Minnesota

The relevant statute is Financial Institution Credit Extension Maximum Rates, Minn. Stat. Ann. §47.59 (“MN-FI”).

A. Actions lender may take: MN-FI §47.59 subd. 7(a) - If a borrower covenants in the loan agreement to insure collateral and a financial institution according to the agreement pays for performance of those duties on the borrower's behalf, the financial institution may add the amounts advanced to the loan balance.

B. Notices required: MN-FI §47.59 subd. 7(a) - Before, or within a reasonable time not less than 30 days, advancing any sums, the financial institution must give the borrower written notice of the amount of the sums advanced or to be advanced, any charges with respect to this amount, any revised payment schedule and a brief description of the insurance paid for or to be paid for by the financial institution, including the type and amount of coverages.

C. Coverage required: No express statutory provision.

D. Charges permitted: No express statutory provision.

E. Finance charge allowed on lender's payment: MN-FI §47.59 subd. 7(b) - A finance charge equal to that specified in the loan agreement may be made for the sums advanced.

Click here to view relevant Minnesota Code and Regulations.