1.1                          A bill for an act 
  1.2             relating to financial institutions; regulating fees, 
  1.3             charges, and time periods; authorizing certain 
  1.4             part-time banking locations; making corrections and 
  1.5             conforming changes; amending Minnesota Statutes 1998, 
  1.6             sections 46.041, subdivisions 1 and 3; 46.048, 
  1.7             subdivisions 1 and 2b; 46.131, subdivision 10; 
  1.8             47.0156; 47.101, subdivision 3; 47.27, subdivision 3; 
  1.9             47.52; 47.54, subdivisions 2 and 3; 47.60, subdivision 
  1.10            3; 48.15, subdivision 3; 48A.15, subdivision 1; 49.36, 
  1.11            subdivision 1; 52.01; 53.03, subdivisions 1, 6, and 7; 
  1.12            55.04, subdivision 2; 56.02; 59A.03, subdivision 2; 
  1.13            168.67; 303.25, subdivision 5; 332.15, subdivisions 2 
  1.14            and 3; 332.17; and 332.30. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1998, section 46.041, 
  1.17  subdivision 1, is amended to read: 
  1.18     Subdivision 1.  [FILING; FEE; PUBLIC INSPECTION.] The 
  1.19  incorporators of a bank proposed to be organized under the laws 
  1.20  of this state shall execute and acknowledge a written 
  1.21  application in the form prescribed by the commissioner of 
  1.22  commerce.  The application must be signed by two or more of the 
  1.23  incorporators and request a certificate authorizing the proposed 
  1.24  bank to transact business at the place and in the name stated in 
  1.25  the application.  The applicant shall file the application with 
  1.26  the department with a $1,000 an $8,000 filing fee and a $500 
  1.27  investigation fee.  The commissioner may waive the fee for a 
  1.28  bank to be located in a low- or moderate-income area as defined 
  1.29  in Code of Federal Regulations, title 12, part 25(1), (n)(1) and 
  1.30  (n)(2) and where no other depository institution operates an 
  2.1   office.  If the proposed bank is being organized in connection 
  2.2   with a reorganization or merger of an existing bank, the filing 
  2.3   fee is $2,000.  The fees must be turned over by the commissioner 
  2.4   to the state treasurer and credited to the general fund.  The 
  2.5   application file must be public, with the exception of financial 
  2.6   data on individuals which is private under the Minnesota 
  2.7   Government Data Practices Act and data defined as trade secret 
  2.8   information under section 13.37, subdivision 1, paragraph (b), 
  2.9   which must be given nonpublic classification upon written 
  2.10  request by the applicant. 
  2.11     Sec. 2.  Minnesota Statutes 1998, section 46.041, 
  2.12  subdivision 3, is amended to read: 
  2.13     Subd. 3.  [COMMENTS, REQUESTS FOR HEARING.] Within 21 15 
  2.14  days after the notice of application has been published, any 
  2.15  person may submit to the commissioner either or both written 
  2.16  comments on an application and a written request for a hearing 
  2.17  on the application.  The request must state the nature of the 
  2.18  issues or facts to be presented and the reasons why written 
  2.19  submissions would be insufficient to make an adequate 
  2.20  presentation to the commissioner.  Comments challenging the 
  2.21  legality of an application should be submitted separately in 
  2.22  writing.  
  2.23     Written requests for hearing must be evaluated by the 
  2.24  commissioner who may grant or deny the request.  A hearing must 
  2.25  generally be granted only if it is determined that written 
  2.26  submissions would be inadequate or that a hearing would 
  2.27  otherwise be beneficial to the decision-making process.  A 
  2.28  hearing may be limited to issues considered material by the 
  2.29  commissioner.  
  2.30     If a request for a hearing has been denied, the 
  2.31  commissioner shall notify the applicant and all interested 
  2.32  persons stating the reasons for denial.  Interested parties may 
  2.33  submit to the commissioner with simultaneous copies to the 
  2.34  applicant additional written comments on the application within 
  2.35  14 days after the date of the notice of denial.  The applicant 
  2.36  shall be provided an additional seven days after the 14-day 
  3.1   deadline has expired within which to respond to any comments 
  3.2   submitted within the 14-day period.  A copy of any response 
  3.3   submitted by the applicant shall also be mailed simultaneously 
  3.4   by the applicant to the interested parties.  The commissioner 
  3.5   may waive the additional seven-day comment period if so 
  3.6   requested by the applicant. 
