1.1    .................... moves to amend H. F. No. 1225 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2006, section 13C.01, is amended by adding a
1.6subdivision to read:
1.7    Subd. 3. Sale of certain information prohibited. A consumer reporting agency or
1.8any other business entity may not sell to, or exchange with, a third party, unless the third
1.9party holds an existing mortgage loan on the property, the existence of a credit inquiry
1.10arising from a consumer mortgage loan application. This subdivision does not apply
1.11to information provided by a mortgage originator or servicer to a third party providing
1.12services in connection with the mortgage loan origination or servicing; a proposed or
1.13actual securitization; secondary market sale, including sales of servicing rights; or similar
1.14transaction related to the consumer mortgage loan. For purposes of this subdivision, "third
1.15party" does not include an affiliate of the consumer reporting agency or other business
1.16entity.
1.17EFFECTIVE DATE.This section is effective August 1, 2007.

1.18    Sec. 2. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:
1.19    Subdivision 1. Residential mortgage originator licensing requirements. (a)
1.20Beginning August 1, 1999, No person shall act as a residential mortgage originator, or
1.21make residential mortgage loans without first obtaining a license from the commissioner
1.22according to the licensing procedures provided in this chapter.
1.23    (b) A licensee must be either a partnership, limited liability partnership, association,
1.24limited liability company, corporation, or other form of business organization, and must
1.25have and maintain at all times one of the following: (1) approval as a mortgagee by
1.26either the federal Department of Housing and Urban Development or the Federal National
2.1Mortgage Association; (2) a minimum net worth, net of intangibles, of at least $250,000;
2.2or (3) a surety bond or irrevocable letter of credit in the amount of $100,000. Net worth,
2.3net of intangibles, must be calculated in accordance with generally accepted accounting
2.4principles.
2.5    (c) The following persons are exempt from the residential mortgage originator
2.6licensing requirements:
2.7    (1) an employee of one mortgage originator licensee or one person holding a
2.8certificate of exemption;
2.9    (2) a person licensed as a real estate broker under chapter 82 who is not licensed to
2.10another real estate broker;
2.11    (3) an individual real estate licensee who is licensed to a real estate broker as
2.12described in clause (2) if:
2.13    (i) the individual licensee acts only under the name, authority, and supervision of the
2.14broker to whom the licensee is licensed;
2.15    (ii) the broker to whom the licensee is licensed obtains a certificate of exemption
2.16according to section 58.05, subdivision 2;
2.17    (iii) the broker does not collect an advance fee for its residential mortgage-related
2.18activities; and
2.19    (iv) the residential mortgage origination activities are incidental to the real estate
2.20licensee's primary activities as a real estate broker or salesperson;
2.21    (4) an individual licensed as a property/casualty or life/health insurance agent under
2.22chapter 60K if:
2.23    (i) the insurance agent acts on behalf of only one residential mortgage originator,
2.24which is in compliance with chapter 58;
2.25    (ii) the insurance agent has entered into a written contract with the mortgage
2.26originator under the terms of which the mortgage originator agrees to accept responsibility
2.27for the insurance agent's residential mortgage-related activities;
2.28    (iii) the insurance agent obtains a certificate of exemption under section 58.05,
2.29subdivision 2 ; and
2.30    (iv) the insurance agent does not collect an advance fee for the insurance agent's
2.31residential mortgage-related activities;
2.32    (5) (1) a person who is not in the business of making residential mortgage loans and
2.33who makes no more than three such loans, with its own funds, during any 12-month period;
2.34    (6) (2) a financial institution as defined in section 58.02, subdivision 10;
2.35    (7) (3) an agency of the federal government, or of a state or municipal government;
2.36    (8) (4) an employee or employer pension plan making loans only to its participants;
3.1    (9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
3.2of a specific order issued by a court of competent jurisdiction; or
3.3    (10) (6) a person exempted by order of the commissioner.

3.4    Sec. 3. Minnesota Statutes 2006, section 58.04, subdivision 2, is amended to read:
3.5    Subd. 2. Residential mortgage servicer licensing requirements. (a) Beginning
3.6August 1, 1999, No person shall engage in activities or practices that fall within the
3.7definition of "servicing a residential mortgage loan" under section 58.02, subdivision
3.822 , without first obtaining a license from the commissioner according to the licensing
3.9procedures provided in this chapter.
3.10    (b) The following persons are exempt from the residential mortgage servicer
3.11licensing requirements:
3.12    (1) a person licensed as a residential mortgage originator;
3.13    (2) an employee of one licensee or one person holding a certificate of exemption
3.14based on an exemption under this subdivision;
3.15    (3) (2) a person servicing loans made with its own funds, if no more than three such
3.16loans are made in any 12-month period;
3.17    (4) (3) a financial institution as defined in section 58.02, subdivision 10;
3.18    (5) (4) an agency of the federal government, or of a state or municipal government;
3.19    (6) (5) an employee or employer pension plan making loans only to its participants;
3.20    (7) (6) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
3.21of a specific order issued by a court of competent jurisdiction; or
3.22    (8) (7) a person exempted by order of the commissioner.

3.23    Sec. 4. Minnesota Statutes 2006, section 58.05, is amended to read:
3.2458.05 EXEMPTIONS FROM LICENSE.
3.25    Subdivision 1. Exempt person. An exempt person as defined by section 58.04,
3.26subdivision 1 , paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the
3.27licensing requirements of this chapter, but is subject to all other provisions of this chapter.
3.28    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption
3.29from the commissioner to qualify as an exempt person under section 58.04, subdivision
3.301 , paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under
3.31clause (4), a financial institution under clause (6) (2), or by order of the commissioner
3.32under clause (10) (6); or under section 58.04, subdivision 2, paragraph (b), as a financial
3.33institution under clause (4) (3), or by order of the commissioner under clause (8) (7).

3.34    Sec. 5. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:
4.1    Subd. 2. Application contents. (a) The application must contain the name and
4.2complete business address or addresses of the license applicant. If The license applicant is
4.3must be a partnership, limited liability partnership, association, limited liability company,
4.4corporation, or other form of business organization, and the application must contain the
4.5names and complete business addresses of each partner, member, director, and principal
4.6officer. The application must also include a description of the activities of the license
4.7applicant, in the detail and for the periods the commissioner may require.
4.8    (b) An applicant must submit one of the following:
4.9    (1) evidence which shows, to the commissioner's satisfaction, that either the federal
4.10Department of Housing and Urban Development or the Federal National Mortgage
4.11Association has approved the applicant as a mortgagee;
4.12    (2) a surety bond or irrevocable letter of credit in the amount of not less than
4.13$100,000 in a form approved by the commissioner, issued by an insurance company
4.14or bank authorized to do so in this state. The bond or irrevocable letter of credit must
4.15be available for the recovery of expenses, fines, and fees levied by the commissioner
4.16under this chapter and for losses incurred by borrowers. The bond or letter of credit must
4.17be submitted with the license application, and evidence of continued coverage must be
4.18submitted with each renewal. Any change in the bond or letter of credit must be submitted
4.19for approval by the commissioner within ten days of its execution; or
4.20    (3) a copy of the applicant's most recent audited financial statement, including
4.21balance sheet, statement of income or loss, statements of changes in shareholder equity,
4.22and statement of changes in financial position. Financial statements must be as of a date
4.23within 12 months of the date of application.
4.24    (c) The application must also include all of the following:
4.25    (a) (1) an affirmation under oath that the applicant:
4.26    (1) will maintain competent staff and adequate staffing levels, through direct
4.27employees or otherwise, to meet the requirements of this chapter (i) is in compliance
4.28with the requirements of section 58.125;
4.29    (ii) will maintain a perpetual roster of individuals employed as residential mortgage
4.30originators, including employees and independent contractors, which includes the date that
4.31mandatory initial education was completed. In addition, the roster must be made available
4.32to the commissioner on demand, within three business days of the commissioner's request;
4.33    (2) (iii) will advise the commissioner of any material changes to the information
4.34submitted in the most recent application within ten days of the change;
4.35    (3) (iv) will advise the commissioner in writing immediately of any bankruptcy
4.36petitions filed against or by the applicant or licensee;
5.1    (4) is financially solvent (v) will maintain at all times either a net worth, net of
5.2intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the
5.3amount of at least $100,000;
5.4    (5) (vi) complies with federal and state tax laws; and
5.5    (6) (vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property
5.6law; and
5.7    (7) is, or that a person in control of the license applicant is, at least 18 years of age;
5.8    (b) (2) information as to the mortgage lending, servicing, or brokering experience
5.9of the applicant and persons in control of the applicant;
5.10    (c) (3) information as to criminal convictions, excluding traffic violations, of persons
5.11in control of the license applicant;
5.12    (d) (4) whether a court of competent jurisdiction has found that the applicant or
5.13persons in control of the applicant have engaged in conduct evidencing gross negligence,
5.14fraud, misrepresentation, or deceit in performing an act for which a license is required
5.15under this chapter;
5.16    (e) (5) whether the applicant or persons in control of the applicant have been the
5.17subject of: an order of suspension or revocation, cease and desist order, or injunctive
5.18order, or order barring involvement in an industry or profession issued by this or another
5.19state or federal regulatory agency or by the Secretary of Housing and Urban Development
5.20within the ten-year period immediately preceding submission of the application; and
5.21    (f) (6) other information required by the commissioner.

5.22    Sec. 6. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision to
5.23read:
5.24    Subd. 3. Waiver. The commissioner may, for good cause shown, waive any
5.25requirement of this section with respect to any license application or to permit a license
5.26applicant to submit substituted information in its license application in lieu of the
5.27information required by this section.

5.28    Sec. 7. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:
5.29    Subd. 3. Exemption. Subdivisions 1 and Subdivision 2 do does not apply to
5.30mortgage originators or mortgage servicers who are approved as seller/servicers by the
5.31Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

5.32    Sec. 8. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:
5.33    Subdivision 1. Amounts. The following fees must be paid to the commissioner:
5.34    (1) for an initial residential mortgage originator license, $850 $2,550, $50 of which
5.35is credited to the consumer education account in the special revenue fund;
6.1    (2) for a renewal license, $450 $1,350, $50 of which is credited to the consumer
6.2education account in the special revenue fund;
6.3    (3) for an initial residential mortgage servicer's license, $1,000;
6.4    (4) for a renewal license, $500; and
6.5    (5) for a certificate of exemption, $100.

6.6    Sec. 9. [58.115] EXAMINATIONS.
6.7    The commissioner has under this chapter the same powers with respect to
6.8examinations that the commissioner has under section 46.04, including the authority to
6.9charge for the direct costs of the examination, including travel and per diem expenses.

6.10    Sec. 10. [58.126] EDUCATION REQUIREMENT.
6.11    No individual shall engage in residential mortgage origination or make residential
6.12mortgage loans, whether as an employee or independent contractor, before the completion
6.13of 15 hours of educational training which has been approved by the commissioner, and
6.14covering state and federal laws concerning residential mortgage lending.

