Office of the Revisor of Statutes
Minnesota Session Laws - 1989, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1989
CHAPTER 341-H.F.No. 624
An act relating to commerce; regulating real estate
appraisers; creating the real estate appraiser
advisory board; providing for membership,
compensation, powers, and duties; providing licensing
and education requirements; regulating the issuance,
renewal, suspension, and revocation of licenses;
providing fees; prescribing penalties; appropriating
money; authorizing certain investments by state banks;
regulating lending practices of industrial loan and
thrifts; prescribing the qualifications of the
directors of certain companies; regulating delinquency
and collection charges or retail installment
contracts; amending Minnesota Statutes 1988, sections
48.61, by adding a subdivision; 53.04, by adding a
subdivision; 53.06; and 168.71; proposing coding for
new law as Minnesota Statutes, chapter 82B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
Section 1. [82B.02] [DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of this chapter,
the terms in this section have the meanings given them.
Subd. 2. [ANALYSIS.] "Analysis" means a study of real
estate or real property other than estimating value.
Subd. 3. [APPRAISAL OR REAL ESTATE APPRAISAL.] "Appraisal"
or "real estate appraisal" means an analysis, opinion, or
conclusion relating to the nature, quality, value, or utility of
named interests in, or aspects of, identified real estate for
purposes of preparing an appraisal report. An appraisal may be
classified by subject matter into either a valuation or an
analysis.
Subd. 4. [APPRAISAL ASSIGNMENT.] "Appraisal assignment"
means an engagement for which an appraiser is employed or
retained to act, or would be perceived by third parties or the
public as acting, as a disinterested third party in giving an
unbiased analysis, opinion, or conclusion relating to the
nature, quality, value, or utility of named interests in, or
aspects of, identified real estate.
Subd. 5. [APPRAISAL REPORT.] "Appraisal report" means an
oral or written communication of an appraisal for compensation
that is not a contingent fee as defined in section 82B.22 given
or signed by a licensed real estate appraiser.
Subd. 6. [BOARD.] "Board" means the real estate appraisal
advisory board established under section 82B.05.
Subd. 7. [COMMISSIONER.] "Commissioner" means the
commissioner of commerce.
Subd. 8. [LICENSED REAL ESTATE APPRAISER.] "Licensed real
estate appraiser" means a person who develops and communicates
real estate appraisals and who holds a current, valid license
issued for licensed appraisal level I or II under this chapter,
including an appraiser employed by a state agency.
Subd. 9. [MARKET ANALYSIS.] "Market analysis" means a
price opinion prepared by a licensed real estate salesperson or
broker for marketing purposes.
Subd. 10. [REAL ESTATE.] "Real estate" means an identified
parcel or tract of land, including improvements, if any.
Subd. 11. [REAL PROPERTY.] "Real property" means one or
more defined interests, benefits, and rights inherent in the
ownership of real estate.
Subd. 12. [STANDARDS OF PROFESSIONAL PRACTICE.] "Standards
of professional practice" means the uniform standards of
professional appraisal practice adopted by the Appraisers
Standards Board of the Appraisal Foundation as of January 1,
1989, or other version of these standards the commissioner may
by order designate.
Subd. 13. [VALUATION.] "Valuation" means an estimate of
value of real estate or real property.
Sec. 2. [82B.03] [PROHIBITIONS.]
Subdivision 1. [LICENSE REQUIRED.] (a) It is unlawful for
a person to act as a real estate appraiser in this state unless
licensed under this chapter.
(b) Only persons licensed under this chapter may advertise
or represent themselves to be real estate appraisers.
(c) No person, other than a licensed real estate appraiser,
may assume or use that title or a title, designation, or
abbreviation likely to create the impression of licensure as a
real estate appraiser by this state.
Subd. 2. [LICENSE NOT REQUIRED.] (a) An officer or
employee of a corporation, partnership, or other business entity
may act as a real estate appraiser without obtaining a license
under this chapter if the corporation, partnership, or other
business entity in which the person is employed or is an officer
has an interest in the real estate that is the subject of the
appraisal as owners, lenders, investors, or insurers.
