Bill Text: MN HF2227 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: State bank closures for holidays clarified, state bank lending limits changed to comply with federal law, and obsolete language repealed relating to deposits payable on demand.
Sponsorship: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced - Dead) 2012-03-20 - HF indefinitely postponed [HF2227 Detail]
Download: Minnesota-2011-HF2227-Engrossed.html
1.2relating to financial institutions; clarifying state bank closures for holidays;
1.3making changes in state bank lending limits to comply with federal law;
1.4repealing obsolete language relating to deposits payable on demand;amending
1.5Minnesota Statutes 2010, sections 47.015, subdivision 2; 48.24, subdivision 1;
1.6repealing Minnesota Statutes 2010, sections 48.50; 48.51.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 47.015, subdivision 2, is amended to read:
1.9 Subd. 2. Saturday; Monday following holiday. Any financial institution in the
1.10state may remain closed on anySaturday and on any Monday next following a Sunday
1.11on which falls a holiday designated by any law of this state and on any Saturday next
1.12following a Friday holiday or preceding a Sunday or Monday holiday. Any such Saturday
1.13or any such Monday on which any financial institution remains closed is a holiday and
1.14not a business day with respect to that institution. Any act which by law or contract may
1.15be performed on any such Saturday or any such Monday, at, by, or with respect to any
1.16such financial institution remaining closed on such day may be performed on the next
1.17succeeding regular business day. No liability or loss of rights on the part of any person or
1.18financial institution shall result from such closing.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.20 Sec. 2. Minnesota Statutes 2010, section 48.24, subdivision 1, is amended to read:
1.21 Subdivision 1. Total liabilities of any individual. The total liabilities to any such
1.22bank, as principal, guarantor or endorser of any individual, including the liabilities of
1.23any corporation or limited liability company in which the individual owns or controls a
1.24majority interest, any partnership, unincorporated association, limited liability company,
2.1or corporation, including the liabilities of the several members of an unincorporated
2.2association and including the liabilities of the general partners but not the limited
2.3partners of a partnership, and in case of a corporation or limited liability company, of
2.4all subsidiaries thereof in which such corporation or limited liability company owns or
2.5controls a majority interest, shall never exceed 20 percent ofits the bank's capital actually
2.6paid in cash and of its actual surplus fund, except that obligations not to exceed 25 percent
2.7of said capital and surplus to any one borrower shall not be included as liabilities for the
2.8purposes of this section, but shall be liabilities of the borrowers, provided they are secured
2.9by not less than a like amount of any one of the various types of obligations of the United
2.10States or which are fully guaranteed as to principal and interest by the United States, and
2.11providing that such bonds or obligations have a market value of at least ten percent in
2.12excess of the amount loaned thereon at the time each loan is made.
2.13Liabilities include any credit exposure to an individual arising from a derivative
2.14transaction. The term "derivative transaction" includes any transaction that is a contract,
2.15agreement, swap, or note that is based, in whole or in part, on the value of, any interest
2.16in, or any quantitative measure or the occurrence of any event relating to, one or more
2.17currencies, interest or other rates, or interest rate indices, and that is subject to regulation
2.18by the commissioner of commerce.
2.19For the purpose of this section the members of a family living together in one
2.20household, if borrowed funds are to be used in the conduct of a common enterprise, shall
2.21be regarded as one person and the total liabilities of the members of the family shall be
2.22limited as herein provided. The endorser or guarantor of any obligation which is exempt
2.23from loaning limits according to the provisions of this section shall also be exempt from
2.24such loaning limits to the extent of the amount of liability on such obligations for the
2.25purposes of this section but shall be liable thereon. Individual extensions of credit which
2.26result in liabilities of individuals, corporations, or limited liability companies exceeding
2.27the limitations set forth in this section shall be construed to conform to the provisions of
2.28this subdivision upon reduction in an amount sufficient to reduce the total liability to not
2.29more than the legal amount, but until paid in full shall not exempt the officer or employee
2.30of the bank from being personally liable to the bank for the amount of the original excess
2.31portion of the loan as set forth in subdivision 8.
2.32EFFECTIVE DATE.This section is effective January 21, 2013.
