1.1 A bill for an act
1.2 relating to financial institutions; modifying notice requirements for conventional
1.3 loan mortgage documents; amending Minnesota Statutes 2024, section 47.20,
1.4 subdivision 8.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 47.20, subdivision 8, is amended to read:
1.7 Subd. 8.Conventional loan provisions.(a) A lender making a conventional loan shall
1.8comply with the following:
1.9 (1) the promissory note and mortgage evidencing a conventional loan shall be printed
1.10in not less than the equivalent of 8-point type, .075 inch computer type, or elite-size
1.11typewritten numerals, or shall be legibly handwritten.;
1.12 (2) the mortgage evidencing a conventional loan shall contain a provision whereby the
1.13lender agrees to furnish the borrower with a conformed copy of the promissory note and
1.14mortgage at the time they are executed or within a reasonable time after recordation of the
1.15mortgage.; and
1.16 (3) the mortgage evidencing a conventional loan shall contain a provision whereby the
1.17lender, if it intends to foreclose, agrees to give the borrower written notice of any default
1.18under the terms or conditions of the promissory note or mortgage, by sending the notice by
1.19certified: (i) first-class mail to the address of the mortgaged property or such other a different
1.20address as the borrower may have designated designates in writing to the lender; or (ii)
1.21email or other electronic communication, if agreed to by the lender and the borrower in
1.22writing. The lender need not give the borrower the notice required by this paragraph clause
1Section 1.
REVISOR RSI/LJ 25-0373202/27/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2014
NINETY-FOURTH SESSION
Authored by Dotseth and Huot03/06/2025
The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1if the default consists of the borrower selling the mortgaged property without the required
2.2consent of the lender.
2.3 (b) The mortgage shall further provide that the notice under paragraph (a), clause (3),
2.4shall contain the following provisions:
2.5 (a) (1) the nature of the default by the borrower;
2.6 (b) (2) the action required to cure the default;
2.7 (c) (3) a date, not less than 30 days from the date the notice is mailed by which the
2.8default must be cured;
2.9 (d) (4) that failure to cure the default on or before the date specified in the notice may
2.10result in acceleration of the sums secured by the mortgage and sale of the mortgaged
2.11premises;
2.12 (e) (5) that the borrower has the right to reinstate the mortgage after acceleration; and
2.13 (f) (6) that the borrower has the right to bring a court action to assert the nonexistence
2.14of a default or any other defense of the borrower to acceleration and sale.
2.15 Sec. 2. CERTAIN COMPLIANCE OPTIONAL.
2.16 A lender's compliance with Minnesota Statutes, section 47.20, subdivision 8, is optional
2.17with respect to conventional loan mortgage documents dated between August 1, 2024, and
2.18July 31, 2025.
2.19 EFFECTIVE DATE.This section is effective retroactively from July 31, 2024.
2Sec. 2.
REVISOR RSI/LJ 25-0373202/27/25