Various nondepository financial institutions provisions modifications

A bill for an act

relating to financial institutions; modifying various provisions governing

nondepository financial institutions; amending Minnesota Statutes 2024, sections

47.20, subdivision 1; 47.59, subdivision 1; 47.60, subdivision 1; 53.04, subdivision

3a; 53B.74; 53C.09, subdivision 4; 56.002; 56.01; 56.05; 58.06, subdivision 2;

58B.051; 332.52, subdivision 3; 332B.04, subdivision 1; repealing Minnesota

Statutes 2024, sections 56.08; 332A.02, subdivision 2; 332A.04, subdivision 1;

332B.02, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 47.20, subdivision 1, is amended to read:

Subdivision 1.

General authority.

Pursuant to rules the commissioner of commerce

finds to be necessary and proper, if any, banks, savings banks, and savings associations

organized under the laws of this state or the United States, trust companies, trust companies

acting as fiduciaries, and other banking institutions subject to the supervision of the

commissioner of commerce,
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including residential mortgage originators and servicers under

chapter 58,
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and mortgagees or lenders approved or certified by the secretary of housing and

urban development or approved or certified by the administrator of veterans affairs, or

approved or certified by the administrator of the Farmers Home Administration or any

successor, or approved or certified by the Federal Home Loan Mortgage Corporation, or

approved or certified by the Federal National Mortgage Association, are authorized:

(1) to make loans and advances of credit and purchases of obligations representing loans

and advances of credit which are insured or guaranteed by the secretary of housing and

urban development pursuant to the National Housing Act, as amended, or the administrator

of veterans affairs pursuant to the Servicemen's Readjustment Act of 1944, as amended, or

the administrator of the Farmers Home Administration or any successor pursuant to the

Consolidated Farm and Rural Development Act, Public Law 87-128, as amended, and to

obtain the insurance or guarantees;

(2) to make loans secured by mortgages on real property and loans secured by a share

or shares of stock or a membership certificate or certificates issued to a stockholder or

member by a cooperative apartment corporation which the secretary of housing and urban

development, the administrator of veterans affairs, or the administrator of the Farmers Home

Administration or any successor has insured or guaranteed or made a commitment to insure

or guarantee, and to obtain the insurance or guarantees;

(3) to make, purchase, or participate in such loans and advances of credit; including

reverse mortgage loans, notwithstanding anything in subdivision 4b, sections
47.58
and

334.01
, and chapter 56 to the contrary; as would be eligible for purchase, in whole or in

part, by the Federal National Mortgage Association or the Federal Home Loan Mortgage

Corporation, but without regard to any limitation placed upon the maximum principal amount

of an eligible loan;

(4) to make, purchase or participate in such loans and advances of credit secured by

mortgages on real property which are authorized or allowed by the Office of Thrift

Supervision or the Office of the Comptroller of the Currency, or any successor to these

federal agencies.

Sec. 2.

Minnesota Statutes 2024, section 47.59, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following definitions shall

apply.

(a) "Actuarial method" has the meaning given the term in Code of Federal Regulations,

title 12, part 226, and appendix J thereto.

(b) "Annual percentage rate" has the meaning given the term in Code of Federal

Regulations, title 12, part 226, but using the definition of "finance charge" used in this

section.

(c) "Borrower" means a debtor under a loan or a purchaser or debtor under a credit sale

contract.

(d) "Business purpose" means a purpose other than a personal, family, household, or

agricultural purpose.

(e) "Cardholder" means a person to whom a credit card is issued or who has agreed with

the financial institution to pay obligations arising from the issuance to or use of the card by

another person.

(f) "Consumer loan" means a loan made by a financial institution in which:

(1) the debtor is a person other than an organization;

(2) the debt is incurred primarily for a personal, family, or household purpose; and

(3) the debt is payable in installments or a finance charge is made.

(g) "Credit" means the right granted by a financial institution to a borrower to defer

payment of a debt, to incur debt and defer its payment, or to purchase property or services

and defer payment.

