Chapter 48 — Capital and Surplus; Prepayment of Capital

48.01 Definitions Defines key terms used in the state banking laws, including what counts as a bank. 48.02 Capital and Surplus; Prepayment of Capital Sets the minimum capital requirements for starting a state bank in Minnesota. Every newly organized state bank must have … 48.03 Shares Sets recordkeeping and liability rules for bank shares. A bank must keep an accurate, verified list of all shareholders, … 48.032 Preemptive Rights Gives shareholders of a banking institution the preemptive right to buy newly issued shares (under section 302A.413), … 48.033 State Banks, Liability of Shareholders Imposes personal liability on shareholders of a state bank whose deposits are not insured by the Federal Deposit … 48.04 Increase and Reduction of Capital Sets the process for a state bank to increase or reduce its capital stock. 48.05 Capital Not to Be Withdrawn; Dividends Prohibits banks from withdrawing capital and sets rules for paying dividends. 48.055 Issuance of Preferred Stock, Conditions Allows state banks to issue preferred stock under certain conditions. 48.056 Reverse Stock Split Allows state banks to do a reverse stock split to reduce the number of outstanding shares. 48.06 Board of Directors Sets rules for the board of directors of a state bank, including size and duties. 48.07 Officers; Appointment, Removal The board of directors of a state-chartered bank or trust company has full power to appoint and remove any officer or … 48.08 Directors and Officers, Restricted Use of Bank Funds; Dealings With Bank Restricts how directors and officers can use bank funds and do business with the bank. 48.09 Dividends; Surplus Sets rules for paying dividends and building up surplus reserves at state banks. 48.10 This section has been repealed and is no longer in effect. 48.11 Contracts, How Made Every contract made by a bank, except for routine business, must first be authorized by a resolution of its board of … 48.12 Bonds of Officers and Employees Requires bank officers and employees to post bonds to protect against losses. 48.13 Conditions of Bonds Sets the conditions a state bank's officer or employee bond (or insurance contract) must meet. The bond must run in … 48.14 Examinations, Reports to Show Names of Bonded Officers and Employees Requires that when the commissioner or an examiner examines a bank, the examination report name all bonded or insured … 48.15 Special Powers Grants state banks special powers including trust services and other financial activities. 48.151 Additional Powers Authorizes any bank, savings bank, or trust company organized under Minnesota law, or any national banking association … 48.152 State Bank Acquisition and Leasing of Personal Property Allows state banks to acquire and lease personal property to customers. 48.153 Installment Loans; Finance Charges; Minimum Charges Governs installment loans made by banks and savings associations. A bank may make an installment loan up to $35,000 and … 48.154 Prepayment, Extension of Terms Sets rules for prepaying or extending installment loans at state banks. 48.155 Allowable Additional Charges Lists the additional charges a bank can add to installment loans beyond those allowed by sections 48.153 and 48.154. The … 48.156 Loan Due on Default Allows the bank to declare the full loan due if the borrower defaults. 48.157 Copy of Note to Borrower Requires banks to give borrowers a copy of their signed loan agreement. 48.158 Settlement of Checks at Less Than Par Prohibits a Minnesota-chartered bank or trust company from settling a check drawn on it at anything less than its full … 48.1585 This section has been repealed and is no longer in effect. 48.159 This section has been repealed and is no longer in effect. 48.16 Banks May Not Pledge Assets; Exceptions Prohibits banks from pledging their assets as security, with some exceptions. 48.17 Powers of Officers or Employees Limits what powers bank officers and employees have to act on behalf of the bank. 48.18 Pledges or Liens of Assets Subject to Prior Liens Prohibits a bank or trust company from pledging, hypothecating, or creating a lien or charge on any of its assets that … 48.185 Open End Loan Account Arrangements Authorizes banks, national banking associations, savings banks, and savings associations to extend credit through … 48.19 This section has been repealed and is no longer in effect. 48.194 Installment Sales Contracts; Loans Allows banks to buy installment sales contracts and make related loans. 48.195 Interest Rates; Usury Limit for Depository Institutions Sets the maximum interest rate that depository institutions may charge on loans and other debt. State or federally … 48.196 Penalty for Usurious Interest Sets the penalty when a lender charges more interest than state law allows. Charging an unlawful rate forfeits all … 48.20 Unauthorized Pledges, Notes, Liens Void Makes any obligation given in violation of sections 48.16 to 48.18 legally void. This includes a note, endorsement, … 48.21 Real Estate; Restrictions on Holding Limits how much real estate a bank can own and for how long. A bank may hold real estate only as allowed under section … 48.22 This section has been repealed and is no longer in effect. 48.221 Reserves Sets reserve requirements that state banks must maintain. 48.23 Bank Not to Lend on Its Own Stock or Purchase Same A bank may not make a loan or discount secured by its own capital stock, and may not purchase or hold its own stock, … 48.24 Restrictions Upon Total Liabilities to a Bank Limits the total amount a bank can lend to any one borrower. 48.245 War Veteran; Minority; Contract for Loan Removes the legal disability of being a minor for a person eligible for a loan or other transaction guaranteed or … 48.25 This section has been repealed and is no longer in effect. 48.26 This section has been repealed and is no longer in effect. 48.27 Limitation on Amount of Deposits A bank or trust company organized under Minnesota law cannot accept deposits totaling more than 30 times the amount of … 48.28 Liquidation Unless Deposits Are Reduced If a bank or trust company violates the deposit limit in section 48.27, the commissioner of commerce may take possession … 48.29 This section has been repealed and is no longer in effect. 48.30 Deposits in Name of Minor A deposit made in a minor's name is held for the minor's exclusive right and benefit, free from the control or lien of … 48.301 Multiparty Accounts When a deposit is made in the names of two or more people jointly, or by a person payable on death (P.O.D.) to another, … 48.31 State Banks Organized From National Banks Sets the process for converting a national bank into a state-chartered bank. 48.32 State Banks or Trust Companies May Be Members of Federal Reserve Banks Allows state banks and trust companies to join the Federal Reserve System. 48.33 Execution of Trust When a state bank reorganizes as a national bank, the national bank is treated as continuing the state bank's existence … 48.34 This section has been repealed and is no longer in effect. 48.35 Clearinghouses Sets rules for bank participation in clearinghouses for processing checks. 48.36 Application Sets the process by which an existing state bank may obtain authority to provide trust services. A state bank with … 48.37 Certificates From Commissioner Governs the certificate a bank must obtain from the commissioner before it may exercise trust powers. To qualify, the … 48.38 This section has been repealed and is no longer in effect. 48.39 Trust Accounts Recorded Requires a bank that holds fiduciary accounts to keep separate books for all fiduciary accounts and to keep all funds … 48.40 Subject to Orders of Court Makes bank trust activities subject to court orders and supervision. 48.41 Corporate Name A bank that has qualified and obtained a certificate under section 48.37 may include the words "trust" or "trust … 48.42 Bank May Be Designated as Savings Bank A state bank that has qualified under section 48.37, obtained the required certificate, and established and maintains a … 48.43 Bank May Cease Operations; Duties of Commissioner A state bank that qualified under section 48.37 may notify the commissioner in writing that it intends to stop operating … 48.44 Bank May Organize as Trust Company State banks may be organized with the additional authority to exercise the fiduciary powers and privileges set out in … 48.45 Corporate Names A bank that has the additional trust authority granted under sections 48A.07 and 48A.08 may be organized with a … 48.46 Authorized Securities Purchased A newly organized state bank that has fiduciary powers under sections 48A.07 and 48A.08 and whose name contains "trust" … 48.47 Banking and Trust Company Business Once the department has favorably acted on the bank's application under sections 46.041 to 46.044 and the required … 48.475 This section has been repealed and is no longer in effect. 48.476 This section has been repealed and is no longer in effect. 48.48 Reports to Commissioner Every bank or trust company must file a detailed financial report with the commissioner at least four times a year, plus … 48.49 Books to Be Kept Every bank must open and keep the books and accounts that the commissioner prescribes, so it maintains accurate and … 48.50 This section has been repealed and is no longer in effect. 48.51 This section has been repealed and is no longer in effect. 48.511 This section has been repealed and is no longer in effect. 48.512 Procedures for Opening Checking Accounts Sets procedures banks must follow when customers open checking accounts. 48.513 Financial Intermediary Fees A financial intermediary (such as a bank) may charge a fee to assemble, produce, and copy records that someone requests … 48.515 This section has been repealed and is no longer in effect. 48.518 This section has been repealed and is no longer in effect. 48.521 This section has been repealed and is no longer in effect. 48.522 This section has been repealed and is no longer in effect. 48.523 This section has been repealed and is no longer in effect. 48.524 This section has been repealed and is no longer in effect. 48.525 This section has been repealed and is no longer in effect. 48.526 This section has been repealed and is no longer in effect. 48.527 This section has been repealed and is no longer in effect. 48.528 This section has been repealed and is no longer in effect. 48.53 This section has been repealed and is no longer in effect. 48.54 This section has been repealed and is no longer in effect. 48.55 This section has been repealed and is no longer in effect. 48.56 Banking Institution May Use Federal Banking Laws Allows state banks to use federal banking laws for certain activities. 48.57 This section has been repealed and is no longer in effect. 48.58 This section has been repealed and is no longer in effect. 48.59 Commissioner May Accept Examinations and Reports of Corporation Allows the commissioner to accept federal examinations instead of conducting separate state exams. 48.591 Climate Risk Disclosure Survey Requires a banking institution with more than $1,000,000,000 in assets to submit a completed climate risk disclosure … 48.60 This section has been repealed and is no longer in effect. 48.605 State Banks, Employee Stock Option and Stock Purchase Plans A state bank may grant its employees options to buy the bank's stock, or sell them stock under a purchase plan, but only … 48.61 Authorized Investments for State Banks and Trust Companies This section lists the investments state banks and trust companies may make and caps each as a share of capital and … 48.611 This section has been repealed and is no longer in effect. 48.62 Bank May Issue Notes or Debentures With the commissioner's approval, a banking institution may issue and sell its own capital notes or debentures through a … 48.63 Security for Deposits Not Required States that banks do not need to provide security for regular customer deposits. 48.64 Deposits of Trust Funds Court-appointed fiduciaries may deposit funds for safekeeping and disbursing in financial institutions, but only where … 48.65 This section has been repealed and is no longer in effect. 48.66 This section has been repealed and is no longer in effect. 48.67 This section has been repealed and is no longer in effect. 48.68 This section has been repealed and is no longer in effect. 48.69 This section has been repealed and is no longer in effect. 48.70 This section has been repealed and is no longer in effect. 48.71 This section has been repealed and is no longer in effect. 48.72 This section has been repealed and is no longer in effect. 48.73 This section has been repealed and is no longer in effect. 48.74 Funds and Property Held in Fiduciary Capacity Sets rules for how banks handle funds and property held in a fiduciary capacity. 48.75 This section has been repealed and is no longer in effect. 48.76 This section has been repealed and is no longer in effect. 48.77 This section has been repealed and is no longer in effect. 48.78 This section has been repealed and is no longer in effect. 48.79 This section has been repealed and is no longer in effect. 48.80 This section has been repealed and is no longer in effect. 48.81 This section has been repealed and is no longer in effect. 48.82 This section has been repealed and is no longer in effect. 48.83 This section has been repealed and is no longer in effect. 48.84 This section has been repealed and is no longer in effect. 48.841 This section has been repealed and is no longer in effect. 48.845 This section has been repealed and is no longer in effect. 48.846 This section has been repealed and is no longer in effect. 48.85 This section has been repealed and is no longer in effect. 48.86 This section has been repealed and is no longer in effect. 48.87 This section has been repealed and is no longer in effect. 48.88 Violations; Penalties This section sets criminal penalties for certain banking law violations. Any officer or employee of a bank or trust … 48.89 Clerical Service Corporation This section lets two or more banks jointly own a clerical service corporation that handles back-office work such as … 48.892 Clerical Services Offices A bank may perform clerical services (as defined in section 48.89, subdivision 1) for itself at an off-premises data … 48.90 Legislative Intent This section states the Minnesota legislature's intent to act under United States Code, title 12, section 1842(d), as … 48.91 Title This section gives the short title for sections 48.90 to 48.99, which may be cited as the "Interstate Banking Act." 48.92 Definitions This section defines the terms used throughout sections 48.90 to 48.99, the Interstate Banking Act. It sets the meanings … 48.93 Acquisition Procedure This section sets the procedure for an out-of-state bank holding company to acquire control of a Minnesota-home-state … 48.94 This section has been repealed and is no longer in effect. 48.95 This section has been repealed and is no longer in effect. 48.96 Supervision This section lets the department enter into cooperative and reciprocal agreements with federal or state regulators that … 48.97 All subdivisions of this section have been repealed. Subdivision 1 was repealed in 1995, and subdivisions 2, 3, and 4 … 48.98 This section has been repealed and is no longer in effect. 48.99 Special Acquisitions Authorized Authorizes special types of bank acquisitions in certain circumstances. 48.991 This section has been repealed and is no longer in effect. 48.992 Exemption Lets a Minnesota bank or bank holding company opt out of being acquired under section 48.93. The board of directors … 48.993 This section has been repealed and is no longer in effect. 48.995 This section has been repealed and is no longer in effect.