We are currently in the licensing process to become an internet HELOC lender (not a bank, s/l, or credit union) in Minnesota.

Can anyone verify our understanding that, on open-end loans, Minn. mandates an outstanding balance of at least $5,184 before a lien can be filed, thus requiring borrowers to take an initial advance of at least that amount, rather than merely just opening the line of credit without an initial advance?

If so, is there any legal provision whereby a lien could be filed without the customer being forced to take an immediate advance upon approval?