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53.04 SPECIAL POWERS.
    Subdivision 1. Authorization. Industrial loan and thrift companies, in addition to the general
and usual powers incidental to ordinary corporations in this state, which are not specifically
restricted in this chapter, shall have the special powers enumerated in subdivisions 2 to 5.
    Subd. 2. Discount or purchase choses in action. The right to discount or purchase notes,
bills of exchange, acceptances or other choses in action.
    Subd. 3.[Repealed, 1981 c 258 s 23]
    Subd. 3a. Make loans. (a) The right to make loans, secured or unsecured, at the rates and
on the terms and other conditions permitted under chapters 47 and 334. Loans made under this
authority must be in amounts in compliance with section 53.05, clause (7). A licensee making
a loan under this chapter secured by a lien on real estate shall comply with the requirements of
section 47.20, subdivision 8.
(b) Loans made under this subdivision may be secured by real or personal property, or both.
If the proceeds of a loan secured by a first lien on the borrower's primary residence are used
to finance the purchase of the borrower's primary residence, the loan must comply with the
provisions of section 47.20.
(c) An agency or instrumentality of the United States government or a corporation otherwise
created by an act of the United States Congress or a lender approved or certified by the secretary
of housing and urban development, or approved or certified by the administrator of veterans
affairs, or approved or certified by the administrator of the Farmers Home Administration, or
approved or certified by the Federal Home Loan Mortgage Corporation, or approved or certified
by the Federal National Mortgage Association, that engages in the business of purchasing or
taking assignments of mortgage loans and undertakes direct collection of payments from or
enforcement of rights against borrowers arising from mortgage loans, is not required to obtain a
certificate of authorization under this chapter in order to purchase or take assignments of mortgage
loans from persons holding a certificate of authorization under this chapter.
(d) This subdivision does not authorize an industrial loan and thrift company to make loans
under an overdraft checking plan.
    Subd. 3b.[Repealed, 1996 c 414 art 2 s 15]
    Subd. 3c.[Repealed, 1996 c 414 art 2 s 15]
    Subd. 4.[Repealed, 1981 c 258 s 23]
    Subd. 4a.[Repealed, 1996 c 414 art 2 s 15]
    Subd. 5. Sell and issue certificates of indebtedness. The right, with the consent of the
Department of Commerce, to (1) sell and issue for investment certificates of indebtedness, under
any descriptive name, which may bear interest, if any, as their terms provide, and which may
require the payment to the company of amounts, from time to time as their terms provide, and
permit the withdrawal of amounts paid on them, in whole or in part, from time to time, and the
credit of amounts thereon upon conditions set forth therein; and (2) receive savings accounts
or savings deposits.
    Subd. 5a. Credit sales and service contracts. A person may enter into a credit sale or
service contract for sale to an industrial loan and thrift company operating under this chapter in
this state, and an industrial loan and thrift company may purchase and enforce the contract under
the terms and conditions set forth in section 47.59, subdivisions 2 and 4 to 14.
    Subd. 5b. Negotiable order of withdrawal accounts. Notwithstanding section 53.05,
clause (1), and consistent with United States Code, title 12, section 1832, issue negotiable order
of withdrawal accounts, which may not be referred to as checking accounts and may include
the following transactions:
(1) automatic (preauthorized) transfers for the purpose of paying loans at the same institution;
(2) transfers or withdrawals made by mail, messenger, automated teller machine, or in person
as withdrawals or transfers to another account of the depositor at the same institution;
(3) withdrawals initiated by telephone and consummated by an official check mailed to
the depository;
(4) automated clearinghouse debits;
(5) transfers from a customer's account under a preauthorized agreement to cover overdrafts
on another transaction account;
(6) drafts payable to third parties; and
(7) debit card transactions.
Agreements establishing negotiable order of withdrawal accounts must include a prominent
disclosure of the following:
"We reserve the right to at any time require not less than seven days' notice in writing before
each withdrawal from this account."
A negotiable order of withdrawal account may be with or without interest and is considered a
transaction account for purposes of section 48.512.
Before exercising this power, the company must submit a plan to the commissioner detailing
implementation of the power.
    Subd. 6.[Repealed, 1981 c 258 s 23]
    Subd. 7.[Repealed, 1981 c 258 s 23]
History: (7774-28) 1933 c 246 s 4; 1945 c 439 s 1; 1953 c 133 s 1; 1963 c 596 s 1; 1971
c 906 s 1; 1975 c 373 s 1; 1976 c 235 s 2; 1980 c 551 s 3; 1981 c 258 s 20; 1982 c 473 s 20;
1982 c 547 s 2,3; 1983 c 250 s 23; 1983 c 252 s 5,6; 1984 c 473 s 2-4; 1984 c 576 s 5; 1984 c
655 art 1 s 13; art 2 s 3 subd 1; 1Sp1985 c 1 s 12; 1Sp1985 c 13 s 188; 1987 c 349 art 1 s
31,32; 1989 c 341 art 2 s 2; 1993 c 257 s 34; 1995 c 202 art 1 s 15; art 3 s 11-14; 1996 c 414
art 2 s 8; 1997 c 157 s 44

Official Publication of the State of Minnesota
Revisor of Statutes