The bill amends Minnesota Statutes to modify the maximum interest rate applicable to certain loans and contracts for deed. Specifically, it replaces the previous reference to the Federal National Mortgage Association's posted yields with the average prime offer rate as defined in federal regulations, which is published by the United States Consumer Financial Protection Bureau. Additionally, it allows for the adoption of a substitute index if the average prime offer rate is not available. The bill also clarifies that the maximum interest rate for cooperative apartment loans or contracts for deed is fixed at the time the loan or contract is made, and it establishes a cap on interest rates for conventional loans or contracts for deed with a duration of ten years or less.

Furthermore, the bill specifies that for contracts of $100,000 or more, there will be no limitations on the rate or amount of interest, points, finance charges, fees, or other charges applicable to loans, mortgages, or credit sales made under a written contract signed by the debtor. This provision ensures that such contracts are exempt from other regulations outlined in the chapter, thereby providing more flexibility for lenders and borrowers in high-value transactions.

Statutes affected:
Introduction: 47.20, 334.01