Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 282-H.F.No. 3132 
                  An act relating to landlords and tenants; providing 
                  for interest rates on security deposits; amending 
                  Minnesota Statutes 1999 Supplement, section 504B.178, 
                  subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        504B.178, subdivision 2, is amended to read: 
           Subd. 2.  [INTEREST.] 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 three percent 
        per annum until May 1, 2001 2004, and 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. 
           Presented to the governor March 21, 2000 
           Signed by the governor March 24, 2000, 10:47 a.m.