6.15    Sec. 11. Minnesota Statutes 2006, section 325N.01, is amended to read:
6.16325N.01 DEFINITIONS.
6.17    The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.
6.18    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes
6.19any solicitation, representation, or offer to any owner to perform for compensation or
6.20who, for compensation, performs any service which the person in any manner represents
6.21will in any manner do any of the following:
6.22    (1) stop or postpone the foreclosure sale;
6.23    (2) obtain any forbearance from any beneficiary or mortgagee;
6.24    (3) assist the owner to exercise the right of reinstatement provided in section 580.30;
6.25    (4) obtain any extension of the period within which the owner may reinstate the
6.26owner's obligation;
6.27    (5) obtain any waiver of an acceleration clause contained in any promissory note or
6.28contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;
6.29    (6) assist the owner in foreclosure or loan default to obtain a loan or advance
6.30of funds;
6.31    (7) avoid or ameliorate the impairment of the owner's credit resulting from the
6.32recording of a notice of default or the conduct of a foreclosure sale; or
6.33    (8) save the owner's residence from foreclosure.
6.34    (b) A foreclosure consultant does not include any of the following:
7.1    (1) a person licensed to practice law in this state when the person renders service
7.2in the course of his or her practice as an attorney-at-law;
7.3    (2) a person licensed as a debt prorater under sections 332.12 to 332.29, when the
7.4person is acting as a debt prorater as defined in these sections;
7.5    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the
7.6person engages in acts whose performance requires licensure under that chapter unless the
7.7person is engaged in offering services designed to, or purportedly designed to, enable the
7.8owner to retain possession of the residence in foreclosure;
7.9    (4) a person licensed as an accountant under chapter 326A when the person is acting
7.10in any capacity for which the person is licensed under those provisions;
7.11    (5) a person or the person's authorized agent acting under the express authority
7.12or written approval of the Department of Housing and Urban Development or other
7.13department or agency of the United States or this state to provide services;
7.14    (6) a person who holds or is owed an obligation secured by a lien on any residence
7.15in foreclosure when the person performs services in connection with this obligation or lien
7.16if the obligation or lien did not arise as the result of or as part of a proposed foreclosure
7.17reconveyance;
7.18    (7) any person or entity doing business under any law of this state, or of the United
7.19States relating to banks, trust companies, savings and loan associations, industrial loan and
7.20thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee
7.21which is a United States Department of Housing and Urban Development approved
7.22mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or
7.23employee of these persons or entities while engaged in the business of these persons
7.24or entities;
7.25    (8) a person licensed as a residential mortgage originator or servicer pursuant to
7.26chapter 58, when acting under the authority of that license or a foreclosure purchaser as
7.27defined in section 325N.10;
7.28    (9) a nonprofit agency or organization that offers counseling or advice to an owner
7.29of a home in foreclosure or loan default if they do not contract for services with for-profit
7.30lenders or foreclosure purchasers; and
7.31    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim
7.32accrued prior to the personal service of the foreclosure notice required by section 580.03,
7.33but excluding a person who purchased the claim after such personal service; and
7.34    (11) a foreclosure purchaser as defined in section 325N.10.
7.35    (c) "Foreclosure reconveyance" means a transaction involving:
8.1    (1) the transfer of title to real property by a foreclosed homeowner during a
8.2foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or
8.3by creation of a mortgage or other lien or encumbrance during the foreclosure process
8.4that allows the acquirer to obtain title to the property by redeeming the property as
8.5a junior lienholder; and
8.6    (2) the subsequent conveyance, or promise of a subsequent conveyance, of
8.7an interest back to the foreclosed homeowner by the acquirer or a person acting in
8.8participation with the acquirer that allows the foreclosed homeowner to possess either
8.9the residence in foreclosure or any other real property following the completion of the
8.10foreclosure proceeding, which interest includes, but is not limited to, an interest in a
8.11contract for deed, purchase agreement, option to purchase, or lease.
8.12    (d) "Person" means any individual, partnership, corporation, limited liability
8.13company, association, or other group, however organized.
8.14    (e) "Service" means and includes, but is not limited to, any of the following:
8.15    (1) debt, budget, or financial counseling of any type;
8.16    (2) receiving money for the purpose of distributing it to creditors in payment or
8.17partial payment of any obligation secured by a lien on a residence in foreclosure;
8.18    (3) contacting creditors on behalf of an owner of a residence in foreclosure;
8.19    (4) arranging or attempting to arrange for an extension of the period within which
8.20the owner of a residence in foreclosure may cure the owner's default and reinstate his or
8.21her obligation pursuant to section 580.30;
8.22    (5) arranging or attempting to arrange for any delay or postponement of the time of
8.23sale of the residence in foreclosure;
8.24    (6) advising the filing of any document or assisting in any manner in the preparation
8.25of any document for filing with any bankruptcy court; or
8.26    (7) giving any advice, explanation, or instruction to an owner of a residence in
8.27foreclosure, which in any manner relates to the cure of a default in or the reinstatement
8.28of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of
8.29that obligation, or the postponement or avoidance of a sale of a residence in foreclosure,
8.30pursuant to a power of sale contained in any mortgage.
8.31    (f) "Residence in foreclosure" means residential real property consisting of one to
8.32four family dwelling units, one of which the owner occupies as his or her principal place
8.33of residence, and against which there is an outstanding notice of pendency of foreclosure,
8.34recorded pursuant to section 580.032, or against which a summons and complaint has been
8.35served under chapter 581 where there is a delinquency or default on any loan payment
9.1or debt secured by or attached to the residential real property including, but not limited
9.2to, contract for deed payments.
9.3    (g) "Owner" means the record owner of the residential real property in foreclosure at
9.4the time the notice of pendency was recorded, or the summons and complaint served.
9.5    (h) "Contract" means any agreement, or any term in any agreement, between
9.6a foreclosure consultant and an owner for the rendition of any service as defined in
9.7paragraph (e).

9.8    Sec. 12. Minnesota Statutes 2006, section 325N.03, is amended to read:
9.9325N.03 CONTRACT.
9.10    (a) Every contract must be in writing and must fully disclose the exact nature of the
9.11foreclosure consultant's services and the total amount and terms of compensation.
9.12    (b) The following notice, printed in at least 14-point boldface type and completed
9.13with the name of the foreclosure consultant, must be printed immediately above the
9.14statement required by paragraph (c):

9.16 9.17		......................... (Name) or anyone working for him or her CANNOT:
9.18 9.19 9.20 9.21		(1) Take any money from you or ask you for money until ....................... (Name) has completely finished doing everything he or she said he or she would do; and
9.22 9.23		(2) Ask you to sign or have you sign any lien, mortgage, or deed."

9.24    (c) The contract must be written in the same language as principally used by the
9.25foreclosure consultant to describe his or her services or to negotiate the contract, must
9.26be dated and signed by the owner, and must contain in immediate proximity to the space
9.27reserved for the owner's signature a conspicuous statement in a size equal to at least
9.2810-point boldface type, as follows:
9.29"You, the owner, may cancel this transaction at any time prior to midnight of the
9.30third business day after the date of this transaction. See the attached notice of
9.31cancellation form for an explanation of this right."
9.32    (d) The notice of cancellation must contain, and the contract must contain on the
9.33first page, in a type size no smaller than that generally used in the body of the document,
9.34each of the following:
9.35    (1) the name and physical address of the foreclosure consultant to which the
9.36notice of cancellation is to be mailed or otherwise delivered. A post office box does not
9.37constitute a physical address. A post office box may be designated for delivery by mail
9.38only if it is accompanied by a physical address at which the notice could be delivered by a
10.1method other than mail. An e-mail address may be included, in addition to the physical
10.2address; and
10.3    (2) the date the owner signed the contract.
10.4    (e) Cancellation occurs when the foreclosed homeowner delivers, by any means,
10.5written notice of cancellation to the address specified in the contract. If cancellation is
10.6mailed, delivery is effective upon mailing. If e-mailed, cancellation is effective upon
10.7transmission. The contract must be accompanied by a completed form in duplicate,
10.8captioned "notice of cancellation," which must be attached to the contract, must be easily
10.9detachable, and must contain in at least 10-point type the following statement written in
10.10the same language as used in the contract:

10.12
10.13		(Enter date of transaction) (Date)
10.14 10.15 10.16		You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
10.17 10.18 10.19 10.20 10.21		To cancel this transaction, you may use any of the following methods: (1) mail or otherwise deliver a signed and dated copy of this cancellation notice, or any other written notice of cancellation; or (2) e-mail a notice of cancellation
10.22		to
10.23		(Name of foreclosure consultant)
10.24		at
10.25 10.26		(Physical address of foreclosure consultant's place of business)
10.27
10.28 10.29		(E-mail address of foreclosure consultant's place of business)
10.30		NOT LATER THAN MIDNIGHT OF
10.31		(Date)
10.32		I hereby cancel this transaction
10.33		(Date)
10.34
10.35		(Owner's signature)"

10.36    (f) The foreclosure consultant shall provide the owner with a copy of the contract
10.37and the attached notice of cancellation immediately upon execution of the contract.
10.38    (g) The three business days during which the owner may cancel the contract shall
10.39not begin to run until the foreclosure consultant has complied with this section.

10.40    Sec. 13. Minnesota Statutes 2006, section 325N.04, is amended to read:
10.41325N.04 VIOLATIONS.
10.42    It is a violation for a foreclosure consultant to:
11.1    (1) claim, demand, charge, collect, or receive any compensation until after the
11.2foreclosure consultant has fully performed each and every service the foreclosure
11.3consultant contracted to perform or represented he or she would perform;
11.4    (2) claim, demand, charge, collect, or receive any fee, interest, or any other
11.5compensation for any reason which exceeds eight percent per annum of the amount of
11.6any loan which the foreclosure consultant may make to the owner. Such a loan must not,
11.7as provided in clause (3), be secured by the residence in foreclosure or any other real or
11.8personal property;
11.9    (3) take any wage assignment, any lien of any type on real or personal property, or
11.10other security to secure the payment of compensation. Any such security is void and
11.11unenforceable;
11.12    (4) receive any consideration from any third party in connection with services
11.13rendered to an owner unless the consideration is first fully disclosed to the owner;
11.14    (5) acquire any interest, directly or indirectly, or by means of a subsidiary or affiliate
11.15in a residence in foreclosure from an owner with whom the foreclosure consultant has
11.16contracted;
11.17    (6) take any power of attorney from an owner for any purpose, except to inspect
11.18documents as provided by law; or
11.19    (7) induce or attempt to induce any owner to enter a contract which does not comply
11.20in all respects with sections 325N.02 and 325N.03.

11.21    Sec. 14. Minnesota Statutes 2006, section 325N.10, subdivision 3, is amended to read:
11.22    Subd. 3. Foreclosure reconveyance. "Foreclosure reconveyance" means a
11.23transaction involving:
11.24    (1) the transfer of title to real property by a foreclosed homeowner during a
11.25foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or
11.26by creation of a mortgage or other lien or encumbrance during the foreclosure process
11.27that allows the acquirer to obtain title to the property by redeeming the property as
11.28a junior lienholder; and
11.29    (2) the subsequent conveyance, or promise of a subsequent conveyance, of
11.30an interest back to the foreclosed homeowner by the acquirer or a person acting in
11.31participation with the acquirer that allows the foreclosed homeowner to possess either the
11.32residence in foreclosure or other real property following the completion of the foreclosure
11.33proceeding, which interest includes, but is not limited to, an interest in a contract for deed,
11.34purchase agreement, option to purchase, or lease.

11.35    Sec. 15. Minnesota Statutes 2006, section 325N.10, subdivision 4, is amended to read:
12.1    Subd. 4. Foreclosure purchaser. "Foreclosure purchaser" means a person that has
12.2acted as the acquirer in more than one a foreclosure reconveyance during any 24-month
12.3period. Foreclosure purchaser also includes a person that has acted in joint venture or joint
12.4enterprise with one or more acquirers in more than one a foreclosure reconveyance during
12.5any 24-month period. A foreclosure purchaser does not include: (i) a natural person
12.6who shows that the natural person is not in the business of foreclosure purchasing and
12.7has a prior personal relationship with the foreclosed homeowner, or (ii) a federal or state
12.8chartered bank, savings bank, thrift, or credit union is not a foreclosure purchaser.

12.9    Sec. 16. Minnesota Statutes 2006, section 325N.10, is amended by adding a
12.10subdivision to read:
12.11    Subd. 7. Residence in foreclosure. "Residence in foreclosure" means residential
12.12real property consisting of one to four family dwelling units, one of which the owner
12.13occupies as the owner's principal place of residence, where there is a delinquency or
12.14default on any loan payment or debt secured by or attached to the residential real property,
12.15including, but not limited to, contract for deed payments.

12.16    Sec. 17. Minnesota Statutes 2006, section 325N.13, is amended to read:
12.17325N.13 CONTRACT CANCELLATION.
12.18    (a) In addition to any other right of rescission, the foreclosed homeowner has
12.19the right to cancel any contract with a foreclosure purchaser until midnight of the fifth
12.20business day following the day on which the foreclosed homeowner signs a contract that
12.21complies with sections 325N.10 to 325N.15 or until 8:00 a.m. on the last day of the period
12.22during which the foreclosed homeowner has a right of redemption, whichever occurs first.
12.23    (b) Cancellation occurs when the foreclosed homeowner delivers, by any means,
12.24written notice of cancellation to the address specified in the contract, provided that, at a
12.25minimum, the contract and the notice of cancellation must contain a physical address to
12.26which notice of cancellation may be mailed or otherwise delivered. A post office box may
12.27be designated for delivery by mail only if it is accompanied by a physical address at which
12.28the notice could be delivered by a method other than mail. An e-mail address may be
12.29provided in addition to the physical address. If cancellation is mailed, delivery is effective
12.30upon mailing. If e-mailed, cancellation is effective upon transmission.
12.31    (c) A notice of cancellation given by the foreclosed homeowner need not take the
12.32particular form as provided with the contract.
12.33    (d) Within ten days following receipt of a notice of cancellation given in accordance
12.34with this section, the foreclosure purchaser shall return without condition any original
12.35contract and any other documents signed by the foreclosed homeowner.

13.1    Sec. 18. Minnesota Statutes 2006, section 325N.14, is amended to read:
13.2325N.14 NOTICE OF CANCELLATION.
13.3    (a) The contract must contain in immediate proximity to the space reserved for the
13.4foreclosed homeowner's signature a conspicuous statement in a size equal to at least
13.514-point boldface type, if the contract is printed, or in capital letters, if the contract is
13.6typed, as follows:

13.7 13.8 13.9		"You may cancel this contract for the sale of your house without any penalty or obligation at any time before
13.10
13.11		(Date and time of day)
13.12 13.13		See the attached notice of cancellation form for an explanation of this right."

