1.1                          A bill for an act 
  1.2             relating to financial institutions; permitting 
  1.3             consideration of consumer lending practices in 
  1.4             designation of depositories of public funds; amending 
  1.5             Minnesota Statutes 2000, section 9.031, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 9.031, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 14.  [CONSIDERATION OF LENDING PRACTICES.] The 
  1.11  executive council, in deciding whether to designate a financial 
  1.12  institution as a depository for state funds, may consider the 
  1.13  extent to which the financial institution is a responsible 
  1.14  mortgage lender.  For purposes of this subdivision, "responsible 
  1.15  mortgage lender" means a financial institution that: 
  1.16     (1) has and uses mortgage lending practices, including 
  1.17  interest rates, fees, and other terms and conditions that are 
  1.18  fair to low and moderate income borrowers; 
  1.19     (2) assists low and moderate income borrowers by 
  1.20  refinancing existing mortgage loans with mortgage loans that are 
  1.21  fairer to the homeowner; and 
  1.22     (3) participates in programs sponsored by private, 
  1.23  governmental, or secondary mortgage market entities that assist 
  1.24  low and moderate income borrowers. 
  1.25     For purposes of this subdivision, "financial institution" 
  1.26  includes any affiliates of the financial institution.