HF 382

1st Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 04/12/2012 10:07 a.m.

1.1A bill for an act 1.2relating to civil law; amending statutes regarding receiverships, assignments for 1.3the benefit of creditors, and nonprofit corporations; changing, updating, and 1.4clarifying certain provisions of the Uniform Disclaimer of Property Interests 1.5Act; amending Minnesota Statutes 2010, sections 302A.753, subdivisions 2, 3; 1.6302A.755; 302A.759, subdivision 1; 302A.761; 308A.945, subdivisions 2, 3; 1.7308A.951; 308A.961, subdivision 1; 308A.965; 308B.935, subdivisions 2, 3; 1.8308B.941; 308B.951, subdivision 1; 308B.955; 316.11; 317A.753, subdivisions 1.93, 4; 317A.755; 317A.759, subdivision 1; 322B.836, subdivisions 2, 3; 322B.84; 1.10462A.05, subdivision 32; 469.012, subdivision 2i; 524.2-1103; 524.2-1104; 1.11524.2-1106; 524.2-1107; 524.2-1114; 524.2-1115; 524.2-1116; 540.14; 559.17, 1.12subdivision 2; 576.04; 576.06; 576.08; 576.09; 576.11; 576.121; 576.123; 1.13576.144; 576.15; 576.16; proposing coding for new law in Minnesota Statutes, 1.14chapters 576; 577; repealing Minnesota Statutes 2010, sections 302A.759, 1.15subdivision 2; 308A.961, subdivision 2; 308B.951, subdivisions 2, 3; 317A.759, 1.16subdivision 2; 576.01; 577.01; 577.02; 577.03; 577.04; 577.05; 577.06; 577.08; 1.17577.09; 577.10. 1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.19ARTICLE 1 1.20RECEIVERSHIPS 1.21    Section 1. new text begin [576.21] DEFINITIONS. new text end 1.22 new text begin (a) The definitions in this section apply throughout this chapter unless the context new text end 1.23 new text begin requires otherwise. new text end 1.24 new text begin (b) "Court" means the district court in which the receivership is pending unless new text end 1.25 new text begin the context requires otherwise. new text end 1.26 new text begin (c) "Entity" means a person other than a natural person. new text end 1.27 new text begin (d) "Executory contract" means a contract, including a lease, where the obligations new text end 1.28 new text begin of both the respondent and the other party to the contract are unperformed to the extent new text end 1.29 new text begin that the failure of either party to complete performance of its obligations would constitute new text end 2.1 new text begin a material breach of the contract, thereby excusing the other party's performance of its new text end 2.2 new text begin obligations under the contract. new text end 2.3 new text begin (e) "Foreign receiver" means a receiver appointed in any foreign jurisdiction. new text end 2.4 new text begin (f) "Foreign jurisdiction" means any state or federal jurisdiction other than that of new text end 2.5 new text begin this state. new text end 2.6 new text begin (g) "General receiver" means the receiver appointed in a general receivership. new text end 2.7 new text begin (h) "General receivership" means a receivership over all or substantially all of new text end 2.8 new text begin the nonexempt property of a respondent for the purpose of liquidation and distribution new text end 2.9 new text begin to creditors and other parties in interest, including, without limitation, a receivership new text end 2.10 new text begin resulting from the appointment of a receiver pursuant to section 302A.753, 308A.945, new text end 2.11 new text begin 308B.935, 317A.753, or 322B.836. new text end 2.12 new text begin (i) "Lien" means a charge against or interest in property to secure payment of a debt new text end 2.13 new text begin or the performance of an obligation, including any mortgage or security interest. new text end 2.14 new text begin (j) "Limited receiver" means the receiver appointed in a limited receivership. new text end 2.15 new text begin (k) "Limited receivership" means a receivership other than a general receivership. new text end 2.16 new text begin (l) "Party" means a person who is a party within the meaning of the Minnesota Rules new text end 2.17 new text begin of Civil Procedure in the action in which a receiver is appointed. new text end 2.18 new text begin (m) "Party in interest" includes the respondent, any equity security holder in the new text end 2.19 new text begin respondent, any person with an ownership interest in or lien on receivership property, and, new text end 2.20 new text begin in a general receivership, any creditor of the respondent. new text end 2.21 new text begin (n) "Person" has the meaning given it in section 645.44 and shall include limited new text end 2.22 new text begin liability companies, limited liability partnerships, and other entities recognized under new text end 2.23 new text begin the laws of this state. new text end 2.24 new text begin (o) "Property" means all of respondent's right, title, and interest, both legal and new text end 2.25 new text begin equitable, in real and personal property, regardless of the manner by which any of the new text end 2.26 new text begin same were or are acquired. Property includes, but is not limited to, any proceeds, products, new text end 2.27 new text begin offspring, rents, or profits of or from the property. Property does not include: (1) any power new text end 2.28 new text begin that the respondent may exercise solely for the benefit of another person, or (2) property new text end 2.29 new text begin impressed with a trust except to the extent that the respondent has a residual interest. new text end 2.30 new text begin (p) "Receiver" means a person appointed by the court as the court's agent, and new text end 2.31 new text begin subject to the court's direction, to take possession of, manage, and, if authorized by this new text end 2.32 new text begin chapter or order of the court, dispose of receivership property. new text end 2.33 new text begin (q) "Receivership" means the case in which the receiver is appointed, and, as the new text end 2.34 new text begin context requires, the proceeding in which the receiver takes possession of, manages, new text end 2.35 new text begin or disposes of the respondent's property. new text end 3.1 new text begin (r) "Receivership property" means (1) in the case of a general receivership, all new text end 3.2 new text begin or substantially all of the nonexempt property of the respondent, or (2) in the case of a new text end 3.3 new text begin limited receivership, that property of the respondent identified in the order appointing new text end 3.4 new text begin the receiver, or in any subsequent order. new text end 3.5 new text begin (s) "Respondent" means the person over whose property the receiver is appointed. new text end 3.6 new text begin (t) "State agent" and "state agency" means any office, department, division, bureau, new text end 3.7 new text begin board, commission, or other agency of the state of Minnesota or of any subdivision thereof, new text end 3.8 new text begin or any individual acting in an official capacity on behalf of any state agent or state agency. new text end 3.9 new text begin (u) "Time of appointment" means the date and time