13.14The foreclosure purchaser shall accurately enter the date and time of day on which the
13.15cancellation right ends.
13.16    (b) The contract must be accompanied by a completed form in duplicate, captioned
13.17"notice of cancellation" in a size equal to a 12-point boldface type if the contract is
13.18printed, or in capital letters, if the contract is typed, followed by a space in which the
13.19foreclosure purchaser shall enter the date on which the foreclosed homeowner executes
13.20any the contract. This form must be attached to the contract, must be easily detachable,
13.21and must contain in type of at least 10 points, if the contract is printed or in capital
13.22letters if the contract is typed, the following statement written in the same language as
13.23used in the contract:

13.25
13.26		(Enter date contract signed)
13.27 13.28 13.29		You may cancel this contract for the sale of your house, without any penalty or obligation, at any time before
13.30
13.31		(Enter date and time of day)
13.32 13.33 13.34 13.35 13.36		To cancel this transaction, personally you may use any of the following methods: (1) mail or otherwise deliver a signed and dated copy of this cancellation notice; or (2) e-mail a notice of cancellation to
13.37
13.38		(Name of purchaser)
13.39		at
13.40 13.41		(Street Physical address of purchaser's place of business)
13.42
13.43 13.44		(E-mail address of foreclosure consultant's place of business)
14.1		NOT LATER THAN
14.2		(Enter date and time of day)
14.3		I hereby cancel this transaction
14.4		(Date)
14.5
14.6		(Seller's signature)"

14.7    (c) The foreclosure purchaser shall provide the foreclosed homeowner with a copy
14.8of the contract and the attached notice of cancellation at the time the contract is executed
14.9by all parties.
14.10    (d) The five business days during which the foreclosed homeowner may cancel the
14.11contract must not begin to run until all parties to the contract have executed the contract
14.12and the foreclosure purchaser has complied with this section.

14.13    Sec. 19. Minnesota Statutes 2006, section 325N.17, is amended to read:
14.14325N.17 PROHIBITED PRACTICES.
14.15    A foreclosure purchaser shall not:
14.16    (a) enter into, or attempt to enter into, a foreclosure reconveyance with a foreclosed
14.17homeowner unless:
14.18    (1) the foreclosure purchaser verifies and can demonstrate that the foreclosed
14.19homeowner has a reasonable ability to pay for the subsequent conveyance of an interest
14.20back to the foreclosed homeowner. In the case of a lease with an option to purchase,
14.21payment ability also includes the reasonable ability to make the lease payments and
14.22purchase the property within the term of the option to purchase. There is a rebuttable
14.23presumption that a homeowner is reasonably able to pay for the subsequent conveyance
14.24if the owner's payments for primary housing expenses and regular principal and interest
14.25payments on other personal debt, on a monthly basis, do not exceed 60 percent of
14.26the owner's monthly gross income. For the purposes of this section, "primary housing
14.27expenses" means the sum of payments for regular principal, interest, rent, utilities, hazard
14.28insurance, real estate taxes, and association dues. There is a rebuttable presumption that
14.29the foreclosure purchaser has not verified reasonable payment ability if the foreclosure
14.30purchaser has not obtained documents other than a statement by the foreclosed homeowner
14.31of assets, liabilities, and income;
14.32    (2) the foreclosure purchaser and the foreclosed homeowner complete a closing
14.33for any foreclosure reconveyance in which the foreclosure purchaser obtains a deed or
14.34mortgage from a foreclosed homeowner. For purposes of this section, "closing" means an
14.35in-person meeting to complete final documents incident to the sale of the real property
14.36or creation of a mortgage on the real property conducted by a closing agent, as defined
14.37in section 82.17, who is not employed by or an affiliate of the foreclosure purchaser, or
15.1employed by such an affiliate, and who does not have a business or personal relationship
15.2with the foreclosure purchaser other than the provision of real estate settlement services;
15.3    (3) the foreclosure purchaser obtains the written consent of the foreclosed
15.4homeowner to a grant by the foreclosure purchaser of any interest in the property during
15.5such times as the foreclosed homeowner maintains any interest in the property; and
15.6    (4) the foreclosure purchaser complies with the requirements of for disclosure, loan
15.7terms, and conduct in the federal Home Ownership Equity Protection Act, United States
15.8Code, title 15, section 1639, or its implementing regulation, Code of Federal Regulations,
15.9title 12, sections 226.31 to, 226.32, and 226.34, for any foreclosure reconveyance in which
15.10the foreclosed homeowner obtains a vendee interest in a contract for deed, regardless of
15.11whether the terms of the contract for deed meet the annual percentage rate or points and
15.12fees requirements for a covered loan in Code of Federal Regulations, title 12, sections
15.13226.32 (a) and (b);
15.14    (b) fail to either:
15.15    (1) ensure that title to the subject dwelling has been reconveyed to the foreclosed
15.16homeowner; or
15.17    (2) make a payment to the foreclosed homeowner such that the foreclosed
15.18homeowner has received consideration in an amount of at least 82 percent of the
15.19fair market value of the property within 150 days of either the eviction or voluntary
15.20relinquishment of possession of the dwelling by the foreclosed homeowner. The
15.21foreclosure purchaser shall make a detailed accounting of the basis for the payment
15.22amount, or a detailed accounting of the reasons for failure to make a payment,
15.23including providing written documentation of expenses, within this 150-day period. The
15.24accounting shall be on a form prescribed by the attorney general, in consultation with
15.25the commissioner of commerce, without being subject to the rulemaking procedures of
15.26chapter 14. For purposes of this provision, the following applies:
15.27    (i) there is a rebuttable presumption that an appraisal by a person licensed or certified
15.28by an agency of the federal government or this state to appraise real estate constitutes the
15.29fair market value of the property;
15.30    (ii) the time for determining the fair market value amount shall be determined in the
15.31foreclosure reconveyance contract as either at the time of the execution of the foreclosure
15.32reconveyance contract or at resale. If the contract states that the fair market value shall
15.33be determined at the time of resale, the fair market value shall be the resale price if
15.34it is sold within 120 days of the eviction or voluntary relinquishment of the property
15.35by the foreclosed homeowner. If the contract states that the fair market value shall be
15.36determined at the time of resale, and the resale is not completed within 120 days of the
16.1eviction or voluntary relinquishment of the property by the foreclosed homeowner, the fair
16.2market value shall be determined by an appraisal conducted during this 120-day period
16.3and payment, if required, shall be made to the homeowner, but the fair market value
16.4shall be recalculated as the resale price on resale and an additional payment amount, if
16.5appropriate based on the resale price, shall be made to the foreclosed homeowner within
16.615 days of resale, and a detailed accounting of the basis for the payment amount, or a
16.7detailed accounting of the reasons for failure to make additional payment, shall be made
16.8within 15 days of resale, including providing written documentation of expenses. The
16.9accounting shall be on a form prescribed by the attorney general, in consultation with
16.10the commissioner of commerce, without being subject to the rulemaking procedures
16.11of chapter 14;
16.12    (iii) "consideration" shall mean any payment or thing of value provided to the
16.13foreclosed homeowner, including unpaid rent or contract for deed payments owed by the
16.14foreclosed homeowner prior to the date of eviction or voluntary relinquishment of the
16.15property, reasonable costs paid to third parties necessary to complete the foreclosure
16.16reconveyance transaction, payment of money to satisfy a debt or legal obligation of the
16.17foreclosed homeowner, or the reasonable cost of repairs for damage to the dwelling caused
16.18by the foreclosed homeowner; or a penalty imposed by a court for the filing of a frivolous
16.19claim under section 325N.18, subdivision 6, but
16.20    (iv) "consideration" shall not include amounts imputed as a down payment or fee
16.21to the foreclosure purchaser, or a person acting in participation with the foreclosure
16.22purchaser, incident to a contract for deed, lease, or option to purchase entered into as part
16.23of the foreclosure reconveyance, except for reasonable costs paid to third parties necessary
16.24to complete the foreclosure reconveyance;
16.25    (c) enter into repurchase or lease terms as part of the subsequent conveyance that are
16.26unfair or commercially unreasonable, or engage in any other unfair conduct;
16.27    (d) represent, directly or indirectly, that:
16.28    (1) the foreclosure purchaser is acting as an advisor or a consultant, or in any other
16.29manner represents that the foreclosure purchaser is acting on behalf of the homeowner;
16.30    (2) the foreclosure purchaser has certification or licensure that the foreclosure
16.31purchaser does not have, or that the foreclosure purchaser is not a member of a licensed
16.32profession if that is untrue;
16.33    (3) the foreclosure purchaser is assisting the foreclosed homeowner to "save the
16.34house" or substantially similar phrase; or
17.1    (4) the foreclosure purchaser is assisting the foreclosed homeowner in preventing a
17.2completed foreclosure if the result of the transaction is that the foreclosed homeowner will
17.3not complete a redemption of the property;
17.4    (e) make any other statements, directly or by implication, or engage in any other
17.5conduct that is false, deceptive, or misleading, or that has the likelihood to cause confusion
17.6or misunderstanding, including, but not limited to, statements regarding the value of
17.7the residence in foreclosure, the amount of proceeds the foreclosed homeowner will
17.8receive after a foreclosure sale, any contract term, or the foreclosed homeowner's rights or
17.9obligations incident to or arising out of the foreclosure reconveyance; or
17.10    (f) do any of the following until the time during which the foreclosed homeowner
17.11may cancel the transaction has fully elapsed:
17.12    (1) accept from any foreclosed homeowner an execution of, or induce any foreclosed
17.13homeowner to execute, any instrument of conveyance of any interest in the residence
17.14in foreclosure;
17.15    (2) record with the county recorder or file with the registrar of titles any document,
17.16including but not limited to, any instrument of conveyance, signed by the foreclosed
17.17homeowner;
17.18    (3) transfer or encumber or purport to transfer or encumber any interest in
17.19the residence in foreclosure to any third party, provided no grant of any interest or
17.20encumbrance is defeated or affected as against a bona fide purchaser or encumbrance for
17.21value and without notice of a violation of sections 325N.10 to 325N.18, and knowledge
17.22on the part of any such person or entity that the property was "residential real property
17.23in foreclosure" does not constitute notice of a violation of sections 325N.10 to 325N.18.
17.24This section does not abrogate any duty of inquiry which exists as to rights or interests of
17.25persons in possession of the residential real property in foreclosure; or
17.26    (4) pay the foreclosed homeowner any consideration.

17.27    Sec. 20. Minnesota Statutes 2006, section 325N.18, is amended by adding a
17.28subdivision to read:
17.29    Subd. 6. Stay of eviction action. (a) A court hearing an eviction action against a
17.30foreclosed homeowner must issue an automatic stay, without imposition of a bond, if a
17.31defendant makes a prima facie showing that the defendant:
17.32    (1) has (i) commenced an action concerning a foreclosure reconveyance; (ii) asserts
17.33a defense under section 504B.121 that the property that is the subject of the eviction
17.34action is also the subject of a foreclosure reconveyance in violation of sections 325N.10
17.35to 325N.17; or (iii) asserts a claim or affirmative defense of fraud, false pretense, false
18.1promise, misrepresentation, misleading statement, or deceptive practice, in connection
18.2with a foreclosure reconveyance;
18.3    (2) owned the foreclosed residence;
18.4    (3) conveyed title to the foreclosed residence to a third party upon a promise that the
18.5defendant would be allowed to occupy the foreclosed residence or other real property in
18.6which the foreclosure purchaser or a person acting in participation with the foreclosure
18.7purchaser has an interest and that the foreclosed residence or other real property would be
18.8the subject of a foreclosure reconveyance; and
18.9    (4) since the conveyance, has continuously occupied the foreclosed residence or
18.10other real property in which the foreclosure purchaser or a person acting in participation
18.11with the foreclosure purchaser has an interest.
18.12    For purposes of this subdivision, notarized affidavits are acceptable means of proof
18.13to meet the defendant's burden. Upon good cause shown, a defendant may request and
18.14the court may grant up to an additional two weeks to produce evidence required to make
18.15the prima facie showing.
18.16    (b) A court may award to a plaintiff a $500 penalty upon a showing that the
18.17defendant filed a frivolous claim or asserted a frivolous defense.
18.18    (c) The automatic stay expires upon the later of:
18.19    (1) the failure of the foreclosed homeowner to commence an action in a court of
18.20competent jurisdiction in connection with a foreclosed reconveyance transaction within
18.2190 days after the issuance of the stay; or
18.22    (2) the issuance of an order lifting the stay by a court hearing claims related to the
18.23foreclosure reconveyance.
18.24    (d) If, after the expiration of the stay or an order lifting the stay, a court finds that the
18.25defendant's claim or defense was asserted in bad faith and wholly without merit, the court
18.26may impose a sanction against the defendant of $500 plus reasonable attorney fees.

