Minnesota Session Laws - 1996, Regular Session

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 357-H.F.No. 2672 
                  An act relating to landlords and tenants; changing the 
                  interest rate on security deposits; providing for a 
                  legislative review; amending Minnesota Statutes 1994, 
                  section 504.20, subdivision 2; repealing Laws 1992, 
                  chapter 555, article 2, section 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 504.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  Any deposit of money shall not be considered 
        received in a fiduciary capacity within the meaning of section 
        82.17, subdivision 7, but shall be held by the landlord for the 
        tenant who is party to the agreement and shall bear simple 
        noncompounded interest at the rate of four three percent per 
        annum until May 1, 1997 1999, and 5-1/2 four percent per annum 
        thereafter, computed from the first day of the next month 
        following the full payment of the deposit to the last day of the 
        month in which the landlord, in good faith, complies with the 
        requirements of subdivision 3 or to the date upon which judgment 
        is entered in any civil action involving the landlord's 
        liability for the deposit, whichever date is earlier.  Any 
        interest amount less than $1 shall be excluded from the 
        provisions of this section. 
           Sec. 2.  [REVIEW.] 
           The reversion of the interest rate to four percent in 
        section 1 is subject to review by the legislature in the 1998 
        session. 
           Sec. 3.  [REPEALER.] 
           Laws 1992, chapter 555, article 2, section 2, is repealed. 
           Sec. 4.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor March 19, 1996 
           Signed by the governor March 21, 1996, 1:55 p.m.