specified in the first order new text end 3.10 new text begin of appointment of a receiver or, if the date and time are not specified in the order of new text end 3.11 new text begin appointment, the date and time that the court ruled on the motion for the appointment of new text end 3.12 new text begin a receiver. Time of appointment does not mean any subsequent date or time, including new text end 3.13 new text begin the execution of a written order, the filing or docketing of a written order, or the posting new text end 3.14 new text begin of a bond. new text end 3.15 new text begin (v) "Utility" means a person providing any service regulated by the Public Utilities new text end 3.16 new text begin Commission. new text end 3.17    Sec. 2. new text begin [576.22] APPLICABILITY OF CHAPTER AND OF COMMON LAW. new text end 3.18 new text begin (a) This chapter applies to receiverships provided for in section 576.25, subdivisions new text end 3.19 new text begin 2 to 6, and to receiverships: new text end 3.20 new text begin (1) pursuant to section 193.147, in connection with a mortgage on an armory; new text end 3.21 new text begin (2) pursuant to section 223.17, subdivision 8, paragraph (b), in connection with new text end 3.22 new text begin a defaulting grain buyer; new text end 3.23 new text begin (3) pursuant to section 232.22, subdivision 7, paragraph (c), in connection with a new text end 3.24 new text begin defaulting public grain warehouse; new text end 3.25 new text begin (4) pursuant to section 296A.22, in connection with nonpayment of tax; new text end 3.26 new text begin (5) pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or 322B.836, new text end 3.27 new text begin in an action relating to the dissolution of an entity and relating to, in like cases, property new text end 3.28 new text begin within the state of foreign entities; new text end 3.29 new text begin (6) pursuant to section 321.0703, in connection with the rights of a creditor of a new text end 3.30 new text begin partner or transferee; new text end 3.31 new text begin (7) pursuant to section 322.22, in connection with the rights of creditors of limited new text end 3.32 new text begin partners; new text end 3.33 new text begin (8) pursuant to section 323A.0504, in connection with a partner's transferable new text end 3.34 new text begin interest; new text end 3.35 new text begin (9) pursuant to section 453.55, in connection with bonds and notes; new text end 4.1 new text begin (10) pursuant to section 453A.05, in connection with bonds and notes; new text end 4.2 new text begin (11) pursuant to section 513.47, in connection with a proceeding for relief with new text end 4.3 new text begin respect to a transfer fraudulent as to a creditor or creditors; new text end 4.4 new text begin (12) pursuant to section 514.06, in connection with the severance of a building new text end 4.5 new text begin and resale; new text end 4.6 new text begin (13) pursuant to section 515.23, in connection with an action by a unit owners' new text end 4.7 new text begin association to foreclose a lien for nonpayment of delinquent assessments against new text end 4.8 new text begin condominium units; new text end 4.9 new text begin (14) pursuant to section 518A.71, in connection with the failure to pay, or to provide new text end 4.10 new text begin security for, maintenance or support payments; new text end 4.11 new text begin (15) pursuant to section 559.17, in connection with assignments of rents; however, new text end 4.12 new text begin any receiver appointed under section 559.17 shall be a limited receiver, and the court shall new text end 4.13 new text begin apply the provisions of this chapter to the extent not inconsistent with section 559.17; new text end 4.14 new text begin (16) pursuant to section 571.84, in connection with a garnishee in possession of new text end 4.15 new text begin property subject to a garnishment proceeding; new text end 4.16 new text begin (17) pursuant to section 575.05, in connection with property applied to judgment; new text end 4.17 new text begin (18) pursuant to section 575.06, in connection with adverse claimants; new text end 4.18 new text begin (19) pursuant to sections 582.05 to 582.10, in connection with mortgage new text end 4.19 new text begin foreclosures; however, any receiver appointed under sections 582.05 to 585.10 shall be a new text end 4.20 new text begin limited receiver, and the court shall apply the provisions of this chapter to the extent not new text end 4.21 new text begin inconsistent with sections 582.05 to 582.10; new text end 4.22 new text begin (20) pursuant to section 609.904, in connection with criminal penalties; or new text end 4.23 new text begin (21) pursuant to section 609.907, in connection with preservation of property new text end 4.24 new text begin subject to forfeiture. new text end 4.25 new text begin (b) This chapter does not apply to any receivership in which the receiver is a state new text end 4.26 new text begin agency or in which the receiver is appointed, controlled, or regulated by a state agency new text end 4.27 new text begin unless otherwise provided by law. new text end 4.28 new text begin (c) In receiverships not specifically referenced in paragraph (a) or (b), the court, in new text end 4.29 new text begin its discretion, may apply provisions of this chapter to the extent not inconsistent with new text end 4.30 new text begin the statutes establishing the receiverships. new text end 4.31 new text begin (d) Unless explicitly displaced by this chapter, the provisions of other statutory law new text end 4.32 new text begin and the principles of common law remain in full force and effect and supplement the new text end 4.33 new text begin provisions of this chapter. new text end 4.34    Sec. 3. new text begin [576.23] POWERS OF THE COURT. new text end 5.1 new text begin The court has the exclusive authority to direct the receiver and the authority over new text end 5.2 new text begin all receivership property wherever located including, without limitation, authority new text end 5.3 new text begin to determine all controversies relating to the collection, preservation, improvement, new text end 5.4 new text begin disposition, and distribution of receivership property, and all matters otherwise arising new text end 5.5 new text begin in or relating to the receivership, the receivership property, the exercise of the receiver's new text end 5.6 new text begin powers, or the performance of the receiver's duties. new text end 5.7    Sec. 4. new text begin [576.24] TYPES OF RECEIVERSHIPS. new text end 5.8 new text begin A receivership may be either a limited receivership or a general receivership. new text end 5.9 new text begin Any receivership which is based upon the enforcement of an assignment of rents or new text end 5.10 new text begin leases, or the foreclosure of a mortgage lien, judgment lien, mechanic's lien, or other lien new text end 5.11 new text begin pursuant to which the respondent