(h) "Credit card" means a card or device issued under an arrangement pursuant to which

a financial institution gives to a cardholder the privilege of obtaining credit from the financial

institution or other person in purchasing or leasing property or services, obtaining loans, or

otherwise. A transaction is "pursuant to a credit card" only if credit is obtained according

to the terms of the arrangement by transmitting information contained on the card or device

orally, in writing, by mechanical or electronic methods, or in any other manner. A transaction

is not "pursuant to a credit card" if the card or device is used solely in that transaction to:

(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is

not obtained according to the terms of the arrangement;

(2) obtain a guarantee of payment from the cardholder's deposit account, whether or not

the payment results in a credit extension to the cardholder by the financial institution; or

(3) effect an immediate transfer of funds from the cardholder's deposit account by

electronic or other means, whether or not the transfer results in a credit extension to the

cardholder by the financial institution.

(i) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" means

a sale of goods or services, or an interest in land, in which:

(1) credit is granted by a seller who regularly engages as a seller in credit transactions

of the same kind; and

(2) the debt is payable in installments or a finance charge is made.

(j) "Finance charge" has the meaning given in Code of Federal Regulations, title 12, part

226, except that the following will not in any event be considered a finance charge:

(1) a charge as a result of default or delinquency under subdivision 6 if made for actual

unanticipated late payment, delinquency, default, or other similar occurrence, and a charge

made for an extension or deferment under subdivision 5, unless the parties agree that these

charges are finance charges;

(2) an additional charge under subdivision 6;

(3) a discount, if a financial institution purchases a loan at less than the face amount of

the obligation or purchases or satisfies obligations of a cardholder pursuant to a credit card

and the purchase or satisfaction is made at less than the face amount of the obligation;

(4) fees paid by a borrower to a broker, provided the financial institution or a person

described in subdivision 4 does not require use of the broker to obtain credit; or

(5) a commission, expense reimbursement, or other sum received by a financial institution

or a person described in subdivision 4 in connection with insurance described in subdivision

6.

(k) "Financial institution" means a state or federally chartered bank, a state or federally

chartered bank and trust, a trust company with banking powers, a state or federally chartered

saving bank, a state or federally chartered savings association, an industrial loan and thrift

company organized under chapter 53,
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a sales finance company organized under chapter

53C,
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a regulated lender organized under chapter 56,
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a mortgage originator or servicer

licensed under chapter 58,
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or an operating subsidiary of any such institution.

(l) "Loan" means:

(1) the creation of debt by the financial institution's payment of money to the borrower

or a third person for the account of the borrower;

(2) the creation of debt pursuant to a credit card in any manner, including a cash advance

or the financial institution's honoring a draft or similar order for the payment of money

drawn or accepted by the borrower, paying or agreeing to pay the borrower's obligation, or

purchasing or otherwise acquiring the borrower's obligation from the obligee or the borrower's

assignee;

(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft line of

credit arrangement;

(4) the creation of debt by a credit to an account with the financial institution upon which

the borrower is entitled to draw immediately;

(5) the forbearance of debt arising from a loan; and

(6) the creation of debt pursuant to open-end credit.

"Loan" does not include the forbearance of debt arising from a sale or lease, a credit

sale contract, or an overdraft from a person's deposit account with a financial institution

which is not pursuant to a written agreement to pay overdrafts with the right to defer

repayment thereof.

(m) "Official fees" means:

(1) fees and charges which actually are or will be paid to public officials for determining

the existence of or for perfecting, releasing, terminating, or satisfying a security interest or

mortgage relating to a loan or credit sale, and any separate fees or charges which actually

are or will be paid to public officials for recording a notice described in section
580.032,

subdivision 1
; and

(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage

otherwise required by a financial institution in connection with a loan or credit sale, if the

premium does not exceed the fees and charges described in clause (1), which would otherwise

be payable.

(n) "Organization" means a corporation, government, government subdivision or agency,

trust, estate, partnership, joint venture, cooperative, limited liability company, limited

liability partnership, or association.

(o) "Person" means a natural person or an organization.

(p) "Principal" means the total of:

(1) the amount paid to, received by, or paid or repayable for the account of, the borrower;

and

(2) to the extent that payment is deferred:

(i) the amount actually paid or to be paid by the financial institution for additional charges

permitted under this section; and

(ii) prepaid finance charges.

Sec. 3.