  3.7      Sec. 3.  Minnesota Statutes 1998, section 46.048, 
  3.8   subdivision 1, is amended to read: 
  3.9      Subdivision 1.  [REQUIREMENT.] Whenever a change in the 
  3.10  outstanding voting stock of a banking institution will result in 
  3.11  control or in a change in the control of the banking 
  3.12  institution, the person acquiring control of the banking 
  3.13  institution, including an out-of-state bank holding company, 
  3.14  shall file notice of the proposed acquisition of control with 
  3.15  the commissioner of commerce at least 60 days before the actual 
  3.16  effective date of the change, except that the commissioner may 
  3.17  extend the 60-day period an additional 30 days if in the 
  3.18  commissioner's judgment any material information submitted is 
  3.19  substantially inaccurate or the acquiring party has not 
  3.20  furnished all the information required.  The notice must be 
  3.21  accompanied by a filing fee of $3,000 payable to the 
  3.22  commissioner of commerce, unless the person filing the notice 
  3.23  has been associated with the banking institution as an officer 
  3.24  or director for at least three years, in which case the filing 
  3.25  fee is $1,000.  No filing fee is required of a person required 
  3.26  to file a notice because of a stock redemption or other 
  3.27  transaction by others that caused the change in control.  As 
  3.28  used in this section, the term "control" means the power to 
  3.29  directly or indirectly direct or cause the direction of the 
  3.30  management or policies of the banking institution.  A change in 
  3.31  ownership of capital stock that would result in direct or 
  3.32  indirect ownership by a stockholder or an affiliated group of 
  3.33  stockholders of less than 25 percent of the outstanding capital 
  3.34  stock is not considered a change of control.  If there is any 
  3.35  doubt as to whether a change in the outstanding voting stock is 
  3.36  sufficient to result in control or to effect a change in the 
  4.1   control, the doubt shall be resolved in favor of reporting the 
  4.2   facts to the commissioner.  The commissioner shall use the 
  4.3   criteria established by the Financial Institution Regulatory and 
  4.4   Interest Rate Control Act of 1978, United States Code, title 12, 
  4.5   section 1817(j), and the regulations adopted under it, when 
  4.6   reviewing the acquisition and determining if the acquisition 
  4.7   should or should not be disapproved.  Within three days after 
  4.8   making the decision to disapprove a proposed acquisition, the 
  4.9   commissioner shall notify the acquiring party in writing of the 
  4.10  disapproval.  The notice must provide a statement of the basis 
  4.11  for the disapproval. 
  4.12     Sec. 4.  Minnesota Statutes 1998, section 46.048, 
  4.13  subdivision 2b, is amended to read: 
  4.14     Subd. 2b.  [NOTICE.] Upon the filing of a notice: 
  4.15     (1) an acquiring party shall publish once in a newspaper of 
  4.16  general circulation notice of the proposed acquisition in a form 
  4.17  acceptable to the commissioner; and 
  4.18     (2) the commissioner shall accept public comment on a 
  4.19  notice for a period of not less than 30 21 days from the date of 
  4.20  the publication required by clause (1). 
  4.21     Sec. 5.  Minnesota Statutes 1998, section 46.131, 
  4.22  subdivision 10, is amended to read: 
  4.23     Subd. 10.  Each financial institution described in 
  4.24  subdivision 2 shall pay a fee of $25 $50 to the commissioner of 
  4.25  commerce upon application to the commissioner for approval of a 
  4.26  change in its certificate, charter, articles of incorporation, 
  4.27  bylaws, powers or license.  Money collected by the commissioner 
  4.28  under this subdivision shall be deposited in the general fund. 
  4.29     Sec. 6.  Minnesota Statutes 1998, section 47.0156, is 
  4.30  amended to read: 
  4.31     47.0156 [CLOSING EFFECTING A PERMANENT CESSATION OF 
  4.32  BUSINESS.] 
  4.33     The permanent closing of a financial institution as defined 
  4.34  in section 47.015 or 47.0151 for purposes, or with a result, 
  4.35  other than authorized in sections 47.015 to 47.0155 is unlawful 
  4.36  unless at least 90 60 days' written notice is given to the 
  5.1   commissioner. 
  5.2      Sec. 7.  Minnesota Statutes 1998, section 47.101, 
  5.3   subdivision 3, is amended to read: 
  5.4      Subd. 3.  [APPLICATIONS TO DEPARTMENT OF COMMERCE.] An 
  5.5   application by a banking institution to relocate its main office 
  5.6   other than those provided for in subdivision 2 shall 
  5.7   be accompanied by a filing fee of $3,000 payable to the 
  5.8   commissioner of commerce and approved or disapproved by the 
  5.9   commissioner of commerce as provided for in sections 46.041 and 
  5.10  46.044. 
  5.11     Sec. 8.  Minnesota Statutes 1998, section 47.27, 
  5.12  subdivision 3, is amended to read: 
  5.13     Subd. 3.  "Savings association" shall have the meaning set 
  5.14  forth in section 51.01 51A.02, subdivision 2 7.  
  5.15     Sec. 9.  Minnesota Statutes 1998, section 47.52, is amended 
  5.16  to read: 
  5.17     47.52 [AUTHORIZATION.] 