or any holder of a lien would have a statutory right of new text end 5.12 new text begin redemption, shall be a limited receivership. If the order appointing the receiver does new text end 5.13 new text begin not specify whether the receivership is a limited receivership or a general receivership, new text end 5.14 new text begin the receivership shall be a limited receivership unless and until the court by later order new text end 5.15 new text begin designates the receivership as a general receivership, notwithstanding that pursuant to new text end 5.16 new text begin section 576.25, subdivision 8, a receiver may have control over all the property of the new text end 5.17 new text begin respondent. At any time, the court may order a general receivership to be converted to a new text end 5.18 new text begin limited receivership and a limited receivership to be converted to a general receivership. new text end 5.19    Sec. 5. new text begin [576.25] APPOINTMENT OF RECEIVERS; RECEIVERSHIP NOT A new text end 5.20 new text begin TRUST. new text end 5.21     new text begin Subdivision 1. new text end new text begin No necessity of separate action. new text end new text begin A receiver may be appointed under new text end 5.22 new text begin this chapter whether or not the motion for appointment of a receiver is combined with, or new text end 5.23 new text begin is ancillary to, an action seeking a money judgment. new text end 5.24     new text begin Subd. 2. new text end new text begin Before judgment. new text end new text begin Except where judgment for failure to answer may be new text end 5.25 new text begin had without application to the court, a limited receiver may be appointed before judgment new text end 5.26 new text begin to protect any party to an action who demonstrates an apparent right to property that is the new text end 5.27 new text begin subject of the action and is in the possession of an adverse party, and that the property or new text end 5.28 new text begin its rents and profits are in danger of loss or material impairment. new text end 5.29     new text begin Subd. 3. new text end new text begin In a judgment or after judgment. new text end new text begin A limited or general receiver may be new text end 5.30 new text begin appointed in a judgment or after judgment to carry the judgment into effect, to preserve new text end 5.31 new text begin property pending an appeal, or when an execution has been returned unsatisfied and the new text end 5.32 new text begin judgment debtor refuses to apply the property in satisfaction of the judgment. new text end 5.33     new text begin Subd. 4. new text end new text begin Entities. new text end new text begin In addition to those situations specifically provided for in statute, new text end 5.34 new text begin a limited or general receiver may be appointed when a corporation or other entity is new text end 6.1 new text begin dissolved, insolvent, in imminent danger of insolvency, or has forfeited its corporate rights new text end 6.2 new text begin and in like cases of the property within the state of foreign corporations and other entities. new text end 6.3     new text begin Subd. 5. new text end new text begin Appointment of receiver of mortgaged property. new text end new text begin (a) A limited new text end 6.4 new text begin receiver shall be appointed at any time after the commencement of mortgage foreclosure new text end 6.5 new text begin proceedings under chapter 580 or 581 and before the end of the period for redemption, if new text end 6.6 new text begin the mortgage being foreclosed: new text end 6.7 new text begin (1) secures an original principal amount of $100,000 or more or is a lien upon new text end 6.8 new text begin residential real estate containing more than four dwelling units; and new text end 6.9 new text begin (2) is not a lien upon property that was entirely homesteaded, residential real new text end 6.10 new text begin estate containing four or fewer dwelling units where at least one unit is homesteaded; new text end 6.11 new text begin or agricultural property. new text end 6.12 new text begin The foreclosing mortgagee or the purchaser at foreclosure sale may at any time bring an new text end 6.13 new text begin action in the district court of the county in which the mortgaged property or any part new text end 6.14 new text begin thereof is located for the appointment of a receiver; provided, however, if the foreclosure new text end 6.15 new text begin is by action under chapter 581, a separate action need not be filed. new text end 6.16 new text begin (b) The court shall appoint a receiver upon a showing that the mortgagor has new text end 6.17 new text begin breached a covenant contained in the mortgage relating to any of the following: new text end 6.18 new text begin (1) application of tenant security deposits as required by section 504B.178; new text end 6.19 new text begin (2) payment when due of prior or current real estate taxes or special assessments new text end 6.20 new text begin with respect to the mortgaged property or the periodic escrow for the payment of the new text end 6.21 new text begin taxes or special assessments; new text end 6.22 new text begin (3) payment when due of premiums for insurance of the type required by the new text end 6.23 new text begin mortgage or the periodic escrow for the payment of the premiums; or new text end 6.24 new text begin (4) keeping of the covenants required of a landlord or licensor pursuant to section new text end 6.25 new text begin 504B.161, subdivision 1. new text end 6.26 new text begin (c) The receiver shall be or shall retain an experienced property manager. new text end 6.27 new text begin (d) The receiver shall collect the rents, profits, and all other income of any kind. new text end 6.28 new text begin The receiver, after providing for payment of its reasonable fees and expenses, shall, to new text end 6.29 new text begin the extent possible and in the order determined by the receiver to preserve the value of new text end 6.30 new text begin the mortgaged property: new text end 6.31 new text begin (1) manage the mortgaged property so as to prevent waste; new text end 6.32 new text begin (2) execute contracts and leases within the period of the receivership, or beyond the new text end 6.33 new text begin period of the receivership if approved by the court; new text end 6.34 new text begin (3) pay the expenses listed in paragraph (b), clauses (1) to (3); new text end 6.35 new text begin (4) pay all expenses for normal maintenance of the mortgaged property; and new text end 7.1 new text begin (5) perform the terms of any assignment of rents that complies with section 559.17, new text end 7.2 new text begin subdivision 2. new text end 7.3 new text begin (e) The purchaser at a foreclosure sale shall have the right, at any time and without new text end 7.4 new text begin limitation as provided in section 582.03, to advance money to the receiver to pay any or new text end 7.5 