Minnesota Statutes 2024, section 47.60, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the terms defined have the

meanings given them:

(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower

for the borrower's own personal, family, or household purpose. A consumer small loan is

a short-term, unsecured loan to be repaid in a single installment. The cash advance of a

consumer small loan is equal to or less than $350. A consumer small loan includes an

indebtedness evidenced by but not limited to a promissory note or agreement to defer the

presentation of a personal check for a fee.

(b) "Consumer small loan lender" is a financial institution as defined in section
47.59

or a business entity registered with the commissioner and engaged in the business of making
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or arranging
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consumer small loans.
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For purposes of this paragraph, arranging a consumer

small loan includes but is not limited to any substantial involvement to facilitate, market,

generate leads for, underwrite, or collect a consumer small loan.
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(c) "Annual percentage rate" means a measure of the cost of credit, expressed as a yearly

rate, that relates the amount and timing of value received by the consumer to the amount

and timing of payments made. Annual percentage rate includes all interest, finance charges,

and fees. The annual percentage rate must be determined in accordance with either the

actuarial method or the United States Rule method.

Sec. 4.

Minnesota Statutes 2024, section 53.04, subdivision 3a, is amended to read:

Subd. 3a.

Loans.

(a) The right to make loans, secured or unsecured, at the rates and on

the terms and other conditions permitted under chapters
47
and
334
. Loans made under this

authority must be in amounts in compliance with section
53.05
, clause (7). A licensee making

a loan under this chapter secured by a lien on real estate shall comply with the requirements

of section
47.20, subdivision 8
. A licensee making a loan that is a consumer small loan, as

defined in section
47.60, subdivision 1
, paragraph (a), must comply with section
47.60
. A

licensee making a loan that is a consumer short-term loan, as defined in section
47.601
,

subdivision 1, paragraph
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(d)
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(e)
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, must comply with section
47.601
.

(b) Loans made under this subdivision may be secured by real or personal property, or

both. If the proceeds of a loan secured by a first lien on the borrower's primary residence

are used to finance the purchase of the borrower's primary residence, the loan must comply

with the provisions of section
47.20
.

(c) An agency or instrumentality of the United States government or a corporation

otherwise created by an act of the United States Congress or a lender approved or certified

by the secretary of housing and urban development, or approved or certified by the

administrator of veterans affairs, or approved or certified by the administrator of the Farmers

Home Administration, or approved or certified by the Federal Home Loan Mortgage

Corporation, or approved or certified by the Federal National Mortgage Association, that

engages in the business of purchasing or taking assignments of mortgage loans and undertakes

direct collection of payments from or enforcement of rights against borrowers arising from

mortgage loans, is not required to obtain a certificate of authorization under this chapter in

order to purchase or take assignments of mortgage loans from persons holding a certificate

of authorization under this chapter.

(d) This subdivision does not authorize an industrial loan and thrift company to make

loans under an overdraft checking plan.

Sec. 5.

Minnesota Statutes 2024, section 53B.74, is amended to read:

53B.74 VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL

REQUIREMENTS.

(a) A licensee engaged in virtual currency business activities
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may include virtual currency

in the licensee's calculation of tangible net worth, by measuring the average value of the

virtual currency in United States dollar equivalent over the prior six months, excluding

control of virtual currency for a person entitled to the protections under section
53B.73
.
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is

not required to subtract virtual currency from total assets in the licensee's calculation of

tangible net worth if:
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(1) the licensee's day-to-day business includes incurring obligations to customers

denominated in the virtual currency;

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(2) the virtual currency asset has a corresponding liability denominated in the virtual

currency;

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(3) the virtual currency is unencumbered; and

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(4) the virtual currency assets that are not subtracted from total assets are limited to the

virtual currency assets that have a corresponding liability denominated in the same virtual

currency.

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(b) A licensee must maintain, for all virtual-currency business activity with or on behalf

of a person five years after the date of the activity, a record of:

(1) each of the licensee's transactions with or on behalf of the person, or for the licensee's

account in Minnesota, including:

(i) the identity of the person;

(ii) the form of the transaction;

(iii) the amount, date, and payment instructions given by the person; and

(iv) the account number, name, and United States Postal Service address of the person,

and, to the extent feasible, other parties to the transaction;

(2) the aggregate number of transactions and aggregate value of transactions by the

licensee with or on behalf of the person and for the licensee's account in this state, expressed

in the United States dollar equivalent of the virtual currency for the previous 12 calendar

months;

(3) each transaction in which the licensee exchanges one form of virtual currency for

money or another form of virtual currency with or on behalf of the person;

(4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities,

capital, income, and expenses;

(5) each business-call report the licensee is required to create or provide to the department

or NMLS;

(6) bank statements and bank reconciliation records for the licensee and the name,

account number, and United States Postal Service address of each bank the licensee uses

to conduct virtual-currency business activity with or on behalf of the person;

(7) a report of any dispute with the person; and

(8) a report of any virtual-currency business activity transaction with or on behalf of a

person which the licensee was unable to complete.