(b) An appraisal conducted by a person exempt under this
subdivision is subject to the guidelines for real estate
appraisal policies and review procedures of the Federal Deposit
Insurance Corporation, the Federal Savings and Loan Insurance
Corporation, the Federal Reserve Board, the Farm Credit
Administration, or the comptroller of the currency.
(c) If a real estate appraisal is made by a person who is
exempt from licensing under this subdivision, the person for
whom the appraisal is conducted must be given written notice
that the appraisal was not conducted by a licensed appraiser,
and the appraisal report must clearly state that it was
conducted by an interested party and not by a licensed real
estate appraiser.
Sec. 3. [82B.035] [EXEMPTION.]
Subdivision 1. [MARKET ANALYSIS.] This chapter does not
apply to a licensed real estate salesperson or broker who, in
the ordinary course of the licensee's business, gives a market
analysis of the price of real estate, if the market analysis is
not referred to or construed as an appraisal.
Subd. 2. [ASSESSORS.] Nothing in this chapter shall be
construed as requiring the licensing of persons employed and
acting in their capacity as assessors for political subdivisions
of the state.
Sec. 4. [82B.04] [RESPONSIBILITY FOR AGENTS.]
A real estate appraiser is responsible for the acts of
persons acting on the appraiser's behalf.
Sec. 5. [82B.05] [REAL ESTATE APPRAISER ADVISORY BOARD.]
Subdivision 1. [CREATION.] The real estate appraiser
advisory board consists of 15 members appointed by the
commissioner of commerce. Three of the members must be public
members, four must be consumers of appraisal services, and eight
must be licensed real estate appraisers of whom not less than
two members shall be level II. Mere membership in an
organization does not make a person the organization's
representative on the board.
Subd. 2. [QUALIFICATIONS.] The real estate appraiser
members first appointed to the board must: (1) be members in
good standing of a nationally recognized real estate appraisal
organization that as of January 1, 1989, required appraisal
experience, education, and testing to become a designated
member, in addition to adherence to standards of professional
practice to keep the designation; or (2) have five years of
active appraisal experience.
Each real estate appraiser member of the board appointed
after January 1, 1991, must be a licensed real estate appraiser.
Subd. 3. [TERMS.] The term of office for members is three
years.
Upon expiration of their terms, members of the board shall
continue to hold office until the appointment and qualification
of their successors. No person may serve as a member of the
board for more than two consecutive terms. The commissioner may
remove a member for cause.
Subd. 4. [PRACTICE OF PUBLIC MEMBERS PROHIBITED.] The
public members of the board may not be engaged in the practice
of real estate appraising.
Subd. 5. [CONDUCT OF MEETINGS.] Places of regular board
meetings must be decided by the vote of members. Written notice
must be given to each member of the time and place of each
meeting of the board at least ten days before the scheduled date
of regular board meetings. The board shall establish procedures
for emergency board meetings and other operational procedures,
subject to the approval of the commissioner.
The members of the board shall elect a chair from among the
members to preside at board meetings.
A quorum of the board is eight members.
The board shall meet at least quarterly, except that a
meeting may be canceled, subject to the approval by the
commissioner if a majority of the members determine that the
meeting is not necessary.
The commissioner or a majority of the members may schedule
additional meetings as necessary.
Subd. 6. [COMPENSATION.] Each member of the board is
entitled to a per diem allowance of $35 for each meeting of the
board at which the member is present and for each day or
substantial part of a day actually spent in the conduct of the
business of the board, plus all appropriate expenses unless a
greater amount is authorized by Minnesota Statutes, section
15.0575.
Sec. 6. [82B.06] [POWERS OF THE BOARD.]
The board shall make recommendations to the commissioner as
the commissioner requests on:
(1) rules with respect to each category of licensed real
estate appraiser, the type of educational experience, appraisal
experience, and equivalent experience that will meet the
requirements of this chapter;
(2) examination specifications for each category of
licensed real estate appraiser, to assist in providing or
obtaining appropriate examination questions and answers, and
procedures for grading examinations;
(3) rules with respect to each category of licensed real
estate appraiser, the continuing education requirements for the
renewal of licensing that will meet the requirements provided in
this chapter;
(4) periodic review of the standards for the development
and communication of real estate appraisals provided in this
chapter and rules explaining and interpreting the standards; and
(5) other matters necessary in carrying out the provisions
of this chapter.