new text begin all of the expenses that the receiver should otherwise pay if cash were available from new text end 7.6 new text begin the mortgaged property. Sums so advanced, with interest, shall be a part of the sum new text end 7.7 new text begin required to be paid to redeem from the sale. The sums shall be proved by the affidavit of new text end 7.8 new text begin the purchaser, an agent, or attorney, stating the expenses and describing the mortgaged new text end 7.9 new text begin property. The affidavit shall be furnished to the sheriff in the manner of expenses claimed new text end 7.10 new text begin under section 582.03. new text end 7.11 new text begin (f) Any sums collected that remain in the possession of the receiver at the new text end 7.12 new text begin termination of the receivership shall, in the event the termination of the receivership is new text end 7.13 new text begin due to the reinstatement of the mortgage debt or redemption of the mortgaged property by new text end 7.14 new text begin the mortgagor, be paid to the mortgagor; and in the event termination of the receivership new text end 7.15 new text begin occurs at the end of the period of redemption without redemption by the mortgagor new text end 7.16 new text begin or any other party entitled to redeem, interest accrued upon the sale price pursuant to new text end 7.17 new text begin section 580.23 or 581.10 shall be paid to the purchaser at the foreclosure sale. Any net new text end 7.18 new text begin sum remaining shall be paid to the mortgagor, except if the receiver was enforcing an new text end 7.19 new text begin assignment of rents that complies with section 559.17, subdivision 2, in which case any new text end 7.20 new text begin net sum remaining shall be paid pursuant to the terms of the assignment. new text end 7.21 new text begin (g) This subdivision applies to all mortgages executed on or after August 1, 1977, new text end 7.22 new text begin and to amendments or modifications thereto, and to amendments or modifications made on new text end 7.23 new text begin or after August 1, 1977, to mortgages executed before August 1, 1977, if the amendment new text end 7.24 new text begin or modification is duly recorded and is for the principle purpose of curing a default. new text end 7.25     new text begin Subd. 6. new text end new text begin Other cases. new text end new text begin A receiver may be appointed in other cases as are provided new text end 7.26 new text begin by law, or in accord with existing practice, except as otherwise prescribed. new text end 7.27     new text begin Subd. 7. new text end new text begin Motion for appointment of receiver. new text end new text begin The court may appoint a receiver new text end 7.28 new text begin upon a motion with notice to the respondent, to all other parties in the action, and to new text end 7.29 new text begin parties in interest and other persons as the court may require. Notice shall also be given new text end 7.30 new text begin to any judgment creditor who is seeking the appointment of a receiver in any other new text end 7.31 new text begin action. A motion to appoint a general receiver shall be treated as a dispositive motion. new text end 7.32 new text begin The court may appoint a receiver ex parte or on shortened notice on a temporary basis new text end 7.33 new text begin if it is clearly shown that an emergency exists requiring the immediate appointment of new text end 7.34 new text begin a receiver. In that event, the court shall set a hearing as soon as practicable and at the new text end 7.35 new text begin subsequent hearing, the burdens of proof shall be as would be applicable to a motion made new text end 7.36 new text begin on notice that is not expedited. new text end 8.1     new text begin Subd. 8. new text end new text begin Description of receivership property. new text end new text begin The order appointing the receiver new text end 8.2 new text begin or subsequent order shall describe the receivership property with particularity appropriate new text end 8.3 new text begin to the circumstances. If the order does not so describe the receivership property, until new text end 8.4 new text begin further order of the court, the receiver shall have control over all of the respondent's new text end 8.5 new text begin nonexempt property. new text end 8.6     new text begin Subd. 9. new text end new text begin Receivership not a trust. new text end new text begin The order appointing the receiver does not new text end 8.7 new text begin create a trust. new text end 8.8    Sec. 6. new text begin [576.26] ELIGIBILITY OF RECEIVER. new text end 8.9     new text begin Subdivision 1. new text end new text begin Who may serve as receiver. new text end new text begin Unless otherwise prohibited by law or new text end 8.10 new text begin prior order, any person, whether or not a resident of this state, may serve as a receiver, new text end 8.11 new text begin provided that the court, in its order appointing the receiver, makes written conclusions new text end 8.12 new text begin based in the record that the person proposed as receiver: new text end 8.13 new text begin (1) is qualified to serve as receiver and as an officer of the court; and new text end 8.14 new text begin (2) is independent as to the parties and the underlying dispute. new text end 8.15     new text begin Subd. 2. new text end new text begin Considerations regarding qualifications. new text end new text begin (a) In determining whether a new text end 8.16 new text begin proposed receiver is qualified to serve as receiver and as an officer of the court, the court new text end 8.17 new text begin shall consider any relevant information, including, but not limited to, whether: new text end 8.18 new text begin (1) the proposed receiver has knowledge and experience sufficient to perform the new text end 8.19 new text begin duties of receiver; new text end 8.20 new text begin (2) the proposed receiver has the financial ability to post the bond required by new text end 8.21 new text begin section 576.07; new text end 8.22 new text begin (3) the proposed receiver or any insider of the proposed receiver has been previously new text end 8.23 new text begin disqualified from serving as receiver and the reasons for disqualification; new text end 8.24 new text begin (4) the proposed receiver or any insider of the proposed receiver has been convicted new text end 8.25 new text begin of a felony or other crime involving moral turpitude; and new text end 8.26 new text begin (5) the proposed receiver or any insider of the proposed receiver has been found new text end 8.27 new text begin liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar misconduct. new text end 8.28 new text begin (b) For the purposes of this subdivision, "insider" includes: new text end 8.29 new text begin (1) if the proposed receiver is a corporation, an officer or director of the corporation, new text end 8.30 new text begin or a person in control of