  5.18     (a) With the prior approval of the commissioner, any bank 
  5.19  doing business in this state may establish and maintain detached 
  5.20  facilities provided the facilities are located within:  (1) the 
  5.21  municipality in which the principal office of the applicant bank 
  5.22  is located; or (2) 5,000 feet of its principal office measured 
  5.23  in a straight line from the closest points of the closest 
  5.24  structures involved; or (3) a municipality in which no bank is 
  5.25  located at the time of application; or (4) a municipality having 
  5.26  a population of more than 10,000; or (5) a municipality having a 
  5.27  population of 10,000 or less, as determined by the commissioner 
  5.28  from the latest available data from the state demographer, or 
  5.29  for municipalities located in the seven-county metropolitan area 
  5.30  from the metropolitan council, and all the banks having a 
  5.31  principal office in the municipality have consented in writing 
  5.32  to the establishment of the facility. 
  5.33     (b) A detached facility shall not be closer than 50 feet to 
  5.34  a detached facility operated by any other bank and shall not be 
  5.35  closer than 100 feet to the principal office of any other bank, 
  5.36  the measurement to be made in the same manner as provided 
  6.1   above.  This paragraph shall not be applicable if the proximity 
  6.2   to the facility or the bank is waived in writing by the other 
  6.3   bank and filed with the application to establish a detached 
  6.4   facility. 
  6.5      (c) A bank is allowed, in addition to other facilities, 
  6.6   part-time deposit-taking locations at elementary and secondary 
  6.7   schools located within the municipality in which the main 
  6.8   banking house or a detached facility is located if they are 
  6.9   established in connection with student education programs 
  6.10  approved by the school administration and consistent with safe, 
  6.11  sound banking practices. 
  6.12     (e) A bank is allowed, in addition to other facilities, 
  6.13  part-time banking locations at nursing homes and other senior 
  6.14  citizen housing facilities located within the municipality in 
  6.15  which the main banking house or a detached facility is located, 
  6.16  if they are operated in a manner consistent with safe, sound 
  6.17  banking practices. 
  6.18     Sec. 10.  Minnesota Statutes 1998, section 47.54, 
  6.19  subdivision 2, is amended to read: 
  6.20     Subd. 2.  [APPROVAL ORDER.] If no objection is received by 
  6.21  the commissioner within 21 15 days after the publication and 
  6.22  mailing of the notices, the commissioner shall issue an order 
  6.23  approving the application without a hearing if it is found that 
  6.24  (a) the applicant bank meets current industry standards of 
  6.25  capital adequacy, management quality, and asset condition, (b) 
  6.26  the establishment of the proposed detached facility will improve 
  6.27  the quality or increase the availability of banking services in 
  6.28  the community to be served, and (c) the establishment of the 
  6.29  proposed detached facility will not have an undue adverse effect 
  6.30  upon the solvency of existing financial institutions in the 
  6.31  community to be served.  Otherwise, the commissioner shall deny 
  6.32  the application.  Any proceedings for judicial review of an 
  6.33  order of the commissioner issued under this subdivision without 
  6.34  a contested case hearing shall be conducted pursuant to the 
  6.35  provisions of the Administrative Procedure Act relating to 
  6.36  judicial review of agency decisions, sections 14.63 to 14.69, 
  7.1   and the scope of judicial review in such proceedings shall be as 
  7.2   provided therein.  Nothing herein shall be construed as 
  7.3   requiring the commissioner to conduct a contested case hearing 
  7.4   if no written objection is timely received by the commissioner 
  7.5   from a bank within three miles of the proposed location of the 
  7.6   detached facility.  
  7.7      Sec. 11.  Minnesota Statutes 1998, section 47.54, 
  7.8   subdivision 3, is amended to read: 
  7.9      Subd. 3.  [OBJECTIONS; HEARING.] If any bank within three 
  7.10  miles of the proposed location of the detached facility objects 
  7.11  in writing within 21 15 days, the commissioner shall consider 
  7.12  the objection.  If the objection also requests a hearing, the 
  7.13  objector must include the nature of the issues or facts to be 
  7.14  presented and the reasons why written submissions would be 
  7.15  insufficient to make an adequate presentation to the 
  7.16  commissioner.  Comments challenging the legality of an 
  7.17  application should be submitted separately in writing. 
  7.18     Written requests for hearing must be evaluated by the 
  7.19  commissioner who may grant or deny the request.  A hearing must 
  7.20  generally be granted only if it is determined that written 
  7.21  submissions would be inadequate or that a hearing would 
  7.22  otherwise be beneficial to the decision-making process.  A 
  7.23  hearing may be limited to issues considered material by the 
  7.24  commissioner. 
  7.25     If a request for a hearing has been denied, the 
  7.26  commissioner shall notify the applicant and all interested 
  7.27  persons stating the reasons for denial.  Interested parties may 
  7.28  submit to the commissioner with simultaneous copies to the 
  7.29  applicant additional written comments on the application within 
  7.30  14 days after the date of the notice of denial.  The applicant 
  7.31  shall be provided an additional seven days after the 14-day 
  7.32  deadline has expired within which to respond to any comments 
  7.33  submitted within the 14-day period.  A copy of any response 
  7.34  submitted by the applicant shall also be mailed simultaneously 
  7.35  by the applicant to the interested parties.  The commissioner 
  7.36  may waive the additional seven-day comment period if so 
  8.1   requested by the applicant. 