Sec. 7. [82B.07] [POWERS OF THE COMMISSIONER.]
The commissioner shall:
(1) receive applications for licenses;
(2) establish the procedures for processing applications
for licensing;
(3) issue a license for appraisers;
(4) maintain a registry of the names and addresses of
people licensed under this chapter;
(5) keep records and all application materials submitted to
the commissioner;
(6) conduct investigations;
(7) deny, revoke, and suspend licenses; and
(8) take other actions necessary to carry out the purposes
of this chapter.
Sec. 8. [82B.08] [LICENSING REQUIREMENTS.]
Subdivision 1. [GENERALLY.] The commissioner shall issue a
license as a real estate appraiser to a person who qualifies for
the license under the terms of this chapter.
Subd. 2. [QUALIFICATION OF APPLICANTS.] An applicant must
be at least 18 years of age when making application.
Subd. 3. [APPLICATION FOR LICENSE; CONTENTS.] (a) An
applicant for a license must apply in writing upon forms
prescribed by the commissioner. Each application must be signed
and sworn to by the applicant and must be accompanied by the
license fee required by this chapter.
(b) An application must contain information required by the
commissioner consistent with the provisions and purposes of this
chapter.
(c) An application must give the applicant's name, age,
residence address, and the name and place of business.
(d) The commissioner may require additional information the
commissioner considers appropriate to administer this chapter.
(e) When filing an initial application or application for
renewal for a license, the applicant shall state that the person
agrees to comply with the standards set forth in this chapter
and that the person understands the types of misconduct for
which disciplinary proceedings may be started against a licensed
real estate appraiser.
(f) The application for original licensing, renewal
licensing, and examination must specify the classification of
licensing being applied for and previously granted.
Subd. 4. [EFFECTIVE DATE OF LICENSE.] A license issued
under this chapter expires on the August 31 next following the
issuance of the license.
Subd. 5. [RENEWALS.] (a) Persons whose applications have
been properly and timely filed who have not received notice of
denial of renewal are considered to have been approved for
renewal and may continue to transact business as a real estate
appraiser whether or not the renewed license has been received
on or before September 1. Application for renewal of a license
is considered to have been timely filed if received by the
commissioner by, or mailed with proper postage and postmarked
by, August 1 in each year. Applications for renewal are
considered properly filed if made upon forms duly executed and
sworn to, accompanied by fees prescribed by this chapter and
containing information the commissioner requires.
(b) Persons who have failed to make a timely application
for renewal of a license and who have not received the renewal
license as of September 1 are unlicensed until the time the
license has been issued by the commissioner and is received.
Subd. 6. [NOTICE.] Notice in writing must be given to the
commissioner by each licensee of any change in personal name,
trade name, address or business location not later than ten days
after the change. The commissioner shall issue a new license if
required for the unexpired period.
Subd. 7. [NONRESIDENTS.] A nonresident of Minnesota may be
licensed as a real estate appraiser upon compliance with all
provisions of this chapter.
Sec. 9. [82B.09] [FEES.]
Subdivision 1. [AMOUNTS.] The following fees must be paid
to the commissioner:
(1) a fee of $50 for each initial individual real estate
appraiser's license and a fee of $25 for each annual renewal;
(2) a fee of $5 for a change in personal name or trade name
or personal address or business location;
(3) a fee of $10 for a license history; and
(4) a fee of $20 for a duplicate license.
Subd. 2. [FORFEITURE.] All fees must be kept by the
commissioner and are nonreturnable, except that an overpayment
of a fee shall be refunded upon proper application.
Sec. 10. [82B.10] [EXAMINATIONS.]
Subdivision 1. [GENERALLY.] An applicant for a license
must pass an examination conducted by the commissioner. The
examinations must be of sufficient scope to establish the
competency of the applicant to act as a real estate appraiser.
Subd. 2. [REEXAMINATIONS.] An examination must be required
before renewal of a license that has been suspended, or before
the issuance of a license to a person whose license has been
ineffective for a period of two years. No reexamination is
required of an individual who has failed to renew an existing
license because of absence from the state while on active duty
with the armed services of the United States of America.