the proposed receiver; and new text end 8.31 new text begin (2) if the proposed receiver is a partnership, a general or limited partner of the new text end 8.32 new text begin partnership, or a person in control of the proposed receiver. new text end 8.33     new text begin Subd. 3. new text end new text begin Considerations regarding independence. new text end new text begin (a) In determining whether a new text end 8.34 new text begin proposed receiver is independent as to the parties and the underlying dispute, the court new text end 8.35 new text begin shall consider any relevant information, including, but not limited to: new text end 9.1 new text begin (1) the nature and extent of any relationship that the proposed receiver has to the new text end 9.2 new text begin parties and the property proposed as receivership property including, without limitation, new text end 9.3 new text begin whether the proposed receiver is a party to the action, a family member of a party to new text end 9.4 new text begin the action, or an officer, director, member, employee, or owner of or controls a party new text end 9.5 new text begin to the action; new text end 9.6 new text begin (2) whether the proposed receiver has any interest materially adverse to the interests new text end 9.7 new text begin of any of the parties to the action; new text end 9.8 new text begin (3) whether the proposed receiver has any material financial or pecuniary interest, new text end 9.9 new text begin other than receiver compensation allowed by court order, in the outcome of the underlying new text end 9.10 new text begin dispute, including any proposed contingent or success fee compensation arrangement; and new text end 9.11 new text begin (4) whether the proposed receiver is a debtor, secured or unsecured creditor, lienor new text end 9.12 new text begin of, or holder of any equity interest in, any of the parties to the action of the receivership new text end 9.13 new text begin property. new text end 9.14 new text begin (b) In evaluating all information, the court may exercise its discretion and need not new text end 9.15 new text begin consider any single item of information to be determinative of independence. Without new text end 9.16 new text begin limiting the generality of the preceding sentence, the proposed receiver shall not be new text end 9.17 new text begin disqualified solely because the proposed receiver was appointed receiver in other unrelated new text end 9.18 new text begin matters involving any of the parties to the matter in which the appointment is sought, or new text end 9.19 new text begin the proposed receiver has been engaged by any of the parties to the action in matters new text end 9.20 new text begin unrelated to the underlying action. new text end 9.21     new text begin Subd. 4. new text end new text begin Information provided to court. new text end new text begin The proposed receiver, the parties, and new text end 9.22 new text begin prospective parties in interest may provide any information relevant to the qualifications, new text end 9.23 new text begin independence, and the selection of the receiver. new text end 9.24    Sec. 7. new text begin [576.27] BOND. new text end 9.25 new text begin After appointment, a receiver shall give a bond in the sum, nature, and with the new text end 9.26 new text begin conditions that the court shall order in its discretion consistent with section 574.11. Unless new text end 9.27 new text begin otherwise ordered by the court, the receiver's bond shall be conditioned on the receiver's new text end 9.28 new text begin faithful discharge of its duties in accordance with the orders of the court and the laws of new text end 9.29 new text begin this state. The receiver shall execute a bond with a surety authorized to write bonds in new text end 9.30 new text begin the state. new text end 9.31    Sec. 8. new text begin [576.28] IMMUNITY; DISCOVERY FROM RECEIVER. new text end 9.32 new text begin (a) The receiver shall be entitled to all defenses and immunities provided at common new text end 9.33 new text begin law for acts or omissions within the scope of the receiver's appointment. new text end 10.1 new text begin (b) No person other than a successor receiver duly appointed by the court shall have new text end 10.2 new text begin a right of action against a receiver to recover receivership property or the value thereof. new text end 10.3 new text begin (c) A party or party in interest may conduct discovery of the receiver concerning any new text end 10.4 new text begin mater relating to the receiver's administration of the receivership property after obtaining new text end 10.5 new text begin an order authorizing the discovery. new text end 10.6    Sec. 9. new text begin [576.29] POWERS AND DUTIES OF RECEIVERS; GENERALLY. new text end 10.7     new text begin Subdivision 1. new text end new text begin Powers. new text end new text begin (a) A receiver, whether general or limited, shall have the new text end 10.8 new text begin following powers in addition to those specifically conferred by this chapter or otherwise new text end 10.9 new text begin by statute, rule, or order of the court: new text end 10.10 new text begin (1) the power to collect, control, manage, conserve, and protect receivership new text end 10.11 new text begin property; new text end 10.12 new text begin (2) the power to incur and pay expenses incidental to the receiver's exercise of the new text end 10.13 new text begin powers or otherwise in the performance of the receiver's duties; new text end 10.14 new text begin (3) the power to assert rights, claims, causes of action, or defenses that relate to new text end 10.15 new text begin receivership property; and new text end 10.16 new text begin (4) the power to seek and obtain instruction from the court with respect to any new text end 10.17 new text begin matter relating to the receivership property, the exercise of the receiver's powers, or the new text end 10.18 new text begin performance of the receiver's duties. new text end 10.19 new text begin (b) In addition to the powers provided in paragraph (a), a general receiver shall new text end 10.20 new text begin have the power: new text end 10.21 new text begin (1) to (i) assert any rights, claims, causes of action, or defenses of the respondent to new text end 10.22 new text begin the extent any rights, claims, causes of action, or defenses are receivership property; (ii) new text end 10.23 new text begin maintain in the receiver's name or in the name of the respondent any action to enforce new text end 10.24 new text begin any right, claim, cause of action, or defense; and (iii) intervene in actions in which the new text end 10.25 new text begin respondent is a party for the purpose of exercising the powers under this clause or new text end 10.26 new text begin requesting transfer of venue of the action to the court; new text end 10.27 new text begin (2) to pursue any claim or remedy that may be asserted by a creditor of the