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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1992 

                        CHAPTER 587-S.F.No. 2213 
           An act relating to commerce; regulating bank charters, 
          the purchase and sale of property, relocations, loans, 
          detached facilities, capital and surplus requirements, 
          and clerical services; regulating the report and audit 
          schedules and account insurance of credit unions; 
          authorizing certain financial institution closings; 
          regulating business changes of industrial loan and 
          thrifts; regulating business changes, license 
          requirements, loan security, and interest rates of 
          regulated lenders; providing special corporate voting 
          and notice provisions for banking corporations; 
          requiring additional information on financing and 
          continuation statements; regulating state 
          depositories; regulating investments in share 
          certificates; authorizing the establishment of 
          additional detached facilities in the cities of 
          Duluth, Dover, Millville, and New Scandia; modifying 
          real estate appraiser requirements; amending Minnesota 
          Statutes 1990, sections 9.031, by adding a 
          subdivision; 46.041, subdivision 4; 46.044; 46.047, 
          subdivision 2; 46.048, subdivision 3; 46.07, 
          subdivision 2; 47.015, by adding a subdivision; 47.10; 
          47.101, subdivision 3; 47.20, subdivisions 2, 4a, and 
          5; 47.54; 47.55; 48.02; 48.89, subdivision 5; 49.34, 
          subdivision 2; 52.06, subdivision 1; 52.24, 
          subdivision 1; 53.03, subdivision 5; 53.09, 
          subdivision 2; 56.04; 56.07; 56.12; 56.131, 
          subdivision 4; 82B.13, as amended; 300.23; 300.52, 
          subdivision 1; 332.13, subdivision 2; 336.9-402; 
          336.9-403; Minnesota Statutes 1991 Supplement, 
          sections 11A.24, subdivision 4; 48.512, subdivision 4; 
          82B.11, subdivisions 3 and 4; and 82B.14; repealing 
          Minnesota Statutes 1990, section 48.03, subdivisions 4 
          and 5. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 

                         FINANCIAL INSTITUTIONS 
    Section 1.  Minnesota Statutes 1990, section 46.041, 
subdivision 4, is amended to read: 
    Subd. 4.  [HEARING.] In any case in which the commissioner 
grants a request for a hearing, the commissioner shall fix a 
time for a hearing conducted pursuant to chapter 14 to decide 
whether or not the application will be granted.  A notice of the 
hearing must be published by the applicant in the form 
prescribed by the commissioner in a newspaper published in the 
municipality in which the proposed bank is to be located, and if 
there is no such newspaper, then at the county seat of the 
county in which the bank is proposed to be located.  The notice 
must be published once, at the expense of the applicants, not 
less than 30 days prior to the date of the hearing.  At the 
hearing the commissioner shall consider the application and hear 
the applicants and witnesses that appear in favor of or against 
the granting of the application of the proposed bank.  If an 
application is contested, 50 percent of an additional fee equal 
to the actual costs incurred by the department of commerce in 
approving or disapproving the application, payable to the state 
treasurer and credited by the treasurer to department of 
commerce to be deposited in the general fund, must be paid by 
the applicant and 50 percent equally by the intervening parties. 
    Sec. 2.  Minnesota Statutes 1990, section 46.044, is 
amended to read: 
    46.044 [CHARTERS ISSUED, CONDITIONS.] 
    If (1) the applicants are of good moral character and 
financial integrity, (2) there is a reasonable public demand for 
this bank in this location, (3) the organization expenses being 
paid by the subscribing shareholders bank do not exceed the 
necessary legal expenses incurred in drawing incorporation 
papers and the publication and the recording thereof, as 
required by law those allowed by section 46.043, (4) the 
probable volume of business in this location is sufficient to 
insure and maintain the solvency of the new bank and the 
solvency of the then existing bank or banks in the locality 
without endangering the safety of any bank in the locality as a 
place of deposit of public and private money, (5) the 
commissioner of commerce is satisfied that the proposed bank 
will be properly and safely managed, and (6) the applicant, if 
it is an interstate bank holding company, as defined in section 
48.92, has provided developmental loans as required by section 
48.991, and has complied with the net new funds reporting 
requirements of section 48.93, the application must be granted; 
otherwise it must be denied.  In case of the denial of the 
application, the commissioner of commerce shall specify the 
grounds for the denial.  A person aggrieved, may obtain judicial 
review of the determination in accordance with chapter 14.  
    Sec. 3.  Minnesota Statutes 1990, section 46.047, 
subdivision 2, is amended to read: 
    Subd. 2.  [BANKING INSTITUTION.] The term "banking 
institution" means a bank, trust company, bank and trust 
company, mutual savings bank, or thrift institution, that is 
organized under the laws of this state, or a holding company 
which owns or otherwise controls the banking institution. 
    Sec. 4.  Minnesota Statutes 1990, section 46.048, 
subdivision 3, is amended to read: 
    Subd. 3.  [BACKGROUND CHECKS.] In addition to any other 
information the commissioner may be able to obtain pursuant to 
section 13.82, the Minnesota bureau of criminal apprehension 
shall, upon the commissioner's request, provide fingerprint and 
background checks on all persons named in the notice required by 
subdivision 2 and is authorized to exchange fingerprints with 
the federal bureau of investigation for the purpose of a 
criminal background check of the national files.  
    Sec. 5.  Minnesota Statutes 1990, section 46.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [CONFIDENTIAL RECORDS.] The commissioner shall 
divulge facts and information obtained in the course of 
examining financial institutions under the commissioner's 
supervision only when and to the extent required or permitted by 
law to report upon or take special action regarding the affairs 
of an institution, or ordered by a court of law to testify or 
produce evidence in a civil or criminal proceeding, except that 
the commissioner may furnish information as to matters of mutual 
interest to an official or examiner of the federal reserve 
system, the Federal Deposit Insurance Corporation, the Federal 
Savings and Loan Insurance Corporation federal office of thrift 
supervision, the federal home loan bank system, the National 
Credit Union Administration, comptroller of the currency, a 
legally constituted state credit union share insurance 
corporation approved under section 52.24, the issuer of a 
commitment for insurance or guarantee of the certificates of an 
industrial loan and thrift company approved under section 53.10, 
or state and federal law enforcement agencies.  The commissioner 
shall not be required to disclose the name of a debtor of a 
financial institution under the commissioner's supervision, or 
anything relative to the private accounts, ownership, or 
transactions of an institution, or any fact obtained in the 
course of an examination thereof, except as herein provided.  
For purposes of this subdivision, a subpoena is not an order of 
a court of law.  These records are classified confidential or 
protected nonpublic for purposes of the Minnesota government 
data practices act and their destruction, as prescribed in 
section 46.21, is exempt from the provisions of chapter 138 and 
Laws 1971, chapter 529, so far as their deposit with the state 
archives.  
     Sec. 6.  Minnesota Statutes 1990, section 47.015, is 
amended by adding a subdivision to read: 
    Subd. 4.  [PERMISSIVE CLOSING ON GOOD FRIDAY.] A financial 
institution may close for up to three hours on Good Friday.  The 
financial institution shall post on its premises a written 
notice of the closing. 
    Sec. 7.  Minnesota Statutes 1990, section 47.10, is amended 
to read: 
    47.10 [REAL ESTATE; ACQUISITION, HOLDING.] 
    Subdivision 1.  [AUTHORITY, APPROVAL, LIMITATIONS.] (a) 
Except as otherwise specially provided, the net book value of 
land and buildings for the transaction of the business of the 
corporation, including parking lots and premises leased to 
others, shall not be more than as follows:  
    (1) for a bank, trust company or stock savings association, 
if investment is for acquisition and improvements to establish a 
new bank, or is for improvements to existing property or 
acquisition and improvements to adjacent property, approval by 
the commissioner of commerce is not required if the total 
investment does not exceed 50 percent of its existing capital 
stock and paid-in surplus.  Upon written prior approval of the 
commissioner of commerce, a bank, trust company or stock savings 
association may invest in the property and improvements in 
clause (1) or for acquisition of nonadjacent property for 
expansion or future use, if the aggregate of all such 
investments does not exceed 75 percent of its existing capital 
stock and paid-in surplus; 
    (2) for a savings bank, 50 percent of its net surplus; 
    (3) for a mutual building and loan association, five 
percent of its net assets.  
    (b) For purposes of this subdivision, an intervening 
highway, street, road, alley, other public thoroughfare, or 
easement of any kind does not cause two parcels of real property 
to be nonadjacent. 
    Subd. 2.  [BOOKS AND RECORDS.] With the exception of annual 
amortization charges which are made in accordance with generally 
accepted accounting principles, no state bank, trust company, 
savings bank, or building and loan association shall decrease 
the actual cost of the investment as shown on its books by a 
charge to any of its capital accounts unless approved by the 
commissioner. 
    Subd. 3.  [LEASEHOLD PLACE OF BUSINESS; APPROVAL OF CERTAIN 
LEASE AGREEMENTS.] No bank, trust company, savings bank, or 
building and loan association may acquire real property and 
improvements of any nature to it for its place of business by 
lease agreement if the lessor has an existing direct or indirect 
interest in the management or ownership of the bank, trust 
company, savings bank, or building and loan association without 
prior written approval by the commissioner.  This includes 
subsequent amendments and associated leasehold improvements.  
    Subd. 4.  [APPROVAL OF CERTAIN INSIDER AGREEMENTS.] No 
bank, trust company, savings bank, or savings association may 
purchase or sell real property, personal property, improvements 
or equipment of a value of $25,000 or more if the purchaser or 
seller other than the bank, trust company, savings bank, or 
savings association has an existing direct or indirect interest 
in the institution without prior written approval by the 
commissioner.  Each bank, trust company, savings bank, or 
savings association must maintain documentation of transactions 
with interested parties, including personal property leases and 
purchases or sales of under $25,000, which demonstrates the 
commercial reasonableness and fair market value of the 
transaction. 
