2000 Minnesota Statutes

     80F.12 Security deposit. 

    A security deposit shall not be required except for the 
 purpose of securing against loss of or damage to real or 
 personal property or payment of money due to the supplier or 
 credit extended to the dealer.  Any security deposit required of 
 the dealer may be satisfied by a letter of credit or the deposit 
 of cash or a pledge of a savings account or its equivalent in a 
 banking institution located in Minnesota.  In the event that the 
 security deposit is made by the dealer by depositing cash with 
 the supplier, the deposit shall earn interest at the rate of six 
 percent per year which shall accrue to the benefit of the dealer 
 and be payable to the dealer upon termination of the security 
 deposit, less any charges to which the supplier is entitled to 
 collect from the security deposit or interest earned on it.  In 
 the event that the security deposit is made by the pledge of a 
 savings account, a savings account shall be opened in the joint 
 name of the supplier and the dealer and neither party shall be 
 entitled to withdraw the funds without the consent of the other 
 party; upon termination of the security deposit arrangement, the 
 principal deposit together with accrued interest at the rate 
 paid for the account shall be payable to the dealer after 
 deduction of any charges to which the supplier may be entitled. 

    HIST: 2000 c 456 s 17