new text end 10.28 new text begin respondent under sections 513.41 to 513.51; new text end 10.29 new text begin (3) to compel any person, including the respondent, and any party, by subpoena new text end 10.30 new text begin pursuant to Rule 45 of the Minnesota Rules of Civil Procedure, to give testimony or to new text end 10.31 new text begin produce and permit inspection and copying of designated books, documents, electronically new text end 10.32 new text begin stored information, or tangible things with respect to receivership property or any other new text end 10.33 new text begin matter that may affect the administration of the receivership; new text end 10.34 new text begin (4) to operate any business constituting receivership property in the ordinary course new text end 10.35 new text begin of the business, including the use, sale, or lease of property of the business or otherwise new text end 11.1 new text begin constituting receivership property, and the incurring and payment of expenses of the new text end 11.2 new text begin business or other receivership property; new text end 11.3 new text begin (5) if authorized by an order of the court following notice and a hearing, to use, new text end 11.4 new text begin improve, sell, or lease receivership property other than in the ordinary course of business; new text end 11.5 new text begin and new text end 11.6 new text begin (6) if appointed pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or new text end 11.7 new text begin 322B.836, to exercise all of the powers and authority provided by the section or order of new text end 11.8 new text begin the court. new text end 11.9     new text begin Subd. 2. new text end new text begin Duties. new text end new text begin A receiver, whether general or limited, shall have the duties new text end 11.10 new text begin specifically conferred by this chapter or otherwise by statute, rule, or order of the court. new text end 11.11     new text begin Subd. 3. new text end new text begin Modification of powers and duties. new text end new text begin Except as otherwise provided in this new text end 11.12 new text begin chapter, the court may modify the powers and duties of a receiver provided by this section. new text end 11.13    Sec. 10. new text begin [576.30] RECEIVER AS LIEN CREDITOR; REAL ESTATE new text end 11.14 new text begin RECORDING; SUBSEQUENT SALES OF REAL ESTATE. new text end 11.15     new text begin Subdivision 1. new text end new text begin Receiver as lien creditor. new text end new text begin As of the time of appointment, the new text end 11.16 new text begin receiver shall have the powers and priority as if it were a creditor that obtained a judicial new text end 11.17 new text begin lien at the time of appointment pursuant to sections 548.09 and 550.10 on all of the new text end 11.18 new text begin receivership property, subject to satisfying the recording requirements as to real property new text end 11.19 new text begin described in subdivision 2. new text end 11.20     new text begin Subd. 2. new text end new text begin Real estate recording. new text end new text begin If any interest in real estate is included in the new text end 11.21 new text begin receivership property, a notice of lis pendens shall be recorded as soon as practicable with new text end 11.22 new text begin the county recorder or registrar of titles, as appropriate, of the county in which the real new text end 11.23 new text begin property is located. The priority of the receiver as lien creditor against real property shall new text end 11.24 new text begin be from the time of recording of the notice of lis pendens, except as to persons with actual new text end 11.25 new text begin or implied knowledge of the appointment under section 507.34. new text end 11.26     new text begin Subd. 3. new text end new text begin Subsequent sales of real estate. new text end new text begin The notice of lis pendens, a court order new text end 11.27 new text begin authorizing the receiver to sell real property certified by the court administrator, and new text end 11.28 new text begin a deed executed by the receiver recorded with the county recorder or registrar of titles, new text end 11.29 new text begin as appropriate, of the county in which the real property is located, and upon execution new text end 11.30 new text begin of the deed by the receiver shall be prima facie evidence of the authority of the receiver new text end 11.31 new text begin to sell and convey the real property described in the deed. The court may also require a new text end 11.32 new text begin motion for an order for sale of the real property or a motion for an order confirming new text end 11.33 new text begin sale of the real property. new text end 11.34    Sec. 11. new text begin [576.31] DUTIES OF RESPONDENT. new text end 12.1 new text begin The respondent shall: new text end 12.2 new text begin (1) assist and cooperate fully with the receiver in the administration of the new text end 12.3 new text begin receivership and the receivership property and the discharge of the receiver's duties, and new text end 12.4 new text begin comply with all orders of the court; new text end 12.5 new text begin (2) immediately upon the receiver's appointment, deliver to the receiver all of the new text end 12.6 new text begin receivership property in the respondent's possession, custody, or control, including, but not new text end 12.7 new text begin limited to, all books and records, electronic data, passwords, access codes, statements of new text end 12.8 new text begin accounts, deeds, titles or other evidence of ownership, financial statements, and all other new text end 12.9 new text begin papers and documents related to the receivership property; new text end 12.10 new text begin (3) supply to the receiver information as requested relating to the administration new text end 12.11 new text begin of the receivership and the receivership property, including information necessary to new text end 12.12 new text begin complete any reports or other documents that the receiver may be required to file; and new text end 12.13 new text begin (4) remain responsible for the filing of all tax returns, including those returns new text end 12.14 new text begin applicable to periods which include those in which the receivership is in effect. new text end 12.15    Sec. 12. new text begin [576.32] EMPLOYMENT AND COMPENSATION OF new text end 12.16 new text begin PROFESSIONALS. new text end 12.17     new text begin Subdivision 1. new text end new text begin Employment. new text end new text begin (a) To represent or assist the receiver in carrying new text end 12.18 new text begin out the receiver's duties, the receiver may employ attorneys, accountants, appraisers, new text end 12.19 new text begin auctioneers, and other professionals that do not hold or represent an interest adverse new text end 12.20 new text begin to the receivership. new text end 12.21 new text begin (b) This section does not