  8.2      Sec. 12.  Minnesota Statutes 1998, section 47.60, 
  8.3   subdivision 3, is amended to read: 
  8.4      Subd. 3.  [FILING.] Before a person other than a financial 
  8.5   institution as defined by section 47.59 engages in the business 
  8.6   of making consumer small loans, the person shall file with the 
  8.7   commissioner as a consumer small loan lender.  The filing must 
  8.8   be on a form prescribed by the commissioner together with a fee 
  8.9   of $150 $250 for each place of business and contain the 
  8.10  following information in addition to the information required by 
  8.11  the commissioner:  
  8.12     (1) evidence that the filer has available for the operation 
  8.13  of the business at the location specified, liquid assets of at 
  8.14  least $50,000; and 
  8.15     (2) a biographical statement on the principal person 
  8.16  responsible for the operation and management of the business to 
  8.17  be certified.  
  8.18     Revocation of the filing and the right to engage in the 
  8.19  business of a consumer small loan lender is the same as in the 
  8.20  case of a regulated lender license in section 56.09.  
  8.21     Sec. 13.  Minnesota Statutes 1998, section 48.15, 
  8.22  subdivision 3, is amended to read: 
  8.23     Subd. 3.  [LIMITS ON AUTHORITY TO ACT AS PAYING AGENT FOR 
  8.24  PUBLIC ISSUERS.] No such bank shall act as paying agent of any 
  8.25  municipality or other public issuer of obligations, other than 
  8.26  an issuer within whose corporate limits the principal office of 
  8.27  the bank is situated, unless the bank is authorized to execute 
  8.28  the powers conferred in section 48.38 48A.07. 
  8.29     Sec. 14.  Minnesota Statutes 1998, section 48A.15, 
  8.30  subdivision 1, is amended to read: 
  8.31     Subdivision 1.  [AUTHORIZATION.] A trust company organized 
  8.32  under the laws of this state or a state bank and trust may, 
  8.33  after completing the notification procedure required by this 
  8.34  subdivision, establish and maintain a trust service office at 
  8.35  any office in this state or of any other state or national 
  8.36  bank.  A state bank may, after completing the notification 
  9.1   procedure required by this subdivision, permit a trust company 
  9.2   organized under the laws of this state or a state bank and trust 
  9.3   or a national bank in this state that is authorized to exercise 
  9.4   trust powers to establish and maintain a trust service office at 
  9.5   any of its banking offices. 
  9.6      The trust company or state bank and trust and a state bank 
  9.7   at which a trust service office is to be established according 
  9.8   to this section shall jointly file, on forms provided by the 
  9.9   commissioner, a notification of intent to establish a trust 
  9.10  service office.  The notification must be accompanied by a 
  9.11  filing fee of $100 payable to the commissioner, to be deposited 
  9.12  in the general fund of the state.  No trust service office shall 
  9.13  be established according to this section if disallowed by order 
  9.14  of the commissioner within 45 30 days of the filing of a 
  9.15  complete and acceptable notification of intent to establish a 
  9.16  trust service office.  An order of the commissioner to disallow 
  9.17  the establishment of a trust service office under this section 
  9.18  is subject to judicial review under sections 14.63 to 14.69. 
  9.19     Sec. 15.  Minnesota Statutes 1998, section 49.36, 
  9.20  subdivision 1, is amended to read: 
  9.21     Subdivision 1.  [REQUIREMENTS.] This consolidation or 
  9.22  merger agreement and certified copy of the proceedings of the 
  9.23  meetings of the respective boards of directors, at which the 
  9.24  making of the agreement was authorized, must be submitted to the 
  9.25  commissioner of commerce for approval with a fee of $250 $2,000 
  9.26  payable to the commissioner of commerce.  The agreement shall 
  9.27  not be effective until so approved by the commissioner.  The 
  9.28  commissioner shall take action after the documents are 
  9.29  submitted, and is entitled to further information from any party 
  9.30  to the transaction as may be requested by the commissioner, or 
  9.31  as may be obtained upon a hearing directed by the commissioner. 
  9.32     Sec. 16.  Minnesota Statutes 1998, section 52.01, is 
  9.33  amended to read: 
  9.34     52.01 [ORGANIZATION.] 
  9.35     Any seven residents of the state may apply to the 
  9.36  commissioner of commerce for permission to organize a credit 
 10.1   union. 
 10.2      A credit union is a cooperative society, incorporated for 
 10.3   the twofold purpose of promoting thrift among its members and 
 10.4   creating a source of credit for them at legitimate rates of 
 10.5   interest for provident purposes. 