Subd. 3. [EXAMINATION FREQUENCY.] The commissioner shall
hold examinations at times and places the commissioner
determines.
Subd. 4. [PERIOD FOR APPLICATION.] An applicant who
obtains an acceptable score on an examination must file an
application and obtain the license within one year of the date
of successful completion of the examination or a second
examination must be taken to qualify for the license.
Subd. 5. [RENEWAL; EXAMINATION.] Except as provided in
subdivision 2, no examination is required for the renewal of a
license. However, a licensee who has been licensed in the state
of Minnesota and who fails to renew the license for a period of
two years must be required by the commissioner to again take an
examination.
Subd. 6. [EXAMINATION ELIGIBILITY; REVOCATION.] No
applicant may take an examination if a license as a real estate
appraiser has been revoked in this or another state within two
years of the date of the application.
Subd. 7. [RECIPROCITY.] This section may be waived by the
commissioner for individuals of other jurisdictions if: (1) a
written reciprocal licensing agreement is in effect between the
commissioner and the licensing officials of that jurisdiction,
(2) the individual is licensed in that jurisdiction, and (3) the
licensing requirements of that jurisdiction are substantially
similar to the provisions of this chapter.
Subd. 8. [FEES.] The commissioner may assess an
examination fee sufficient to recover the actual direct costs of
holding the examination.
Sec. 11. [82B.11] [CLASSES OF LICENSE.]
Subdivision 1. [GENERALLY.] There are two classes of
license for licensed real estate appraisers.
Subd. 2. [LEVEL I.] The licensed level I residential real
estate appraiser is a person meeting the requirements for
licensing relating to the appraisal of residential real property
or agricultural acreage when a net income capitalization
analysis is not required by the uniform standards of
professional appraisal practice.
Subd. 3. [LEVEL II.] The licensed level II real estate
appraiser is a person meeting the requirements for licensing
relating to the appraisal of all types of real property.
Sec. 12. [82B.12] [EXAMINATION REQUIREMENT.]
An original license as a licensed real estate appraiser
must be issued to a person who has demonstrated through a
written examination process that the appraiser has the following
qualifications:
(1) appropriate knowledge of technical terms commonly used
in or related to real estate appraising, appraisal report
writing, and economic concepts applicable to real estate;
(2) understanding the principles of land economics, real
estate appraisal processes, and problems likely to be
encountered in gathering, interpreting, and processing of data
in carrying out appraisal disciplines;
(3) understanding the standards for the development and
communication of real estate appraisals as provided in this
chapter;
(4) knowledge of theories of depreciation, cost estimating,
methods of capitalization, and the mathematics of real estate
appraisal that are appropriate for the classification of license
for which the person is applying;
(5) knowledge of other principles and procedures
appropriate for the classification of license for which the
person is applying;
(6) basic understanding of real estate law; and
(7) understanding the types of misconduct and ethical
considerations for which disciplinary proceedings may be started
against a licensed real estate appraiser.
Sec. 13. [82B.13] [EXAMINATION PREREQUISITES.]
Subdivision 1. [LEVEL I CLASSIFICATION.] As a prerequisite
to taking the examination for licensing as a licensed level I
real estate appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has
successfully completed at least 75 classroom hours of courses.
The courses must consist of 60 hours of general real estate
appraisal principles and 15 hours related to standards of
professional practice and the provisions of this chapter.
Subd. 2. [LEVEL II CLASSIFICATION.] As a prerequisite to
taking the examination for licensing as a licensed general real
estate appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has
successfully completed at least 150 classroom hours of courses
in subjects related to real estate appraisal. All applicants
shall complete 15 classroom hours related to standards of
professional practice and the provisions of this chapter.
Subd. 3. [COMMISSIONER'S APPROVAL; RULES.] The courses and
instruction and procedures of courses must be approved by the
commissioner. The commissioner may adopt rules to administer
this section. These rules must, to the extent practicable,
conform to the rules adopted for real estate and insurance
education.
Sec. 14. [82B.14] [EXPERIENCE REQUIREMENT.]