    Sec. 8.  Minnesota Statutes 1990, section 47.101, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPLICATIONS TO DEPARTMENT OF COMMERCE.] An 
application by a banking institution to relocate its main office 
outside a radius of three miles measured in a straight line, or 
referred from the commissioner of commerce pursuant to 
subdivision 2, shall be approved or disapproved by the 
commissioner of commerce as provided for in sections 46.041 and 
46.044.  
    Sec. 9.  Minnesota Statutes 1990, section 47.20, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] For the purposes of this section 
the terms defined in this subdivision have the meanings given 
them: 
      (1) "Actual closing costs" mean reasonable charges for or 
sums paid for the following, whether or not retained by the 
mortgagee or lender: 
      (a) Any insurance premiums including but not limited to 
premiums for title insurance, fire and extended coverage 
insurance, flood insurance, and private mortgage insurance, but 
excluding any charges or sums retained by the mortgagee or 
lender as self-insured retention. 
      (b) Abstracting, title examination and search, and 
examination of public records. 
      (c) The preparation and recording of any or all documents 
required by law or custom for closing a conventional or 
cooperative apartment loan. 
      (d) Appraisal and survey of real property securing a 
conventional loan or real property owned by a cooperative 
apartment corporation of which a share or shares of stock or a 
membership certificate or certificates are to secure a 
cooperative apartment loan. 
       (e) A single service charge, which includes any 
consideration, not otherwise specified herein as an "actual 
closing cost" paid by the borrower and received and retained by 
the lender for or related to the acquisition, making, 
refinancing or modification of a conventional or cooperative 
apartment loan, and also includes any consideration received by 
the lender for making a borrower's interest rate commitment or 
for making a borrower's loan commitment, whether or not an 
actual loan follows the commitment.  The term service charge 
does not include forward commitment fees.  The service charge 
shall not exceed one percent of the original bona fide principal 
amount of the conventional or cooperative apartment loan, except 
that in the case of a construction loan, the service charge 
shall not exceed two percent of the original bona fide principal 
amount of the loan.  That portion of the service charge imposed 
because the loan is a construction loan shall be itemized and a 
copy of the itemization furnished the borrower.  A lender shall 
not collect from a borrower the additional one percent service 
charge permitted for a construction loan if it does not perform 
the service for which the charge is imposed or if third parties 
perform and charge the borrower for the service for which the 
lender has imposed the charge. 
       (f) Charges and fees necessary for or related to the 
transfer of real or personal property securing a conventional or 
cooperative apartment loan or the closing of a conventional or 
cooperative apartment loan paid by the borrower and received by 
any party other than the lender. 
       (2) "Contract for deed" means an executory contract for the 
conveyance of real estate, the original principal amount of 
which is less than $100,000.  A commitment for a contract for 
deed shall include an executed purchase agreement or earnest 
money contract wherein the seller agrees to finance any part or 
all of the purchase price by a contract for deed. 
       (3) "Conventional loan" means a loan or advance of credit, 
other than a loan or advance of credit made by a credit union or 
made pursuant to section 334.011, to a noncorporate borrower in 
an original principal amount of less than $100,000, secured by a 
mortgage upon real property containing one or more residential 
units or upon which at the time the loan is made it is intended 
that one or more residential units are to be constructed, and 
which is not insured or guaranteed by the secretary of housing 
and urban development, by the administrator of veterans affairs, 
or by the administrator of the farmers home administration, and 
which is not made pursuant to the authority granted in 
subdivision 1, clause (3) or (4).  The term mortgage does not 
include contracts for deed or installment land contracts. 
       (4) "Cooperative apartment loan" means a loan or advance of 
credit, other than a loan or advance of credit made by a credit 
union or made pursuant to section 334.011, to a noncorporate 
borrower in an original principal amount of less than $100,000, 
secured by a security interest on a share or shares of stock or 
a membership certificate or certificates issued to a stockholder 
or member by a cooperative apartment corporation, which may be 
accompanied by an assignment by way of security of the 
borrower's interest in the proprietary lease or occupancy 
agreement in property issued by the cooperative apartment 
corporation and which is not insured or guaranteed by the 
secretary of housing and urban development, by the administrator 
of veterans affairs, or by the administrator of the farmers home 
administration.  
     (5) "Cooperative apartment corporation" means a corporation 
or cooperative organized under chapter 308A or 317A, the 
shareholders or members of which are entitled, solely by reason 
of their ownership of stock or membership certificates in the 
corporation or association, to occupy one or more residential 
units in a building owned or leased by the corporation or 
association.  
       (6) "Forward commitment fee" means a fee or other 
consideration paid to a lender for the purpose of securing a 
binding forward commitment by or through the lender to make 
conventional loans to two or more credit worthy purchasers, 
including future purchasers, of residential units, or a fee or 
other consideration paid to a lender for the purpose of securing 
a binding forward commitment by or through the lender to make 
conventional loans to two or more credit worthy purchasers, 
including future purchasers, of apartments as defined in section 
515.02 to be created out of existing structures pursuant to the 
Minnesota condominium act, or a fee or other consideration paid 
to a lender for the purpose of securing a binding forward 
commitment by or through the lender to make cooperative 
apartment loans to two or more credit worthy purchasers, 
including future purchasers, of a share or shares of stock or a 
membership certificate or certificates in a cooperative 
apartment corporation; provided, that the forward commitment 
rate of interest does not exceed the maximum lawful rate of 
interest effective as of the date the forward commitment is 
issued by the lender. 
       (7) "Borrower's interest rate commitment" means a binding 
commitment made by a lender to a borrower wherein the lender 
agrees that, if a conventional or cooperative apartment loan is 
made following issuance of and pursuant to the commitment, the 
conventional or cooperative apartment loan shall be made at a 
rate of interest not in excess of the rate of interest agreed to 
in the commitment, provided that the rate of interest agreed to 
in the commitment is not in excess of the maximum lawful rate of 
interest effective as of the date the commitment is issued by 
the lender to the borrower. 
       (8) "Borrower's loan commitment" means a binding commitment 
made by a lender to a borrower wherein the lender agrees to make 
a conventional or cooperative apartment loan pursuant to the 
provisions, including the interest rate, of the commitment, 
provided that the commitment rate of interest does not exceed 
the maximum lawful rate of interest effective as of the date the 
commitment is issued and the commitment when issued and agreed 
to shall constitute a legally binding obligation on the part of 
the mortgagee or lender to make a conventional or cooperative 
apartment loan within a specified time period in the future at a 
rate of interest not exceeding the maximum lawful rate of 
interest effective as of the date the commitment is issued by 
the lender to the borrower; provided that a lender who issues a 
borrower's loan commitment pursuant to the provisions of a 
forward commitment is authorized to issue the borrower's loan 
commitment at a rate of interest not to exceed the maximum 
lawful rate of interest effective as of the date the forward 
commitment is issued by the lender. 
       (9) "Finance charge" means the total cost of a conventional 
or cooperative apartment loan including extensions or grant of 
credit regardless of the characterization of the same and 
includes interest, finders fees, and other charges levied by a 
lender directly or indirectly against the person obtaining the 
conventional or cooperative apartment loan or against a seller 
of real property securing a conventional loan or a seller of a 
share or shares of stock or a membership certificate or 
certificates in a cooperative apartment corporation securing a 
cooperative apartment loan, or any other party to the 
transaction except any actual closing costs and any forward 
commitment fee.  The finance charges plus the actual closing 
costs and any forward commitment fee, charged by a lender shall 
include all charges made by a lender other than the principal of 
the conventional or cooperative apartment loan.  The finance 
charge, with respect to wraparound mortgages, shall be computed 
based upon the face amount of the wraparound mortgage note, 
which face amount shall consist of the aggregate of those funds 
actually advanced by the wraparound lender and the total 
outstanding principal balances of the prior note or notes which 
have been made a part of the wraparound mortgage note.  
       (10) "Lender" means any person making a conventional or 
cooperative apartment loan, or any person arranging financing 
for a conventional or cooperative apartment loan.  The term also 
includes the holder or assignee at any time of a conventional or 
cooperative apartment loan. 
      (11) "Loan yield" means the annual rate of return obtained 
by a lender over the term of a conventional or cooperative 
apartment loan and shall be computed as the annual percentage 
rate as computed in accordance with sections 226.5 (b), (c), and 
(d) of Regulation Z, Code of Federal Regulations, title 12, 
section 226, but using the definition of finance charge provided 
for in this subdivision.  For purposes of this section, with 
respect to wraparound mortgages, the rate of interest or loan 
yield shall be based upon the principal balance set forth in the 
wraparound note and mortgage and shall not include any interest 
differential or yield differential between the stated interest 
rate on the wraparound mortgage and the stated interest rate on 
the one or more prior mortgages included in the stated loan 
amount on a wraparound note and mortgage.  
    (12) "Monthly index of the federal home loan mortgage 
corporation auction yields" means the net weighted average yield 
of accepted offers in the eight month forward commitment program 
of the federal home loan mortgage corporation in a month. 
     (13) "Person" means an individual, corporation, business 
trust, partnership or association or any other legal entity. 
    (14) (13) "Residential unit" means any structure used 
principally for residential purposes or any portion thereof, and 
includes a unit in a townhouse or planned unit development, a 
condominium apartment, a nonowner occupied residence, and any 
other type of residence regardless of whether the unit is used 
as a principal residence, secondary residence, vacation 
residence, or residence of some other denomination. 
    (15) (14) "Vendor" means any person or persons who agree to 
sell real estate and finance any part or all of the purchase 
price by a contract for deed.  The term also includes the holder 
or assignee at any time of the vendor's interest in a contract 
for deed. 