 10.6      A credit union is organized in the following manner: 
 10.7      (1) The applicants execute, in duplicate, a certificate of 
 10.8   organization by the terms of which they agree to be bound, which 
 10.9   shall state: 
 10.10     (a) the name and location of the proposed credit union; 
 10.11     (b) the names and addresses of the subscribers to the 
 10.12  certificate and the number of shares subscribed by each; 
 10.13     (2) The applicants submit the following in the form 
 10.14  prescribed by the commissioner of commerce:  
 10.15     (a) a statement of the common bond of the proposed credit 
 10.16  union; 
 10.17     (b) the number of potential members; 
 10.18     (c) the geographic dispersion of the potential members; 
 10.19     (d) evidence of interest, including willingness of 
 10.20  potential members to assume responsibility for leadership and 
 10.21  service; 
 10.22     (e) a two-year forecast of probable levels of assets, 
 10.23  shares and deposits, and income and expense; 
 10.24     (f) the availability of other credit union services to the 
 10.25  potential members; 
 10.26     (g) other information the commissioner requires; 
 10.27     (3) They next prepare and adopt bylaws for the general 
 10.28  governance of the credit union consistent with the provisions of 
 10.29  this chapter, and execute them in duplicate; 
 10.30     (4) The certificate and the bylaws, both executed in 
 10.31  duplicate, are forwarded to the commissioner of commerce with a 
 10.32  $100 application fee $1,000 application fee, which may be waived 
 10.33  by the commissioner for a credit union to be located in a low- 
 10.34  or moderate-income area as defined in Code of Federal 
 10.35  Regulations, title 12, part 25(1), (n)(1) and (n)(2) and where 
 10.36  no other depository institution operates an office; 
 11.1      (5) The commissioner of commerce shall, within 60 days of 
 11.2   the receipt of the certificate, the information required by 
 11.3   paragraph (2), and the bylaws determine whether they comply with 
 11.4   the provisions of this chapter, and whether or not the 
 11.5   organization of the credit union in question would benefit its 
 11.6   members, be economically feasible, and be consistent with the 
 11.7   purposes of this chapter; 
 11.8      (6) Thereupon the commissioner of commerce shall notify the 
 11.9   applicants of the decision.  If it is favorable, the 
 11.10  commissioner shall upon receipt of a commitment for insurance of 
 11.11  accounts as required by section 52.24, subdivision 2, issue a 
 11.12  certificate of approval, attached to the duplicate certificate 
 11.13  of organization, and return them with the duplicate bylaws to 
 11.14  the applicants.  If it is unfavorable, the applicants may, 
 11.15  within 60 days after the decision, appeal for a review in a 
 11.16  court of competent jurisdiction; 
 11.17     (7) The applicants shall thereupon file the duplicate of 
 11.18  the certificate of organization, with the certificate of 
 11.19  approval attached thereto, with the secretary of state, who 
 11.20  shall make a record of the certificate and return it, with a 
 11.21  certificate of record attached thereto, to the commissioner of 
 11.22  commerce for permanent records; and 
 11.23     (8) Thereupon the applicants shall be a credit union 
 11.24  incorporated in accordance with the provisions of this chapter. 
 11.25     In order to simplify the organization of credit unions, the 
 11.26  commissioner of commerce shall prepare approved forms of 
 11.27  certificate of organization and bylaws, consistent with this 
 11.28  chapter, which may be used by credit union incorporators for 
 11.29  their guidance, and on written application of seven residents of 
 11.30  the state, shall supply them without charge with a blank 
 11.31  certificate of organization and a copy of the form of suggested 
 11.32  bylaws. 
 11.33     Sec. 17.  Minnesota Statutes 1998, section 53.03, 
 11.34  subdivision 1, is amended to read: 
 11.35     Subdivision 1.  [APPLICATION, FEE, NOTICE.] Any corporation 
 11.36  hereafter organized as an industrial loan and thrift company, 
 12.1   shall, after compliance with the requirements set forth in 
 12.2   sections 53.01 and 53.02, file a written application with the 
 12.3   department of commerce for a certificate of authorization.  A 
 12.4   corporation that will not sell or issue thrift certificates for 
 12.5   investment as permitted by this chapter need not comply with 
 12.6   subdivision 2b.  The application must be in the form prescribed 
 12.7   by the department of commerce.  The application must be made in 
 12.8   the name of the corporation, executed and acknowledged by an 
 12.9   officer designated by the board of directors of the corporation, 
 12.10  requesting a certificate authorizing the corporation to transact 
 12.11  business as an industrial loan and thrift company, at the place 
 12.12  and in the name stated in the application.  At the time of 
 12.13  filing the application the applicant shall pay a $1,000 filing 
 12.14  fee and a $500 investigation fee $1,500 filing fee if the 
 12.15  corporation will not sell or issue thrift certificates for 
 12.16  investment, and a filing fee of $8,000 if the corporation will 
 12.17  sell or issue thrift certificates for investment.  The fees must 
 12.18  be turned over by the commissioner to the state treasurer and 
 12.19  credited to the general fund.  The applicant shall also submit a 
 12.20  copy of the bylaws of the corporation, its articles of 
 12.21  incorporation and all amendments thereto at that time.  An 
 12.22  application for powers under subdivision 2b must also require 
 12.23  that a notice of the filing of the application must be published 
 12.24  once within 30 days of the receipt of the form prescribed by the 
 12.25  department of commerce, at the expense of the applicant, in a 
 12.26  qualified newspaper published in the municipality in which the 
 12.27  proposed industrial loan and thrift company is to be located, 
 12.28  or, if there be none, in a qualified newspaper likely to give 
 12.29  notice in the municipality in which the company is proposed to 
 12.30  be located.  If the department of commerce receives a written 
 12.31  objection to the application from any person within 21 15 days 
 12.32  of the notice having been fully published, the commissioner 
 12.33  shall proceed in the same manner as required under section 
 12.34  46.041, subdivisions 3 and 4, relating to state banks. 
