1997 Minnesota Statutes

     168.72 Time price differentials. 

    Subdivision 1.  (a) The finance charge authorized by 
 sections 168.66 to 168.77 in a retail installment sale may not 
 exceed the following simple interest annual percentage rates: 

    Class 1.  Any motor vehicle designated by the manufacturer 
 by a year model of the same or not more than one year prior to 
 the year in which the sale is made - 18 percent per year. 

    Class 2.  Any motor vehicle designated by the manufacturer 
 by a year model of two or three years prior to the year in which 
 the sale is made - 19.75 percent per year. 

    Class 3.  Any motor vehicle not in Class 1 or Class 2 - 
 23.25 percent per year. 

    (b) The finance charge must be computed on the principal 
 balance outstanding from time to time.  The beginning principal 
 balance must be as originally determined under section 168.71. 

    Retail installment contracts may be interest-bearing or 
 precomputed, and fixed-rate or variable rate.  For precomputed 
 retail installment contracts, the finance charge may be 
 calculated in advance on the assumption that all scheduled 
 payments will be made when due and the effect of prepayment in 
 full is governed by section 168.73.  To compute time for the 
 purpose of calculating interest under this section and section 
 168.73, a day may be considered 1/30 of a month when calculation 
 is made for a fraction of a calendar month.  A year is 12 
 calendar months.  A calendar month is that period from a given 
 date in one month to the same numbered date in the following 
 month, and if there is no same-numbered date, to the last day of 
 the following month.  When a period of time includes a whole 
 month and a fraction of a month, the fraction of a month is 
 considered to follow the whole month.  In the alternative, for 
 interest-bearing retail installment contracts, a retail seller 
 may charge finance charges not to exceed 1/365th of the simple 
 interest annual percentage rate permitted in this section for 
 each actual day elapsed from the date of the retail installment 
 contract through and including the date of payment in full. 

    (c) The finance charge is inclusive of all charges incident 
 to investigating and making the contract, and for the extension 
 of the credit provided for in the contract and no fee, 
 commission, expense, or other charge whatsoever may be taken, 
 received, reserved, or contracted for except taxes, fees, and 
 charges that actually are or will be paid to public officials or 
 government agencies for determining the existence of or for 
 perfecting, releasing, or satisfying a security interest, and 
 except as provided in sections 168.66 to 168.77. 

    Subd. 2. Repealed, 1980 c 451 s 2; 1984 c 655 art 1 s 
 81; 1985 c 107 s 3 

    Subd. 3.  Repealed, 1980 c 599 s 10 

    Subd. 4.  A sale of a manufactured home made after July 31, 
 1983, is governed by the provisions of subdivision 1 for 
 purposes of determining the lawful finance charge rate, except 
 that the maximum finance charge for a class I manufactured home 
 may not exceed 14.5 percent per year.  A retail installment sale 
 of a manufactured home that imposes a time price differential 
 rate that is greater than the rate permitted by this subdivision 
 is lawful and enforceable in accordance with its terms until the 
 indebtedness is fully satisfied if the rate was lawful when the 
 sale was made. 

    Subd. 5.  In lieu of this section and sections 168.66, 
 subdivisions 9, 10, and 11; 168.71; 168.73; and 168.74, a retail 
 seller may proceed under section 47.59 relating to credit sales 
 made by a third party.  In cases where the retail seller 
 proceeds under section 47.59, the remaining provisions of 
 sections 168.66 to 168.77 apply notwithstanding section 47.59. 

    HIST: 1957 c 266 s 7; 1980 c 451 s 1; 1980 c 599 s 5; 1981 c 
 365 s 9; 1983 c 250 s 29; 1983 c 350 s 1; 1985 c 107 s 1,2; 1987 
 c 349 art 2 s 11,12; 1989 c 217 s 20; 1996 c 414 art 2 s 11