    Sec. 10.  Minnesota Statutes 1990, section 47.20, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [MAXIMUM INTEREST RATE.] (a) No conventional or 
cooperative apartment loan or contract for deed shall be made at 
a rate of interest or loan yield in excess of a maximum lawful 
interest rate which shall be based upon the monthly index of the 
federal home loan mortgage corporation auction yields as 
compiled by the federal home loan mortgage corporation.  The 
maximum lawful interest rate shall be computed as follows: 
    (1) The maximum lawful rate of interest for a conventional 
or cooperative apartment loan or contract for deed made or 
contracted for during any calendar month is equal to the monthly 
index of the federal home loan mortgage corporation auction 
yields for the first preceding calendar month plus an additional 
three-eighths of one percent per annum rounded off to the next 
highest quarter of one percent per annum. in an amount equal to 
the Federal National Mortgage Association posted yields on 
30-year mortgage commitments for delivery within 60 days on 
standard conventional fixed-rate mortgages published in the Wall 
Street Journal for the last business day of the second preceding 
month plus four percentage points. 
    (2) (b) On or before the last day of each month the 
commissioner of commerce shall determine, based on available 
statistics, the monthly index of the federal home loan mortgage 
corporation auction yields for that calendar month and shall 
determine the maximum lawful rate of interest for conventional 
or cooperative apartment loans or contracts for deed for the 
next succeeding month as defined in clause (1) paragraph (a), 
and shall cause the maximum lawful rate of interest to be 
published in a legal newspaper in Ramsey county on or before the 
first day of each month or as soon thereafter as practicable and 
in the state register on or before the last day of each month; 
the maximum lawful rate of interest to be effective on the first 
day of that month.  If a federal home loan mortgage corporation 
eight month forward commitment purchase program is not held in 
any month, the maximum lawful rate of interest determined by the 
commissioner of commerce pursuant to the last auction is the 
maximum lawful rate of interest through the last day of the 
month in which the next auction is held. 
    (3) (1) The maximum lawful interest rate applicable to a 
cooperative apartment loan or contract for deed at the time the 
loan or contract is made is the maximum lawful interest rate for 
the term of the cooperative apartment loan or contract for 
deed.  Notwithstanding the provisions of section 334.01, a 
cooperative apartment loan or contract for deed may provide, at 
the time the loan or contract is made, for the application of 
specified different consecutive periodic interest rates to the 
unpaid principal balance, if no interest rate exceeds the 
maximum lawful interest rate applicable to the loan or contract 
at the time the loan or contract is made.  
    (4) (2) Contracts for deed executed pursuant to a 
commitment for a contract for deed, or conventional or 
cooperative apartment loans made pursuant to a borrower's 
interest rate commitment or made pursuant to a borrower's loan 
commitment, or made pursuant to a commitment for conventional or 
cooperative apartment loans made upon payment of a forward 
commitment fee including a borrower's loan commitment issued 
pursuant to a forward commitment, which commitment provides for 
consummation within some future time following the issuance of 
the commitment may be consummated pursuant to the provisions, 
including the interest rate, of the commitment notwithstanding 
the fact that the maximum lawful rate of interest at the time 
the contract for deed or conventional or cooperative apartment 
loan is actually executed or made is less than the commitment 
rate of interest, provided the commitment rate of interest does 
not exceed the maximum lawful interest rate in effect on the 
date the commitment was issued.  The refinancing of (a) an 
existing conventional or cooperative apartment loan, (b) a loan 
insured or guaranteed by the secretary of housing and urban 
development, the administrator of veterans affairs, or the 
administrator of the farmers home administration, or (c) a 
contract for deed by making a conventional or cooperative 
apartment loan is deemed to be a new conventional or cooperative 
apartment loan for purposes of determining the maximum lawful 
rate of interest under this subdivision.  The renegotiation of a 
conventional or cooperative apartment loan or a contract for 
deed is deemed to be a new loan or contract for deed for 
purposes of clause (3) (1) and for purposes of determining the 
maximum lawful rate of interest under this subdivision.  A 
borrower's interest rate commitment or a borrower's loan 
commitment is deemed to be issued on the date the commitment is 
hand delivered by the lender to, or mailed to the borrower.  A 
forward commitment is deemed to be issued on the date the 
forward commitment is hand delivered by the lender to, or mailed 
to the person paying the forward commitment fee to the lender, 
or to any one of them if there should be more than one.  A 
commitment for a contract for deed is deemed to be issued on the 
date the commitment is initially executed by the contract for 
deed vendor or the vendor's authorized agent. 
    (5) (3) A contract for deed executed pursuant to a 
commitment for a contract for deed, or a loan made pursuant to a 
borrower's interest rate commitment, or made pursuant to a 
borrower's loan commitment, or made pursuant to a forward 
commitment for conventional or cooperative apartment loans made 
upon payment of a forward commitment fee including a borrower's 
loan commitment issued pursuant to a forward commitment at a 
rate of interest not in excess of the rate of interest 
authorized by this subdivision at the time the commitment was 
made continues to be enforceable in accordance with its terms 
until the indebtedness is fully satisfied. 
    Sec. 11.  Minnesota Statutes 1990, section 47.20, 
subdivision 5, is amended to read: 
    Subd. 5.  (a) No conventional loan or loan authorized in 
subdivision 1 made on or after the effective date of Laws 1977, 
chapter 350 shall contain a provision requiring or permitting 
the imposition of a penalty in the event the loan or advance of 
credit is prepaid. 
    (b) A precomputed conventional loan or precomputed loan 
authorized in subdivision 1 shall provide for a refund of the 
precomputed finance charge according to the actuarial method if 
the loan is paid in full by cash, renewal or refinancing, or a 
new loan, one month or more before the final installment due 
date.  The actuarial method for the purpose of this section is 
the amount of interest attributable to each fully unexpired 
monthly installment period of the loan contract following the 
date of prepayment in full, calculated as if the loan was made 
on an interest-bearing basis at the rate of interest provided 
for in the note based on the assumption that all payments were 
made according to schedule.  A precomputed loan for the purpose 
of this section means a loan for which the debt is expressed as 
a sum comprised of the principal amount and the amount of 
interest for the entire term of the loan computed actuarially in 
advance on the assumption that all scheduled payments will be 
made when due, and does not include a loan for which interest is 
computed from time to time by application of a rate to the 
unpaid principal balance, interest-bearing loans, or 
simple-interest loans.  For the purpose of calculating a refund 
for precomputed loans under this section, any portion of the 
finance charge for extending the first payment period beyond one 
month may be ignored.  Nothing in this section shall be 
considered a limitation on discount points or other finance 
charges charged or collected in advance, and nothing in this 
section shall require a refund of the charges in the event of 
prepayment.  Nothing in this section shall be considered to 
supersede section 47.204. 
    Sec. 12.  Minnesota Statutes 1990, section 47.54, is 
amended to read: 
    47.54 [NOTICES AND APPROVAL PROCEDURES.] 
    Subdivision 1.  [APPLICATION.] Any bank desiring to 
establish a detached facility shall execute and acknowledge a 
written application in the form prescribed by the commissioner 
and shall file the application in the commissioner's office with 
a fee of $500.  If an application is contested, 50 percent of an 
additional fee equal to the actual costs incurred by the 
commissioner in approving or disapproving the application, 
payable to the state treasurer and credited by the treasurer to 
the general fund, shall be paid by the applicant and 50 percent 
equally by the intervening parties.  The applicant shall within 
30 days of the receipt of the form prescribed by the 
commissioner publish a notice of the filing of the application 
in a qualified newspaper published in the municipality in which 
the proposed detached facility is to be located, and if there is 
no such newspaper, then in a qualified newspaper likely to give 
notice in the municipality in which the proposed detached 
facility is to be located.  In addition to the publication, the 
applicant must mail a copy of the notice by certified mail to 
every bank located within three miles of the proposed location 
of the detached facility, measured in the manner provided in 
section 47.52. 
    Subd. 2.  [APPROVAL ORDER.] If no objection is received by 
the commissioner within 21 days after the publication and 
mailing of the notices, the commissioner shall issue an order 
approving the application without a hearing if it is found that 
(a) the applicant bank meets current industry standards of 
capital adequacy, management quality, and asset condition, (b) 
the establishment of the proposed detached facility will improve 
the quality or increase the availability of banking services in 
the community to be served, and (c) the establishment of the 
proposed detached facility will not have an undue adverse effect 
upon the solvency of existing financial institutions in the 
community to be served.  Otherwise, the commissioner shall deny 
the application.  Any proceedings for judicial review of an 
order of the commissioner issued under this subdivision without 
a contested case hearing shall be conducted pursuant to the 
provisions of the administrative procedure act relating to 
judicial review of agency decisions, sections 14.63 to 14.69, 
and the scope of judicial review in such proceedings shall be as 
provided therein.  Nothing herein shall be construed as 
requiring the commissioner to conduct a contested case hearing 
if no written objection is timely received by the commissioner 
from a bank within three miles of the proposed location of the 
detached facility.  
    Subd. 3.  [OBJECTIONS; HEARING.] If any bank within three 
miles of the proposed location of the detached facility objects 
in writing within 21 days, the commissioner shall fix a time, 
within 60 days after filing of the objection, for a hearing, and 
the record of the hearing shall be considered by the 
commissioner in deciding whether or not the application shall be 
granted.  A notice of the hearing shall be published in the form 
prescribed by the commissioner in a newspaper as described in 
subdivision 1, at the expense of the applicant, not less than 30 
days prior to the date of the hearing.  At the hearing the 
commissioner shall consider the application and hear the 
applicant and any witnesses who may appear in favor of or 
against the granting of the application.  The hearing shall be 
conducted by the commissioner in accordance with the provisions 
of the administrative procedures act, sections 14.001 to 14.69, 
governing contested cases, including the provisions of the act 
relating to judicial review of agency decisions. consider the 
objection.  If the objection also requests a hearing, the 
objector must include the nature of the issues or facts to be 
presented and the reasons why written submissions would be 
insufficient to make an adequate presentation to the 
commissioner.  Comments challenging the legality of an 
application should be submitted separately in writing. 
