Source: https://www.revisor.mn.gov/statutes/2010/cite/47.60/subd/47.60.4
Timestamp: 2020-07-15 12:56:27
Document Index: 200490690

Matched Legal Cases: ['art 1', 'art 3', 'art 3', 'art 3', 'art 3', 'art 2', 'art 1', 'art 3', 'art 3', 'art 1', 'art 2', 'art 3', 'art 3']

﻿ Sec. 47.60 MN Statutes
Section 47.60
47.59 47.601
2020 Subd. 7 New 2020 c 80 art 1 s 1
2010 Subd. 4 Amended 2010 c 382 s 10
2010 Subd. 6 Amended 2010 c 382 s 11
2009 Subd. 1 Amended 2009 c 37 art 3 s 2
2009 Subd. 3 Amended 2009 c 37 art 3 s 3
2009 Subd. 4 Amended 2009 c 68 s 1
2009 Subd. 6 Amended 2009 c 68 s 2
2009 Subd. 6 Amended 2009 c 37 art 3 s 4
2007 Subd. 2 Amended 2007 c 57 art 3 s 9
2007 Subd. 2 Amended 2007 c 44 s 3
2000 Subd. 2 Amended 2000 c 427 s 6
1999 Subd. 3 Amended 1999 c 151 s 17
1996 Subd. 2 Amended 1996 c 414 art 2 s 7
1996 Subd. 4 Amended 1996 c 305 art 1 s 14
1995 47.60 New 1995 c 202 art 3 s 2
47.60 CONSUMER SMALL LOANS.
For purposes of this section, the terms defined have the meanings given them:
(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower for the borrower's own personal, family, or household purpose. A consumer small loan is a short-term, unsecured loan to be repaid in a single installment. The cash advance of a consumer small loan is equal to or less than $350. A consumer small loan includes an indebtedness evidenced by but not limited to a promissory note or agreement to defer the presentation of a personal check for a fee.
(b) "Consumer small loan lender" is a financial institution as defined in section 47.59 or a business entity registered with the commissioner and engaged in the business of making consumer small loans.
Subd. 2.Authorization, terms, conditions, and prohibitions.
(a) In lieu of the interest, finance charges, or fees in any other law, a consumer small loan lender may charge the following:
(1) on any amount up to and including $50, a charge of $5.50 may be added;
(2) on amounts in excess of $50, but not more than $100, a charge may be added equal to ten percent of the loan proceeds plus a $5 administrative fee;
(3) on amounts in excess of $100, but not more than $250, a charge may be added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee;
(4) for amounts in excess of $250 and not greater than the maximum in subdivision 1, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a minimum of $17.50 plus a $5 administrative fee.
(b) The term of a loan made under this section shall be for no more than 30 calendar days.
(c) After maturity, the contract rate must not exceed 2.75 percent per month of the remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly rate in the contract for each calendar day the balance is outstanding.
(d) No insurance charges or other charges must be permitted to be charged, collected, or imposed on a consumer small loan except as authorized in this section.
(e) On a loan transaction in which cash is advanced in exchange for a personal check, a return check charge may be charged as authorized by section 604.113, subdivision 2, paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded or assessed against the borrower.
(f) A loan made under this section must not be repaid by the proceeds of another loan made under this section by the same lender or related interest. The proceeds from a loan made under this section must not be applied to another loan from the same lender or related interest. No loan to a single borrower made pursuant to this section shall be split or divided and no single borrower shall have outstanding more than one loan with the result of collecting a higher charge than permitted by this section or in an aggregate amount of principal exceed at any one time the maximum of $350.
Before a business entity other than a financial institution as defined by section 47.59 engages in the business of making consumer small loans to Minnesota residents, the business entity shall file with the commissioner as a consumer small loan lender. The filing must be on a form prescribed by the commissioner together with a fee of $250 for each place of business and contain the following information in addition to the information required by the commissioner:
(1) evidence that the filer has available for the operation of the business at the location specified, liquid assets of at least $50,000; and
(2) a biographical statement on the principal person responsible for the operation and management of the business to be certified.
Revocation of the filing is the same as in the case of a regulated lender license in section 56.09.
For purposes of this subdivision, "business entity" includes one that does not have a physical location in Minnesota that makes a consumer small loan electronically via the Internet.
Subd. 4.Books of account; annual report; schedule of charges; disclosures.
(b) A lender filing under subdivision 3 shall annually on or before March 15 file a report to the commissioner giving the information the commissioner reasonably requires concerning the business and operations during the preceding calendar year, including the information required to be reported under section 47.601, subdivision 4.
Subd. 5.Complaints alleging violation.
A person obligated to or having been obligated to a consumer small loan lender filing under subdivision 3 and having reason to believe that this section has been violated may file with the commissioner a written complaint setting forth the details of the alleged violation. The commissioner, upon receipt of the complaint, may inspect the pertinent books, records, letters, and contracts of the lender and borrower involved. The commissioner may assess against the lender a fee covering the necessary costs of an investigation under this section. The commissioner may maintain an action for the recovery of the costs in a court of competent jurisdiction.
Subd. 6.Penalties for violation.
A person who violates or participates in the violation of any of the provisions of this section is liable in the same manner as in section 47.601, subdivision 6.
1995 c 202 art 3 s 2; 1996 c 305 art 1 s 14; 1996 c 414 art 2 s 7; 1999 c 151 s 17; 2000 c 427 s 6; 2007 c 44 s 3; 2007 c 57 art 3 s 9; 2009 c 37 art 3 s 2,3; 2009 c 68 s 1,2; 2010 c 382 s 10,11
NOTE: Subdivision 6 was also amended by Laws 2009, chapter 37, article 3, section 4, to read as follows:
"Subd. 6.Penalties for violation.
A business entity or the entity's members, officers, directors, agents, and employees who violate or participate in the violation of any of the provisions of this section may be liable in the same manner as in section 56.19."