18.27    Sec. 21. Laws 2004, chapter 263, section 26, is amended to read:
18.28    Sec. 26. EFFECTIVE DATE; EXPIRATION.
18.29    Sections 1 to 18, 22, 23, and 25 are effective August 1, 2004, and expire December
18.3031, 2009. Sections 19, 20, 21, and 24 are effective July 1, 2004.

18.31    Sec. 22. LICENSE RENEWAL EXTENSION.
18.32    The July 31, 2007, renewal date for mortgage originators is extended to October 30,
18.332007, because of the changes to the licensing requirements made by this act.

18.34    Sec. 23. REPEALER.
18.35Minnesota Statutes 2006, section 58.08, subdivision 1, is repealed.


19.3    Section 1. Minnesota Statutes 2006, section 58.02, is amended by adding a subdivision
19.4to read:
19.5    Subd. 27. Investment grade. When used in reference to residential mortgage loans,
19.6"investment grade" refers to a system of categorizing residential mortgage loans in which
19.7the pricing or terms are distinguished by interest rate or discount points or both charged to
19.8the borrower, which vary according to the degree of perceived risk of default based on
19.9factors such as the borrower's credit, including credit score and credit patterns, income and
19.10employment history, debt ratio, loan-to-value ratio, and prior bankruptcy or foreclosure.

19.11    Sec. 2. Minnesota Statutes 2006, section 58.02, is amended by adding a subdivision to
19.12read:
19.13    Subd. 28. Prime loan. "Prime loan" means a residential mortgage loan that is
19.14of the highest investment grade and which is commonly designated by an alphabetical
19.15character of "A."

19.16    Sec. 3. Minnesota Statutes 2006, section 58.02, is amended by adding a subdivision to
19.17read:
19.18    Subd. 29. Subprime loan. "Subprime loan" means a residential mortgage loan
19.19that is of less than the highest investment grade, and which is commonly designated by
19.20an alphabetical character of "A-" to "D."

19.21    Sec. 4. Minnesota Statutes 2006, section 58.02, is amended by adding a subdivision to
19.22read:
19.23    Subd. 30. Fully indexed rate. "Fully indexed rate" equals the index rate prevailing
19.24at the time a residential mortgage loan is originated, plus the margin that will apply after
19.25the expiration of an introductory interest rate.

19.26    Sec. 5. Minnesota Statutes 2006, section 58.13, subdivision 1, is amended to read:
19.27    Subdivision 1. Generally. (a) No person acting as a residential mortgage originator
19.28or servicer, including a person required to be licensed under this chapter, and no person
19.29exempt from the licensing requirements of this chapter under section 58.04, except as
19.30otherwise provided in paragraph (b), shall:
19.31    (1) fail to maintain a trust account to hold trust funds received in connection with a
19.32residential mortgage loan;
19.33    (2) fail to deposit all trust funds into a trust account within three business days of
19.34receipt; commingle trust funds with funds belonging to the licensee or exempt person; or
19.35use trust account funds for any purpose other than that for which they are received;
20.1    (3) unreasonably delay the processing of a residential mortgage loan application,
20.2or the closing of a residential mortgage loan. For purposes of this clause, evidence of
20.3unreasonable delay includes but is not limited to those factors identified in section 47.206,
20.4subdivision 7 , clause (d);
20.5    (4) fail to disburse funds according to its contractual or statutory obligations;
20.6    (5) fail to perform in conformance with its written agreements with borrowers,
20.7investors, other licensees, or exempt persons;
20.8    (6) charge a fee for a product or service where the product or service is not actually
20.9provided, or misrepresent the amount charged by or paid to a third party for a product
20.10or service;
20.11    (7) fail to comply with sections 345.31 to 345.60, the Minnesota unclaimed property
20.12law;
20.13    (8) violate any provision of any other applicable state or federal law regulating
20.14residential mortgage loans including, without limitation, sections 47.20 to 47.208;
20.15    (9) make or cause to be made, directly or indirectly, any false, deceptive, or
20.16misleading statement or representation in connection with a residential loan transaction
20.17including, without limitation, a false, deceptive, or misleading statement or representation
20.18regarding the borrower's ability to qualify for any mortgage product;
20.19    (10) conduct residential mortgage loan business under any name other than that
20.20under which the license or certificate of exemption was issued;
20.21    (11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
20.22the purpose of influencing the independent judgment of the appraiser with respect to the
20.23value of real estate that is to be covered by a residential mortgage or is being offered as
20.24security according to an application for a residential mortgage loan;
20.25    (12) issue any document indicating conditional qualification or conditional approval
20.26for a residential mortgage loan, unless the document also clearly indicates that final
20.27qualification or approval is not guaranteed, and may be subject to additional review;
20.28    (13) make or assist in making any residential mortgage loan with the intent that the
20.29loan will not be repaid and that the residential mortgage originator will obtain title to
20.30the property through foreclosure;
20.31    (14) provide or offer to provide for a borrower, any brokering or lending services
20.32under an arrangement with a person other than a licensee or exempt person, provided that
20.33a person may rely upon a written representation by the residential mortgage originator that
20.34it is in compliance with the licensing requirements of this chapter;
21.1    (15) claim to represent a licensee or exempt person, unless the person is an employee
21.2of the licensee or exempt person or unless the person has entered into a written agency
21.3agreement with the licensee or exempt person;
21.4    (16) fail to comply with the record keeping and notification requirements identified
21.5in section 58.14 or fail to abide by the affirmations made on the application for licensure;
21.6    (17) represent that the licensee or exempt person is acting as the borrower's agent
21.7after providing the nonagency disclosure required by section 58.15, unless the disclosure
21.8is retracted and the licensee or exempt person complies with all of the requirements of
21.9section 58.16;
21.10    (18) make, provide, or arrange for a residential mortgage loan that is of a lower
21.11investment grade if the borrower's credit score or, if the originator does not utilize credit
21.12scoring or if a credit score is unavailable, then comparable underwriting data, indicates
21.13that the borrower may qualify for a residential mortgage loan, available from or through
21.14the originator, that is of a higher investment grade, unless the borrower is informed that
21.15the borrower may qualify for a higher investment grade loan with a lower interest rate
21.16and/or lower discount points, and consents in writing to receipt of the lower investment
21.17grade loan.;
21.18    For purposes of this section, "investment grade" refers to a system of categorizing
21.19residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or
21.20"subprime"; (ii) commonly designated by an alphabetical character with "A" being the
21.21highest investment grade; and (iii) are distinguished by interest rate or discount points
21.22or both charged to the borrower, which vary according to the degree of perceived risk
21.23of default based on factors such as the borrower's credit, including credit score and
21.24credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
21.25bankruptcy or foreclosure;
21.26    (19) make, publish, disseminate, circulate, place before the public, or cause to be
21.27made, directly or indirectly, any advertisement or marketing materials of any type, or any
21.28statement or representation relating to the business of residential mortgage loans that is
21.29false, deceptive, or misleading;
21.30    (20) advertise loan types or terms that are not available from or through the licensee
21.31or exempt person on the date advertised, or on the date specified in the advertisement.
21.32For purposes of this clause, advertisement includes, but is not limited to, a list of sample
21.33mortgage terms, including interest rates, discount points, and closing costs provided by
21.34licensees or exempt persons to a print or electronic medium that presents the information
21.35to the public;
22.1    (21) use or employ phrases, pictures, return addresses, geographic designations, or
22.2other means that create the impression, directly or indirectly, that a licensee or other
22.3person is a governmental agency, or is associated with, sponsored by, or in any manner
22.4connected to, related to, or endorsed by a governmental agency, if that is not the case; or
22.5    (22) violate section 82.49, relating to table funding.;
22.6    (23) make, provide, or arrange for a residential mortgage loan without verifying the
22.7borrower's reasonable ability to pay the principal and interest on the loan, and pay real
22.8estate taxes, homeowner's insurance, and private mortgage insurance if it is required in
22.9connection with the loan. For loans in which the interest rate may vary, the reasonable
22.10ability to pay must be calculated based on a rate that is fully indexed according to the
22.11terms of the loan and a repayment schedule which achieves full amortization over the
22.12life of the loan. For all residential mortgage loans, the borrower's income and financial
22.13resources must be verified by tax returns, payroll receipts, bank records, or other similarly
22.14reliable documents. A statement by the borrower to the residential mortgage originator or
22.15exempt person of the borrower's income and resources is not sufficient to establish the
22.16existence of the income or resources when verifying the reasonable ability to pay;
22.17(24) make, provide, or arrange for a residential mortgage loan all or a portion of
22.18the proceeds of which are used to fully or partially pay off a "special mortgage" unless
22.19the borrower has obtained a written certification from a counselor with a third-party
22.20nonprofit or governmental organization approved by the United States Department of
22.21Housing and Urban Development or the commissioner that the borrower has received
22.22counseling on the advisability of the loan transaction. The commissioner shall maintain a
22.23list of approved counseling programs. For purposes of this section, "special mortgage"
22.24means a residential mortgage loan originated, subsidized, or guaranteed by or through
22.25a state, tribal, or local government, or nonprofit organization, that bears one or more of
22.26the following nonstandard payment terms which substantially benefit the borrower: (i)
22.27payments vary with income; (ii) payments of principal or interest are not required or
22.28can be deferred under specified conditions; (iii) principal or interest is forgivable under
22.29specified conditions; or (iv) where no interest or an annual interest rate of two percent or
22.30less is charged in connection with the loan.
22.31    (25) engage in "churning." As used in this section, "churning" means to make,
22.32provide, or arrange for a residential mortgage loan to a borrower that refinances an existing
22.33residential mortgage loan when the new loan does not have a reasonable, tangible net
22.34benefit to the borrower considering all of the circumstances, including the terms of both
22.35the new and refinanced loans, the cost of the new loan, the effect of the loan on current
22.36and future equity in the home, and the borrower's other financial circumstances.
23.1    A court must presume that churning has occurred if: (i) the refinanced loan was
23.2originated within 24 months preceding the date the new loan was originated; (ii) the
23.3interest rate on the new loan exceeds the interest rate of the refinanced loan; (iii) the new
23.4loan is a subprime loan; and (iv) the refinanced loan is not in foreclosure or in imminent
23.5risk of being in foreclosure. For purposes of determining whether the interest rate of the
23.6new loan exceeds the interest rate of the refinanced loan under the provision: (A) in the
23.7case of a new loan or a refinanced loan in which the interest rate may vary, the interest
23.8rate is determined based on a rate that is fully indexed according to the terms of the loan
23.9and a repayment schedule which achieves full amortization over the life of the loan; and
23.10(B) in the case of multiple new loans or multiple refinanced loans, the interest rate is
23.11determined by combining the loan balances and required payments. In order to rebut this
23.12presumption of churning, the residential mortgage originator or exempt person making
23.13the loan must demonstrate by clear and convincing evidence that the borrower received a
23.14substantial and definite benefit from the new loan;
23.15    (26) the first time a residential mortgage originator orally informs a borrower of the
23.16anticipated or actual periodic payment amount for a first-lien residential mortgage loan
23.17which does not include an amount for payment of property taxes and hazard insurance,
23.18the residential mortgage originator must inform the borrower that an additional amount
23.19will be due for taxes and insurance and, if known, disclose to the borrower the amount of
23.20the anticipated or actual periodic payments for property taxes and hazard insurance. This
23.21same oral disclosure must be made each time the residential mortgage originator orally
23.22informs the borrower of a different anticipated or actual periodic payment amount change
23.23from the amount previously disclosed. A residential mortgage originator need not make
23.24this disclosure concerning a refinancing loan if the residential mortgage originator knows
23.25that the borrower's existing loan that is anticipated to be refinanced does not have an
23.26escrow account; or
23.27    (27) make, provide, or arrange for a residential mortgage loan, other than a reverse
23.28mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
23.29with any repayment option offered pursuant to the terms of the loan will result in negative
23.30amortization during any six-month period.
23.31    (b) Paragraph (a), clauses (22) through (25), do not apply to a state or federally
23.32chartered bank, savings bank, or credit union, or to a person making, providing, or
23.33arranging a residential mortgage loan originated or purchased by a state agency or a
23.34tribal or local unit of government. This paragraph supersedes any inconsistent provision
23.35of this chapter.