(c) A licensee must maintain records required by paragraph (b) in a form that enables

the commissioner to determine whether the licensee is in compliance with this chapter, any

court order, and law of Minnesota other than this chapter.

Sec. 6.

Minnesota Statutes 2024, section 53C.09, subdivision 4, is amended to read:

Subd. 4.

Other law may apply.

In lieu of this section and sections
53C.01, subdivisions

2, 4, and 13
;
53C.08
;
53C.10
; and
53C.11
, a retail seller
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or sales finance company
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may

proceed under section
47.59

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relating to credit sales made by a third party
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, subdivisions 4,

4a, and 6
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. In cases where the retail seller
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or sales finance company
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proceeds under section

47.59
, the remaining provisions of sections
53C.01
to
53C.14
apply notwithstanding section

47.59
.

Sec. 7.

Minnesota Statutes 2024, section 56.002, is amended to read:

56.002 APPLICATION.

This chapter does not apply to a person doing business under and as permitted by any

law of this state or of the United States relating to banks, savings associations, trust

companies, licensed pawnbrokers,
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a residential mortgage originator or servicer licensed

under chapter 58 that offers residential mortgage origination services or residential mortgage

servicing,
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or credit unions. Notwithstanding the provisions of section
56.01
, an industrial

loan and thrift company under chapter 53 may contract for and receive the charges, including

those in section
56.155
, authorized by this chapter without being licensed pursuant to this

chapter, but shall comply with all other provisions of this chapter when contracting for or

receiving charges on loans regulated by this chapter.

Sec. 8.

Minnesota Statutes 2024, section 56.01, is amended to read:

56.01 NECESSITY OF LICENSE.

(a) Except as authorized by this chapter and without first obtaining a license from the

commissioner, no person shall engage in the business of making loans of money, credit,

goods, or things in action, in an amount or of a value not exceeding that specified in section

56.131, subdivision 1
, and charge, contract for, or receive on the loan a greater rate of

interest, discount, or consideration than the lender would be permitted by law to charge if

not a licensee under this chapter.
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A person must obtain a license from the commissioner

under this chapter before arranging a consumer short-term loan under section 47.601.
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(b) An agency or instrumentality of the United States government or a corporation

otherwise created by an act of the United States Congress or a lender approved or certified

by the secretary of housing and urban development, or approved or certified by the

administrator of veterans affairs, or approved or certified by the administrator of the Farmers

Home Administration, or approved or certified by the Federal Home Loan Mortgage

Corporation, or approved or certified by the Federal National Mortgage Association, that

engages in the business of purchasing or taking assignments of mortgage loans and undertakes

direct collection of payments from or enforcement of rights against borrowers arising from

mortgage loans, is not required to be licensed under this chapter in order to purchase or take

assignments of mortgage loans from licensees under this chapter.

Sec. 9.

Minnesota Statutes 2024, section 56.05, is amended to read:

56.05 LICENSE; TO BE POSTED.

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(a)
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The license shall state the address at which the business is to be conducted and shall

state fully the name of the licensee, and if the licensee is a copartnership or association, the

names of the members thereof, and if a corporation, the date and place of its incorporation.

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(b)
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The license shall be kept conspicuously posted in the place of business of the licensee,

and shall not be transferable or assignable.
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For a licensee that offers service via the Internet,

the license number must be clearly displayed on each webpage or other document required

by an order issued by the commissioner.
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Sec. 10.

Minnesota Statutes 2024, section 58.06, subdivision 2, is amended to read:

Subd. 2.

Application contents.

(a) The application must contain the name and complete

business address or addresses of the license applicant. The license applicant must be a

partnership, limited liability partnership, association, limited liability company, corporation,

or other form of business organization, and the application must contain the names and

complete business addresses of each partner, member, director, and principal officer. The

application must also include a description of the activities of the license applicant, in the

detail and for the periods the commissioner may require.