 12.35     Sec. 18.  Minnesota Statutes 1998, section 53.03, 
 12.36  subdivision 6, is amended to read: 
 13.1      Subd. 6.  [AMENDED CERTIFICATES, THRIFT CERTIFICATES FOR 
 13.2   INVESTMENT, APPLICATION, FEE, NOTICE.] Upon approval by the 
 13.3   commissioner of commerce of a commitment for insurance or 
 13.4   guarantee of certificates to be held for investment as required 
 13.5   in section 53.10, subdivision 3, an industrial loan and thrift 
 13.6   company may apply to the department of commerce for an amended 
 13.7   certificate of authorization and consent to sell and issue 
 13.8   thrift certificates for investment.  
 13.9      The application, in triplicate, must be in the form 
 13.10  prescribed by the department of commerce and filed in its 
 13.11  office.  At the time of filing the application, the applicant 
 13.12  shall pay a filing fee of $500 $8,000 and if an application is 
 13.13  contested, 50 percent of an additional fee equal to the actual 
 13.14  costs incurred by the department of commerce in approving or 
 13.15  disapproving the application, payable to the state treasurer and 
 13.16  credited by the treasurer to the general fund, must be paid by 
 13.17  the applicant and 50 percent equally by the intervening 
 13.18  parties.  A notice of the filing of the application must be 
 13.19  published once within 30 days of the receipt of the form 
 13.20  prescribed by the department of commerce, at the expense of the 
 13.21  applicant, in a newspaper published in the municipality in which 
 13.22  the place of business under the application is located, or if 
 13.23  there is none, in a newspaper published at the county seat of 
 13.24  the county in which the place of business is located.  Not more 
 13.25  than one place of business maintained under a certificate of 
 13.26  authorization may be the subject of an application.  
 13.27     Sec. 19.  Minnesota Statutes 1998, section 53.03, 
 13.28  subdivision 7, is amended to read: 
 13.29     Subd. 7.  [OBJECTION TO APPLICATION.] Upon receiving 
 13.30  written objection to the application from any person within 20 
 13.31  15 days of the notice having been fully published, the 
 13.32  department of commerce shall order a contested case hearing to 
 13.33  be conducted on the application.  
 13.34     Sec. 20.  Minnesota Statutes 1998, section 55.04, 
 13.35  subdivision 2, is amended to read: 
 13.36     Subd. 2.  [APPLICATION FOR LICENSE.] Application for 
 14.1   license shall be in writing, under oath, and in the form 
 14.2   prescribed by the commissioner of commerce, and contain the name 
 14.3   and address, both of the residence and place of business, of the 
 14.4   applicant, and if the applicant is a partnership or 
 14.5   unincorporated association, of every member thereof, and if a 
 14.6   corporation, of each officer and director thereof; also the 
 14.7   county and municipality, with street and number, if any, where 
 14.8   the business is to be conducted; and further information the 
 14.9   commissioner of commerce requires.  The applicant at the time of 
 14.10  making application shall pay to the commissioner the sum of $250 
 14.11  as a fee for investigating the application, and the additional 
 14.12  sum of $150 as an annual license fee for a period terminating on 
 14.13  the last day of the current calendar year.  If the application 
 14.14  is filed after June 30 in any year the additional sum shall be 
 14.15  only $75. 
 14.16     Sec. 21.  Minnesota Statutes 1998, section 56.02, is 
 14.17  amended to read: 
 14.18     56.02 [APPLICATION FEE.] 
 14.19     Application for license shall be in writing, under oath, 
 14.20  and in the form prescribed by the commissioner, and contain the 
 14.21  name and the address, both of the residence and place of 
 14.22  business, of the applicant and, if the applicant is a 
 14.23  copartnership or association, of every member thereof, and if a 
 14.24  corporation, of each officer and director thereof; also the 
 14.25  county and municipality, with street and number, if any, where 
 14.26  the business is to be conducted, and such further information as 
 14.27  the commissioner may require.  The applicant at the time of 
 14.28  making application, shall pay to the commissioner the sum of 
 14.29  $250 $500 as a fee for investigating the application, and the 
 14.30  additional sum of $150 $250 as an annual license fee for a 
 14.31  period terminating on the last day of the current calendar year; 
 14.32  provided, that if the application is filed after June 30 in any 
 14.33  year the additional sum shall be only $75.  In addition to the 
 14.34  annual license fee, every licensee hereunder shall pay to the 
 14.35  commissioner the actual costs of each examination, as provided 
 14.36  for in section 56.10.  All moneys collected by the commissioner 
 15.1   under this chapter shall be turned over to the state treasurer 
 15.2   and credited by the treasurer to the general fund of the state. 