require prior court approval for the retention of new text end 12.22 new text begin professionals. However, any professional to be retained shall provide the receiver with a new text end 12.23 new text begin disclosure of any potential conflicts of interest, and the professional or the receiver shall new text end 12.24 new text begin file with the court a notice of the retention and of the proposed compensation. Any party new text end 12.25 new text begin in interest may bring a motion for disapproval of any retention within 21 days after the new text end 12.26 new text begin filing of the notice of retention. new text end 12.27 new text begin (c) A person is not disqualified for employment under this section solely because new text end 12.28 new text begin of the person's employment by, representation of, or other relationship with the receiver, new text end 12.29 new text begin respondent, a creditor, or other party in interest if the court determines that the employment new text end 12.30 new text begin is appropriate. new text end 12.31     new text begin Subd. 2. new text end new text begin Compensation. new text end new text begin (a) The receiver and any professional retained by the new text end 12.32 new text begin receiver shall be paid by the receiver from the receivership property in the same manner new text end 12.33 new text begin as other expenses of administration and without separate orders, but subject to the new text end 12.34 new text begin procedures, safeguards, and reporting that the court may order. new text end 13.1 new text begin (b) Except to the extent fees and expenses have been approved by the court, or as new text end 13.2 new text begin to parties in interest who are deemed to have waived the right to object, any interim new text end 13.3 new text begin payments of fees and expenses to the receiver are subject to approval in connection with new text end 13.4 new text begin the receiver's final report pursuant to section 576.38. new text end 13.5    Sec. 13. new text begin [576.33] SCHEDULES OF PROPERTY AND CLAIMS. new text end 13.6 new text begin (a) The court may order the respondent or a general receiver to file under oath to new text end 13.7 new text begin the best of its actual knowledge: new text end 13.8 new text begin (1) a schedule of all receivership property and exempt property of the respondent, new text end 13.9 new text begin describing, as of the time of appointment: (i) the location of the property and, if real new text end 13.10 new text begin property, a legal description thereof; (ii) a description of all liens to which the property is new text end 13.11 new text begin subject; and (iii) an estimated value of the property; and new text end 13.12 new text begin (2) a schedule of all creditors and taxing authorities and regulatory authorities which new text end 13.13 new text begin supervise the respondent, their mailing addresses, the amount and nature of their claims, new text end 13.14 new text begin whether the claims are secured by liens of any kind, and whether the claims are disputed. new text end 13.15 new text begin (b) The court may order inventories and appraisals if appropriate to the receivership. new text end 13.16    Sec. 14. new text begin [576.34] NOTICE. new text end 13.17 new text begin In a general receivership, unless the court orders otherwise, the receiver shall give new text end 13.18 new text begin notice of the receivership to all creditors and other parties in interest actually known new text end 13.19 new text begin to the receiver by mail or other means of transmission within 21 days after the time of new text end 13.20 new text begin appointment. The notice of the receivership shall include the time of appointment and the new text end 13.21 new text begin names and addresses of the respondent, the receiver, and the receiver's attorney, if any. new text end 13.22    Sec. 15. new text begin [576.35] NOTICES, MOTIONS, AND ORDERS. new text end 13.23     new text begin Subdivision 1. new text end new text begin Notice of appearance. new text end new text begin Any party in interest may make an new text end 13.24 new text begin appearance in a receivership by filing a written notice of appearance, including the name, new text end 13.25 new text begin mailing address, fax number, e-mail address, if any, and telephone number of the party in new text end 13.26 new text begin interest and its attorney, if any, and by serving a copy on the receiver and the receiver's new text end 13.27 new text begin attorney, if any. It is not necessary for a party in interest to be joined as a party to be heard new text end 13.28 new text begin in the receivership. A proof of claim does not constitute a written notice of appearance. new text end 13.29     new text begin Subd. 2. new text end new text begin Master service list. new text end new text begin From time to time the receiver shall file an updated new text end 13.30 new text begin master service list consisting of the names, mailing addresses, and, where available, fax new text end 13.31 new text begin numbers and e-mail addresses of the respondent, the receiver, all persons joined as parties new text end 13.32 new text begin in the receivership, all persons known by the receiver to have asserted any ownership new text end 14.1 new text begin or lien in receivership property, all persons who have filed a notice of appearance in new text end 14.2 new text begin accordance with this section, and their attorneys, if any. new text end 14.3     new text begin Subd. 3. new text end new text begin Motions. new text end new text begin Except as otherwise provided in this chapter, an order shall be new text end 14.4 new text begin sought by a motion brought in compliance with the Minnesota Rules of Civil Procedure new text end 14.5 new text begin and the General Rules of Practice for the District Courts. new text end 14.6     new text begin Subd. 4. new text end new text begin Persons served. new text end new text begin Except as otherwise provided in this chapter, a motion new text end 14.7 new text begin shall be served as provided in the Minnesota Rules of Civil Procedure, unless the court new text end 14.8 new text begin orders otherwise, on all persons on the master service list, all persons who have asserted new text end 14.9 new text begin an ownership interest or lien in receivership property that is the subject of the motion, new text end 14.10 new text begin all persons who are identified in the motion as directly affected by the relief requested, new text end 14.11 new text begin and other persons as the court may direct. new text end 14.12     new text begin Subd. 5. new text end new text begin Service on state agency. new text end new text begin Any request for relief against a state agency shall new text end 14.13 new text begin be served as provided in the Minnesota Rules of Civil Procedure, unless the court orders new text end 14.14 new text begin otherwise, on the specific state agency and on the Office of the