(b)
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A residential mortgage originator
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An
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applicant must submit a surety bond that meets

the requirements of section
58.08, subdivision 1a
.

(c) The application must also include all of the following:

(1) an affirmation under oath that the applicant:

(i) is in compliance with the requirements of section
58.125
;

(ii) will advise the commissioner of any material changes to the information submitted

in the most recent application within ten days of the change;

(iii) will advise the commissioner in writing immediately of any bankruptcy petitions

filed against or by the applicant or licensee;

(iv) will maintain at all times a surety bond in the amount of at least
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$100,000
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$125,000
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;

(v) complies with federal and state tax laws; and

(vi) complies with sections
345.31
to
345.60
, the Minnesota unclaimed property law;

(2) information as to the mortgage lending, servicing, or brokering experience of the

applicant and persons in control of the applicant;

(3) information as to criminal convictions, excluding traffic violations, of persons in

control of the license applicant;

(4) whether a court of competent jurisdiction has found that the applicant or persons in

control of the applicant have engaged in conduct evidencing gross negligence, fraud,

misrepresentation, or deceit in performing an act for which a license is required under this

chapter;

(5) whether the applicant or persons in control of the applicant have been the subject of:

an order of suspension or revocation, cease and desist order, or injunctive order, or order

barring involvement in an industry or profession issued by this or another state or federal

regulatory agency or by the Secretary of Housing and Urban Development within the ten-year

period immediately preceding submission of the application; and

(6) other information required by the commissioner.

Sec. 11.

Minnesota Statutes 2024, section 58B.051, is amended to read:

58B.051 REGISTRATION FOR LENDERS.

(a) Beginning January 1, 2025, a lender must register with the commissioner as a lender

before providing services in Minnesota. A lender must not offer or make a student loan to

a resident of Minnesota without first registering with the commissioner as provided in this

section.

(b) A registration application must include:

(1) the lender's name;

(2) the lender's address;

(3) the names of all officers, directors, owners, or other persons in control of an applicant,

as defined in section
58B.02, subdivision 6
; and

(4) any other information the commissioner requires
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by rule
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.

(c) Registration issued or renewed expires December 31 of each year. A lender must

renew the lender's registration on an annual basis.

(d) The commissioner may adopt and enforce:

(1) registration procedures for lenders, which may include using the Nationwide

Multistate Licensing System and Registry;

(2) nonrefundable registration fees for lenders, which may include fees for using the

Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;

(3) procedures and nonrefundable fees to renew a lender's registration, which may include

fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be

paid directly by the lender; and

(4) alternate registration procedures and nonrefundable fees for postsecondary education

institutions that offer student loans.

Sec. 12.

Minnesota Statutes 2024, section 332.52, subdivision 3, is amended to read:

Subd. 3.

Credit services organization.

(a) "Credit services organization" means any

person that, with respect to the extension of credit by others, sells, provides, performs, or

represents that the person will sell, provide, or perform, in return for the payment of money

or other valuable consideration, any of the following services:

(1) improve a buyer's credit record, history, or rating;

(2) obtain an extension of credit for a buyer; or

(3) provide advice or assistance to a buyer with regard to either clause (1) or (2).

(b) "Credit services organization" does not include:

(1) any person authorized to make loans or extensions of credit under the laws of this

state or the United States, if the person is subject to regulation and supervision by this state

or the United States or a lender approved by the United States Secretary of Housing and

Urban Development for participation in any mortgage insurance program under the National

Housing Act, United States Code, title 12, section 1701 et seq.;

(2) any bank, savings bank, or savings and loan institution whose deposits or accounts

are eligible for insurance by the Federal Deposit Insurance Corporation or a subsidiary of

the bank, savings bank, or savings and loan institution;

(3) any credit union, federal credit union, or out-of-state credit union doing business in

this state;

(4) any nonprofit organization exempt from taxation under section 501(c)(3) of the

Internal Revenue Code of 1986, as amended through December 31, 1990;

(5) any person
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licensed as a prorating agency
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registered as a debt management services

provider or debt settlement services provider
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under the laws of this state
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,
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if the person is

acting within the course and scope of
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that license
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the applicable registration
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;