    Written requests for hearing must be evaluated by the 
commissioner who may grant or deny the request.  A hearing must 
generally be granted only if it is determined that written 
submissions would be inadequate or that a hearing would 
otherwise be beneficial to the decision-making process.  A 
hearing may be limited to issues considered material by the 
commissioner. 
    If a request for a hearing has been denied, the 
commissioner shall notify the applicant and all interested 
persons stating the reasons for denial.  Interested parties may 
submit to the commissioner with simultaneous copies to the 
applicant additional written comments on the application within 
14 days after the date of the notice of denial.  The applicant 
shall be provided an additional seven days after the 14-day 
deadline has expired within which to respond to any comments 
submitted within the 14-day period.  A copy of any response 
submitted by the applicant shall also be mailed simultaneously 
by the applicant to the interested parties.  The commissioner 
may waive the additional seven-day comment period if so 
requested by the applicant. 
    Subd. 4.  [HEARING.] In any case in which the commissioner 
grants a request for a hearing, the commissioner shall fix a 
time for a hearing conducted pursuant to chapter 14 to decide 
whether or not the application will be granted.  A notice of the 
hearing must be published by the applicant in the form 
prescribed by the commissioner in a newspaper published in the 
municipality in which the proposed detached facility is to be 
located, and if there is no such newspaper, then at the county 
seat of the county in which the detached facility is proposed to 
be located.  The notice must be published once, at the expense 
of the applicants, not less than 30 days prior to the date of 
the hearing.  At the hearing the commissioner shall consider the 
application and hear the applicants and witnesses that appear in 
favor of or against the granting of the application of the 
proposed detached facility.  If an application is contested and 
a hearing is granted, 50 percent of an additional fee equal to 
the actual costs incurred by the department of commerce in 
approving or disapproving the application, payable to the 
commissioner of commerce to be deposited in the general fund, 
must be paid by the applicant and 50 percent equally by the 
intervening parties. 
    Subd. 4 5.  [DECISION AFTER HEARING.] If upon the hearing, 
it appears to the commissioner that the requirements for 
approval contained in subdivision 2 have been met, the 
commissioner shall, not later than 90 days after the hearing, 
issue an order approving the application.  If the commissioner 
shall decide that the application should not be granted, the 
commissioner shall issue an order to that effect and forthwith 
give notice by certified mail to the applicant.  
    Subd. 5 6.  [EXPIRATION AND EXTENSION OF ORDER.] If a 
facility is not activated within 18 months from the date of the 
order, the approval order automatically expires.  Upon request 
of the applicant prior to the automatic expiration date of the 
order, the commissioner may grant reasonable extensions of time 
to the applicant to activate the facility as the commissioner 
deems necessary.  The extensions of time shall not exceed a 
total of an additional 12 months.  If the commissioner's order 
is the subject of an appeal in accordance with chapter 14, the 
time period referred to in this section for activation of the 
facility and any extensions shall begin when all appeals or 
rights of appeal from the commissioner's order have concluded or 
expired. 
    Sec. 13.  Minnesota Statutes 1990, section 47.55, is 
amended to read: 
    47.55 [EXISTING FACILITY BANKING FACILITIES OR BRANCHES OF 
SAVINGS ASSOCIATIONS.] 
    Subdivision 1.  [BANKING FACILITIES IN OPERATION PRIOR TO 
MAY 1, 1971.] A bank may retain and operate one detached 
facility as it may have had in operation prior to May 1, 1971 
without requirement of approval hereunder, provided that its 
function is limited as provided in section 47.53 and its 
location conforms with the provisions of section 47.52.  A bank 
having such a retained detached facility shall be limited to 
operating two additional detached facilities. 
    Subd. 2.  [FACILITIES OF BANKS OR BRANCHES OF SAVINGS 
ASSOCIATIONS IN OPERATION PRIOR TO ACQUISITION.] The purchase of 
assets and assumption of liabilities of an existing detached 
facility of another bank or branch of a savings and loan 
association or savings bank must follow the notice and approval 
procedures in section 47.54 to establish and maintain a new 
detached facility of the acquiring bank at that location but 
need not obtain the consent of other banks as required by 
section 47.52. 
    Sec. 14.  Minnesota Statutes 1990, section 48.02, is 
amended to read: 
    48.02 [CAPITAL AND SURPLUS; PREPAYMENT OF CAPITAL.] 
    The capital and surplus of every state bank hereafter 
organized shall be at least $250,000.  In addition thereto 
undivided profits shall be provided for in such an amount as the 
commissioner shall determine to be adequate under the 
circumstances to avoid any possible impairment of capital and 
surplus.  The total of these outlays shall be known as capital 
funds, and payment thereof shall be made in full, in cash or 
authorized securities, deposited in an approved custodial bank, 
and certified to the commissioner, under oath of the president, 
and cashier or other chief financial officer, as well as the 
custodial bank, before the proposed state bank shall be 
authorized to commence business.  The capital funds of a 
proposed bank shall not be less than a total amount which the 
commissioner considers necessary, having in mind the deposit 
potential for such a proposed bank and current banking industry 
standards of capital adequacy. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
48.512, subdivision 4, is amended to read: 
    Subd. 4.  [IDENTIFICATION IS REQUIRED.] A financial 
intermediary shall not open or authorize signatory power over a 
transaction account if none of the applicants provides a 
driver's license, identification card, or identification 
document as required by subdivision 2.  If the applicant 
provides a driver's license or identification card issued under 
section 171.07, the financial intermediary must confirm the 
identification number and name on that card through the records 
of the department of public safety.  The financial intermediary 
need not confirm this information if the checking account 
applicant presents a driver's license impervious to alteration 
as is reasonably practicable in the design and quality of 
material and technology.  The financial intermediary need not 
confirm this information if an employee of the financial 
intermediary has known the identity of the applicant for at 
least one year prior to the time of the application, and the 
employee provides a signed statement confirming that fact.  When 
a minor is the applicant and the minor does not have a driver's 
license or identification card issued pursuant to section 
171.07, the identification requirements of subdivision 2, clause 
(g), and this subdivision are satisfied if the minor's parent or 
guardian provides identification of that person's own that meets 
the identification requirement.  The financial intermediary may 
waive the identification requirement if the applicant has had 
another type of account with the financial intermediary for at 
least one year immediately preceding the time of application. 
    Sec. 16.  Minnesota Statutes 1990, section 48.89, 
subdivision 5, is amended to read: 
    Subd. 5.  No bank may cause to be performed, by contract or 
otherwise, any clerical services for itself from a clerical 
service corporation or any other person, whether on or off its 
premises, unless assurances satisfactory to the commissioner are 
furnished to the commissioner by both the bank and the party 
performing such services that the performance thereof will be 
subject to regulation and examination by the commissioner to the 
same extent as if such services were being performed by the bank 
itself on its own premises.  
    Sec. 17.  Minnesota Statutes 1990, section 49.34, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACQUISITION OF BANK OR SAVINGS ASSOCIATION FOR 
OPERATION AS DETACHED FACILITY.] (a) Notwithstanding the 
geographic limitations of subdivision 1, and the distance 
limitations and consent requirements of section 47.52, a state 
bank may apply to the commissioner, pursuant to the procedures 
contained in sections 47.51 to 47.56 and 49.35 to 49.41, to 
acquire another state bank or national banking association and 
its detached facilities through merger, consolidation or 
purchase of assets and assumption of liabilities and operate 
them as detached facilities of the successor bank if the 
operation of them otherwise conforms to the limitations of 
section 47.52.  
    (b) In addition to the authority granted in paragraphs (a) 
and (c), and notwithstanding the geographic limitations of 
subdivision 1 and the limitations on number of facilities and 
consent requirements contained in section 47.52, a state bank 
whose main banking office is located within the county of Anoka, 
Carver, Dakota, Hennepin, Ramsey, Scott, or Washington may apply 
to the commissioner, pursuant to the procedures contained in 
sections 47.51 to 47.56 and 49.35 to 49.41, to acquire another 
state bank or national banking association and its detached 
facilities through merger, consolidation, or purchase of assets 
and assumption of liabilities and operate them as detached 
facilities of the successor bank if each resulting detached 
facility is located within the county of Anoka, Carver, Dakota, 
Hennepin, Ramsey, Scott, or Washington. 
    (c) Where the commissioner has determined that a merger, 
consolidation or purchase of assets and assumption of 
liabilities is necessary and in the public interest to prevent 
the probable failure of a state bank or, national banking 
association, or state or federal savings and loan association or 
savings bank, the limitations on location and number of detached 
facilities in section 47.52 shall not apply to the establishment 
of a detached facility directly resulting from such 
acquisition.  The establishment of a detached facility in order 
to prevent the a probable failure of a bank as provided in this 
subdivision paragraph shall not require the written consent of 
banks having a principal office in the municipality in which the 
resulting detached facility will be located, notwithstanding the 
provisions of section 47.52. 
    The consolidation or merger under this paragraph of a 
capital stock savings and loan association or savings bank and a 
bank shall be effected in the manner provided in sections 49.33 
to 49.41.  A savings and loan association or savings bank that 
is a mutual association may be acquired directly under this 
paragraph through the purchase of assets and assumption of 
liabilities.  A state bank acquiring a savings and loan 
association or savings bank under this paragraph must, with the 
approval of the commissioner of commerce, establish a reasonable 
date by which the bank will cease all activities conducted by 
the savings and loan association or savings bank that are not 
authorized activities for the bank. 
    Sec. 18.  Minnesota Statutes 1990, section 52.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REPORT AND AUDIT SCHEDULE.] Credit unions 
shall be under the supervision of the commissioner of commerce.  