(a) An original license as a level II licensed real estate
appraiser may not be issued to a person who does not have the
equivalent of two years of experience in real property appraisal
supported by adequate written reports or file memoranda. This
experience, or the equivalent of this experience, must be
acquired within a period of five years immediately preceding the
filing of the application for licensing.
(b) Each applicant for license as a level II licensed real
estate appraiser shall give under oath a detailed listing of the
real estate appraisal reports or file memoranda for each year
for which experience is claimed by the applicant. Upon request,
the applicant shall make available to the commissioner for
examination, a sample of appraisal reports that the applicant
has prepared in the course of appraisal practice.
Sec. 15. [82B.15] [NONRESIDENT SERVICE OF PROCESS.]
Subdivision 1. [APPOINTMENT OF COMMISSIONER.] A
nonresident, before being licensed as a real estate appraiser,
shall appoint the commissioner and a successor or successors in
office as true and lawful attorney, upon whom may be served all
legal process in an action or proceedings against the person, or
in which the person may be a party, in relation to or involving
a transaction covered by this chapter or a rule or order under
this chapter. The appointment is irrevocable. Service upon the
attorney is as valid and binding as if due and personal service
had been made upon the person. The appointment is effective
upon the issuance of the license in connection with which the
appointment was filed.
Subd. 2. [EFFECT OF NONAPPOINTMENT.] The commission of an
act constituting a violation of this chapter or rule or order
adopted under this chapter by a nonresident person who has not
appointed the commissioner as attorney in compliance with
subdivision 1, is conclusively considered an irrevocable
appointment by the person of the commissioner and a successor or
successors in an action or proceedings against the nonresident
or in which the nonresident may be a party in relation to or
involving the violation. The violation is a signification of
agreement that all legal process that is served is as valid and
binding upon the nonresident as if due and personal service had
been made.
Subd. 3. [PROCEDURE.] Service of process under this
section may be made by filing a copy of the process with the
commissioner or a representative, but is not effective unless:
(1) the plaintiff, who may be the commissioner in an action
or proceeding started by the commissioner, sends notice of the
service and a copy of the process by certified mail to the
defendant or respondent at the address as shown by the records
at the office of the commissioner in the case of service made on
the commissioner as attorney by appointment under subdivision 1,
and at the defendant's or respondent's last known address in the
case of service on the commissioner as attorney by appointment
under subdivision 2; and
(2) the plaintiff's affidavit of compliance with this
subdivision is filed in the action or proceeding on or before
the return day of the process, if any, or within any additional
time the court or administrative law judge allows.
Sec. 16. [82B.16] [PRINCIPAL PLACE OF BUSINESS AND
NOTICE.]
A licensed real estate appraiser shall advise the
commissioner of the address of the person's principal place of
business and all other addresses at which the person is now
engaged in the business of preparing real property appraisal
reports.
When a licensed real estate appraiser changes a place of
business, the person shall immediately give written notification
of the change to the commissioner and apply for an amended
license.
A licensed real estate appraiser shall notify the
commissioner of the person's current residence address.
Sec. 17. [82B.17] [LICENSE DESIGNATION.]
When a licensed real estate appraiser uses the designation
real estate appraiser or licensed real estate appraiser in an
appraisal report or in a contract or other instrument used by
the license holder in conducting real property appraisal
activities or in advertisements, the appraiser shall place the
person's license number adjacent to or immediately below the
designation used and indicate the class of license held.
Sec. 18. [82B.18] [USE OF TERM.]
The term "licensed real estate appraiser" may only be used
to refer to individuals who hold the license. The term may not
be used following or immediately in connection with the name or
signature of a firm, partnership, corporation, or group; or in a
manner that might cause it to be interpreted as referring to a
firm, partnership, corporation, group, or anyone other than an
individual holder of the license.
No license may be issued under this chapter to a
corporation, partnership, firm, or group. This does not prevent
a licensed real estate appraiser from signing an appraisal
report on behalf of a corporation, partnership, firm, or group
practice.
Sec. 19. [82B.19] [CONTINUING EDUCATION.]
Subdivision 1. [LICENSE RENEWALS.] A licensed real estate
appraiser shall present evidence satisfactory to the
commissioner of having met the continuing education requirements
of this chapter before the commissioner renews a license.