 15.3      Every applicant shall also prove, in form satisfactory to 
 15.4   the commissioner, that the applicant has available for the 
 15.5   operation of the business at the location specified in the 
 15.6   application, liquid assets of at least $50,000. 
 15.7      Sec. 22.  Minnesota Statutes 1998, section 59A.03, 
 15.8   subdivision 2, is amended to read: 
 15.9      Subd. 2.  The applicant at the time of making application, 
 15.10  shall pay to the commissioner the sum of $250 as a fee for 
 15.11  investigating the application, and the additional sum 
 15.12  of $100 $200 as an annual licensee fee for a period terminating 
 15.13  on May 31 of each year.  In addition to the annual license fee, 
 15.14  every licensee shall pay to the commissioner the actual costs of 
 15.15  each examination as may be required to be conducted under the 
 15.16  terms of sections 59A.01 to 59A.15. 
 15.17     Sec. 23.  Minnesota Statutes 1998, section 168.67, is 
 15.18  amended to read: 
 15.19     168.67 [SALES FINANCE COMPANY; LICENSE, FEES, REFUND.] 
 15.20     (a) No person shall engage in the business of a sales 
 15.21  finance company in this state without a license therefor as 
 15.22  provided in sections 168.66 to 168.77 provided, however, that no 
 15.23  bank, trust company, savings bank, savings association, or 
 15.24  credit union, whether state or federally chartered, industrial 
 15.25  loan and thrift company, or licensee under the Minnesota 
 15.26  Regulated Loan Act authorized to do business in this state shall 
 15.27  be required to obtain a license under sections 168.66 to 168.77. 
 15.28     (b) The application for a license shall be in writing, 
 15.29  under oath and in the form prescribed by the administrator.  The 
 15.30  application shall contain the name of the applicant; date of 
 15.31  incorporation, if incorporated; the address where the business 
 15.32  is or is to be conducted and similar information as to any 
 15.33  branch office of the applicant; the name and resident address of 
 15.34  the owner or partners, or, if a corporation or association, of 
 15.35  the directors, trustees and principal officers, and other 
 15.36  pertinent information the administrator requires. 
 16.1      (c) The licensee fee for the fiscal year beginning July 1 
 16.2   and ending June 30 of the following year, or any part thereof 
 16.3   shall be the sum of $150 $250 for the principal place of 
 16.4   business of the licensee, and the sum of $75 $125 for each 
 16.5   branch of the licensee, maintained in this state.  Any licensee 
 16.6   who proves to the satisfaction of the administrator, by 
 16.7   affidavit or other proof satisfactory to the administrator, that 
 16.8   during the 12 calendar months of the immediately preceding 
 16.9   fiscal year, for which the license has been paid that the 
 16.10  licensee has not held retail installment contracts exceeding 
 16.11  $15,000 in amount, shall be entitled to a refund of that portion 
 16.12  of each license fee paid in excess of $25.  The administrator 
 16.13  shall certify to the commissioner of finance that the licensee 
 16.14  is entitled to a refund, and payment thereof shall be made by 
 16.15  the state treasurer.  The amount necessary to pay for the 
 16.16  refundment of the license fee is appropriated out of the general 
 16.17  fund.  All license fees received by the administrator under 
 16.18  sections 168.66 to 168.77 shall be deposited with the state 
 16.19  treasurer. 
 16.20     (d) Each license shall specify the location of the office 
 16.21  or branch and must be conspicuously displayed there.  In case 
 16.22  the location be changed, the administrator shall endorse the 
 16.23  change of location on the license. 
 16.24     (e) Upon the filing of such application, and the payment of 
 16.25  the fee, the administrator shall issue a license to the 
 16.26  applicant to engage in the business of a sales finance company 
 16.27  under and in accordance with the provisions of sections 168.66 
 16.28  to 168.77 for a period which shall expire the last day of June 
 16.29  next following the date of its issuance.  The license shall not 
 16.30  be transferable or assignable.  No licensee shall transact any 
 16.31  business provided for by sections 168.66 to 168.77 under any 
 16.32  other name.  
 16.33     Sec. 24.  Minnesota Statutes 1998, section 303.25, 
 16.34  subdivision 5, is amended to read: 
 16.35     Subd. 5.  [SOLICITATION OF BUSINESS.] A foreign trust 
 16.36  association may not maintain an office within this state, but it 
 17.1   may solicit business within this state if banking or trust 
 17.2   associations or corporations organized under the laws of this 
 17.3   state or national banking associations maintaining their 
 17.4   principal offices in this state may solicit business in the 
 17.5   state in which the foreign trust association maintains its 
 17.6   principal office.  For purposes of this subdivision, 
 17.7   solicitation of business includes the activities authorized for 
 17.8   state or national banking associations exercising fiduciary 
 17.9   powers maintaining their principal offices in this state 
 17.10  considered a representative trust office established under 
 17.11  section 48.476 48A.14.  A foreign trust association must follow 
 17.12  the procedures in section 48A.18 to establish a trust office and 
 17.13  the procedures in section 48A.19 to establish a representative 
 17.14  trust office. 
