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HF 2227

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 02/20/2012 03:26pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Introduction Posted on 02/13/2012
1st Engrossment Posted on 02/20/2012

Current Version - 1st Engrossment

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A bill for an act
relating to financial institutions; clarifying state bank closures for holidays;
making changes in state bank lending limits to comply with federal law;
repealing obsolete language relating to deposits payable on demand; amending
Minnesota Statutes 2010, sections 47.015, subdivision 2; 48.24, subdivision 1;
repealing Minnesota Statutes 2010, sections 48.50; 48.51.


Section 1.

Minnesota Statutes 2010, section 47.015, subdivision 2, is amended to read:

Subd. 2.

Saturday; Monday following holiday.

Any financial institution in the
state may remain closed on any deleted text beginSaturday and on anydeleted text end Monday next following a Sunday
on which falls a holiday designated by any law of this statenew text begin and on any Saturday next
following a Friday holiday or preceding a Sunday or Monday holiday
new text end. Any new text beginsuch new text endSaturday
or any new text beginsuch new text endMonday on which any financial institution remains closed is a holiday and
not a business day with respect to that institution. Any act which by law or contract may
be performed on any such Saturday or new text beginany such new text endMonday, at, by, or with respect to any
such financial institution remaining closed on such day may be performed on the next
succeeding regular business day. No liability or loss of rights on the part of any person or
financial institution shall result from such closing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 48.24, subdivision 1, is amended to read:

Subdivision 1.

Total liabilities of any individual.

The total liabilities to any such
bank, as principal, guarantor or endorser of any individual, including the liabilities of
any corporation or limited liability companynew text begin innew text end which the individual owns or controls a
majority interest, any partnership, unincorporated association, limited liability company,
or corporation, including the liabilities of the several members of an unincorporated
association and including the liabilities of the general partners but not the limited
partners of a partnership, and in case of a corporation or limited liability companynew text begin,new text end of
all subsidiaries thereof in which such corporation or limited liability company owns or
controls a majority interest, shall never exceed 20 percent of deleted text beginitsdeleted text endnew text begin the bank'snew text end capital actually
paid in cash and of its actual surplus fund, except that obligations not to exceed 25 percent
of said capital and surplus to any one borrower shall not be included as liabilities for the
purposes of this section, but shall be liabilities of the borrowers, provided they are secured
by not less than a like amount of any one of the various types of obligations of the United
States or which are fully guaranteed as to principal and interest by the United States, and
providing that such bonds or obligations have a market value of at least ten percent in
excess of the amount loaned thereon at the time each loan is made.

new text begin Liabilities include any credit exposure to an individual arising from a derivative
transaction. The term "derivative transaction" includes any transaction that is a contract,
agreement, swap, or note that is based, in whole or in part, on the value of, any interest
in, or any quantitative measure or the occurrence of any event relating to, one or more
currencies, interest or other rates, or interest rate indices, and that is subject to regulation
by the commissioner of commerce.
new text end

For the purpose of this section the members of a family living together in one
household, if borrowed funds are to be used in the conduct of a common enterprise, shall
be regarded as one person and the total liabilities of the members of the family shall be
limited as herein provided. The endorser or guarantor of any obligation which is exempt
from loaning limits according to the provisions of this section shall also be exempt from
such loaning limits to the extent of the amount of liability on such obligations for the
purposes of this section but shall be liable thereon. Individual extensions of credit which
result in liabilities of individuals, corporations, or limited liability companies exceeding
the limitations set forth in this section shall be construed to conform to the provisions of
this subdivision upon reduction in an amount sufficient to reduce the total liability to not
more than the legal amount, but until paid in full shall not exempt the officer or employee
of the bank from being personally liable to the bank for the amount of the original excess
portion of the loan as set forth in subdivision 8.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 21, 2013.
new text end

new text end

new text begin Minnesota Statutes 2010, sections 48.50; and 48.51, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end