(6) any person licensed as a real estate broker by this state if the person is acting within

the course and scope of that license;

(7) any person licensed as a collection agency under the laws of this state if the person

is acting within the course and scope of that license;

(8) any person licensed to practice law in this state if the person renders services within

the course and scope of practice as an attorney;

(9) any broker-dealer registered with the Securities and Exchange Commission or the

Commodity Futures Trading Commission if the broker-dealer is acting within the course

and scope of that regulation; or

(10) any consumer reporting agency as defined in the federal Fair Credit Reporting Act,

United States Code, title 15, sections 1681 to 1681t, as amended through December 31,

1990.

Sec. 13.

Minnesota Statutes 2024, section 332B.04, subdivision 1, is amended to read:

Subdivision 1.

Form.

Application for registration to operate as a debt settlement services

provider in this state must be made in writing to the commissioner, under oath, in the form

prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and, if

applicable, email address of the applicant;

(3) consent to the jurisdiction of the courts of this state;

(4) the name and address of the registered agent authorized to accept service of process

on behalf of the applicant or appointment of the commissioner as the applicant's agent for

purposes of accepting service of process;

(5) disclosure of:

(i) whether any controlling or affiliated party has ever been convicted of a crime or found

civilly liable for an offense involving moral turpitude, including forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any

other similar offense or violation, or any violation of a federal or state law or regulation in

connection with activities relating to the rendition of debt settlement services or involving

any consumer fraud, false advertising, deceptive trade practices, or similar consumer

protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative

actions, or investigations by any government agency against the applicant or any officer,

director, manager, or shareholder owning more than five percent interest in the applicant,

unresolved or otherwise, filed or otherwise commenced within the preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record of

having defaulted in the payment of money collected for others, including the discharge of

debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt settlement services in

any other state has ever been revoked or suspended;

(6) a copy of the applicant's standard debt settlement services agreement that the applicant

intends to execute with debtors;
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and
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(7) proof of accreditation, unless the applicant submits an affidavit attesting that the

applicant does not provide credit counseling services; and

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(8)
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(7)
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any other information and material as the commissioner may require.

The commissioner may, for good cause shown, temporarily waive any requirement of

this subdivision.

Sec. 14.
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REPEALER.
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Minnesota Statutes 2024, sections 56.08; 332A.02, subdivision 2; 332A.04, subdivision

1; and 332B.02, subdivision 2,

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are repealed.

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APPENDIX

Repealed Minnesota Statutes: 26-06143

56.08 ANNUAL LICENSE FEE.

Every licensee shall, on or before the 20th day of each December, pay to the commissioner the sum of $150 as an annual license fee for the next succeeding calendar year.

332A.02 DEFINITIONS.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.

332A.04 REGISTRATION.

Subdivision 1.

Form.

Application for registration to operate as a debt management services provider in this state must be made in writing to the commissioner, under oath, in the form prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and, if applicable, email address, of the applicant;

(3) identification of the trust account required under section
332A.13
;

(4) consent to the jurisdiction of the courts of this state;

(5) the name and address of the registered agent authorized to accept service of process on behalf of the applicant or appointment of the commissioner as the applicant's agent for purposes of accepting service of process;

(6) disclosure of:

(i) whether any controlling or affiliated party has ever been convicted of a crime or found civilly liable for an offense involving moral turpitude, including forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any other similar offense or violation, or any violation of a federal or state law or regulation in connection with activities relating to the rendition of debt management services or involving any consumer fraud, false advertising, deceptive trade practices, or similar consumer protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative actions, or investigations by any government agency against the applicant or any officer, director, manager, or shareholder owning more than five percent interest in the applicant, unresolved or otherwise, filed or otherwise commenced within the preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record of having defaulted in the payment of money collected for others, including the discharge of debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt management services in any other state has ever been revoked or suspended;

(7) a copy of the applicant's standard debt management services agreement that the applicant intends to execute with debtors;

(8) proof of accreditation, unless the applicant was licensed in Minnesota as a debt prorater immediately before August 1, 2007; and

(9) any other information and material as the commissioner may require.

The commissioner may, for good cause shown, temporarily waive any requirement of this subdivision.

332B.02 DEFINITIONS.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.