23.36    Sec. 6. Minnesota Statutes 2006, section 58.137, subdivision 1, is amended to read:
24.1    Subdivision 1. Financed interest, points, finance charges, fees, and other
24.2charges. A residential mortgage originator making or modifying a residential mortgage
24.3loan to a borrower located in this state must not include in the principal amount of any
24.4residential mortgage loan all or any portion of any lender fee in an aggregate amount
24.5exceeding five percent of the loan amount. This subdivision shall not apply to residential
24.6mortgage loans which are insured or guaranteed by the secretary of housing and urban
24.7development or the administrator of veterans affairs or the administrator of the Farmers
24.8Home Administration or any successor.
24.9    "Lender fee" means interest, points, finance charges, fees, and other charges payable
24.10in connection with the residential mortgage loan: (1) by the borrower to any residential
24.11mortgage originator or to any assignee of any residential mortgage originator; (2) by the
24.12borrower to any third party that is not a residential mortgage originator or an assignee of a
24.13residential mortgage originator for appraisal, title insurance, or closing services, except for
24.14the cost of title insurance for which the borrower is the insured; or (3) by the lender to a
24.15mortgage broker. Lender fee does not include: (1) recording fees, mortgage registration
24.16taxes, passthroughs, or other amounts that are paid by any person to any government
24.17entity, or filing office,; or other third party that is not a residential mortgage originator
24.18or an assignee of a residential mortgage originator. Lender fee also does not include
24.19(2) any amount that is set aside to pay taxes or insurance on any property securing the
24.20residential mortgage loan.
24.21    "Loan amount" means: (1) for a line of credit, the maximum principal amount of
24.22the line of credit; and (2) for any other residential mortgage loan, the principal amount
24.23of the residential mortgage loan excluding all interest, points, finance charges, fees, and
24.24other charges. A residential mortgage originator shall not charge, receive, or collect any
24.25excess financed interest, points, finance charges, fees, or other charges described in this
24.26subdivision, or any interest, points, finance charges, fees, or other charges with respect
24.27to this excess.

24.28    Sec. 7. Minnesota Statutes 2006, section 58.137, subdivision 2, is amended to read:
24.29    Subd. 2. Prepayment penalties. (a) A residential mortgage originator making a
24.30residential mortgage loan that is a prime loan to a borrower located in this state shall not
24.31charge, receive, or collect any prepayment penalty, fee, premium, or other charge:
24.32    (1) for any partial prepayment of the residential mortgage loan; or
24.33    (2) for any prepayment of the residential mortgage loan upon the sale of any
24.34residential real property, or the sale of any stock, interest, or lease relating to cooperative
24.35ownership of residential real property, securing the loan; or
25.1    (3) for any prepayment of the residential mortgage loan if the prepayment is made
25.2more than 42 months after the date of the note or other agreement for the residential
25.3mortgage loan; or
25.4    (4) for any prepayment of the residential mortgage loan if the aggregate amount of
25.5all prepayment penalties, fees, premiums, and other charges exceeds the lesser of (i) an
25.6amount equal to two percent of the unpaid principal balance of the residential mortgage
25.7loan at the time of prepayment, or (ii) an amount equal to 60 days' interest, at the interest
25.8rate in effect on the residential mortgage loan at the time of prepayment, on the unpaid
25.9principal balance of the residential mortgage loan at the time of prepayment.
25.10    (b) If a residential mortgage originator offers or makes residential mortgage loans
25.11to any borrowers located in this state with prepayment penalties, fees, premiums, or
25.12other charges exceeding the maximum amount under paragraph (a), clause (4), then the
25.13residential mortgage originator shall provide the following disclosure to each prospective
25.14borrower located in this state that requests a residential mortgage loan from the residential
25.15mortgage originator, whether or not the prospective borrower receives a residential
25.16mortgage loan:
25.18THIS LENDER CHARGES YOU A SUBSTANTIAL PENALTY IF YOU PAY OFF OR
25.19REFINANCE YOUR LOAN BEFORE MATURITY. ASK THE LENDER HOW MUCH
25.20THE PENALTY WILL BE FOR YOUR LOAN.
25.21    The residential mortgage originator shall read the disclosure to the prospective
25.22borrower when the prospective borrower requests a residential mortgage loan, and again
25.23within three days before the borrower signs the note or other agreement for the residential
25.24mortgage loan. The residential mortgage originator also shall provide the disclosure to the
25.25prospective borrower in writing so that it is received by the prospective borrower within
25.26five days after the residential mortgage originator receives the prospective borrower's
25.27request for a residential mortgage loan, and again within three days before the prospective
25.28borrower signs the note or other agreement for the residential mortgage loan. The written
25.29disclosure must be stated in at least 16-point capitalized boldface type on a single sheet of
25.30paper that contains only the disclosure, the date on which the disclosure form is sent or
25.31provided, the name, address, and telephone number of the residential mortgage originator,
25.32the name and address of the prospective borrower, and, at the option of the residential
25.33mortgage originator, the prospective borrower's dated and signed acknowledgment
25.34of receipt of the disclosure form. The provisions of the disclosure form, other than
25.35the disclosure in this subdivision, are not required to be in at least 16-point capitalized
25.36boldface type. The prospective borrower shall be permitted to keep a copy of each written
26.1disclosure form. When a prospective borrower asks a residential mortgage originator for
26.2information about a prepayment penalty, the residential mortgage originator shall give the
26.3prospective borrower the requested information, and shall tell the borrower the highest
26.4aggregate amount of the prepayment penalties, fees, premiums, and other charges that the
26.5residential mortgage originator would charge to the prospective borrower for prepayment
26.6of the residential mortgage loan one year after it is funded, based on a hypothetical
26.7unpaid principal balance of $100,000 and also based on the highest interest rate that the
26.8residential mortgage originator would charge to the prospective borrower. A mortgage
26.9originator responding to requests for residential mortgage loans via the Internet may make
26.10the disclosure in a manner acceptable to the commissioner.
26.11    (c) A residential mortgage originator shall not enter into a subprime loan that
26.12contains a provision requiring or permitting the imposition of a penalty, fee, premium,
26.13or other charge in the event the residential mortgage loan is prepaid in whole or in part.
26.14This prohibition does not apply to any loan with a principal amount that, or, in the case of
26.15an open-end credit plan, in which the borrower's initial maximum credit limit, exceeds
26.16the conforming loan size limit for a single-family dwelling as established from time to
26.17time by Fannie Mae.

26.18    Sec. 8. Minnesota Statutes 2006, section 58.15, is amended to read:
26.1958.15 DISCLOSURE REQUIREMENTS FOR CERTAIN RESIDENTIAL
26.20MORTGAGE ORIGINATORS.
26.21    Subdivision 1. Nonagency disclosure. If a residential mortgage originator or
26.22exempt person other than a mortgage broker does not contract or offer to contract to act
26.23as an agent of a borrower, or accept an advance fee, it must, within three business days
26.24of accepting an application for a residential mortgage loan, provide the borrower with a
26.25written disclosure as provided in subdivision 2.
26.26    Subd. 2. Form and content requirements. The disclosure must be a separate
26.27document, 8-1/2 inches by 11 inches, must be signed by the borrower and must contain the
26.28following statement in 14-point boldface print:
26.29 Originator IS NOT ACTING AS YOUR AGENT IN CONNECTION WITH
26.30OBTAINING A RESIDENTIAL MORTGAGE LOAN. WHILE WE SEEK TO
26.31ASSIST YOU IN MEETING YOUR FINANCIAL NEEDS, WE CANNOT
26.32GUARANTEE THE LOWEST OR BEST TERMS AVAILABLE IN THE
26.33MARKET.
26.34    Subd. 3. Electronic application disclosure requirement. In case of an electronic
26.35residential mortgage application, the disclosure requirements of this section may be
27.1satisfied by providing the disclosure statement as a separate screen if the disclosure must
27.2be acknowledged by the borrower before an application is accepted.
27.3    Subd. 4. Exemption from disclosure requirement. If the Department of
27.4Housing and Urban Development adopts and implements a disclosure requirement for
27.5persons offering mortgage origination services that the commissioner determines to be
27.6substantially similar to the disclosure required in subdivision 2, licensees and exempt
27.7persons complying compliance with the HUD disclosure shall be considered sufficient to
27.8have complied with satisfy the requirements of subdivisions 1 and subdivision 2.

27.9    Sec. 9. Minnesota Statutes 2006, section 58.16, subdivision 1, is amended to read:
27.10    Subdivision 1. Compliance. Residential mortgage originators who solicit or receive
27.11an advance fee in exchange for assisting a borrower located in this state in obtaining a
27.12loan secured by a lien on residential real estate, or who offer to act as an agent of the
27.13borrower located in this state in obtaining a loan secured by a lien on residential real estate
27.14shall be considered to have created a fiduciary relationship with the borrower and shall
27.15comply with the requirements of subdivisions 2 to 7 in addition to any duties imposed
27.16upon fiduciaries by statute or common law.

27.17    Sec. 10. Minnesota Statutes 2006, section 58.16, is amended by adding a subdivision
27.18to read:
27.19    Subd. 1a. Mortgage broker fiduciary duties. A mortgage broker shall be
27.20considered to have created a fiduciary relationship with the borrower in all cases and shall
27.21comply with the duties imposed upon fiduciaries by statute or common law.

27.22    Sec. 11. [58.18] PRIVATE RIGHT OF ACTION.
27.23    Subdivision 1. Remedies. A borrower injured by a violation of the standards, duties,
27.24prohibitions, or requirements of sections 58.13, 58.136, 58.137, and 58.16 shall have a
27.25private right of action and the court shall award:
27.26    (1) actual, incidental, and consequential damages;
27.27    (2) statutory damages equal to the amount of all lender fees included in the amount
27.28of the principal of the residential mortgage loan as defined in section 58.137;
27.29    (3) punitive damages as the court may allow. In determining punitive damages,
27.30the court should consider the severity and intentionality of the violation, the number of
27.31violations, and whether the violation was part of a pattern and practice of violations; and
27.32    (4) court costs and reasonable attorneys' fees.
27.33    Subd. 2. Private attorney general statute. A borrower injured by a violation of
27.34the standards, duties, prohibitions, or requirements of sections 58.13, 58.136, 58.137, and
28.158.16 also may bring an action under section 8.31. A private right of action by a borrower
28.2under this chapter is in the public interest.
28.3    Subd. 3. Remedies cumulative. The remedies provided in this section are
28.4cumulative and do not restrict any other right or remedy otherwise available to the
28.5borrower.
28.6    Subd. 4. Exemption. This section does not apply to a residential mortgage loan
28.7originated by a federal or state chartered bank, savings bank, or credit union.

28.8    Sec. 12. [58.19] CRIMINAL PENALTIES FOR GROSSLY UNSUITABLE
28.9LOANS.
28.10    Subdivision 1. Definition. For the purpose of this section, "grossly unsuitable"
28.11means:
28.12    (1) a residential mortgage loan for which the borrower lacked the capacity to repay
28.13the interest and principal of the loan, and the real estate taxes and home insurance on the
28.14property, at the time the loan was originated; or
28.15    (2) a residential mortgage loan made as a result of a loan application that contains
28.16materially false or fraudulent information as to the borrower's income, expenses, debts
28.17or assets.
28.18    Subd. 2. Acts constituting; penalties. Any person who makes a residential
28.19mortgage loan, or obtains or assists in obtaining from another person for a borrower a
28.20residential mortgage loan, that the person knows is grossly unsuitable for the borrower
28.21may be fined not more than $75,000 or imprisoned for up to two years, or both.
28.22Prosecution or conviction for securing grossly unsuitable loans on behalf of borrowers will
28.23not bar prosecution or conviction for any other offenses. These penalties are cumulative to
28.24any other remedies or penalties provided by law.
28.25    Subd. 3. Additional penalty for crime against a disabled or elderly person.
28.26    Any person who commits the criminal offense specified in this section against a senior
28.27citizen or disabled person may be fined an additional $50,000 or imprisoned for up to two
28.28additional years, or both. For purposes of this subdivision, "senior citizen" and "disabled
28.29person" have the meanings given those terms in section 325F.71, subdivision 1.

28.30    Sec. 13. [82B.24] PRIVATE RIGHT OF ACTION.
28.31    Subdivision 1. Remedies. Any person injured by a violation of the standards, duties,
28.32prohibitions, or requirements of section 82B.20 or 82B.22 shall have a private right of
28.33action and the court shall award:
28.34    (1) actual, incidental, and consequential damages;
28.35    (2) statutory damages of no less than $1,000 nor more than $2,000; and
29.1    (3) punitive damages as the court may allow. In determining punitive damages,
29.2the court should consider the severity and intentionality of the violation, the number of
29.3violations, and whether the violation was part of a pattern and practice of violations; and
29.4    (4) court costs and reasonable attorneys fees.
29.5    Subd. 2. Private attorney general statute. A person injured by a violation of the
29.6standards, duties, prohibitions, or requirements of section 82B.20 or 82B.22 also may
29.7bring an action under section 8.31. A private right of action by a borrower under this
29.8chapter is in the public interest.
29.9    Subd. 3. Remedies cumulative. The remedies provided in this section are
29.10cumulative and do not restrict any other right or remedy otherwise available to the
29.11borrower.


