Section 56.0001 — Citation.

56.0001 CITATION. Sections 56.001 to 56.26 may be cited as the “Minnesota Regulated Loan Act.” History: 1982 c 547 s 4

Section 56.001 — Definitions.

56.001 DEFINITIONS. Subdivision 1. Terms. When used in this chapter, the terms defined in this section have the meanings given them, unless their context requires a different meaning. Subd. 2. Actuarial method. “Actuarial method” means the method of allocating payments made on a loan between the principal amount and interest whereby a payment is applied […]

Section 56.002 — Application.

56.002 APPLICATION. This chapter does not apply to a person doing business under and as permitted by any law of this state or of the United States relating to banks, savings associations, trust companies, licensed pawnbrokers, or credit unions. Notwithstanding the provisions of section 56.01, an industrial loan and thrift company under chapter 53 may […]

Section 56.01 — Necessity Of License.

56.01 NECESSITY OF LICENSE. (a) Except as authorized by this chapter and without first obtaining a license from the commissioner, no person shall engage in the business of making loans of money, credit, goods, or things in action, in an amount or of a value not exceeding that specified in section 56.131, subdivision 1, and […]

Section 56.02 — Application Fee.

56.02 APPLICATION FEE. (a) Application for license shall be in writing, under oath, and in the form prescribed by the commissioner, and contain the name and the address, both of the residence and place of business, of the applicant and, if the applicant is a copartnership or association, of every member thereof, and if a […]

Section 56.04 — Investigation; Issuance Of License; Denial; Refunds.

56.04 INVESTIGATION; ISSUANCE OF LICENSE; DENIAL; REFUNDS. Upon the filing of the application and payment of these fees, the commissioner shall investigate the facts, and if the commissioner shall find (1) that the financial responsibility, experience, character, and general fitness of the applicant, and of the members thereof if the applicant be a copartnership or […]

Section 56.05 — License; To Be Posted.

56.05 LICENSE; TO BE POSTED. The license shall state the address at which the business is to be conducted and shall state fully the name of the licensee, and if the licensee is a copartnership or association, the names of the members thereof, and if a corporation, the date and place of its incorporation. The […]

Section 56.07 — Control Over Location.

56.07 CONTROL OVER LOCATION. Subdivision 1. General. Not more than one place of business shall be maintained under the same license, but the commissioner may issue more than one license to the same licensee upon compliance with all the provisions of this chapter governing an original issuance of a license, for each such new license. […]

Section 56.08 — Annual License Fee.

56.08 ANNUAL LICENSE FEE. Every licensee shall, on or before the 20th day of each December, pay to the commissioner the sum of $150 as an annual license fee for the next succeeding calendar year. History: (7774-48) 1939 c 12 s 8; 1959 c 573 s 5; 1975 c 379 s 2

Section 56.09 — Suspension Or Revocation Of License.

56.09 SUSPENSION OR REVOCATION OF LICENSE. The commissioner shall, upon ten days’ notice to the licensee stating the contemplated action and in general the grounds therefor, and upon reasonable opportunity to be heard, revoke any license issued hereunder if the commissioner shall find that: (1) The licensee has failed to pay the annual license fee […]

Section 56.10 — General Oversight And Administration.

56.10 GENERAL OVERSIGHT AND ADMINISTRATION. Subdivision 1. Examinations. For the purpose of discovering violations of this chapter or securing information lawfully required by the commissioner hereunder, the commissioner may, at any time, either personally or by a person or persons duly designated, investigate the loans and business and examine the books, accounts, records, and files […]

Section 56.11 — Books Of Account; Annual Report.

56.11 BOOKS OF ACCOUNT; ANNUAL REPORT. The licensee shall keep and use in the licensee’s business such books, accounts, and records as will enable the commissioner to determine whether the licensee is complying with the provisions of this chapter and with the rules lawfully made by the commissioner hereunder. Every licensee shall preserve such books, […]

Section 56.12 — Advertising; Taking Of Security; Place Of Business.

56.12 ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS. No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner any statement or representation with regard to the rates, terms, or conditions for the lending of money, credit, goods, or things […]

Section 56.125 — Open-end Loans.

56.125 OPEN-END LOANS. Subdivision 1. Authorization. A licensee may make open-end loans under this chapter other than loans under an overdraft checking plan and may charge a daily, monthly, or other periodic rate of finance charge on unpaid balances not in excess of the maximum rate of interest permitted by section 56.131, subdivision 1, paragraph […]

Section 56.131 — Maximum Rates And Charges.

56.131 MAXIMUM RATES AND CHARGES. Subdivision 1. Interest rates and charges. (a) On any loan in a principal amount not exceeding $100,000 or 15 percent of a Minnesota corporate licensee’s capital stock and surplus as defined in section 53.015, if greater, a licensee may contract for and receive interest, finance charges, and other charges as […]

Section 56.132 — Installment Sales Contracts.

56.132 INSTALLMENT SALES CONTRACTS. A person may enter into a credit sale or service contract for sale to a licensee under this chapter doing business in this state, and a licensee may purchase and enforce the contract under the terms and conditions set forth in section 47.59, subdivisions 2 and 4 to 14. History: 1993 […]

Section 56.14 — Duties Of Licensee.

56.14 DUTIES OF LICENSEE. Every licensee shall: (1) deliver to the borrower (or if there are two or more borrowers to one of them) at the time any loan is made a statement making the disclosures and furnishing the information required by the federal Truth-in-Lending Act, United States Code, title 15, sections 1601 to 1667e, […]

Section 56.15 — Charges.

56.15 CHARGES. Subdivision 1. Limitation. No licensee shall directly or indirectly, charge, contract for, or receive any interest, discount, charges, or consideration greater than the lender would be permitted by law to charge if the lender were not a licensee hereunder upon the loan, use or forbearance of money, goods, or things in action, or […]

Section 56.155 — Insurance In Connection With Loan.

56.155 INSURANCE IN CONNECTION WITH LOAN. Subdivision 1. Authorization. Notwithstanding section 47.59 to the contrary, no licensee shall, directly or indirectly, sell or offer for sale any insurance in connection with any loan made under this chapter except as and to the extent authorized by this section. The sale of credit life, credit accident and […]

Section 56.16 — Overages Deemed Interest.

56.16 OVERAGES DEEMED INTEREST. The payment of money, credit, goods, or things in action, as consideration for any sale or assignment of, or order for, the payment of wages, salary, commissions, or other compensation for services, whether earned or to be earned, shall, for the purposes of regulation under this chapter, be deemed a loan […]