2005 Minnesota Statutes

     332.13 Definitions. 

    Subdivision 1.    Scope.  Unless a different meaning is 
 clearly indicated by the context, the following words, terms, 
 and phrases, where used in sections 332.12 to 332.29, shall have 
 the meanings ascribed to them in this section.  

    Subd. 2.    Debt prorating.  "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 
 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 
 101-508; and 

    (10) accelerated mortgage payment providers.  "Accelerated 
 mortgage payment providers" are persons who, after satisfying 
 the requirements of sections 332.30 to 332.303, receive funds to 
 make mortgage payments to a lender or lenders, on behalf of 
 mortgagors, in order to exceed regularly scheduled minimum 
 payment obligations under the terms of the indebtedness.  The 
 term does not include:  (i) persons or entities described in 
 clauses (1) to (9); (ii) mortgage lenders or servicers, 
 industrial loan and thrift companies, or regulated lenders under 
 chapter 56; or (iii) persons authorized to make loans under 
 section 47.20, subdivision 1. 

    For purposes of this clause and sections 332.30 to 332.303, 
 "lender" means the original lender or that lender's assignee, 
 whichever is the current mortgage holder. 

    Subd. 3.    Attorney general.  "Attorney general" means 
 the attorney general of the state of Minnesota.  

    Subd. 4.    Debtor.  "Debtor" means the person for whom 
 the debt prorating service is performed.  

    Subd. 5.    Person.  "Person" means any individual, 
 firm, partnership, association or corporation.  

    Subd. 6.    Licensee.  "Licensee" means any person 
 licensed by the commissioner pursuant to sections 332.12 to 
 332.29 and, where used in conjunction with an act or omission 
 required or prohibited by sections 332.12 to 332.29, shall mean 
 any person performing debt prorating services.  

    Subd. 7.    This act.  The term "this act" means 
 sections 332.12 to 332.29 as enacted and hereafter amended.  

    Subd. 8.    Commissioner.  "Commissioner" means 
 commissioner of commerce.  

    HIST: 1969 c 1120 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 
 1 s 92; 1986 c 444; 1992 c 587 art 1 s 28; 1994 c 638 s 1; 1995 
 c 202 art 1 s 25