1.1.................... moves to amend H.F. No. 1195 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 47.59, subdivision 6, is amended to read:
1.4    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial
1.5institution" includes a person described in subdivision 4, paragraph (a). In addition to the
1.6finance charges permitted by this section, a financial institution may contract for and
1.7receive the following additional charges that may be included in the principal amount
1.8of the loan or credit sale unpaid balances:
1.9(1) official fees and taxes;
1.10(2) charges for insurance as described in paragraph (b);
1.11(3) with respect to a loan or credit sale contract secured by real estate, the following
1.12"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
1.13circumvention or evasion of this section:
1.14(i) fees or premiums for title examination, abstract of title, title insurance, surveys,
1.15or similar purposes;
1.16(ii) fees for preparation of a deed, mortgage, settlement statement, or other
1.17documents, if not paid to the financial institution;
1.18(iii) escrows for future payments of taxes, including assessments for improvements,
1.19insurance, and water, sewer, and land rents;
1.20(iv) fees for notarizing deeds and other documents;
1.21(v) appraisal and credit report fees; and
1.22(vi) fees for determining whether any portion of the property is located in a flood
1.23zone and fees for ongoing monitoring of the property to determine changes, if any,
1.24in flood zone status;
1.25(4) a delinquency charge on a payment, including the minimum payment due in
1.26connection with open-end credit, not paid in full on or before the tenth day after its due
2.1date in an amount not to exceed five percent of the amount of the payment or $5.20,
2.2whichever is greater;
2.3(5) for a returned check or returned automatic payment withdrawal request, an
2.4amount not in excess of the service charge limitation in section 604.113, except that, on
2.5a loan transaction that is a consumer small loan as defined in section 47.60, subdivision
2.61, paragraph (a), in which cash is advanced in exchange for a personal check, the civil
2.7penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded
2.8or assessed against the borrower ; and
2.9(6) charges for other benefits, including insurance, conferred on the borrower that
2.10are of a type that is not for credit; and
2.11(7) except on an unsecured loan transaction that is either a "consumer small loan"
2.12as defined in section 47.60, subdivision 1, paragraph (a), or a loan transaction that is a
2.13"consumer short-term loan" as defined in section 47.601, subdivision 1, paragraph (d),
2.14such other fees and charges as may be contracted for between a licensee and a borrower,
2.15including without limitation, application fees, underwriting fees, processing fees, service
2.16fees, and storage fees.
2.17(b) An additional charge may be made for insurance written in connection with the
2.18loan or credit sale contract, which may be included in the principal amount of the loan or
2.19credit sale unpaid balances:
2.20(1) with respect to insurance against loss of or damage to property, or against
2.21liability arising out of the ownership or use of property, if the financial institution furnishes
2.22a clear, conspicuous, and specific statement in writing to the borrower setting forth the
2.23cost of the insurance if obtained from or through the financial institution and stating that
2.24the borrower may choose the person through whom the insurance is to be obtained;
2.25(2) with respect to credit insurance or mortgage insurance providing life, accident,
2.26health, or unemployment coverage, if the insurance coverage is not required by the
2.27financial institution, and this fact is clearly and conspicuously disclosed in writing to
2.28the borrower, and the borrower gives specific, dated, and separately signed affirmative
2.29written indication of the borrower's desire to do so after written disclosure to the borrower
2.30of the cost of the insurance; and
2.31(3) with respect to the vendor's single interest insurance, but only (i) to the extent
2.32that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
2.33the insurance does not duplicate the coverage of other insurance under which loss is
2.34payable to the financial institution as its interest may appear, against loss of or damage
2.35to property for which a separate charge is made to the borrower according to clause (1);
2.36and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
3.1financial institution to the borrower setting forth the cost of the insurance if obtained from
3.2or through the financial institution and stating that the borrower may choose the person
3.3through whom the insurance is to be obtained.
3.4(c) In addition to the finance charges and other additional charges permitted by
3.5this section, a financial institution may contract for and receive the following additional
3.6charges in connection with open-end credit, which may be included in the principal
3.7amount of the loan or balance upon which the finance charge is computed:
3.8(1) annual charges, not to exceed $50 per annum, payable in advance, for the
3.9privilege of opening and maintaining open-end credit;
3.10(2) charges for the use of an automated teller machine;
3.11(3) charges for any monthly or other periodic payment period in which the borrower
3.12has exceeded or, except for the financial institution's dishonor would have exceeded,
3.13the maximum approved credit limit, in an amount not in excess of the service charge
3.14permitted in section 604.113;
3.15(4) charges for obtaining a cash advance in an amount not to exceed the service
3.16charge permitted in section 604.113; and
3.17(5) charges for check and draft copies and for the replacement of lost or stolen
3.18credit cards.
3.19(d) In addition to the finance charges and other additional charges permitted by this
3.20section, a financial institution may contract for and receive a onetime loan administrative
3.21fee not exceeding $25 in connection with closed-end credit, which may be included in the
3.22principal balance upon which the finance charge is computed. This paragraph applies only
3.23to closed-end credit in an original principal amount of $4,320 or less. The determination
3.24of an original principal amount must exclude the administrative fee contracted for and
3.25received according to this paragraph."
3.26Delete the title and insert:
3.28relating to commerce; authorizing the imposition of certain fees and charges in
3.29connection with certain loan transactions; amending Minnesota Statutes 2010,
3.30section 47.59, subdivision 6."