total of its 
  2.11  capital stock and surplus at all its authorized locations to a 
  2.12  person primarily liable.  Companies not issuing investment 
  2.13  certificates of indebtedness under section 53.04 need not comply 
  2.14  with the requirement if the amount of money lent does not exceed 
  2.15  $100,000 of principal as defined by section 47.59, subdivision 
  2.16  1, paragraph (p).  
  2.17     However, industrial loan and thrift companies with deposit 
  2.18  liabilities must comply with the provisions of section 48.24; or 
  2.19     (8) issue cashier's checks pursuant to section 48.151, 
  2.20  unless and at all times the aggregate liability to all creditors 
  2.21  on these instruments is protected by a special fund in cash or 
  2.22  due from banks to be used solely for payment of the cashier's 
  2.23  checks; or 
  2.24     (9) act as a currency exchange as defined in section 
  2.25  53A.01, unless separately licensed as a currency exchange under 
  2.26  chapter 53A. 
  2.27     Sec. 2.  Minnesota Statutes 2002, section 53A.01, 
  2.28  subdivision 1, is amended to read: 
  2.29     Subdivision 1.  [CURRENCY EXCHANGE.] "Currency exchange" 
  2.30  means any person, except a bank, trust company, savings bank, 
  2.31  savings association, or credit union, or industrial loan and 
  2.32  thrift company, engaged in the business of cashing checks, 
  2.33  drafts, money orders, or travelers' checks for a fee.  "Currency 
  2.34  exchange" does not include a person who provides these services 
  2.35  incidental to the person's primary business if the charge for 
  2.36  cashing a check or draft does not exceed $1 or one percent of 
  3.1   the value of the check or draft, whichever is greater.