1998 Minnesota Statutes

     48.39 Trust accounts recorded. 

    Besides its general books of account, it shall keep 
 separate books of account for all fiduciary accounts.  All funds 
 and property held by it in a fiduciary capacity shall at all 
 times be kept separate from its own funds and property, and all 
 fiduciary funds deposited or held as fiduciary by the bank 
 awaiting investment shall be carried in a separate account, and 
 shall not be used by the bank in the conduct of its business, 
 unless the bank, under authorization by its board of directors, 
 first delivers to the commissioner of commerce, as collateral 
 security:  (1) bonds, notes, bills, certificates of indebtedness 
 or other direct obligations of the United States or its 
 instrumentalities, or obligations fully guaranteed by the United 
 States as to principal and interest; or (2) other readily 
 marketable securities of the classes in which said trust 
 companies or state banks exercising trust powers are authorized 
 or permitted to invest trust funds under the laws of this 
 state.  The securities so deposited as collateral shall be owned 
 by the bank and shall at all times be at least equal in market 
 value to the amount of the trust funds so used in the conduct of 
 the bank's business, and all deposits made by it of such funds 
 in any other banking institutions shall be deposited as 
 fiduciary funds, to its credit as fiduciary, and not otherwise.  
 Every security or property in which the funds held by it as 
 trustee, executor, administrator, guardian, receiver, or 
 assignee, or in any other fiduciary capacity are invested, shall 
 at once upon receipt thereof be immediately entered in the 
 proper books as belonging to the particular fiduciary account 
 whose funds have been invested therein.  Any change in such 
 investment shall be fully specified in and under the account of 
 the particular fiduciary account to which it belongs so that all 
 fiduciary funds and property can be readily identified at any 
 time by any person.  It shall be unlawful for any bank to lend 
 any officer, director or employee any funds held as fiduciary 
 under the powers conferred by section 48.37.  Any officer, 
 director or employee to whom such a loan is made shall be guilty 
 of theft of the amount of such loan from the time of the making 
 thereof.  Any state bank, when acting in a fiduciary capacity, 
 either alone or jointly with an individual or individuals, may, 
 with the consent of such individual fiduciary or fiduciaries, 
 who are hereby authorized to give such consent, cause any 
 stocks, securities, or other property now held or hereafter 
 acquired in such capacity to be registered and held in the name 
 of a nominee or nominees of such state bank without mention of 
 the fiduciary relationship.  Any such state bank shall be liable 
 for any loss occasioned by the acts of any of its nominees with 
 respect to such stocks, securities or other property so 
 registered.  

    HIST: (7664) 1923 c 274 s 4; 1943 c 338 s 1; 1957 c 311 s 1; 
 1965 c 35 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 
 1998 c 331 s 6