 17.15     Sec. 25.  Minnesota Statutes 1998, section 332.15, 
 17.16  subdivision 2, is amended to read: 
 17.17     Subd. 2.  [LICENSE FOR EACH LOCATION.] Each person 
 17.18  operating a debt prorating service shall obtain a license for 
 17.19  each location and place of business, including each branch 
 17.20  office.  Such person shall submit a separate application for 
 17.21  each place of business.  The full license fee shall be payable 
 17.22  only for one such place of business.  For each additional place 
 17.23  of business the license fee shall be $25 $100.  
 17.24     Sec. 26.  Minnesota Statutes 1998, section 332.15, 
 17.25  subdivision 3, is amended to read: 
 17.26     Subd. 3.  [FEES.] Each applicant, at the time of making 
 17.27  such application, shall pay to the commissioner the sum of $50 
 17.28  $100 as a fee for investigation of the applicant, and the 
 17.29  additional sum of $100 $250 as a license fee.  If the 
 17.30  application is denied, said license fee shall be returned to the 
 17.31  applicant.  
 17.32     Sec. 27.  Minnesota Statutes 1998, section 332.17, is 
 17.33  amended to read: 
 17.34     332.17 [RENEWAL OF LICENSE.] 
 17.35     Each licensee under the provisions of sections 332.12 to 
 17.36  332.29 shall, not more than 60 nor less than 30 days before its 
 18.1   license is to expire, make application to the commissioner for 
 18.2   renewal of its license.  Such application for renewal shall be 
 18.3   on a form prescribed by the commissioner and shall be 
 18.4   accompanied by payment of the sum of $25 as a fee for 
 18.5   investigation of the renewal applicant, the additional sum of 
 18.6   $100 $250 as a license fee, and a bond as required in the case 
 18.7   of an original application.  The commissioner may investigate 
 18.8   the licensee and determine its continued fitness as in the case 
 18.9   of an original application.  If the commissioner shall renew the 
 18.10  license, said renewal shall be effective for one year from the 
 18.11  date on which the previous license expired. 
 18.12     Sec. 28.  Minnesota Statutes 1998, section 332.30, is 
 18.13  amended to read: 
 18.14     332.30 [ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND 
 18.15  REQUIREMENTS.] 
 18.16     (a) Before beginning business in this state, an accelerated 
 18.17  mortgage payment provider, as defined in section 332.13, 
 18.18  subdivision 2, clause (10), shall submit to the commissioner of 
 18.19  commerce an authorization fee of $250 and either: 
 18.20     (1) a surety bond in which the accelerated mortgage payment 
 18.21  provider is the obligor, in an amount determined by the 
 18.22  commissioner; or 
 18.23     (2) if the commissioner agrees to accept it, a deposit: 
 18.24     (i) in cash in an amount equivalent to the bond amount; or 
 18.25     (ii) of authorized securities, as defined in section 50.14, 
 18.26  with an aggregate market value equal to the bond amount.  The 
 18.27  cash or securities must be deposited with the state treasurer. 
 18.28     (b) The amount of the bond required by the commissioner 
 18.29  shall vary with the amount of Minnesota client funds held or to 
 18.30  be held by the obligor.  For new businesses, the bond must be no 
 18.31  less than $100,000, except as provided in section 332.301.  The 
 18.32  commissioner may increase the required bond amount upon 30 days' 
 18.33  notice to the accelerated mortgage payment provider.  
 18.34     (c) If a bond is submitted, it must name as surety an 
 18.35  insurance company authorized to transact fidelity and surety 
 18.36  business in this state.  The bond must run to the state of 
 19.1   Minnesota for the use of the state and of any person who may 
 19.2   have a claim against the obligor arising out of the obligor's 
 19.3   activities as an accelerated mortgage payment provider.  The 
 19.4   bond must be conditioned that the obligor will not commit any 
 19.5   fraudulent act and will faithfully conform to and abide by the 
 19.6   provisions of accelerated mortgage payment agreements with 
 19.7   Minnesota residents.  
 19.8      If an accelerated mortgage payment provider has failed to 
 19.9   account to a mortgagor or distribute funds to the mortgagee as 
 19.10  required by an accelerated mortgage payment agreement, the 
 19.11  mortgagor or the mortgagor's legal representative or receiver or 
 19.12  the commissioner shall have, in addition to any other legal 
 19.13  remedies, a right of action in the name of the debtor on the 
 19.14  bond or the security given pursuant to this section. 
 19.15     Sec. 29.  [EFFECTIVE DATE.] 
 19.16     Sections 1 to 28 are effective July 1, 1999.