The basic continuing education requirement for renewal of a
license is the completion by the applicant either as a student
or as an instructor, during the immediately preceding term of
licensing, of at least 15 classroom hours per year, of
instruction in courses or seminars that have received the
approval of the commissioner.
Subd. 2. [RULES.] The commissioner may adopt rules to
assure that persons renewing their licenses as licensed real
estate appraisers have current knowledge of real property
appraisal theories, practices, and techniques that will provide
a high degree of service and protection to those members of the
public with whom they deal in a professional relationship under
authority of their license. The rules must include the
following:
(1) policies and procedures for obtaining approval of
courses of instruction;
(2) standards, monitoring methods, and systems for
recording attendance to be employed by course sponsors as a
prerequisite to approval of courses for credit; and
(3) coordination with real estate continuing education
requirements so that as the commissioner considers courses or
parts of courses appropriate they may be used to satisfy both
real estate and appraiser continuing education requirements.
Subd. 3. [REINSTATEMENTS.] On or after September 1, 1991,
a license as a real estate appraiser that has been revoked as a
result of disciplinary action by the commissioner may not be
reinstated unless the applicant presents evidence of completion
of the continuing education required by this chapter. This
requirement may not be imposed upon an applicant for
reinstatement who has been required to successfully complete the
examination for licensed real estate appraiser as a condition to
reinstatement of a license.
Sec. 20. [82B.20] [PROHIBITED PRACTICES.]
Subdivision 1. [ENFORCEMENT.] The license of a licensed
real estate appraiser may be denied, revoked, or suspended, or
the person may be otherwise disciplined in accordance with this
chapter, upon any of the grounds set forth in this section.
Subd. 2. [CONDUCT PROHIBITED.] No person may:
(1) obtain or try to obtain a license under this chapter by
knowingly making a false statement, submitting false
information, refusing to provide complete information in
response to a question in an application for license, or through
any form of fraud or misrepresentation;
(2) fail to meet the minimum qualifications established by
this chapter;
(3) be convicted, including a conviction based upon a plea
of guilty or nolo contendere, of a crime that is substantially
related to the qualifications, functions, and duties of a person
developing real estate appraisals and communicating real estate
appraisals to others;
(4) engage in an act or omission involving dishonesty,
fraud, or misrepresentation with the intent to substantially
benefit the license holder or another person or with the intent
to substantially injure another person;
(5) engage in a violation of any of the standards for the
development or communication of real estate appraisals as
provided in this chapter;
(6) fail or refuse without good cause to exercise
reasonable diligence in developing an appraisal, preparing an
appraisal report, or communicating an appraisal;
(7) engage in negligence or incompetence in developing an
appraisal, in preparing an appraisal report, or in communicating
an appraisal;
(8) willfully disregard or violate any of the provisions of
this chapter or the rules of the commissioner for the
administration and enforcement of the provisions of this
chapter;
(9) accept an appraisal assignment when the employment
itself is contingent upon the appraiser reporting a
predetermined estimate, analysis, or opinion, or where the fee
to be paid is contingent upon the opinion, conclusion, or
valuation reached, or upon the consequences resulting from the
appraisal assignment;
(10) violate the confidential nature of governmental
records to which the person gained access through employment or
engagement as an appraiser by a governmental agency;
(11) offer, pay, or give, and no person shall accept, any
compensation or other thing of value from a real estate
appraiser by way of commission-splitting, rebate, finder's fee,
or otherwise in connection with a real estate appraisal. This
prohibition does not apply to transactions among persons
licensed under this chapter if the transactions involve
appraisals for which the license is required;
(12) engage or authorize a person, except a person licensed
under this chapter, to act as a real estate appraiser on the
appraiser's behalf;
(13) violate standards of professional practice as defined
by section 82B.02, subdivision 11;
(14) make an oral appraisal report without also making a
written report within a reasonable time after the oral report is
made;
(15) represent a market analysis to be an appraisal report;
(16) give an appraisal in any circumstances where the
appraiser has a conflict of interest, as determined under rules
adopted by the commissioner; or
(17) engage in other acts the commissioner by rule
prohibits.
Sec. 21. [82B.21] [CLASSIFICATION OF SERVICES.]