Each credit union shall annually, on or before January 25, file 
a report with the commissioner of commerce on forms supplied by 
the commissioner for that purpose giving such relevant 
information as the commissioner may require concerning the 
operations during the preceding calendar year.  Additional 
reports may be required.  Credit unions shall be examined, at 
least once every 18 calendar months, by the commissioner of 
commerce, except that if a credit union requests, the 
commissioner may accept the audit of a certified public 
accountant in place of this examination.  Such certified public 
accountant must be approved by the commissioner.  The 
qualitative type of audit examination to be performed by the 
certified public accountant shall be defined by rule and 
approved by the commissioner.  Further, in lieu of this 
examination the commissioner may accept any examination made by 
the National Credit Union Administration, provided a copy of the 
examination is furnished to the commissioner.  A report of the 
examination by the commissioner of commerce shall be forwarded 
to the president, or the chair of the board if the position is 
so designated pursuant to section 52.09, subdivision 4, of the 
examined credit union within 60 days after completion of the 
examination.  Within 60 days of the receipt of such report, a 
general meeting of the directors and committees shall be called 
to consider matters contained in the report.  For failure to 
file reports when due, unless excused for cause, the credit 
union shall pay to the state treasurer $5 for each day of its 
delinquency. 
    Sec. 19.  Minnesota Statutes 1990, section 52.24, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INSURANCE ACCOUNTS.] Every credit union 
under the supervision of the commissioner of commerce shall at 
all times maintain in effect insurance of member share and 
deposit accounts under the provisions of title II of the 
National Credit Union Act, or insurance from a legally 
constituted credit union share insurance corporation.  A credit 
union which fails to meet this requirement for insurance of its 
share and deposit accounts shall either dissolve or merge with 
another credit union which is insured under title II of the 
National Credit Union Act, or by a legally constituted credit 
union share insurance corporation.  
    Sec. 20.  Minnesota Statutes 1990, section 53.03, 
subdivision 5, is amended to read: 
    Subd. 5.  [PLACE OF BUSINESS.] Not more than one place of 
business may be maintained under any certificate of 
authorization issued subsequent to the enactment of Laws 1943, 
chapter 67, pursuant to the provisions of this chapter, but the 
department of commerce may issue more than one certificate of 
authorization to the same corporation upon compliance with all 
the provisions of this chapter governing an original issuance of 
a certificate of authorization.  To the extent that previously 
filed applicable information remains unchanged, the applicant 
need not refile this information, unless requested.  The filing 
fee for a branch application shall be $500 and the investigation 
fee $250.  If a corporation has been issued more than one 
certificate of authorization, the corporation shall allocate a 
portion of capital stock to each office for which a certificate 
has been issued, in order to comply with the capital 
requirements of sections 53.02 and 53.05, clause (2), which 
sections are applicable to each office and the capital allocated 
thereto in the same manner as if each certificate had been 
issued to a separate corporation.  An industrial loan and thrift 
corporation with deposit liabilities may change one or more of 
its locations upon the written approval of the commissioner of 
commerce.  A fee of $100 must accompany each application to the 
commissioner for approval to change the location of an 
established office.  An industrial loan and thrift corporation 
that does not sell and issue thrift certificates for investment 
may change one or more locations by giving 30 days' written 
notice to the department of commerce which shall promptly amend 
the certificate of authorization accordingly.  No change in 
place of business of a company to a location outside of its 
current trade area or more than 25 miles from its present 
location, whichever distance is greater, shall be permitted 
under the same certificate unless all of the applicable 
requirements of this section have been met. 
    Sec. 21.  Minnesota Statutes 1990, section 53.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [REPORT TO COMMISSIONER.] (1) Each industrial 
loan and thrift company shall annually on or before the first 
day of February file a report with the commissioner stating in 
detail, under appropriate heads, its assets and liabilities at 
the close of business on the last day of the preceding calendar 
year.  This report shall be made under oath in the form 
prescribed by the commissioner and published once, at the 
expense of the industrial loan and thrift company, in a 
newspaper of the county of its location, and proof thereof filed 
immediately with the commissioner of commerce. 
    (2) Each industrial loan and thrift company which holds 
authority to accept accounts pursuant to section 53.04, 
subdivision 5, shall in place of the requirement in clause (1) 
submit the reports and make the publication required of state 
banks pursuant to section 48.48.  
    (3) Within 30 days following a change in controlling 
ownership of the capital stock of an industrial loan and thrift 
company, it shall file a written report with the commissioner 
stating in detail the nature of such change in ownership.  
    Sec. 22.  Minnesota Statutes 1990, section 56.04, is 
amended to read: 
    56.04 [INVESTIGATION; ISSUANCE OF LICENSE; DENIAL; 
REFUNDS.] 
    Upon the filing of the application and payment of these 
fees, the commissioner shall investigate the facts, and if the 
commissioner shall find (1) that the financial responsibility, 
experience, character, and general fitness of the applicant, and 
of the members thereof if the applicant be a copartnership or 
association, and of the person with direct responsibility for 
the operation and management of the proposed office are such as 
to command confidence and to warrant belief that the business 
will be operated honestly, fairly, and efficiently within the 
purposes of this chapter, and primarily for purposes other than 
making loans to finance the purchase of products or services, 
other than insurance products authorized in this chapter or 
chapter 62B, offered by the applicant, a person which controls 
or is controlled by the applicant, or a person which is 
controlled by persons which also control the applicant; and (2) 
that the applicant has available for the operation of the 
business, at the specified location, liquid assets of at least 
$50,000 (the foregoing facts being conditions precedent to the 
issuance of a license under this chapter), the commissioner 
shall thereupon issue and deliver a license to the applicant to 
make loans, in accordance with the provisions of this chapter, 
at the location specified in the application.  If the 
commissioner shall not so find, the commissioner shall not issue 
a license and shall notify the applicant of the denial and 
return to the applicant the sum paid by the applicant as a 
license fee, retaining the $250 investigation fee to cover the 
costs of investigating the application.  The commissioner shall 
approve or deny every application for license hereunder within 
60 days from the filing thereof with the fees. 
    If the application is denied, the commissioner shall, 
within 20 days thereafter, file in the commissioner's office a 
written decision and findings with respect thereto containing 
the evidence and the reasons supporting the denial, and 
forthwith serve upon the applicant a copy thereof. 
    There is hereby appropriated to such persons as are 
entitled to such refund, from the fund or account in the state 
treasury to which the money was credited, an amount sufficient 
to make the refund and payment. 
    Sec. 23.  Minnesota Statutes 1990, section 56.07, is 
amended to read: 
    56.07 [CONTROL OVER LOCATION.] 
    Not more than one place of business shall be maintained 
under the same license, but the commissioner may issue more than 
one license to the same licensee upon compliance with all the 
provisions of this chapter governing an original issuance of a 
license, for each such new license.  To the extent that 
previously filed applicable information remains substantially 
unchanged, the applicant need not refile this information, 
unless requested. 
    When a licensee shall wish to change a place of business, 
the licensee shall give written notice thereof 30 days in 
advance to the commissioner, who shall within 30 days of receipt 
of such notice, issue an amended license approving the 
change.  No change in the place of business of a licensee to a 
location outside of its current trade area or more than 25 miles 
from its present location, whichever distance is greater, shall 
be permitted under the same license unless all of the 
requirements of section 56.04 have been met.  
    A licensed place of business shall be open during regular 
business hours each weekday, except for legal holidays and for 
any weekday the commissioner grants approval to the licensee to 
remain closed.  A licensed place of business may be open on 
Saturday, but shall be closed on Sunday.  
    Sec. 24.  Minnesota Statutes 1990, section 56.12, is 
amended to read: 
    56.12 [ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.] 
    No licensee shall advertise, print, display, publish, 
distribute, or broadcast, or cause or permit to be advertised, 
printed, displayed, published, distributed, or broadcast, in any 
manner any statement or representation with regard to the rates, 
terms, or conditions for the lending of money, credit, goods, or 
things in action which is false, misleading, or deceptive.  The 
commissioner may order any licensee to desist from any conduct 
which the commissioner shall find to be a violation of the 
foregoing provisions. 
    The commissioner may require that rates of charge, if 
stated by a licensee, be stated fully and clearly in such manner 
as the commissioner may deem necessary to prevent 
misunderstanding thereof by prospective borrowers.  In lieu of 
the disclosure requirements of this section and section 56.14, a 
licensee may give the disclosures required by the federal 
Truth-in-Lending Act. 
     A licensee may take a lien upon real estate as security for 
any loan exceeding $2,700 in principal amount made under this 
chapter.  The provisions of sections 47.20 and 47.21 do not 
apply to loans made under this chapter, except as provided in 
this section.  No loan secured by a first lien on a borrower's 
primary residence shall be made pursuant to this section if the 
proceeds of the loan are used to finance the purchase of the 
borrower's primary residence, unless:  
     (1) the proceeds of the loan are used to finance the 
purchase of a manufactured home; or 
     (2) the proceeds of the loan are used in whole or in part 
to satisfy the balance owed on a contract for deed.  
     If the proceeds of the loan are used to finance the 
purchase of the borrower's primary residence, the licensee shall 
consent to the subsequent transfer of the real estate if the 
existing borrower continues after transfer to be obligated for 
repayment of the entire remaining indebtedness.  The licensee 
shall release the existing borrower from all obligations under 
the loan instruments, if the transferee (1) meets the standards 
of credit worthiness normally used by persons in the business of 
making loans, including but not limited to the ability of the 
transferee to make the loan payments and satisfactorily maintain 
the property used as collateral, and (2) executes an agreement 
in writing with the licensee whereby the transferee assumes the 
obligations of the existing borrower under the loan 
instruments.  Any such agreement shall not affect the priority, 
validity or enforceability of any loan instrument.  A licensee 
may charge a fee not in excess of one-tenth of one percent of 
the remaining unpaid principal balance in the event the loan is 
assumed by the transferee and the existing borrower continues 
after the transfer to be obligated for repayment of the entire 
assumed indebtedness.  A licensee may charge a fee not in excess 
of one percent of the remaining unpaid principal balance in the 
event the remaining indebtedness is assumed by the transferee 
and the existing borrower is released from all obligations under 
the loan instruments, but in no event shall the fee exceed $150. 
