Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 245-S.F.No. 1067
           An act relating to commerce; requiring certain 
          agreements to extend credit to be in writing; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 513.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [513.33] [CREDIT AGREEMENTS.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given them:  
    (1) "credit agreement" means an agreement to lend or 
forebear repayment of money, goods, or things in action, to 
otherwise extend credit, or to make any other financial 
accommodation;  
    (2) "creditor" means a person who extends credit under a 
credit agreement with a debtor; and 
    (3) "debtor" means a person who obtains credit or seeks a 
credit agreement with a creditor or who owes money to a creditor.
    Subd. 2.  [CREDIT AGREEMENTS TO BE IN WRITING.] A debtor 
may not maintain an action on a credit agreement unless the 
agreement is in writing, expresses consideration, sets forth the 
relevant terms and conditions, and is signed by the creditor and 
the debtor.  
    Subd. 3.  [ACTIONS NOT CONSIDERED AGREEMENTS.] (a) The 
following actions do not give rise to a claim that a new credit 
agreement is created, unless the agreement satisfies the 
requirements of subdivision 2:  
    (1) the rendering of financial advice by a creditor to a 
debtor;  
    (2) the consultation by a creditor with a debtor; or 
    (3) the agreement by a creditor to take certain actions, 
such as entering into a new credit agreement, forebearing from 
exercising remedies under prior credit agreements, or extending 
installments due under prior credit agreements.  
    (b) A credit agreement may not be implied from the 
relationship, fiduciary, or otherwise, of the creditor and the 
debtor. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective the day after final enactment and 
applies to all actions commenced after that date that arise out 
of a credit agreement or relationship relating to a credit 
agreement. 
    Approved May 28, 1985