29.14    Section 1. Minnesota Statutes 2006, section 327A.05, is amended to read:
29.15327A.05 REMEDIES.
29.16    Subdivision 1. New home warranties. Upon breach of any warranty imposed by
29.17section 327A.02, subdivision 1, the vendee shall have a cause of action against the vendor
29.18for damages arising out of the breach, or for specific performance. If the vendee is the
29.19prevailing party, the vendee must also be awarded the vendee's costs, disbursements, and
29.20reasonable attorney fees. Damages shall be limited to:
29.21(a) the amount necessary to remedy the defect or breach; or
29.22(b) the difference between the value of the dwelling without the defect and the value
29.23of the dwelling with the defect.
29.24    Subd. 2. Home improvement warranty. Upon breach of any warranty imposed by
29.25section 327A.02, subdivision 3, the owner shall have a cause of action against the home
29.26improvement contractor for damages arising out of the breach, or for specific performance.
29.27If the owner is the prevailing party, the owner must also be awarded the owner's costs,
29.28disbursements, and reasonable attorney fees. Damages shall be limited to the amount
29.29necessary to remedy the defect or breach.

29.30    Sec. 2. [504B.206] RIGHT OF VICTIMS OF DOMESTIC ABUSE TO
29.31TERMINATE LEASE.
29.32    Subdivision 1. Right to terminate; procedure.
29.33A tenant to a residential lease who is a victim of domestic abuse and fears imminent
29.34domestic abuse against the tenant or the tenant's children by remaining in the leased
29.35premises may terminate a lease agreement without penalty or liability, except as provided
30.1by this section, by providing written notice to the landlord stating that the tenant fears
30.2imminent domestic abuse and indicating the specific date the tenant intends to vacate
30.3the premises. The written notice must be delivered by mail, fax, or in person, and be
30.4accompanied by one of the following:
30.5(1) an order for protection under chapter 518B; or
30.6(2) a no contact order, currently in effect, issued under section 518B.01, subdivision
30.722, or chapter 609.
30.8    Subd. 2. Confidentiality of information. Information provided to the landlord by
30.9the victim documenting domestic abuse pursuant to subdivision 1 shall be treated by the
30.10landlord as confidential. The information may not be entered into any shared database
30.11or provided to any entity except when required for use in an eviction proceeding, upon
30.12the consent of the victim, or as otherwise required by law.
30.13    Subd. 3. Liability for rent; termination of tenancy. (a) A tenant terminating a
30.14lease pursuant to subdivision 1 is responsible for one month's rent following the vacation
30.15of the premises and is relieved of any contractual obligation for payment of rent or any
30.16other charges for the remaining term of the lease.
30.17(b) This section does not affect a tenant's liability for delinquent, unpaid rent or
30.18other sums owed to the landlord before the lease was terminated by the tenant under this
30.19section. The return or retention of the security deposit is subject to the provisions of
30.20section 504B.178.
30.21(c) The tenancy terminates, including the right of possession of the premises, when
30.22the tenant surrenders the keys to the premises to the landlord. The one month's rent is due
30.23and payable on or before the date the tenant vacates the premises, as indicated in their
30.24written notice pursuant to subdivision 1. For purposes of this section, the provisions of
30.25section 504B.178 commence upon the first day of the month following either:
30.26(1) the date the tenant vacates the premises; or
30.27(2) the date the tenant pays the one month's rent, whichever occurs first.
30.28(d) The provisions of this subdivision do not apply until written notice meeting the
30.29requirements of subdivision 1 is delivered to the landlord.
30.30    Subd. 4. Multiple tenants. Notwithstanding the release of a tenant from a lease
30.31agreement under this section, if there are any remaining tenants residing in the premises
30.32the tenancy shall continue for those remaining tenants. A perpetrator who has been
30.33excluded from the premises under court order remains liable under the lease with any
30.34other tenant of the premises for rent or damage to the premises.
31.1    Subd. 5. Waiver prohibited. A residential tenant may not waive, and a landlord
31.2may not require the residential tenant to waive, the resident tenant's rights under this
31.3section.
31.4    Subd. 6. Definition. For purposes of this section, "domestic abuse" has the meaning
31.5given in section 518B.01, subdivision 2.

31.6    Sec. 3. Minnesota Statutes 2006, section 505.01, is amended to read:
31.7505.01 PLATS, DONATIONS, PURPOSE, DEFINITIONS.
31.8    Subdivision 1. Donations. Plats of land may be made in accordance with the
31.9provisions of this chapter, and, when so made and recorded, every donation of a park to
31.10the public or any person or corporation noted thereon shall operate to convey the fee of
31.11all land so donated, for the uses and purposes named or intended, with the same effect,
31.12upon the donor and the donor's heirs, and in favor of the donee, as though such land were
31.13conveyed by warranty deed. Land donated for any public use in any municipality shall be
31.14held in the corporate name in trust for the purposes set forth or intended. A street, road,
31.15alley, trail, and other public way dedicated or donated on a plat shall convey an easement
31.16only. Easements dedicated or donated on a plat shall convey an easement only.
31.17    Subd. 2. Purpose. A plat prepared and recorded in accordance with this chapter is
31.18for the purpose of subdividing land where the dedication of land for public ways, utility
31.19easements, and drainage easements is necessary for orderly development. Plats may
31.20also be used to:
31.21    (1) depict existing parcels for the purpose of simplifying legal descriptions and to
31.22provide a permanent record of a boundary survey;
31.23    (2) supplement minor subdivision procedures used by local units of government.
31.24    Plats used to subdivide land are subject to the approval of the elected body of
31.25local governmental units. Plats used to delineate existing parcels or supplement minor
31.26subdivision procedures may be approved by a local government official designated by the
31.27local elected governmental unit.
31.28    Subd. 3. Definitions. (a) "Block" means a tract of land consisting of one or
31.29more adjoining lots, as identified on a recorded plat by a number, and bounded by plat
31.30boundaries, public ways, outlots, parks, or bodies of water.
31.31    (b) "Dedication" means an easement granted by the owner to the public for the
31.32purpose shown on the plat.
31.33    (c) "Drainage easement" means an easement for the purpose of controlling,
31.34preserving, and providing for the flow or storage of water.
32.1    (d) "Lot" means a tract of land which is all or part of a block and identified on
32.2the plat by a number.
32.3    (e) "Minor subdivision procedure" means an approval process that local units of
32.4government use for simple land divisions.
32.5    (f) "Outlot" means a tract of land identified by a letter, which is not part of a block.
32.6    (g) "Plat" means a delineation of a survey drawn to scale showing all data as
32.7required by this chapter, pertaining to the location and boundaries of individual parcels
32.8of land and public ways.
32.9    (h) "Plat monument" means a durable magnetic marker placed at all locations
32.10required by this chapter or other locations as shown on the plat.
32.11    (i) "Public way" means a thoroughfare or cul-de-sac which provides ingress and
32.12egress to the public.
32.13    (j) "Survey line" means a monumented reference line that is not a boundary.
32.14    (k) "Utility easement" means an easement conveyed, granted, or dedicated to the
32.15public and acquired, established, dedicated, or devoted to utility purposes.
32.16    (l) "Water boundary" means the shore or margin of lakes, ponds, rivers, creeks,
32.17drainage ditches, or swamps.
32.18    (m) "Wetland" means all rivers, streams, creeks, drainage ditches, lakes, ponds,
32.19and swamps.
32.20    (n) "Witness monument" means a plat monument placed at an identified distance and
32.21direction from a corner that is inaccessible.

32.22    Sec. 4. [505.021] PLAT CONTENTS; SURVEY; COUNTY SURVEYOR
32.23APPROVAL.
32.24    Subdivision 1. Plat format. A plat shall be prepared on four mil transparent
32.25reproducible film or the equivalent, and shall be prepared by a photographic process. Plat
32.26sheet size shall be 22 inches by 34 inches. A border line shall be placed one-half inch
32.27inside the outer edge of the plat on the top and bottom 34 inch sides; and the right 22 inch
32.28side; and two inches inside the outer edge of the plat on the left 22 inch side. If a plat
32.29consists of more than one sheet, the sheets shall be numbered consecutively.
32.30    Subd. 2. Plat name; legal description; dedication statement. The plat name shall
32.31appear across the top portion of the plat and in the dedication paragraph of the plat and
32.32shall not duplicate or be similar to the name of any plat that is in the office of the county
32.33recorder or registrar of titles in the county in which the land is located. The plat name shall
32.34be in capital letters in all locations that the name appears on the plat. The plat shall contain
32.35a complete and accurate description of the land being platted and a dedication statement
32.36describing what part of the land is dedicated, to whom, and for what purpose. In the event
33.1of a discrepancy between the plat name stated in the dedication statement and the plat name
33.2appearing in other portions of the plat, the name in the dedication statement shall control.
33.3    Subd. 3. Ownership interest; acknowledgment. At the time of recording, the
33.4names and signatures of all fee owners, contract for deed vendees, and mortgage holders
33.5of record of the land being platted shall appear on the plat, together with a statement as
33.6to their interest. Individual owners shall indicate their marital status. Entity owner shall
33.7identify the specific type of entity and the jurisdiction in which the entity is organized.
33.8Agents or officers for an entity shall state their position with such entity. A mortgage
33.9holder may consent to the plat by a written acknowledged statement in lieu of the mortgage
33.10holder's name and signature appearing on the plat. If a mortgage holder is included on the
33.11plat, the plat shall be signed by an authorized representative. If a certificate of notarial
33.12act on a plat includes the jurisdiction of the notarial act, the name of the notarial officer,
33.13the title of the notarial officer, and the date the notary commission expires, printed in pen
33.14and ink or typewritten on the plat, a plat shall be recorded regardless of whether a notary
33.15stamp was used or was illegible if used.
33.16    Subd. 4. Boundary; lots; blocks; outlots. Plat boundaries shall be designated on
33.17the plat in accordance with the underlying legal description and survey. All lots in each
33.18block shall be numbered consecutively with arabic numerals beginning with numeral
33.19one. All blocks shall be numbered consecutively with arabic numerals beginning with
33.20numeral one. All outlots shall be labeled OUTLOT and lettered consecutively in capital
33.21letters beginning with the letter A. All lot, block, and outlot lines shall be drawn as a
33.22solid line. The name and adjacent boundary line of any adjoining platted lands shall be
33.23dotted on the plat.
33.24    Subd. 5. Mathematical data; dimensions; labels; symbols. A plat shall show
33.25all survey and mathematical information and data necessary to locate and retrace all
33.26boundary lines and monuments. Bearings, azimuths, and central angles shall be expressed
33.27in degrees, minutes, and seconds and labeled with the respective symbols. A north arrow
33.28and directional orientation note shall be shown. Distances shall be expressed in feet
33.29and hundredths of a foot. All straight line segments of the plat shall be labeled with the
33.30length of the line and bearing or azimuth. All curved line segments of the plat shall be
33.31labeled with the central angle, arc length, and radius length. If any curve is nontangential
33.32the dimensions shall include a long chord bearing or azimuth, and shall be labeled
33.33nontangential. The mathematical closure tolerance of the plat boundary, blocks, lots, and
33.34outlots shall not exceed two-hundredths of a foot. A graphics scale shall be shown along
33.35with the label "Scale In Feet." Dimension and descriptive recitals in the legal description
34.1shown on the plat shall be depicted and labeled on the graphic portion of the plat. A
34.2symbol shall indicate the position of all found and set plat monuments, along with a
34.3description of each. Ditto marks and foot and inch symbols shall not be used.
34.4    Subd. 6. Public ways. All public ways within the plat, whether existing at the time
34.5of platting or being dedicated by the plat shall be depicted on the plat together with the
34.6name and sufficient mathematical data to locate the position and width of the public way.
34.7The location of all existing public ways adjacent to the plat boundary shall be depicted
34.8on the plat as dashed lines. The name and width of the adjacent public ways shall be
34.9shown, if known.
34.10    Subd. 7. Easements. All easements to be dedicated on the plat shall be depicted
34.11on the plat with purpose, identification, and sufficient mathematical data to locate the
34.12boundaries of such easements. Easements created on the plat shall be limited to public
34.13utility and drainage easements as defined in section 505.01, subdivision 3, paragraphs (c),
34.14(i), and (k). Easement boundaries shall be shown as dashed lines. Temporary easements,
34.15building set back information, and building floor elevations shall not be shown on a plat.
34.16    Subd. 8. Water boundaries. Any water boundary abutting or lying within the plat
34.17boundaries shall be shown and identified on the plat as a solid line delineating the existing
34.18shore line. When any parcel depicted on the plat includes water as a boundary, a dashed
34.19survey line shall be shown and labeled with sufficient mathematical data to compute a
34.20closure of said parcel. Distances shall be shown between the survey line and the water
34.21boundary at all angle points, lot and boundary lines. Plat monuments shall be set at all
34.22locations where the survey line intersects a plat boundary line or block, lot, or outlot line.
34.23The water elevation of any lake, stream, or river depicted on the plat shall be shown to the
34.24tenth of a foot along with the date the elevation was measured. All elevations shall be
34.25referenced to a durable bench mark described on the plat together with its general location
34.26shown and bench mark elevation to the hundredth of a foot. If a mean sea level adjusted
34.27datum bench mark is available within two miles of the land being platted, all elevations
34.28shall be referenced to such datum. The highest known water elevation shall be indicated
34.29on the plat if such data is available from the Department of Natural Resources, the United
34.30States Army Corps of Engineers, or another appropriate governmental unit. All wetlands
34.31as defined in section 505.01, subdivision 3, paragraph (m), shall be shown on the plat.
34.32    Subd. 9. Certifications. (a) A plat shall contain a certification by the land surveyor
34.33who surveyed or directly supervised the survey of the land being platted and prepared the
34.34plat or directly supervised the plat preparation. Said certificate shall state that:
34.35    (1) the plat is a correct representation of the boundary survey;
35.1    (2) all mathematical data and labels are correctly designated on the plat;
35.2    (3) all monuments depicted on the plat have been or will be correctly set within
35.3one year as indicated on the plat;
35.4    (4) all water boundaries and wetlands as of the date of the surveyor's certification are
35.5shown and labeled on the plat; and
35.6    (5) all public ways are shown and labeled on the plat.
35.7    The surveyor's certification shall be properly acknowledged by the surveyor on
35.8the plat before a notarial officer.
35.9    (b) A plat shall contain a certification of approval executed by the local elected
35.10governmental unit or an authorized official designated by the local elected governmental
35.11unit.
35.12    (c) In any county that requires review and approval of plats by the county surveyor
35.13or another land surveyor, the plat shall contain a certification of approval executed by the
35.14county surveyor or land surveyor that this plat is in compliance with this section.
35.15    (d) A plat shall contain a certification by the proper county official that there are
35.16no delinquent taxes owed and that the current year's payable taxes have been paid in
35.17accordance with section 272.12.
35.18    (e) A plat shall contain a certification of recording by the county recorder or registrar
35.19of titles, or both, if the plat contains both nonregistered and registered property.
35.20    Subd. 10. Survey. The land surveyor that certifies the plat shall survey or directly
35.21supervise the survey of the land depicted on the plat. Plat monuments shall be set at all
35.22angle and curve points on the outside boundary lines of the plat prior to recording. Interior
35.23block, lot, and witness monuments shall be set within one year after recording of the
35.24plat. A financial guarantee may be required for the placement of monuments. If it is
35.25impracticable to set a plat monument, a witness plat monument shall be set. The license
35.26number of the land surveyor that certifies the plat shall be affixed to all set plat monuments.
35.27    Subd. 11. County surveyor approval. All plats prepared for recording in
35.28accordance with this section are subject to approval by the county surveyor in accordance
35.29with section 389.09, subdivision 1, and as authorized by their respective county board
35.30of commissioners.

