In Minn. Stat 334.012, it limits the loan rate to two percent over the certificate of deposit rate. However, Minn. Stat 47.59 lets the bank charge a rate of up to 21.75% with out regard to how they are secured. Is there any regulation that states you cannot charge a loan rate lower than the certificate rate (negative spread)?

I checked with the MBA office and that statute still exists. However, if a bank uses a different statute to make the loan under, then the 2% restriction is not applicable. For example, if the bank uses Minn. Stat. 47.59, it doesn't need to be concerned with Minn. Stat. 334.012.