A client or employer may retain or employ a licensed real
estate appraiser to act as a disinterested third party in giving
an unbiased estimate of value or analysis. A client or employer
may also retain or employ a licensed real estate appraiser to
provide a market analysis to facilitate the client's or
employer's objectives. In either case, the appraisal and the
appraisal report must comply with the provisions of this chapter.
Sec. 22. [82B.22] [CONTINGENT FEES.]
A licensed real estate appraiser may not accept a
commission for an appraisal assignment that is contingent upon
the appraiser reporting a predetermined estimate, analysis, or
opinion, or is contingent upon the opinion, conclusion, or
valuation reached, or upon the consequences resulting from the
appraisal assignment.
A licensed real estate appraiser who enters into an
agreement to perform a market analysis may be paid a fixed fee
or a fee that is contingent on the results achieved by the
specialized services.
If a licensed real estate appraiser enters into an
agreement to perform a market analysis for a contingent fee,
this fact must be clearly stated in each written and oral
report. In each written report, this fact must be clearly
stated in a prominent location in the report and also in each
letter of transmittal and in the licensing statement made by the
appraiser in the report.
Sec. 23. [82B.225] [TRANSITIONAL LICENSES.]
Until September 1, 1991, a person already engaged in the
business of real estate appraisal may apply to the commissioner
of commerce for a license as a real estate appraiser. The
application must contain the information listed in section
82B.08. The commissioner shall issue a license to a person who
satisfies the requirements of section 82B.08 and who
demonstrates at least one year's experience as a real estate
appraiser.
An appraiser who is issued a license under this section
shall pass an examination conducted by the commissioner of
commerce under section 82B.10 or successfully complete
sufficient classroom hours of courses under section 82B.13, no
later than August 31, 1991. If the appraiser intends to satisfy
the requirements of section 82B.13, the appraiser must provide
adequate written reports or file memoranda as evidence of
compliance. An appraiser who has not met either of those
requirements as of that date may not be issued a renewal license
and must meet all the requirements for a new licensee.
Sec. 24. [INITIAL APPOINTMENTS.]
Notwithstanding section 5, subdivision 3, the commissioner
of commerce shall appoint the initial members of the real estate
appraiser advisory board to the following terms:
(1) two public members, three appraiser members, and two
consumer members to three-year terms;
(2) two public members, three appraiser members, and one
consumer member to two-year terms; and
(3) two appraiser members to one-year terms.
Sec. 25. [APPROPRIATION.]
$213,000 is appropriated from the general fund to the
commissioner of commerce to administer Minnesota Statutes,
chapter 82B. $121,000 is for fiscal year 1990 and $92,000 is
for fiscal year 1991. The approved complement of the department
of commerce is increased by two positions.
Sec. 26. [REPEALER.]
Section 23 is repealed September 1, 1991.
ARTICLE 2
Section 1. Minnesota Statutes 1988, section 48.61, is
amended by adding a subdivision to read:
Subd. 8. [PARITY WITH NATIONAL BANKS.] A state bank or
trust company may invest in any securities that are authorized
investments for national banks on the effective date of this
section, subject to the same restrictions as apply to national
banks. The commissioner may authorize a state bank or trust
company to invest in any securities that become authorized
investments for national banks after the effective date of this
section, subject to the same restrictions as apply to national
banks. This authority is in addition to the investment
authority granted to state banks under other provisions of state
law.
Sec. 2. Minnesota Statutes 1988, section 53.04, is amended
by adding a subdivision to read:
Subd. 3c. The right to extend credit and make loans under
chapter 51A on the same terms and subject to the same conditions
as apply to other lenders under that chapter. This subdivision
does not authorize an industrial loan and thrift company to make
loans under a credit card or overdraft checking plan.
Sec. 3. Minnesota Statutes 1988, section 53.06, is amended
to read:
53.06 [DIRECTORS, RESIDENCE.]
At least three-fourths of the directors of any industrial
loan and thrift company holding a certificate that includes the
right to issue thrift certificates for investment must be
residents of the county in which the industrial loan and thrift
company maintains its principal place of business, an adjacent
county or any county in which the industrial loan and thrift
company maintains a place of business pursuant to this
chapter Minnesota.