2.33 Sec. 3. REPEALER; OBSOLETE LAWS RELATING TO DEMAND DEPOSITS.
2.34Minnesota Statutes 2010, sections 48.50; and 48.51, are repealed.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.
1.3making changes in state bank lending limits to comply with federal law;
1.4repealing obsolete language relating to deposits payable on demand;amending
1.5Minnesota Statutes 2010, sections 47.015, subdivision 2; 48.24, subdivision 1;
1.6repealing Minnesota Statutes 2010, sections 48.50; 48.51.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 47.015, subdivision 2, is amended to read:
1.9 Subd. 2. Saturday; Monday following holiday. Any financial institution in the
1.10state may remain closed on any
1.11on which falls a holiday designated by any law of this state and on any Saturday next
1.12following a Friday holiday or preceding a Sunday or Monday holiday. Any such Saturday
1.13or any such Monday on which any financial institution remains closed is a holiday and
1.14not a business day with respect to that institution. Any act which by law or contract may
1.15be performed on any such Saturday or any such Monday, at, by, or with respect to any
1.16such financial institution remaining closed on such day may be performed on the next
1.17succeeding regular business day. No liability or loss of rights on the part of any person or
1.18financial institution shall result from such closing.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.20 Sec. 2. Minnesota Statutes 2010, section 48.24, subdivision 1, is amended to read:
1.21 Subdivision 1. Total liabilities of any individual. The total liabilities to any such
1.22bank, as principal, guarantor or endorser of any individual, including the liabilities of
1.23any corporation or limited liability company in which the individual owns or controls a
1.24majority interest, any partnership, unincorporated association, limited liability company,
2.1or corporation, including the liabilities of the several members of an unincorporated
2.2association and including the liabilities of the general partners but not the limited
2.3partners of a partnership, and in case of a corporation or limited liability company, of
2.4all subsidiaries thereof in which such corporation or limited liability company owns or
2.5controls a majority interest, shall never exceed 20 percent of
2.6paid in cash and of its actual surplus fund, except that obligations not to exceed 25 percent
2.7of said capital and surplus to any one borrower shall not be included as liabilities for the
2.8purposes of this section, but shall be liabilities of the borrowers, provided they are secured
2.9by not less than a like amount of any one of the various types of obligations of the United
2.10States or which are fully guaranteed as to principal and interest by the United States, and
2.11providing that such bonds or obligations have a market value of at least ten percent in
2.12excess of the amount loaned thereon at the time each loan is made.
2.13Liabilities include any credit exposure to an individual arising from a derivative
2.14transaction. The term "derivative transaction" includes any transaction that is a contract,
2.15agreement, swap, or note that is based, in whole or in part, on the value of, any interest
2.16in, or any quantitative measure or the occurrence of any event relating to, one or more
2.17currencies, interest or other rates, or interest rate indices, and that is subject to regulation
2.18by the commissioner of commerce.
2.19For the purpose of this section the members of a family living together in one
2.20household, if borrowed funds are to be used in the conduct of a common enterprise, shall
2.21be regarded as one person and the total liabilities of the members of the family shall be
2.22limited as herein provided. The endorser or guarantor of any obligation which is exempt
2.23from loaning limits according to the provisions of this section shall also be exempt from
2.24such loaning limits to the extent of the amount of liability on such obligations for the
2.25purposes of this section but shall be liable thereon. Individual extensions of credit which
2.26result in liabilities of individuals, corporations, or limited liability companies exceeding
2.27the limitations set forth in this section shall be construed to conform to the provisions of
2.28this subdivision upon reduction in an amount sufficient to reduce the total liability to not
2.29more than the legal amount, but until paid in full shall not exempt the officer or employee
2.30of the bank from being personally liable to the bank for the amount of the original excess
2.31portion of the loan as set forth in subdivision 8.
2.32EFFECTIVE DATE.This section is effective January 21, 2013.
2.33 Sec. 3. REPEALER; OBSOLETE LAWS RELATING TO DEMAND DEPOSITS.
2.34Minnesota Statutes 2010, sections 48.50; and 48.51, are repealed.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.
