Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 107-H.F.No. 273 
           An act relating to commerce; making permanent the time 
          price differential rate on certain motor vehicles; 
          amending Minnesota Statutes 1984, section 168.72, 
          subdivisions 1 and 4; repealing Minnesota Statutes 
          1984, section 168.72, subdivision 2.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 168.72, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a) The time price differential authorized 
by sections 168.66 to 168.77 in a retail installment sale may 
not exceed the following rates: 
    Class 1.  Any motor vehicle designated by the manufacturer 
by a year model of the same or not more than one year prior to 
the year in which the sale is made - $8 $10 per $100 per year. 
    Class 2.  Any motor vehicle designated by the manufacturer 
by a year model of two or three years prior to the year in which 
the sale is made - $11 per $100 per year. 
    Class 3.  Any motor vehicle not in Class 1 or Class 2 - $13 
per $100 per year plus a flat charge of $3 for each retail 
installment sale. 
    (b) The time price differential must be computed on the 
principal balance as determined under section 168.71, clause (b) 
and must be computed at the rate indicated on contracts payable 
in successive monthly installment payments substantially equal 
in amount extending for a period of one year.  For purposes of 
this subdivision and section 168.73, contracts payable in 
successive monthly installment payments include those where the 
first installment is scheduled for not less than 15 days nor 
more than one month and 15 days from the date of the contract.  
On contracts providing for installment payments extending for a 
period less than or greater than one year, the time price 
differential must be computed proportionately. 
    (c) When a retail installment contract provides for unequal 
or irregular installment payments, the time price differential 
is at the effective rate provided in clause (a) hereof, having 
due regard for the irregular schedule of payment. 
    (d) The time price differential is inclusive of all charges 
incident to investigating and making the contract, and for the 
extension of the credit provided for in the contract and no fee, 
commission, expense or other charge whatsoever may be taken, 
received, reserved or contracted for except as provided in 
sections 168.66 to 168.77. 
    Sec. 2.  Minnesota Statutes 1984, section 168.72, 
subdivision 4, is amended to read: 
    Subd. 4.  A sale of a manufactured home made after July 31, 
1983, is governed by the provisions of subdivision 1 for 
purposes of determining the lawful time price differential rate, 
except that the maximum time differential for a class I 
manufactured home may not exceed $8 per $100 per year.  A retail 
installment sale of a manufactured home that imposes a time 
price differential rate that is greater than the rate permitted 
by this subdivision is lawful and enforceable in accordance with 
its terms until the indebtedness is fully satisfied if the rate 
was lawful when the sale was made.  
    Sec. 3.  [REPEALER.] 
    Minnesota Statutes 1984, section 168.72, subdivision 2, is 
repealed.  
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 and 3 are effective the day following final 
enactment. 
    Approved May 10, 1985