35.31    Sec. 5. Minnesota Statutes 2006, section 505.03, subdivision 1, is amended to read:
35.32    Subdivision 1. Plat formalities City, town, and county approval. On the plat shall
35.33be written an instrument of dedication, which shall be signed and acknowledged by the
35.34owner of the land. All signatures on the plat shall be written with black ink (not ball
35.35point). The instrument shall contain a full and accurate description of the land platted
36.1and set forth what part of the land is dedicated, and also to whom, and for what purpose
36.2these parts are dedicated. The surveyor shall certify on the plat that the plat is a correct
36.3representation of the survey, that all distances are correctly shown on the plat, that all
36.4monuments have been or will be correctly placed in the ground as shown or stated, and that
36.5the outside boundary lines are correctly designated on the plat. If there are no wet lands or
36.6public highways to be designated in accordance with section 505.02, the surveyor shall
36.7so state. The certificate shall be sworn to before any officer authorized to administer an
36.8oath. The plat Plats shall, except in cities whose charters provide for official supervision
36.9of plats by municipal officers or bodies, together with an abstract and certificate of title, be
36.10presented for approval to the council of the city or town board of towns wherein there
36.11reside over 5,000 people in which the land is located; and, if the land is located outside the
36.12limits of any city, or such town, then to the board of county commissioners of the county
36.13in which the land is located. Plats used to delineate existing parcels or supplement minor
36.14subdivision procedures may be approved by a local government official designated by the
36.15local elected governmental unit.

36.16    Sec. 6. Minnesota Statutes 2006, section 505.04, is amended to read:
36.17505.04 REAL ESTATE TAXES; RECORDING; COPIES.
36.18    Every plat, when duly certified, signed, and acknowledged, as provided in section
36.19505.03 505.021, and upon presentation of a certificate from the county treasurer authorized
36.20county official that the current year's taxes have been paid, shall be filed and recorded in
36.21the office of the county recorder or registrar of titles, or both, if the plat contains both
36.22nonregistered and registered property. An exact transparent reproducible copy shall, at the
36.23discretion of the county recorder or registrar of titles, be provided to the county recorder or
36.24registrar of titles, or both, if the plat contains both nonregistered and registered property.
36.25The official plat shall be labeled "OFFICIAL PLAT" and any copy shall be labeled "copy."
36.26The official plat and any copy shall be placed under the direct supervision of the county
36.27recorder or registrar of titles, or both, if the plat contains both nonregistered and registered
36.28property and be open to inspection by the public. In counties having a full-time county
36.29surveyor who operates an office on a full-time basis, the exact copy may be placed under
36.30the direct supervision of the county surveyor and be open to inspection by the public.
36.31Upon request of the county auditor of the county wherein the land is situated, the county
36.32recorder or registrar of titles shall cause a reproduction copy of the official plat, or of the
36.33exact copy, to be made and filed with such county auditor, at the expense of the county.

36.34    Sec. 7. Minnesota Statutes 2006, section 505.08, subdivision 2, is amended to read:
36.35    Subd. 2. Public certified copies. The copies of the official plat or of the exact
36.36reproducible copy shall be compared and certified to by the county recorder or registrar
37.1of titles in the manner in which certified copies of records are issued in the recorder's or
37.2registrar's office, and the copy thereof shall be bound in a proper volume for the use of
37.3the general public and anyone shall have access to and may inspect such certified copy
37.4at their pleasure during normal business hours. When the plat includes both registered
37.5and nonregistered land two copies thereof shall be so certified and bound, one available
37.6for such general public use in each of the offices of the county recorder and registrar
37.7of titles; provided, however, that only one such copy so certified and bound shall be
37.8provided for general public use in those counties wherein the office quarters offices of
37.9the county recorder and registrar of titles are one and the same. When the any copy, or
37.10any part thereof, shall become unintelligible illegible from use or wear or otherwise, at
37.11the request of the county recorder it shall be the duty of the county surveyor it shall be
37.12the duty of the county recorder or registrar of titles or county surveyor, depending upon
37.13where the copy resides, to make a reproduction copy of the official plat, or the exact
37.14transparent reproducible copy under the direct supervision of the county recorder, who
37.15shall. It shall be the responsibility of the county recorder or registrar of titles to compare
37.16the copy, certify that it is a correct copy thereof, by proper certificate as above set forth
37.17above, and it shall be bound in the volume, and under the page, and made available in
37.18the place of the discarded illegible copy. In counties not having a county surveyor the
37.19county recorder shall employ a licensed land surveyor to make such reproduction copy,
37.20at the expense of the county. The county recorder shall receive as a fee for filing these
37.21plats, as aforesaid described, pursuant to section 357.18, subdivision 1. Reproductions
37.22from the exact transparent reproducible copy shall be available to any person upon request
37.23and the cost of such reproductions shall be paid by the person making such request. If a
37.24copy of the official plat is requested the county recorder shall prepare it and duly certify
37.25that it is a copy of the official plat and the cost of such copy shall be paid by the person
37.26making such request.

37.27    Sec. 8. Minnesota Statutes 2006, section 505.1792, subdivision 2, is amended to read:
37.28    Subd. 2. Requirements. Said plats shall be uniform in size measuring 20 by 30
37.29inches from outer edge to outer edge. A border line shall be placed one-half inch inside
37.30the outer edges of the plat or map on the top, bottom, and right hand side; a border line
37.31shall be placed two inches inside the outer edge on the left hand side. A north arrow and
37.32scale of the plat shall be shown on the plat which scale shall be of such dimension that the
37.33plat may be easily interpreted. The plat may consist of more than one sheet but if more
37.34than one sheet, they shall be numbered progressively and match lines of the right-of-way
37.35shall be indicated on each sheet. An official and one or more identical copies of each plat
37.36shall be prepared in black on white mat photographic card stock with double cloth back
38.1mounting or material of equal quality. One exact reproducible copy of the official plat
38.2shall be prepared on linen tracing cloth by a photographic process or on material of equal
38.3quality. The plat on white card stock shall be labeled "Official Plat" and the reproducible
38.4copy shall be labeled "Reproducible Copy of Official Plat". The reproducible copy shall
38.5be compared with the official plat and certified to by the county recorder in the manner in
38.6which certified copies of records are issued in the recorder's office, and the copies shall
38.7be bound in a proper volume for the use of the general public. The official plat may be
38.8inspected by any member of the public but only in the presence of the county recorder or
38.9the registrar of titles or a deputy. Any member of the public may have made a copy of the
38.10official plat by paying to the proper officer the cost of reproduction together with a fee of
38.1150 cents for certification by the filing officer. Reproductions from the exact transparent
38.12reproducible copy shall be available to any person upon request and the cost of such
38.13reproductions shall be paid by the person making such request. If the abutting property is
38.14abstract property the plat shall be filed with the county recorder; if registered property,
38.15with the registrar of titles; if both registered and nonregistered property, then with both the
38.16county recorder and the registrar of titles, and when so filed with the registrar of titles ,
38.17the registrar shall enter a reference to said plat as a memorial on all certificates of title of
38.18registered lands which abut the right-of-way shown on the map or plat filed.
38.19    In counties having microfilming capabilities, a plat may be prepared on sheets of
38.20suitable mylar or on linen tracing cloth by photographic process or on material of equal
38.21quality. The plat shall be labeled "Official Plat." Notwithstanding any other provisions
38.22of this subdivision to the contrary, no other copies of the plat need to be filed. The map
38.23or plat shall be prepared in compliance with section 505.021, subdivisions 1 and 5, and
38.24recorded in compliance with section 505.04.

38.25    Sec. 9. Minnesota Statutes 2006, section 510.02, is amended to read:
38.26510.02 AREA AND VALUE; HOW LIMITED.
38.27The homestead may include any quantity of land not exceeding 160 acres, and not
38.28included in the laid out or platted portion of any city. If the homestead is within the laid
38.29out or platted portion of a city, its area must not exceed one-half of an acre. The value of
38.30the homestead exemption amount of the exemption per homestead, whether the exemption
38.31is claimed jointly or individually by one or more debtors , may not exceed $200,000
38.32or, if the homestead is used primarily for agricultural purposes, $500,000, exclusive of
38.33the limitations set forth in section 510.05.

38.34    Sec. 10. Minnesota Statutes 2006, section 510.05, is amended to read:
38.35510.05 LIMITATIONS.
39.1SuchThe amount of the homestead exemption shall not be reduced by and shall
39.2not extend to any mortgage lawfully obtained thereon, to any valid lien for taxes or
39.3assessments, to a claim filed pursuant to section 256B.15 or section 246.53 or, to any
39.4charge arising under the laws relating to laborers or material suppliers' liens or to any
39.5charge obtained pursuant to a valid waiver of the homestead exemption.

39.6    Sec. 11. Minnesota Statutes 2006, section 541.051, subdivision 2, is amended to read:
39.7    Subd. 2. Action allowed; limitation. Notwithstanding the provisions of subdivision
39.81, in the case of an action which accrues during the ninth or tenth year after substantial
39.9completion of the construction, an action to recover damages may be brought within
39.10two years after the date on which the action accrued, but in no event may an action be
39.11brought more than 12 years after substantial completion of the construction., except for an
39.12action for contribution or indemnity which may be brought no more than 14 years after
39.13substantial completion of the construction.