Sec. 4. Minnesota Statutes 1988, section 168.71, is
amended to read:
168.71 [RETAIL INSTALLMENT CONTRACTS.]
(a)(1) Every retail installment contract shall be in
writing, shall contain all the agreements of the parties, shall
be signed by the retail buyer and seller, and a copy thereof
shall be furnished to such retail buyer at the time of the
execution of the contract.
(2) No provisions for confession of judgment or power of
attorney therefor contained in any retail installment contract
or contained in a separate agreement relating thereto, shall be
valid or enforceable.
(3) The holder of a precomputed retail installment contract
may, if the contract so provides, collect a delinquency and
collection charge on each installment in arrears for a period
not less than ten days in an amount not in excess of five
percent of each installment or $5, whichever is the less greater.
In addition to such delinquency and collection charge, the
retail installment contract, whether interest-bearing or
precomputed, may provide for the payment of attorneys' fees not
exceeding 15 percent of the amount due and payable under such
contract where such contract is referred to an attorney not a
salaried employee of the holder of the contract for collection
plus the court costs.
(4) Unless written notice has been given to the retail
buyer of actual or intended assignment of a retail installment
contract, payment thereunder or tender thereof made by the
retail buyer to the last known holder of such contract shall be
binding upon all subsequent holders or assignees.
(5) Upon written request from the retail buyer, the holder
of the retail installment contract shall give or forward to the
retail buyer a written statement of the dates and amounts of
payments and the total amount unpaid under such contract. A
retail buyer shall be given a written receipt for any payment
when made in cash.
(b) The retail installment contract shall contain the
following items:
(1) The cash sale price of the motor vehicle which is the
subject matter of the retail installment contract;
(2) The total amount of the retail buyer's down payment,
whether made in money or goods, or partly in money or partly in
goods;
(3) The difference between items one and two;
(4) The charge, if any, included in the transaction for any
insurance and other benefits not included in clause (1),
specifying the types of coverage and taxes, fees, and charges
that actually are or will be paid to public officials or
government agencies, including those for perfecting, releasing,
or satisfying a security interest if such taxes, fees, or
charges are not included in clause (1);
(5) Principal balance, which is the sum of items three and
four;
(6) The amount of the finance charge;
(7) The total of payments payable by the retail buyer to
the retail seller and the number of installment payments
required and the amount of each installment expressed in dollars
or percentages, and date of each payment necessary finally to
pay the total of payments which is the sum of item five and item
six.
Provided, however, that said items one to seven inclusive
need not be stated in the terms, sequence or order set forth
above. Provided further, that clauses (6) and (7) may be
disclosed on the assumption that all scheduled payments under
the contract will be made when due.
In lieu of the above clauses, the retail seller may give
the retail buyer disclosures which satisfy the requirements of
the Federal Truth-In-Lending Act in effect as of the time of the
contract, notwithstanding whether or not that act applies to the
transaction.
(c) Every retail seller or sales finance company, if a
charge for insurance on the motor vehicle is included in a
retail installment contract shall within 30 days after execution
of the retail installment contract send or cause to be sent to
the retail buyer a policy or policies or certificate of
insurance, which insurance shall be written by a company
authorized to do business in this state, clearly setting forth
the amount of the premium, the kind or kinds of insurance and
the scope of the coverage and all the terms, exceptions,
limitations, restrictions and conditions of the contract or
contracts of the insurance. The buyer of a motor vehicle under
a retail installment contract shall have the privilege of
purchasing such insurance from an agent or broker of the buyer's
own selection and selecting an insurance company mutually
acceptable to the seller and the buyer; provided, however, that
the inclusion of the cost of the insurance premium in the retail
installment contract when the buyer selects the agent, broker or
company, shall be optional with the seller.
(d) Any sales finance company hereunder may purchase or
acquire from any retail seller any retail installment contract
on such terms and conditions as may be mutually agreed upon
between them.
(e) An acknowledgment by the retail buyer of the delivery
of any such copy or notice as required in subsection (a)
contained in the body of the statement or contract shall be
conclusive proof of delivery in any action or proceeding by or
against any assignee of a retail installment contract.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective the day following final
enactment.
Presented to the governor May 26, 1989
Signed by the governor May 26, 1989, 6:10 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes