Minnesota Administrative Code

2660.0080 PUBLIC PARTICIPATION. Subpart 1. Public information. Consistent with federal law, the commissioner shall make available to the public at reasonable cost copies of all applications, including supporting documents and any other information required to be submitted to the …

2660.0090 DEVELOPMENTAL LOANS. Subpart 1. Requirements. An association located in this state owned by an interstate holding company shall provide a level of developmental loans as defined by the commissioner. A developmental loan includes, but is not limited to: (1) loans for low…

2660.0100 NET NEW FUNDS. Subpart 1. Requirements. The description of net new funds must be filed with the application and annually thereafter stating the amount of capital funds, including the increase in equity capital that will result from the acquisition or establishment of an…

2660.0110 NOTICE. Subpart 1. Publication. Within 30 days of the filing of an application, the applicant shall publish a notice of the filing of the application in a newspaper of general circulation within the county in which the association or branch office to be acquired or the …

2675.0200 FINANCIAL STATEMENTS. Signed, current financial statements of the borrowers, endorsers, or guarantors are required on loans which the commissioner or an examiner determines to be inadequately secured. Financial statements are considered current when renewed at least ann…

2675.0400 PARTICIPATION LOANS. Where a participation in a loan is sold to another bank the agreement may provide that repayment may first be applied to the share sold. Since one of the purposes of such a sale may be to reduce the bank's retention of loans which may exceed its len…

2675.0500 SPECIAL FEEDER LOANS. Special feeder loans as referred to in Minnesota Statutes, section 48.24, subdivision 7, must be made for the exclusive purpose of purchasing feeder livestock and each note shall bear the notation "special feeder loan" on its face. Each such note o…

2675.0600 LOANS TO CORPORATIONS AND PARTNERSHIPS. Subpart 1. Corporations. All loans to corporations shall be supported by a certified copy of a resolution of the board of directors, board of trustees, or other governing bodies of such corporations authorizing the borrowing by th…

2675.0901 REAL ESTATE LOANS-DOCUMENTATION. A bank must maintain a written policy approved annually by its board of directors that at a minimum addresses: A. Written appraisal or valuation reports made in conjunction with federal, state, and board requirements. Valuation reports m…

2675.1100 BOND INVESTMENT RECORDS. During the period in which such investment is carried on a bank's books, it shall be required that original invoices of bond purchases and sales be retained as a part of the records of a bank; a record be maintained of all securities bought and …

2675.1110 ELIGIBLE SECURITIES. An obligation of indebtedness which may be purchased for its own account by a state bank, in order to come within the classification of eligible securities within the meaning of this part, must be a marketable obligation. It must be salable under or…

2675.1120 SECURITIES UNDER TRUST AGREEMENT. Where the security is issued under a trust agreement, the agreement must provide for a trustee independent of the obligor, and such trustee must be a bank or trust company. Statutory Authority: MS s 46.01 Published Electronically: Septe…

2675.1130 INVESTMENT QUALITIES. Securities, in order to be eligible for purchase by state banks, must be in the form of bonds, notes, and/or debentures, and must be of recognized investment quality. Eligible securities are those which are included among the four highest ratings o…

2675.1140 HOLDING BONDS ON PAR OR FACE VALUE. The statutory limitation on the amount of the eligible securities of any one obligor or maker which may be held by the bank, not otherwise exempted by Minnesota Statutes, section 48.24, subdivision 6, is to be determined on the basis …

2675.1150 PURCHASE OF ASSET AT A PREMIUM OR DISCOUNT. When assets are purchased at a premium or discount, a bank: A. shall charge off the premium when the asset is placed on the books; or, provide for the regular amortization of the premium pursuant to generally accepted accounti…

2675.1170 SECURITIES HAVING HOLDER OPTIONS. Purchase of securities convertible into stock at the option of the holder or with stock purchase warrants attached is prohibited if the price paid for such security is in excess of the investment value of the security itself, considered…

2675.1180 FOREIGN BORROWERS SECURITIES. Purchase of securities of foreign borrowers, whether private, corporate, or governmental, is prohibited with the exception of: A. securities of borrowers, whether private, corporate, or governmental, residing in or which are part of the Dom…

2675.1190 REPURCHASE AGREEMENT SECURITIES. As to purchase of securities under repurchase agreement subject to the limitations and restrictions set forth in the law and this part: A. It is permissible for the bank to purchase eligible securities from another under an agreement whe…

2675.2000 BANKS SELLING WITH REPURCHASE AGREEMENT. As to repurchase agreements accompanying sales of securities, it is permissible for the bank selling securities to another to agree that the bank shall have an option or right to repurchase the securities from the buyer at a pric…

2675.2040 PURCHASE OF ISSUER OPTION SECURITIES PROHIBITED. Purchase of securities convertible into stock at the option of the issuer is prohibited. Statutory Authority: MS s 46.01 Published Electronically: September 14, 2007

2675.2050 PURCHASE OF NONELIGIBLE SECURITIES PROHIBITED; DISPOSITION; EXCEPTIONS. The purchase of securities other than eligible securities as defined in part 2675.1110 is prohibited. Any such purchase will be considered a violation of this part and the commissioner will require …

2675.2100 CASH ITEMS. A daily record shall be maintained of all cash items for anything other than currency or coin being held over until the following day's business and not in the process of being forwarded for collection or being returned to endorsers. No checks shall be held …

2675.2110 BANKING HOUSE. A. Investment for banking house and premises requires no prior written approval of the commissioner pursuant to Minnesota Statutes, section 47.10, unless: (1) the investment is in nonadjacent property, or (2) the total investment exceeds 50 percent of the…

2675.2130 FURNITURE AND FIXTURES, PERSONAL PROPERTY, AUTOMOBILES, AND EQUIPMENT. Purchases capitalized in this account shall be amortized as required by generally accepted accounting principles, or a greater amount as may be approved in writing by the commissioner. Furniture and …

2675.2140 LEASEHOLD INVESTMENT AMORTIZATION. Leasehold investments shall be amortized as required by generally accepted accounting principles. Leasehold investments receiving prior approval pursuant to Minnesota Statutes, section 47.10, subdivision 3, are subject to further prior…

2675.2170 OTHER REAL ESTATE. Other real estate: A. Any real estate acquired or owned by a bank: (1) pursuant to Minnesota Statutes, section 48.21, subdivision 1, clauses (2) to (5); (2) not used in the business resulting from relocation of the principal office, or closing of a de…

2675.2200 CHARGED OFF ASSETS; DUAL CONTROL. Subpart 1. Record. A complete record of charged off assets shall be maintained on which all recoveries shall be shown. This record shall also cite authority of directors with regard to any debts that have been compromised, and include s…

2675.2210 POSTING RECORDS. All asset and liability records of a bank must be posted on a daily basis. Statutory Authority: MS s 46.01 Published Electronically: September 14, 2007

2675.2220 ADDITIONAL COMMON STOCK SALES. Any bank which increases its common capital account by means of the sale of additional common stock need not carry such funds in any other bank but may carry them on its own books among demand liabilities and furnishing appropriate certifi…

2675.2240 DIVIDENDS. The dividend period for the purpose of declaring dividends in accordance with Minnesota Statutes, section 48.09 shall be the period commencing on January 1 and ending as of the close of business December 31 of each calendar year and the net income for each su…

2675.2246 CERTIFICATE OF DEPOSIT OF OTHER FINANCIAL INSTITUTIONS. Where a bank makes a direct investment in a certificate of deposit of another financial institution, such investment shall not exceed its legal lending limit as provided in Minnesota Statutes, section 48.24; howeve…

