Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 631-S.F.No. 2323 
           An act relating to financial institutions; authorizing 
          certain investments for banks; amending Minnesota 
          Statutes 1986, sections 48.152, subdivision 10; 48.24, 
          subdivisions 5 and 6; and 48.61, by adding a 
          subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 48.152, 
subdivision 10, is amended to read:  
    Subd. 10.  The acquisition of personal property for leasing 
to customers under this section not in conformity with 
subdivision 4 is authorized if the total amount of unpaid rental 
obligations to be paid to the bank on investment in this 
personal property, shall does not exceed 200 percent of the sum 
of the bank's capital actually paid in cash and its actual 
surplus fund.  
    Sec. 2.  Minnesota Statutes 1986, section 48.24, 
subdivision 5, is amended to read:  
    Subd. 5.  Loans or obligations shall not be subject under 
this section to any limitation based upon such capital and 
surplus to the extent that they are secured or covered by 
guarantees, or by commitments or agreements to take over or to 
purchase the same, made by: 
    (1) the commissioner of agriculture on the purchase of 
agricultural land; 
    (2) any Federal Reserve bank; 
    (3) the United States or any department, bureau, board, 
commission, or establishment of the United States, including any 
corporation wholly owned directly or indirectly by the United 
States; or 
    (4) the Minnesota energy and economic development 
authority; or 
     (5) the Minnesota export finance authority. 
    Sec. 3.  Minnesota Statutes 1986, section 48.24, 
subdivision 6, is amended to read:  
    Subd. 6.  The discount of the following classes of paper 
shall not be regarded as creating liability within the meaning 
of this section: 
    (1) Bonds, orders, warrants, or other evidences of 
indebtedness of the United States, of federal land banks, of 
this state or of any county, city, town, hospital district, or 
school district in this state, or of the bonds, representing 
general obligation of any other state in the United States, or 
bonds and obligations of the federal home loan banks established 
by act of Congress known as the Federal Home Loan Bank Act, 
approved July 23, 1932, and acts amendatory thereto, or 
debentures and other obligations of the federal intermediate 
credit banks established by act of Congress known as the Federal 
Intermediate Credit Banks Act, approved March 4, 1923, and acts 
amendatory thereto, in obligations issued by the banks for 
cooperatives or any of them, and in bonds and obligations of the 
home owners' loan corporation established by act of Congress, 
known as the Home Owners' Loan Act of 1933, and acts amendatory 
thereto, in exchange for mortgages on homes, or contracts for 
deed, or real estate held by it.  
    (2) Bills of exchange drawn in good faith against actually 
existing values, including bills which are secured by shipping 
documents conveying or securing title to goods shipped, and 
which are not to be surrendered until such bills are paid in 
cash or solvent credits.  This includes bankers' acceptances or 
participations in bankers' acceptances of the kind and 
maturities made eligible by law for rediscount with, or purchase 
by, federal reserve banks, providing the same are accepted or 
endorsed by a bank or trust company incorporated under the laws 
of this state; or by any bank or trust company in the United 
States which is a member of the federal reserve system.  
     (3) Paper based upon the collateral security of warehouse 
receipts covering agricultural or manufactured products stored 
in elevators or warehouses under the following conditions: 
     First, when the actual market value of the property covered 
by such receipts at all times exceeds by at least ten percent 
the amount loaned thereon, and 
     Second, when the full amount of every such loan is at all 
times covered by fire insurance in duly authorized companies, 
within the limit of their ability to cover such amounts, and the 
excess, if any, in companies having sufficient paid-up capital 
to authorize their admission, and payable, in case of loss, to 
the bank or holder of the warehouse receipt.  
     (4) Total loans to an obligor secured by either 
certificates of deposit, or savings certificates or both, of any 
such bank to the extent of the total of such certificates 
pledged as security.  
     (5) Debentures issued under the authority of the federal 
national mortgage association.  
    (6) Obligations representing loans from one business day to 
the next to any state bank or national banking association of 
excess reserve balances from time to time maintained under the 
provisions of section 48.22, or of section 19 of the Federal 
Reserve Act, as amended, United States Code, title 12, sections 
461 et seq.  
    Sec. 4.  Minnesota Statutes 1986, section 48.61, is amended 
by adding a subdivision to read: 
    Subd. 6.  Any bank may invest in the voting stock of the 
Federal Agricultural Mortgage Corporation created pursuant to 
the Agricultural Credit Act of 1987, Public Law Number 100-233, 
in an amount not to exceed the greater of ten percent of the 
bank's capital and surplus or the amount required by the Federal 
Agricultural Mortgage Corporation for the bank to qualify for 
its participation in the corporation's programs. 
    Approved April 24, 1988