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

Official Publication of the State of Minnesota
Revisor of Statutes