Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                         CHAPTER 41-H.F.No. 28 
           An act relating to financial institutions; extending 
          the EFT law to terminals located on the premises of a 
          financial institution; providing options for a 
          financial institution relating to the availability of 
          an electronic financial terminal for other financial 
          institutions; permitting certain advertising relating 
          to an electronic financial terminal; amending 
          Minnesota Statutes 1986, sections 47.61, subdivision 
          3; 47.63; 47.64, subdivisions 1, 3, and 4; and 47.67.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 47.61, 
subdivision 3, is amended to read: 
    Subd. 3.  "Electronic financial terminal" means an 
electronic information processing device, other than a telephone 
or an electronic information processing device that is used 
internally by a financial institution to conduct the business 
activities of the institution, located separate and apart from a 
financial institution's principal office, branch, or detached 
facility which that is established to do either or both of the 
following: 
    (a) Capture the data necessary to initiate financial 
transactions; or 
    (b) Through its attendant support system, store or initiate 
the transmission of the information necessary to consummate a 
financial transaction. 
    Sec. 2.  Minnesota Statutes 1986, section 47.63, is amended 
to read: 
    47.63 [FUNCTIONS OF AN ELECTRONIC FINANCIAL TERMINAL.] 
    Financial transactions which may be performed by an 
electronic financial terminal shall be limited to the 
disbursement of funds under a preauthorized credit agreement, 
the withdrawal of funds from a customer's account, the deposit 
of funds in a customer's account, the receiving of cash or 
checks, the disbursement of cash, the payment of loan payments, 
and the transfer of funds to or from one or more accounts in one 
or more financial institutions.  All permitted transactions must 
be made pursuant to a preexisting contractual agreement between 
the financial institution and an account holder.  Accounts may 
not be opened at such facilities an electronic financial 
terminal located separate and apart from a financial 
institution's principal office, branch, or detached facility.  
Any retailer may also operate a device which is capable of 
performing the functions of an electronic financial terminal for 
any internal business activity of that retailer. 
    Sec. 3.  Minnesota Statutes 1986, section 47.64, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a) Any person establishing and maintaining 
an electronic financial terminal located separate and apart from 
a financial institution's principal office, branch, or detached 
facility for use by one type of financial institution shall, 
upon written request, make its services available to any 
requesting financial institution of similar type on a fair, 
equitable and nondiscriminatory basis approved by the 
commissioner.  A financial institution requesting use of an 
electronic financial terminal shall be permitted its use only if 
the financial institution conforms to reasonable technical 
operation standards which have been established by the 
electronic financial terminal provider as approved by the 
commissioner.  For purposes of this subdivision, the types of 
financial institutions are:  (a) (1) commercial banks and mutual 
savings banks; (b) (2) credit unions, industrial loan and thrift 
companies, and regulated lenders under chapter 56; and (c) (3) 
savings and loan associations.  The services of an electronic 
financial terminal may be made available to any type of 
financial institution.  After March 1, 1979, or earlier if 
determined by the commissioner to be technically feasible, an 
electronic financial terminal which is used by or made available 
to one type of financial institution shall be made available, 
upon request, to other types of financial institutions on a 
fair, equitable and nondiscriminatory basis as approved by the 
commissioner.  The charges required to be paid to any person 
establishing and maintaining an electronic financial terminal 
shall be related to an equitable proportion of the direct costs 
of establishing, operating, and maintaining the terminal plus a 
reasonable return on those costs to the owner of the terminal.  
The charges may provide for amortization of development costs 
and capital expenditures over a reasonable period of time. 
    (b) Any person establishing and maintaining an electronic 
financial terminal located on and as a part of a financial 
institution's principal office, branch, or detached facility 
may, at the financial institution's option, (1) maintain the 
electronic financial terminal for the exclusive use of the 
financial institution's customers; or, (2) maintain the 
electronic financial terminal for the use of the financial 
institution's customers and make some or all of the electronic 
financial terminal's services available to any other requesting 
financial institution on a fair, equitable, and 
nondiscriminatory basis approved by the commissioner. 
    Sec. 4.  Minnesota Statutes 1986, section 47.64, 
subdivision 3, is amended to read: 
    Subd. 3.  Any agreement or charge between a person 
establishing an electronic financial terminal and the person at 
whose location the terminal is established shall be upon such 
commercially reasonable terms and conditions as are agreed to by 
the parties.  A person at whose location an electronic financial 
terminal is established and maintained may limit the kind of 
financial transaction functions which the terminal may perform, 
but.  If the electronic financial terminal is not located on the 
premises of a financial institution's principal office, branch, 
or detached facility, the person shall make available upon 
request every financial transaction function which the terminal 
does perform to all financial institutions, their affiliates, or 
agents on a nondiscriminatory basis.  A function involving 
either a bank credit card authorized pursuant to section 48.185 
or other credit card authorized under any other similar open end 
consumer credit sales plan need not be made so available. 
    Sec. 5.  Minnesota Statutes 1986, section 47.64, 
subdivision 4, is amended to read:  
    Subd. 4.  An electronic financial terminal located separate 
and apart from a financial institution's principal office, 
branch, or detached facility, if staffed, shall be operated 
exclusively by a person who is not employed by any financial 
institution, any financial institution holding company, or 
subsidiary thereof.  However, persons assisting customers of 
financial institutions at the site of the terminal may be 
trained by employees of a financial institution, financial 
institution holding company, or subsidiary thereof, and nothing 
in this section shall be construed to prohibit periodic 
servicing of an electronic financial terminal by an employee of 
a financial institution, financial institution holding company, 
or subsidiary thereof. 
    Sec. 6.  Minnesota Statutes 1986, section 47.67, is amended 
to read: 
    47.67 [ADVERTISING.] 
    No advertisement by a person which relates to an electronic 
financial terminal may be inaccurate or misleading with respect 
to such a terminal.  Except with respect to direct mailings by 
financial institutions to their customers, the advertising of 
rate of interest paid on accounts in connection with electronic 
financial terminals is prohibited.  Any advertisement, either on 
or off the site of an electronic financial terminal, promoting 
the use or identifying the location of an electronic financial 
terminal, which identifies any financial institution, group or 
combination of financial institutions, or third parties as 
owning or providing for the use of its services is prohibited.  
The following shall be expressly permitted: 
    (a) A simple directory listing placed at the site of an 
electronic financial terminal identifying the particular 
financial institutions using its services; 
    (b) The use of a generic name, either on or off the site of 
an electronic financial terminal, which does not promote or 
identify any particular financial institution, group or 
combination of financial institutions, or any third parties; and 
    (c) Media advertising or direct mailing of information by a 
financial institution or retailer identifying locations of 
electronic financial terminals and promoting their usage; and 
    (d) Any advertising, whether on or off the site, relating 
to electronic financial terminals, or the services performed at 
the electronic financial terminals located on the premises of 
the main office, or any office or detached facility of any 
financial institution. 
    Approved April 28, 1987