1.1.................... moves to amend H.F. No. 3170 as follows:
1.2Page 2, delete section 3 and insert:

1.3    "Sec. 3. Minnesota Statutes 2008, section 47.60, subdivision 2, is amended to read:
1.4    Subd. 2. Authorization, terms, conditions, and prohibitions Interest rates and
1.5fees. (a) In lieu of the interest, finance charges, or fees in any other law, a consumer small
1.6loan lender may charge the following On any loan, whether closed-end or open-end, a
1.7lender may charge no more than:
1.8(1) $5.50 on any loan amount up to and including $50, a charge of $5.50 may be
1.9added;
1.10(2) on amounts in excess of $50, but not more than $100, a charge may be added
1.11equal to interest of up to ten percent of the loan proceeds amount, plus a $5 administrative
1.12fee, on loan amounts in excess of $50 but not more than $100;
1.13(3) on amounts in excess of $100, but not more than $250, a charge may be added
1.14equal to interest of up to seven percent of the loan proceeds amount with a minimum of
1.15$10, plus a $5 administrative fee, on loan amounts in excess of $100 but not more than
1.16$250;
1.17(4) for amounts in excess of $250 and not greater than the maximum in subdivision
1.181, paragraph (a), a charge may be added equal to interest of up to six percent of the loan
1.19proceeds amount with a minimum of $17.50, plus a $5 administrative fee, on loan amounts
1.20in excess of $250 but not more than $499.
1.21(b) The term of a loan made under this section shall be for no more than 30
1.22calendar days. A lender authorized to lend under section 47.59 may charge no more for
1.23a closed-end loan than:
1.24(1) interest of up to six percent of the loan amount on loan amounts in excess of
1.25$499 but not more than $599;
1.26(2) interest of up to five percent of the loan amount on loan amounts of $600 or more
1.27but not more than $699;
2.1(3) interest of up to four percent of the loan amount on loan amounts of $700 or
2.2more but not more than $1,000.
2.3(c) A lender authorized to lend under section 47.59 may charge no more for an
2.4open-end loan in excess of $499 but not more than $1,000 than an interest charge seven
2.5percent of the loan proceeds, plus an administrative charge of $5.
2.6(d) After maturity, the contract rate must not exceed 2.75 percent per month of the
2.7remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
2.8rate in the contract for each calendar day the balance is outstanding.
2.9(d) No insurance charges or other charges must be permitted to be charged, collected,
2.10or imposed on a consumer small loan except as authorized in this section.
2.11(e) On a loan transaction in which cash is advanced in exchange for a personal
2.12check, a return check charge may be charged as authorized by section 604.113, subdivision
2.132 , paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
2.14(b), may not be demanded or assessed against the borrower.
2.15(f) A loan made under this section must not be repaid by the proceeds of another
2.16loan made under this section by the same lender or related interest. The proceeds from a
2.17loan made under this section must not be applied to another loan from the same lender or
2.18related interest. No loan to a single borrower made pursuant to this section shall be split or
2.19divided and no single borrower shall have outstanding more than one loan with the result
2.20of collecting a higher charge than permitted by this section or in an aggregate amount of
2.21principal exceed at any one time the maximum of $350.
2.22EFFECTIVE DATE.This section is effective August 1, 2010, and applies to loans
2.23made on or after that date."
2.24Page 6, delete section 7 and insert:

2.25    "Sec. 7. Minnesota Statutes 2008, section 53.05, is amended to read:
2.2653.05 POWERS, LIMITATION.
2.27No industrial loan and thrift company may do any of the following:
2.28(1) carry demand banking accounts; use the word "savings" unless the institution's
2.29investment certificates, savings accounts, and savings deposits are insured by the Federal
2.30Deposit Insurance Corporation and then only if the word is not followed by the words
2.31"and loan" in its corporate name; use the word "bank" or "banking" in its corporate name;
2.32operate as a savings bank;
2.33(2) have outstanding at any one time certificates of indebtedness, savings accounts,
2.34and savings deposits 30 times the sum of capital stock and surplus of the company;
3.1(3) accept trusts, except as provided in section 47.75, subdivision 1, or act as
3.2guardian, administrator, or judicial trustee in any form;
3.3(4) deposit any of its funds in any banking corporation, unless that corporation has
3.4been designated by vote of a majority of directors or of the executive committee present at
3.5a meeting duly called, at which a quorum was in attendance;
3.6(5) change any allocation of capital made pursuant to section 53.03 or reduce or
3.7withdraw in any way any portion of the capital stock and surplus without prior written
3.8approval of the commissioner of commerce;
3.9(6) take any instrument in which blanks are left to be filled in after execution;
3.10(7) lend money in excess of 20 percent of the total of its capital stock and surplus at
3.11all its authorized locations to a person primarily liable. Companies not issuing investment
3.12certificates of indebtedness under section 53.04 need not comply with the requirement if
3.13the amount of money lent does not exceed $100,000 of principal as defined by section
3.1447.59, subdivision 1 , paragraph (p).
3.15However, industrial loan and thrift companies with deposit liabilities must comply
3.16with the provisions of section 48.24; or
3.17(8) issue cashier's checks pursuant to section 48.151, unless and at all times the
3.18aggregate liability to all creditors on these instruments is protected by a special fund in
3.19cash or due from banks to be used solely for payment of the cashier's checks; or
3.20(9) make a consumer short-term loan, as defined under section 47.601:
3.21(i) that exceeds the interest, fees, or charges allowable under section 47.60,
3.22subdivision 2;
3.23(ii) the proceeds of which are repaid by the proceeds of another consumer short-term
3.24loan or by the proceeds of a consumer small loan made under section 47.60, by that
3.25individual loan and thrift company or an affiliate;
3.26(iii) the proceeds of which are applied to another consumer short-term loan or to a
3.27consumer small loan made under section 47.60, by that individual loan and thrift company
3.28or an affiliate;
3.29(iv) which is repaid by the proceeds of another consumer short-term loan or of a
3.30consumer loan made under section 47.60, by that individual loan and thrift company or
3.31an affiliate; or
3.32(v) which is split or divided such that a borrower will have outstanding more than one
3.33loan, resulting in the lender collecting a higher charge than permitted under section 47.60.
3.34EFFECTIVE DATE.This section is effective August 1, 2010, and applies to loans
3.35made on or after that date."