     A licensee making a loan under this chapter secured by a 
lien on real estate shall comply with the requirements of 
section 47.20, subdivision 8.  
     No licensee shall conduct the business of making loans 
under this chapter within any office, room, or place of business 
in which any other business is solicited or engaged in, or in 
association or conjunction therewith, if the commissioner finds 
that the character of the other business is such that it would 
facilitate evasions of this chapter or of the rules lawfully 
made hereunder.  The commissioner may promulgate rules dealing 
with such other businesses. 
    No licensee shall transact the business or make any loan 
provided for by this chapter under any other name or at any 
other place of business than that named in the license.  No 
licensee shall take any confession of judgment or any power of 
attorney.  No licensee shall take any note or promise to pay 
that does not accurately disclose the principal amount of the 
loan, the time for which it is made, and the agreed rate or 
amount of charge, nor any instrument in which blanks are left to 
be filled in after execution.  Nothing herein is deemed to 
prohibit the making of loans by mail or arranging for settlement 
and closing of real estate secured loans by an unrelated 
qualified closing agent at a location other than the licensed 
location. 
    Sec. 25.  Minnesota Statutes 1990, section 56.131, 
subdivision 4, is amended to read: 
    Subd. 4.  [ADJUSTMENT OF DOLLAR AMOUNTS.] (a) The dollar 
amounts in this section, sections 53.04, subdivision 3a, 
paragraph (c), 56.01 and, 56.12, and 56.125 shall change 
periodically, as provided in this section, according to and to 
the extent of changes in the implicit price deflator for the 
gross national product, 1972 = 100, compiled by the United 
States Department of Commerce, and hereafter referred to as the 
index.  The index for December, 1980 is the reference base index 
for adjustments of dollar amounts, except that the index for 
December, 1984 is the reference base index for the minimum 
default charge of $4.  The reference base index for subdivision 
1, paragraph (a), clause (1), and subdivision 2, paragraph (d), 
is December, 1990. 
    (b) The designated dollar amounts shall change on July 1 of 
each even-numbered year if the percentage of change, calculated 
to the nearest whole percentage point, between the index for 
December of the preceding year and the reference base index is 
ten percent or more, but; 
    (1) the portion of the percentage change in the index in 
excess of a multiple of ten percent shall be disregarded and the 
dollar amounts shall change only in multiples of ten percent of 
the amounts appearing in Laws 1981, chapter 258 on the date of 
enactment; and 
    (2) the dollar amounts shall not change if the amounts 
required by this section are those currently in effect pursuant 
to Laws 1981, chapter 258 as a result of earlier application of 
this section.  
    (c) If the index is revised, the percentage of change 
pursuant to this section shall be calculated on the basis of the 
revised index.  If a revision of the index changes the reference 
base index, a revised reference base index shall be determined 
by multiplying the reference base index then applicable by the 
rebasing factor furnished by the department of commerce.  If the 
index is superseded, the index referred to in this section is 
the one represented by the department of commerce as reflecting 
most accurately changes in the purchasing power of the dollar 
for consumers.  
     (d) The commissioner shall announce and publish:  
     (1) on or before April 30 of each year in which dollar 
amounts are to change, the changes in dollar amounts required by 
paragraph (b); and 
     (2) promptly after the changes occur, changes in the index 
required by paragraph (c) including, if applicable, the 
numerical equivalent of the reference base index under a revised 
reference base index and the designation or title of any index 
superseding the index.  
     (e) A person does not violate this chapter with respect to 
a transaction otherwise complying with this chapter if that 
person relies on dollar amounts either determined according to 
paragraph (b), clause (2) or appearing in the last publication 
of the commissioner announcing the then current dollar amounts.  
    (f) The adjustments provided in this section shall not be 
affected unless explicitly provided otherwise by law.  
    Sec. 26.  Minnesota Statutes 1990, section 300.23, is 
amended to read: 
    300.23 [VOTING, HOW REGULATED.] 
    Unless otherwise provided in the certificate or bylaws, at 
every meeting each stockholder or member is entitled to one vote 
in person, or by proxy made within one year or other time 
specially limited by law, for each share or other lawful unit of 
representation held in an individual, corporate, or 
representative capacity.  No stock may be voted on at an 
election within 20 days after its transfer on the books of the 
corporation.  In the case of a banking corporation, the 
commissioner of commerce may waive the 20-day limitation. 
    Sec. 27.  Minnesota Statutes 1990, section 300.52, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PRIOR NOTICE.] The first meeting of a 
corporation, except as otherwise prescribed in its certificate 
of incorporation or in the case of a banking corporation as 
waived in writing by the commissioner of commerce, must be 
called upon not less than three weeks' prior personal or 
published notice.  The notice must be signed by one of the 
incorporators, to the others, and to each subscriber, if any, to 
its capital stock, specifying the time, place, and purpose of 
the meeting.  Unless otherwise provided in the certificate of 
incorporation or corporate bylaws, an annual meeting must be 
called and held at its principal place of business upon three 
weeks' published notice, signed by its secretary.  No business 
transacted at an annual meeting not called and held as required 
by this subdivision is effective.  The manner of calling and 
holding all meetings may be prescribed by its bylaws. 
    Sec. 28.  Minnesota Statutes 1990, section 332.13, 
subdivision 2, is amended to read: 
    Subd. 2.  "Debt prorating" means the performance of any one 
or more of the following: 
    (a) managing the financial affairs of an individual by 
distributing income or money to the creditors thereof; 
    (b) receiving funds for the purpose of distributing said 
funds among creditors in payment or partial payment of 
obligations of a debtor; or 
    (c) settling, adjusting, prorating, pooling, or liquidating 
the indebtedness of a debtor.  Any person so engaged or holding 
out as so engaged shall be deemed to be engaged in debt 
prorating regardless of whether or not a fee is charged for such 
services.  This term shall not include services performed by the 
following when engaged in the regular course of their respective 
businesses and professions: 
    (1) Attorneys at law, escrow agents, accountants, 
broker-dealers in securities; 
    (2) Banks, state or national, trust companies, savings and 
loan associations, building and loan associations, title 
insurance companies, insurance companies and all other lending 
institutions duly authorized to transact business in the state 
of Minnesota, provided no fee is charged for such service; 
    (3) Persons who, as employees on a regular salary or wage 
of an employer not engaged in the business of debt prorating, 
perform credit services for their employer; 
    (4) Public officers acting in their official capacities and 
persons acting pursuant to court order; 
    (5) Nonprofit corporations, organized under Minnesota 
Statutes 1967, Chapter 317, giving debt prorating service, 
provided no fee is charged for such service; 
    (6) Any person while performing services incidental to the 
dissolution, winding up or liquidation of a partnership, 
corporation or other business enterprise; 
    (7) The state of Minnesota, its political subdivisions, 
public agencies and their employees; 
    (8) Credit unions, provided no fee is charged for such 
service; 
    (9) "Qualified organizations" designated as representative 
payees for purposes of the Social Security and Supplemental 
Security Income representative payee system and the federal 
Omnibus Budget Reconciliation Act of 1990, Public Law Number 
101-508. 
     Sec. 29.  Minnesota Statutes 1990, section 336.9-402, is 
amended to read: 
    336.9-402 [FORMAL REQUISITES OF FINANCING STATEMENT; 
AMENDMENTS; MORTGAGE AS FINANCING STATEMENT.] 
    (1) A financing statement is sufficient if it gives the 
name of the debtor and the secured party, is signed by the 
debtor, gives an address of the secured party from which 
information concerning the security interest may be obtained, 
gives a mailing address of the debtor, gives the social security 
number of the debtor or, in the case of a debtor doing business 
other than as an individual, the internal revenue service 
taxpayer identification number of the debtor, and contains a 
statement indicating the types or describing the items, of 
collateral.  A financing statement may be filed before a 
security agreement is made or a security interest otherwise 
attaches.  When the financing statement covers crops growing or 
to be grown, the statement must also contain a description of 
the real estate concerned and the name of the record owner 
thereof and the crop years that are covered by the financing 
statement.  When the financing statement covers timber to be cut 
or covers minerals or the like (including oil and gas) or 
accounts subject to subsection (5) of section 336.9-103, or when 
the financing statement is filed as a fixture filing (section 
336.9-313) and the collateral is goods which are or are to 
become fixtures, the statement must also comply with subsection 
(5).  A copy of the security agreement is sufficient as a 
financing statement if it contains the above information and is 
signed by the debtor.  A carbon, photographic or other 
reproduction of a security agreement or a financing statement is 
sufficient as a financing statement if the security agreement so 
provides or if the original has been filed in this state. 
      (2) A financing statement which otherwise complies with 
subsection (1) is sufficient when it is signed by the secured 
party instead of the debtor when it is filed to perfect a 
security interest in 
      (a) collateral already subject to a security interest in 
another jurisdiction when it is brought into this state, or when 
the debtor's location is changed to this state.  Such a 
financing statement must state that the collateral was brought 
into this state or that the debtor's location was changed to 
this state under such circumstances; or 
     (b) proceeds under section 336.9-306 if the security 
interest in the original collateral was perfected.  Such a 
financing statement must describe the original collateral; or 
     (c) collateral as to which the filing has lapsed within one 
year; or 
     (d) collateral acquired after a change of name, identity or 
corporate structure of the debtor (subsection (7)); or 
    (e) a lien filed pursuant to chapter 514; or 
    (f) collateral which is subject to a filed judgment.  
    (2a) Except for documents filed under clauses (e) and (f), 
the reason for the omission of the debtor signature must be 
stated on the front of the financing statement.  
    (3) A form substantially as follows is sufficient to comply 
with subsection (1): 
    Name of debtor (or assignor) 
    .............................. 
    Address 
    .............................. 
    Debtor's Social Security Number or I.R.S. Tax I.D. Number 
    ............................... 
    Name of secured party (or assignee) 
    .............................. 
    Address 
    .............................. 
