Counsel's Corner
Michael Thro
MBA Associate Counsel
michaelt@minnbankers.com
Recently we had a school group tour our branch. We took
licensure. Minnesota does require money transmitters,
pictures and want to use them on our website and other
which includes ATM owners, to be licensed. The Minnesota
marketing materials. The group informed us that all children
Department of Commerce's website has useful information on
already have consent forms. Can we rely on that consent
money transmitters.
form?
We have an attorney that is repeatedly using the same writ of
The bank should first analyze the existing consent form to see
execution when collecting on a garnishment for a customer.
if the consent transfers to third parties. If the consent form
Can they do this?
only gives the school the right to use photographs, then that
Minnesota Statute § 550.051 states that writs of execution
same consent would not transfer to the bank. If the bank wants
expire 180 days after issuance. However, it does not clarify
to use the photographs, it likely needs to obtain a separate
if a new writ of execution is needed after partial satisfaction.
consent form.
My understanding is that the generally accepted practice is for
One of our customers owns an ATM. Does Minnesota require
attorneys to use the same writ until it expires. Whether the
registration of the ATM?
statute specifically allows this practice is open for interpretation.
Interagency guidance states that all money service businesses
Is there any problem with the bank notarizing a will that is
(MSB) should be able to produce proof of registration and
hand-written?
No. The bank is not notarizing the will per se, but instead is
notarizing the signature. As long as the signature is done in the
presence of the notary, then the normal procedures will apply.
On a mission for loans with a mission.
Our bank recently received notice of death of one of our
We're here to help you serve your customer.
customers. The customer has an individual loan and joint
deposit accounts with our bank. Currently, the loan is set up
for automatic payments from the deposit account held at our
LOAN SIZE
Minimum: $150,000
bank. Can the automatic payments continue?
Maximum: $4,000,000
The payments likely have to stop. The automatic payment
· Permanent working capital
agreement was between the sole borrower and the bank. Once
· Owner-occupied commercial
the sole borrower dies, it is likely that the automatic payment
real estate and leasehold
improvements
agreement terminated. Without the agreement, the bank may
· Business equipment
have no legal right to continue to withdraw funds automatically.
· Refinancing existing debt
(including your bank debt)
Are there any state statutes that prohibit the issuance of
a debit/credit card to access a home equity line of credit
(HELOC) directly?
Community Reinvestment Fund, USA (CRF) can help with business loans that
Minnesota statutes do not address this issue, so a card that can
you are unable to fund because of loan amount, purpose or credit criteria. The
access a HELOC appears to be allowed. However, remember
loan that's not perfect for you may be the perfect fit for us.
that according to Regulation Z, a debit card that can reach
a HELOC that is attached to a deposit account for overdraft
ALWAYS YOUR PARTNER.
As a non-proft, we won't threaten
protection would be considered a credit card and therefore
the depository relationship with your
would not be eligible for setoff.
NEVER YOUR COMPETITOR.
customers.
CONNECT WITH US
Community Reinvestment Fund, USA
Jennifer Ericson
For more information and members only information on legal
801 Nicollet Mall, Suite 1700 West
612.305.2058
Minneapolis, Minnesota 55402
matters in banking, log onto minnbankers.com, and click on
jericson@crfusa.com
Non-profit SBA PLP Lender
"Legal and Compliance."
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MBA News | November/December 2017 | www.minnbankers.com

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