39.14    Sec. 12. Minnesota Statutes 2006, section 550.175, subdivision 1, is amended to read:
39.15    Subdivision 1. Order directing sale of real property. The executing creditor
39.16must obtain an order from the court directing a sale of the real property that includes
39.17a homestead before service of the notice of execution on real property containing the
39.18homestead of the debtor. The order shall contain the following findings:
39.19(1) whether the real property is the homestead of a nondebtor;
39.20(2) the amount of the debtor's homestead exemption, if any; and
39.21(3) whether the fair market value of the real property exceeds the sum of the debtor's
39.22homestead exemption and the present encumbrances.
39.23If the court finds that there is no nondebtor with a valid homestead interest in the
39.24real property and that the fair market value of the homestead real property exceeds the
39.25sum of the debtor's homestead exemption and the present encumbrances, the court shall
39.26order a sale of the real property for cash or cash equivalents to the extent of the homestead
39.27exemption.
39.28    Subd. 1a. Notification of homestead designation. If real property is to be sold on
39.29execution and the property contains a portion of the homestead of the debtor, the debtor
39.30must be notified by the executing creditor that the homestead may be sold and redeemed
39.31separately from the remaining property. The notice in subdivision 2 must be included in
39.32the notice of execution served on the debtor under section 550.19.

39.33    Sec. 13. Minnesota Statutes 2006, section 550.175, subdivision 4, is amended to read:
39.34    Subd. 4. Sale of property. (a) If the sheriff receives a homestead property
39.35designation under subdivision 3, the sheriff must offer and sell the designated homestead
40.1property, and the remaining property, separately, unless the executing creditor denies the
40.2right to the exemption, objects to the property designated, or claims the value exceeds
40.3the exemption.
40.4(b) If the executing creditor is dissatisfied with the homestead property designation
40.5or the debtor's valuation of the property, upon proper motion to the district court of the
40.6county in which any part of the property is located, the executing creditor is entitled to
40.7a court approved designation of the homestead and a court determination of value. The
40.8court shall either approve the debtor's designation or cause the property to be surveyed
40.9and order a homestead designation consistent with the standards of subdivision 3 and
40.10require an appraisal of fair market value, as applicable. The court's designation of the
40.11homestead property must conform to the debtor's request, to the extent not inconsistent
40.12with the standards of subdivision 3.
40.13(c) The court, in determining appraised value, shall review any appraisals provided
40.14by the debtor and executing creditor and may require a court appointed independent
40.15appraisal. The appraisals shall evaluate the property's fair market value, net of reasonable
40.16costs of sale.
40.17(d) If the court determines that the property claimed as a homestead exceeds in value
40.18the amount of the homestead exemption or if the court determines that the property cannot
40.19be divided without material injury, the court shall order the sale of the entire property,
40.20including the designated homestead. Out of the proceeds of the sale, the court shall pay
40.21the debtor the amount of the homestead exemption and apply the balance of the proceeds
40.22of the sale on the execution for cash or cash equivalents to the extent of the homestead
40.23exemption.
40.24(e) At the sale, no bid may be accepted unless it exceeds the amount of the
40.25homestead exemption. If no bid exceeds the exemption, the homestead is exempt.
40.26(f) The cost of any court ordered survey or appraisal and of the sale must be collected
40.27on the execution, if the debtor designated as the debtor's homestead a greater quantity of
40.28property, property of greater value than the debtor was entitled to, or designated a parcel
40.29that does not meet the standards of subdivision 3. In all other cases, the costs shall be
40.30borne by the executing creditor.

40.31    Sec. 14. Minnesota Statutes 2006, section 550.175, is amended by adding a subdivision
40.32to read:
40.33    Subd. 6. Real property not subject to execution. Real property that includes a
40.34homestead as defined under section 510.01 is not subject to execution under this chapter if
40.35there is a nondebtor with:
40.36(1) homestead rights under sections 507.02 and 510.01 to 510.04;
41.1(2) rights as a joint tenant or life tenant; or
41.2(3) rights to take the homestead under section 524.2-402.

41.3    Sec. 15. Minnesota Statutes 2006, section 550.18, is amended to read:
41.4550.18 NOTICE OF SALE.
41.5Before the sale of property on execution notice shall be given as follows:
41.6(1) if the sale be of personal property, by giving ten days posted notice of the time
41.7and place thereof;
41.8(2) if the sale be of real property, on execution or on judgment, by six weeks posted
41.9and published notice of the time and place thereof, describing the property with sufficient
41.10certainty to enable a person of common understanding to identify it.
41.11(3) A judgment creditor shall record a certified copy of the order directing sale of
41.12real property issued pursuant to section 550.175, if the real property is a homestead,
41.13with the county recorder or registrar of titles as appropriate in the county in which the
41.14real property is located before the first date of publication of the notice of sale required
41.15under section 550.18, clause (2).
41.16An officer who sells without such notice shall forfeit $100 to the party aggrieved, in
41.17addition to paying actual damages; and a person who before the sale or the satisfaction of
41.18the execution, and without the consent of the parties, takes down or defaces the notice
41.19posted, shall forfeit $50; but the validity of the sale shall not be affected by either act,
41.20either as to third persons or parties to the action.

41.21    Sec. 16. Minnesota Statutes 2006, section 550.19, is amended to read:
41.22550.19 SERVICE ON JUDGMENT DEBTOR.
41.23At or before the time of posting notice of sale, the officer shall serve a copy of the
41.24execution and inventory, and of such notice, upon the judgment debtor, if the debtor be a
41.25resident of the county, in the manner required by law for the service of a summons in a
41.26civil action. A judgment creditor must, at least four weeks before the appointed time of
41.27sale, serve a copy of the notice of sale in like manner as a summons in a civil action in the
41.28district court upon the judgment debtor if the judgment debtor is a resident of the county
41.29and upon any person in possession of the homestead other than the judgment debtor.
41.30In addition, the notice of sale must also be served upon all persons who have recorded
41.31a request for notice in accordance with section 580.032.

41.32    Sec. 17. [550.206] REPORT OF SALE OF HOMESTEAD ON EXECUTION;
41.33CONFIRMATION; RESALE.
41.34Upon sale of a homestead on execution, the sheriff shall file a report of the sale with
41.35the court. Upon the filing of the report of sale, the court shall grant an order confirming the
42.1sale, or, if it appears upon due examination that justice has not been done, the court may
42.2order a resale on terms the court determines are just. Upon confirmation of the sale and
42.3execution of the certificate of sale, the sheriff shall pay the judgment debtor the amount of
42.4the homestead exemption and apply the balance of the proceeds of the sale to the execution.
42.5The sheriff shall pay any surplus thereafter in the manner provided in section 580.09.

42.6    Sec. 18. Minnesota Statutes 2006, section 550.22, is amended to read:
42.7550.22 CERTIFICATE OF SALE OF REALTY.
42.8When a sale of real property is made upon execution, or pursuant to a judgment or
42.9order of a court, unless otherwise specified therein, the officer shall execute and deliver
42.10to the purchaser a certificate containing:
42.11(1) a description of the execution, judgment, or order;
42.12(2) a description of the property;
42.13(3) the date of the sale and the name of the purchaser;
42.14(4) the price paid for each parcel separately;
42.15(5) if subject to redemption, the time allowed by law therefor;
42.16(6) the amount of the debtor's homestead exemption, if any, as determined under
42.17section 550.175.
42.18Such certificate shall be executed, acknowledged, and recorded in the manner
42.19provided by law for a conveyance of real property, shall be prima facie evidence of the
42.20facts therein stated, and, upon expiration of the time for redemption, shall operate as
42.21a conveyance to the purchaser of all the right, title, and interest of the person whose
42.22property is sold in and to the same, at the date of the lien upon which the same was sold.
42.23Any person desiring to perpetuate evidence that any real property sold under this section
42.24was not homestead real property may procure an affidavit by the person enforcing the
42.25judgment, or that person's attorney, or someone having knowledge of the facts, setting
42.26forth that the real property was not homestead real property. The affidavit shall be
42.27recorded by the county recorder or registrar of titles, and the affidavit and certified copies
42.28of the affidavit shall be prima facie evidence of the facts stated in the affidavit.

42.29    Sec. 19. Minnesota Statutes 2006, section 550.24, is amended to read:
42.30550.24 REDEMPTION OF REALTY.
42.31(a) Upon the sale of real property, if the estate sold is less than a leasehold of two
42.32years' unexpired term, the sale is absolute. In all other cases the property sold, or any
42.33portion thereof which has been sold separately, is subject to redemption as provided
42.34in this section.
42.35(b) The judgment debtor, the debtor's heirs, successors, legal representatives, or
42.36assigns may redeem within one year after the day of sale, or order confirming sale if
43.1the property is a homestead, by paying, to the purchaser or the officer making the sale,
43.2the amount for which the property was sold with interest at the judgment rate and if the
43.3purchaser is a creditor having a prior lien, the amount thereof, with interest at the judgment
43.4rate together with any costs as provided in sections 582.03 and 582.031.
43.5(c) If there is no redemption during the debtor's redemption period, creditors having
43.6a lien, legal or equitable, on the property or some part thereof, subsequent to that on
43.7which it was sold may redeem in the manner provided for redemption by creditors of the
43.8mortgagor in section 580.24, in the order of their respective liens.
43.9(d) If the property is abandoned during the judgment debtor's redemption period,
43.10the person holding the sheriff's certificate may request that the court reduce the judgment
43.11debtor's redemption period to five weeks using the procedures provided for a foreclosure
43.12by action in section 582.032, subdivision 5.

43.13    Sec. 20. Minnesota Statutes 2006, section 580.24, is amended to read:
43.14580.24 REDEMPTION BY CREDITOR.
43.15(a) If no redemption is made by the mortgagor, the mortgagor's personal
43.16representatives or assigns, the most senior creditor having a legal or equitable lien upon
43.17the mortgaged premises, or some part of it, subsequent to the foreclosed mortgage, may
43.18redeem within seven days after the expiration of the redemption period determined
43.19under section 580.23 or 582.032, whichever is applicable; and each subsequent creditor
43.20having a lien may redeem, in the order of priority of their respective liens, within seven
43.21days after the time allowed the prior lienholder by paying the amount required under this
43.22section. However, no creditor is entitled to redeem unless, within the period allowed for
43.23redemption by the mortgagor, the creditor:
43.24(1) records with each county recorder and registrar of titles where the foreclosed
43.25mortgage is recorded a notice of the creditor's intention to redeem;
43.26(2) records in each office where the notice is recorded all documents necessary to
43.27create the lien on the mortgaged premises and to evidence the creditor's ownership of the
43.28lien; and
43.29(3) after complying with clauses (1) and (2), delivers to the sheriff who conducted
43.30the foreclosure sale or the sheriff's successor in office a copy of each of the documents
43.31required to be recorded under clauses (1) and (2), with the office, date and time of filing
43.32for record stated on the first page of each document.
43.33The sheriff shall maintain for public inspection all documents delivered to the sheriff
43.34and shall note the date of delivery on each document. The sheriff may charge a fee of
43.35$100 for the documents delivered to the sheriff relating to each lien. The sheriff shall
44.1maintain copies of documents delivered to the sheriff for a period of six months after the
44.2end of the mortgagor's redemption period.
44.3(b) Saturdays, Sundays, legal holidays, and the first day following the expiration
44.4of the prior redemption period must be included in computing the seven-day redemption
44.5period. When the last day of the period falls on Saturday, Sunday, or a legal holiday,
44.6that day must be omitted from the computation. The order of redemption by judgment
44.7creditors subsequent to the foreclosed mortgage shall be determined by the order in which
44.8their judgments were entered as memorials on the certificate of title for the foreclosed
44.9premises or docketed in the office of the district court administrator if the property is not
44.10registered under chapter 508 or 508A, regardless of the homestead status of the property.
44.11All mechanic's lienholders who have coordinate liens shall have one combined seven-day
44.12period to redeem.
44.13(c) The amount required to redeem from the holder of the sheriff's certificate of sale
44.14is the amount required under section 580.23. The amount required to redeem from a
44.15person holding a certificate of redemption is:
44.16(1) the amount paid to redeem as shown on the certificate of redemption; plus
44.17(2) interest on that amount to the date of redemption; plus
44.18(3) the amount claimed due on the person's lien, as shown on the affidavit under
44.19section 580.25, clause (3).
44.20The amount required to redeem may be paid to the holder of the sheriff's certificate
44.21of sale or the certificate of redemption, as the case may be, or to the sheriff for the holder.

44.22    Sec. 21. REPEALER.
44.23Minnesota Statutes 2006, sections 505.02; and 505.08, subdivisions 1, 2a, and 3, are
44.24repealed.

44.25    Sec. 22. EFFECTIVE DATE; APPLICATION.
44.26Section 1 is effective the day following final enactment and applies to causes of
44.27action pending on, or commenced on or after, that date.

44.28    Sec. 23. EFFECTIVE DATE.
44.29    Section 11 is effective retroactively from June 30, 2006."
44.30Amend the title accordingly