    1.  This financing statement covers the following types (or 
items) of property: 
    (Describe) 
    .............................. 
    2.  (If collateral is crops) The above described crops are 
growing or are to be grown on: 
    (Describe real estate and the name of the record owner 
thereof) ...... 
      ....................................................... ....
      3.  (If applicable) The above goods are to become fixtures 
on 
      (Describe real estate).......................... and this 
financing statement is to be filed for record in the real estate 
records.  (If the debtor does not have an interest of record) 
The name of a record owner is ................. 
      4.  (If products of collateral are claimed) 
      Products of the collateral are also covered. 
      Use whichever signature line is applicable. 
      Signature of debtor (or assignor) 
      ......................... 
      Signature of secured party (or assignee) 
      ......................... 
      (4) A financing statement may be amended by filing a 
writing signed by both the debtor and the secured party.  If the 
sole purpose of the amendment is to change the name or address 
of the secured party, only the secured party need sign the 
amendment.  A writing is sufficient if it sets forth the name 
and address of the debtor and secured party as those items 
appear on the original financing statement or the most recently 
filed amendment, the file number and date of filing of the 
financing statement.  An amendment does not extend the period of 
effectiveness of a financing statement.  If any amendment adds 
collateral, it is effective as to the added collateral only from 
the filing date of the amendment.  In this article, unless the 
context otherwise requires, the term "financing statement" means 
the original financing statement and any amendments. 
      (5) A financing statement covering timber to be cut or 
covering minerals or the like (including oil and gas) or 
accounts subject to subsection (5) of section 336.9-103, or a 
financing statement filed as a fixture filing (section 
336.9-313) where the debtor is not a transmitting utility, must 
show that it covers this type of collateral, must recite that it 
is to be filed for record in the real estate records, and the 
financing statement must contain a description of the real 
estate sufficient if it were contained in a mortgage of the real 
estate to give constructive notice of the mortgage under the law 
of this state.  If the debtor does not have an interest of 
record in the real estate, the financing statement must show the 
name of a record owner.  No description of the real estate or 
the name of the record owner thereof is required for a fixture 
filing where the debtor is a transmitting utility. 
Notwithstanding the foregoing a general description of the real 
estate is sufficient for a fixture filing where a railroad is 
the record owner of the real estate on which the fixtures are or 
are to be located; and for the purposes of this subsection, the 
requirement of a general description is satisfied if the fixture 
filing (1) identifies the section, township and range numbers of 
the county in which the land is located; (2) identifies the 
quarter-quarter of the section that the land is located in; (3) 
indicates the name of the record owner of the real estate; and 
(4) states the street address of the real estate if one exists. 
      (6) A mortgage is effective as a financing statement filed 
as a fixture filing from the date of its recording if (a) the 
goods are described in the mortgage by item or type, (b) the 
goods are or are to become fixtures related to the real estate 
described in the mortgage, (c) the mortgage complies with the 
requirements for a financing statement in this section other 
than a recital that it is to be filed in the real estate 
records, and (d) the mortgage is duly recorded.  No fee with 
reference to the financing statement is required other than the 
regular recording and satisfaction fees with respect to the 
mortgage. 
     (7) A financing statement sufficiently shows the name of 
the debtor if it gives the individual, partnership or corporate 
name of the debtor, whether or not it adds other trade names or 
the names of partners, and gives the social security number of 
the debtor or, in the case of a debtor doing business other than 
as an individual, the internal revenue service taxpayer 
identification number of the debtor.  Where the debtor so 
changes a personal name or in the case of an organization its 
name, identity or corporate structure that a filed financing 
statement becomes seriously misleading, the filing is not 
effective to perfect a security interest in collateral acquired 
by the debtor more than four months after the change, unless a 
new appropriate financing statement is filed before the 
expiration of that time.  A filed financing statement remains 
effective with respect to collateral transferred by the debtor 
even though the secured party knows of or consents to the 
transfer. 
    (8) A financing statement, amendment, continuation, 
assignment, release, or termination substantially complying with 
the requirements of this section is effective even though it 
contains minor errors which are not seriously misleading.  The 
omission or any inaccuracy in stating the debtor's social 
security or federal tax identification number is not, standing 
alone, a seriously misleading error. 
    Sec. 30.  Minnesota Statutes 1990, section 336.9-403, is 
amended to read: 
    336.9-403 [WHAT CONSTITUTES FILING; DURATION OF FILING; 
EFFECT OF LAPSED FILING; DUTIES OF FILING OFFICER.] 
    (1) Presentation for filing of a financing statement and 
tender of the filing fee or acceptance of the statement by the 
filing officer constitutes filing under this article. 
    (2) Except as provided in subsection (6) a filed financing 
statement is effective for a period of five years from the date 
of filing.  The effectiveness of a filed financing statement 
lapses on the expiration of the five-year period unless a 
continuation statement is filed prior to the lapse.  If a 
security interest perfected by filing exists at the time 
insolvency proceedings are commenced by or against the debtor, 
the security interest remains perfected until termination of the 
insolvency proceedings and thereafter for a period of 60 days or 
until expiration of the five-year period, whichever occurs later 
regardless of whether the financing statement filed as to that 
security interest is destroyed by the filing officer pursuant to 
subsection (3).  Upon lapse the security interest becomes 
unperfected, unless it is perfected without filing.  If the 
security interest becomes unperfected upon lapse, it is deemed 
to have been unperfected as against a person who became a 
purchaser or lien creditor before lapse. 
        (3) A continuation statement may be filed by the secured 
party within six months prior to the expiration of the five-year 
period specified in subsection (2).  Any such continuation 
statement must be signed by the secured party, set forth the 
name, social security number or other tax identification number 
of the debtor, and address of the debtor and secured party as 
those items appear on the original financing statement or the 
most recently filed amendment, identify the original statement 
by file number and filing date, and state that the original 
statement is still effective.  A continuation statement signed 
by a person other than the secured party of record must be 
accompanied by a separate written statement of assignment signed 
by the secured party of record and complying with subsection (2) 
of section 336.9-405, including payment of the required fee.  
Upon timely filing of the continuation statement, the 
effectiveness of the original statement is continued for five 
years after the last date to which the filing was effective 
whereupon it lapses in the same manner as provided in subsection 
(2) unless another continuation statement is filed prior to such 
lapse.  Succeeding continuation statements may be filed in the 
same manner to continue the effectiveness of the original 
statement.  Unless a statute on disposition of public records 
provides otherwise, the filing officer may remove a lapsed 
statement from the files and destroy it immediately if the 
officer has retained a microfilm or other photographic record, 
or in other cases after one year after the lapse.  The filing 
officer shall so arrange matters by physical annexation of 
financing statements to continuation statements or other related 
filings, or by other means, that if the officer physically 
destroys the financing statements of a period more than five 
years past, those which have been continued by a continuation 
statement or which are still effective under subsection (6) 
shall be retained.  If insolvency proceedings are commenced by 
or against the debtor, the secured party shall notify the filing 
officer both upon commencement and termination of the 
proceedings, and the filing officer shall not destroy any 
financing statements filed with respect to the debtor until 
termination of the insolvency proceedings.  The security 
interest remains perfected until termination of the insolvency 
proceedings and thereafter for a period of 60 days or until 
expiration of the five-year period, whichever occurs later. 
        (4) Except as provided in subsection (7) a filing officer 
shall mark each statement with a file number and with the date 
and hour of filing and shall hold the statement or a microfilm 
or other photographic copy thereof for public inspection.  In 
addition the filing officer shall index the statements according 
to the name of the debtor and shall note in the index the file 
number and, the address of the debtor given in the statement, 
and the social security number or other tax identification 
number of the debtor given in the statement. 
    (5) The secretary of state shall prescribe uniform forms 
for statements and samples thereof shall be furnished to all 
filing officers in the state.  The uniform fee for filing and 
indexing and for stamping a copy furnished by the secured party 
to show the date and place of filing for an original financing 
statement or for a continuation statement shall be $7 if the 
statement is in the standard form prescribed by the secretary of 
state and otherwise shall be $10, plus in each case, if the 
financing statement is subject to subsection (5) of section 
336.9-402, $5.  An additional fee of $7 shall be collected if 
more than one name is required to be indexed or if the secured 
party chooses to show a trade name for any debtor listed.  The 
uniform fee collected for the filing of an amendment to a 
financing statement if the amendment is in the standard form 
prescribed by the secretary of state and does not add additional 
debtor names to the financing statement shall be $7.  The fee 
for an amendment adding additional debtor names shall be $14 if 
the amendment is in the form prescribed by the secretary of 
state and, if otherwise, $17.  The fee for an amendment which is 
not in the form prescribed by the secretary of state but which 
does not add additional names shall be $10.  
      The secretary of state shall adopt rules for filing, 
amendment, continuation, termination, removal, and destruction 
of financing statements. 
      (6) If the debtor is a transmitting utility (subsection (5) 
of section 336.9-401) and a filed financing statement so states, 
it is effective until a termination statement is filed.  A real 
estate mortgage which is effective as a fixture filing under 
subsection (6) of section 336.9-402 remains effective as a 
fixture filing until the mortgage is released or satisfied of 
record or its effectiveness otherwise terminates as to the real 
estate. 
       (7) When a financing statement covers timber to be cut or 
covers minerals or the like (including oil and gas) or accounts 
subject to subsection (5) of section 336.9-103, or is filed as a 
fixture filing, it shall be filed for record and the filing 
officer shall index it under the names of the debtor and any 
owner of record shown on the financing statement in the same 
fashion as if they were the mortgagors in a mortgage of the real 
estate described, and, to the extent that the law of this state 
provides for indexing of mortgages under the name of the 
mortgagee, under the name of the secured party as if the secured 
party were the mortgagee thereunder, or, for filing offices 
other than the secretary of state, where indexing is by 
description in the same fashion as if the financing statement 
were a mortgage of the real estate described.  If requested of 
the filing officer on the financing statement, a financing 
statement filed for record as a fixture filing in the same 
office where nonfixture filings are made is effective, without a 
dual filing, as to collateral listed thereon for which filing is 
required in such office pursuant to section 336.9-401 (1) (a); 
in such case, the filing officer shall also index the recorded 
statement in accordance with subsection (4) using the recording 
data in lieu of a file number. 
