HF4524

Purpose

• To prohibit state banks and state credit unions in Minnesota from charging a fee to electronically deposit a check.

Main Provisions

• Section 48.741 (Electronic check deposit fees)
  • Defines “electronic check” using the definition in Code of Federal Regulations title 12, section 229.2(ggg).
  • Prohibits a state bank from charging a fee to deposit an electronic check.
• Section 52.138 (Electronic check deposit fees)
  • Also defines “electronic check” using the same federal definition.
  • Prohibits a state credit union from charging a fee to deposit an electronic check.

Definitions

• Electronic check: as defined in 12 CFR 229.2(g)ggg (federal regulation).
• State bank: a Minnesota state-chartered bank.
• State credit union: a Minnesota state-chartered credit union.

Significance and Impact

• Consumers would not have to pay fees to deposit electronic checks at state banks or state credit unions.
• The measure aligns state law with federal definitions of electronic checks for the purposes of deposit services.

Changes to Existing Law

• Adds explicit prohibitions against deposit fees for electronic checks to Minnesota Statutes sections 48.741 and 52.138.

Enforcement and Effective Date

• The text provided does not specify penalties, enforcement mechanisms, or an effective date.

Relevant Terms - electronic check - deposit fee - state bank - state credit union - Minnesota Statutes 48.741 - Minnesota Statutes 52.138 - CFR 12 CFR 229.2(g)ggg - fee prohibition - electronic deposits