2675.2260 RECORDS OF CHECKS, DRAFTS, AND OTHER LIABILITIES. A numerical record shall be installed and maintained to disclose at the time of issuance, all liabilities resulting from the issuing of checks, drafts, check certifications, and similar liabilities. Statutory Authority: …

2675.2270 DISCLOSURE OF CONTINGENT OR ACTUAL LIABILITIES. Any liability either actual or contingent that may be incurred by a bank in the conduct of its daily operations must be reflected on the bank's financial statements under an appropriate caption on its statement of conditio…

2675.2280 SAVINGS PASSBOOKS. Savings passbooks must not be retained by a bank for safekeeping except for collateral purposes. Statutory Authority: MS s 46.01 Published Electronically: September 14, 2007

2675.2300 SAFE DEPOSIT BOXES. There must be a rental agreement, signed by the parties who are to have entry, and this agreement must specifically state who is to be authorized to enter. The record to the agreement must contain the signature of each person who is to have access to…

2675.2400 INSURANCE APPROVAL. The board of directors of each bank shall, at least once a year or at each annual meeting, approve of the amount of fidelity insurance to be carried for the ensuing year. Statutory Authority: MS s 46.01 Published Electronically: September 14, 2007

2675.2420 OTHER BUSINESS; EXPENSE REIMBURSEMENT AGREEMENTS. If an officer of a bank is acting as an insurance agent, acting to effect transactions in securities or the business of an insurance agency or securities broker-dealer not owned by the bank is being conducted on the bank…

2675.2500 DISPLAY AND REPLACEMENT COPIES. Every bank shall display its bank charter in a prominent place in the lobby. In case of destruction or misplacement of the charter, the commissioner will supply a duplicate, upon application, at the cost set out in Minnesota Statutes, sec…

2675.2600 INTERNAL CONTROL. Subpart 1. Written internal control policy. Management of a bank, trust company, savings bank, or deposit taking industrial loan and thrift company shall establish a written internal control system. A report describing the scope of coverage and effecti…

2675.2630 OPINION AUDIT. Subpart 1. Request by commissioner. The board of directors of institutions covered by parts 2675.2600 to 2675.2630 will engage an independent certified public accountant to provide an opinion audit on the financial statements of the institution, any or al…

2675.2640 AGREED UPON PROCEDURES EXAMINATION. The board of directors shall engage an independent certified public accountant to conduct an agreed upon procedures examination when requested to do so by the commissioner of commerce. When requested by the Department of Commerce, the…

2675.3100 LIQUIDITY. Subpart 1. Ratio. An association shall maintain a liquidity ratio based upon its cash and obligations of the United States or this state, or in obligations of political subdivisions of this state, in an amount equal to a percentage from four percent up to eig…

2675.3110 MORTGAGE LOANS. A separate individual record shall be kept of each mortgage loan. Only such advances or charges as are provided for in the loan contract and/or those specifically provided for in Minnesota Statutes, section 51A.38 may be added to the loan balance. The lo…

2675.3120 OTHER REAL ESTATE. When real estate is acquired through foreclosure or by deed in lieu thereof, it shall be transferred to an account entitled "other real estate" on the date the association actually acquires title. "Other real estate" cannot be entered on the books of …

2675.3130 PARCELS OF UNSOLD "OTHER REAL ESTATE." Parcels of unsold "other real estate." A. Parcels of "other real estate," not yet sold on contract for deed, must be charged off against the legal reserve account annually at the rate of at least five percent of the original amount…

2675.3140 SHARES. Any association issuing shares by series shall keep an individual record of each certificate issued, adequate to show each payment made thereon, and at the close of each accounting period to show the value to date, the dividend credited, and the delinquent or ad…

2675.3150 INTEREST EARNED BUT NOT COLLECTED. When interest on loans is calculated and added to the loan balance, and if all or part of such interest is not paid, such amount must be set up as "interest earned but not collected" at time of adjusting the loan balance and can only b…