    (8) The fees provided for in this article shall supersede 
the fees for similar services otherwise provided for by law 
except in the case of security interests filed in connection 
with a certificate of title on a motor vehicle. 
    Sec. 31.  [REPEALER.] 
    Minnesota Statutes 1990, section 48.03, subdivisions 4 and 
5, are repealed. 
    Sec. 32.  [EFFECTIVE DATE.] 
    Sections 4, 5, 17, 25, and 28 are effective the day 
following final enactment.  If the effective date of section 25 
is after the commissioner of commerce has made the announcement 
and publication required to be made on or before April 30 of 
each year under Minnesota Statutes, section 56.131, subdivision 
4, the commissioner shall, if necessary, revise the announcement 
and publication to conform with section 25.  Sections 29 and 30 
are effective January 1, 1993, and apply to financing statements 
and continuation statements filed on or after that date. 

                               ARTICLE 2 

                     STATE DEPOSITS AND INVESTMENTS 
    Section 1.  Minnesota Statutes 1990, section 9.031, is 
amended by adding a subdivision to read: 
    Subd. 13.  [REQUIRED COMMUNITY REINVESTMENT RATING.] Banks 
and trust companies designated as depositories must have 
received ratings of "outstanding" or "satisfactory" as their 
most recent rating under section 47.83 or under United States 
Code, title 12, section 2906.  If a state depository receives a 
rating that is below "satisfactory," the executive council shall 
revoke its designation as a depository.  The executive council 
may delay the effective date of the revocation if necessary to 
allow a reasonable period of time to arrange for a replacement 
depository.  
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
11A.24, subdivision 4, is amended to read: 
    Subd. 4.  [OTHER OBLIGATIONS.] (a) The state board may 
invest funds in bankers acceptances, certificates of deposit, 
commercial paper, mortgage participation certificates and pools, 
repurchase agreements and reverse repurchase agreements, 
guaranteed investment contracts, savings accounts, and guaranty 
fund certificates, surplus notes, or debentures of domestic 
mutual insurance companies if they conform to the following 
provisions: 
    (1) bankers acceptances of United States banks are limited 
to those issued by banks rated in the highest four quality 
categories by a nationally recognized rating agency; 
    (2) certificates of deposit are limited to those issued 
by (i) United States banks and savings institutions that are 
rated in the highest four quality categories by a nationally 
recognized rating agency, that meet the collateral requirements 
established in section 9.031, or whose certificates of deposit 
are fully insured by federal agencies; or (ii) credit unions in 
amounts up to the limit of insurance coverage provided by the 
National Credit Union Administration; 
    (3) commercial paper is limited to those issued by United 
States corporations or their Canadian subsidiaries and rated in 
the highest two quality categories by a nationally recognized 
rating agency; 
     (4) mortgage participation or pass through certificates 
evidencing interests in pools of first mortgages or trust deeds 
on improved real estate located in the United States where the 
loan to value ratio for each loan as calculated in accordance 
with section 61A.28, subdivision 3, does not exceed 80 percent 
for fully amortizable residential properties and in all other 
respects meets the requirements of section 61A.28, subdivision 
3; 
     (5) collateral for repurchase agreements and reverse 
repurchase agreements is limited to letters of credit and 
securities authorized in this section; 
     (6) guaranteed investment contracts are limited to those 
issued by insurance companies or banks rated in the top four 
quality categories by a nationally recognized rating agency; 
     (7) savings accounts are limited to those fully insured by 
federal agencies. 
     (b) Sections 16A.58 and 16B.06 do not apply to 
certifications of deposit and collateralization agreements 
executed by the state board under paragraph (a), clause (2). 
    (c) In addition to investments authorized by paragraph (a), 
clause (4), the state board may purchase from the Minnesota 
housing finance agency all or any part of a pool of residential 
mortgages, not in default, that has previously been financed by 
the issuance of bonds or notes of the agency.  The state board 
may also enter into a commitment with the agency, at the time of 
any issue of bonds or notes, to purchase at a specified future 
date, not exceeding 12 years from the date of the issue, the 
amount of mortgage loans then outstanding and not in default 
that have been made or purchased from the proceeds of the bonds 
or notes.  The state board may charge reasonable fees for any 
such commitment and may agree to purchase the mortgage loans at 
a price sufficient to produce a yield to the state board 
comparable, in its judgment, to the yield available on similar 
mortgage loans at the date of the bonds or notes.  The state 
board may also enter into agreements with the agency for the 
investment of any portion of the funds of the agency.  The 
agreement must cover the period of the investment, withdrawal 
privileges, and any guaranteed rate of return. 

                               ARTICLE 3 

                      DETACHED BANKING FACILITIES 
    Section 1.  [CITY OF DULUTH; DETACHED BANKING FACILITIES.] 
    With the prior approval of the commissioner of commerce, a 
bank with its principal office in the city of Duluth may 
establish and maintain three detached facilities located within 
the city of Duluth, in addition to the detached facilities 
authorized by Minnesota Statutes, section 47.52, paragraph (a). 
A bank desiring to establish a detached facility must follow the 
approval procedure prescribed in Minnesota Statutes, section 
47.54.  The establishment of a detached facility pursuant to 
this section is subject to the provisions of Minnesota Statutes, 
sections 47.51 to 47.57, except to the extent those sections are 
inconsistent with this section. 
    Sec. 2.  [CITY OF MILLVILLE; DETACHED FACILITIES.] 
    The limitation contained in Minnesota Statutes, section 
47.52, on the number of detached facilities that may be 
established and maintained by a bank does not apply to any 
detached facilities located in the city of Millville. 
    Sec. 3.  [CITY OF DOVER; DETACHED FACILITIES.] 
    The limitation contained in Minnesota Statutes, section 
47.52, on the number of detached facilities that may be 
established and maintained by a bank does not apply to any 
detached facilities located in the city of Dover. 
    Sec. 4.  [TOWN OF NEW SCANDIA; DETACHED BANKING 
FACILITIES.] 
    With the prior approval of the commissioner of commerce, a 
bank operating its main office within ten miles of the town of 
New Scandia may establish and maintain not more than one 
detached facility in the town of New Scandia.  A bank desiring 
to establish a detached facility must follow the approval 
procedure prescribed in Minnesota Statutes, section 47.54.  The 
establishment of a detached facility pursuant to this section is 
subject to the provisions of Minnesota Statutes, sections 47.51 
to 47.57, except to the extent those sections are inconsistent 
with this section. 
    Sec. 5.  [LOCAL APPROVAL.] 
    Section 2 takes effect the day after compliance by the 
governing body of the city of Millville with Minnesota Statutes, 
section 645.021, subdivision 3. 
    Section 3 takes effect the day after compliance by the 
governing body of the city of Dover with Minnesota Statutes, 
section 645.021, subdivision 3. 
    Section 4 takes effect the day after compliance by the town 
board of the town of New Scandia with Minnesota Statutes, 
section 645.021, subdivision 3. 

                               ARTICLE 4 

                         REAL ESTATE APPRAISERS 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
82B.11, subdivision 3, is amended to read: 
    Subd. 3.  [FEDERAL RESIDENTIAL REAL PROPERTY APPRAISER.] A 
federal residential real property appraiser may appraise 
noncomplex one to four residential units or agricultural 
property having a transaction value less than $1,000,000 and 
complex one to four residential units or agricultural property 
having a transaction value less than $250,000. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
82B.11, subdivision 4, is amended to read: 
    Subd. 4.  [CERTIFIED FEDERAL RESIDENTIAL REAL PROPERTY 
APPRAISER.] A certified federal residential real property 
appraiser may appraise one to four residential units or 
agricultural property without regard to transaction value or 
complexity. 
    Sec. 3.  Minnesota Statutes 1990, section 82B.13, as 
amended by Laws 1991, chapter 97, sections 5, 6, 7, and 17, is 
amended to read: 
    82B.13 [EXAMINATION EDUCATION PREREQUISITES.] 
    Subdivision 1.  [STATE REAL PROPERTY APPRAISER OR FEDERAL 
RESIDENTIAL REAL PROPERTY APPRAISER.] As a prerequisite to 
taking the examination for licensing as a state real property 
appraiser or federal residential real property 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 appraisal 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.  
    Subd. 4.  [CERTIFIED FEDERAL RESIDENTIAL REAL PROPERTY 
APPRAISER.] As a prerequisite to taking the examination for 
licensing as a certified federal residential real property 
appraiser, an applicant must present evidence satisfactory to 
the commissioner that the person has successfully completed at 
least 165 classroom hours of courses, including 15 hours related 
to the standards of professional appraisal practice and the 
provisions of this chapter, with particular emphasis on the 
appraisal of one to four unit residential properties. 
    Subd. 5.  [CERTIFIED FEDERAL GENERAL REAL PROPERTY 
APPRAISER.] As a prerequisite to taking the examination for 
licensing as a certified federal general real property 
appraiser, an applicant must present evidence satisfactory to 
the commissioner that the person has successfully completed at 
least 165 classroom hours of courses, including 15 hours related 
to the standards of professional appraisal practice and the 
provisions of this chapter, with particular emphasis on the 
appraisal of nonresidential properties. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
82B.14, is amended to read: 
    82B.14 [EXPERIENCE REQUIREMENT.] 
    (a) A license under section 82B.11, subdivision 3, 4, or 5, 
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 under section 82B.11, 
subdivision 3, 4, or 5, 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. 5.  [EFFECTIVE DATE.] 
    Sections 1 to 4 are effective the day following final 
enactment. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 27, 1992, 2:13 p.m.