Attorney General. new text end 14.15     new text begin Subd. 6. new text end new text begin Order without hearing. new text end new text begin Where a provision in this chapter, an order issued new text end 14.16 new text begin in the receivership, or a court rule requires an objection or other response to a motion or new text end 14.17 new text begin application within a specific time, and no objection or other response is interposed, the new text end 14.18 new text begin court may grant the relief requested without a hearing. new text end 14.19     new text begin Subd. 7. new text end new text begin Order upon application. new text end new text begin Where a provision of this chapter permits, as to new text end 14.20 new text begin administrative matters, or where it otherwise appears that no party in interest would be new text end 14.21 new text begin materially prejudiced, the court may issue an order ex parte or based on an application new text end 14.22 new text begin without a motion, notice, or hearing. new text end 14.23     new text begin Subd. 8. new text end new text begin Persons bound by orders of the court. new text end new text begin Except as to persons entitled to be new text end 14.24 new text begin served pursuant to subdivision 4 and who were not served, an order of the court binds new text end 14.25 new text begin parties in interest and all persons who file notices of appearance, submit proofs of claim, new text end 14.26 new text begin receive written notice of the receivership, receive notice of any motion in the receivership, new text end 14.27 new text begin or who have actual knowledge of the receivership whether they are joined as parties or new text end 14.28 new text begin received notice of the specific motion or order. new text end 14.29    Sec. 16. new text begin [576.36] RECORDS; INTERIM REPORTS. new text end 14.30     new text begin Subdivision 1. new text end new text begin Preparation and retention of records. new text end new text begin The receiver shall prepare new text end 14.31 new text begin and retain appropriate business records, including records of all cash receipts and new text end 14.32 new text begin disbursements and of all receipts and distributions or other dispositions of receivership new text end 14.33 new text begin property. After due consideration of issues of confidentiality, the records may be provided new text end 14.34 new text begin by the receiver to parties in interest or shall be provided as ordered by the court. new text end 15.1     new text begin Subd. 2. new text end new text begin Interim reports. new text end new text begin (a) The court may order the receiver to prepare and new text end 15.2 new text begin file interim reports addressing: new text end 15.3 new text begin (1) the activities of the receiver since the last report; new text end 15.4 new text begin (2) cash receipts and disbursements, including payments made to professionals new text end 15.5 new text begin retained by the receiver; new text end 15.6 new text begin (3) receipts and dispositions of receivership property; and new text end 15.7 new text begin (4) other matters. new text end 15.8 new text begin (b) The order may provide for the delivery of the receiver's interim reports to persons new text end 15.9 new text begin on the master service list and to other persons and may provide a procedure for objection new text end 15.10 new text begin to the interim reports, and may also provide that the failure to object constitutes a waiver new text end 15.11 new text begin of objection to matters addressed in the interim reports. new text end 15.12    Sec. 17. new text begin [576.37] REMOVAL OF RECEIVERS. new text end 15.13     new text begin Subdivision 1. new text end new text begin Removal of receiver. new text end new text begin The court may remove the receiver if: new text end new text begin (1) the new text end 15.14 new text begin receiver fails to execute and file the bond required by section 576.27; (2) the receiver new text end 15.15 new text begin resigns, refuses, or fails to serve for any reason; or (3) for other good cause. new text end 15.16     new text begin Subd. 2. new text end new text begin Successor receiver. new text end new text begin Upon removal of the receiver, if the court determines new text end 15.17 new text begin that further administration of the receivership is required, the court shall appoint a new text end 15.18 new text begin successor receiver. Upon executing and filing a bond under section 576.27, the successor new text end 15.19 new text begin receiver shall immediately succeed the receiver so removed and shall assume the duties of new text end 15.20 new text begin receiver. new text end 15.21     new text begin Subd. 3. new text end new text begin Report and discharge of removed receiver. new text end new text begin Within 14 days after new text end 15.22 new text begin removal, the receiver so removed shall file with the court and serve a report pursuant to new text end 15.23 new text begin section 576.38, subdivision 3, for matters up to the date of the removal. Upon approval new text end 15.24 new text begin of the report, the court may enter an order pursuant to section 576.38 discharging the new text end 15.25 new text begin removed receiver. new text end 15.26    Sec. 18. new text begin [576.38] TERMINATION OF RECEIVERSHIPS; FINAL REPORT. new text end 15.27     new text begin Subdivision 1. new text end new text begin Termination of receivership. new text end new text begin The court may discharge a receiver new text end 15.28 new text begin and terminate the receivership. If the court determines that the appointment of the receiver new text end 15.29 new text begin was procured in bad faith, the court may assess against the person who procured the new text end 15.30 new text begin receiver's appointment: new text end 15.31 new text begin (1) all of the receiver's fees and expenses and other costs of the receivership; and new text end 15.32 new text begin (2) any other sanctions the court deems appropriate. new text end 16.1     new text begin Subd. 2. new text end new text begin Request for discharge. new text end new text begin Upon distribution or disposition of all receivership new text end 16.2 new text begin property, or the completion of the receiver's duties, the receiver shall file a final report and new text end 16.3 new text begin shall request that the court approve the final report and discharge the receiver. new text end 16.4     new text begin Subd. 3. new text end new text begin Contents of final report. new text end new text begin The final report, which may incorporate by new text end 16.5 new text begin reference interim reports, shall include, in addition to any matters required by the court in new text end 16.6 new text begin the case: new text end 16.7 new text begin (1) a description of the activities of the receiver in the conduct of the receivership; new text end 16.8 new text begin (2) a schedule of all receivership property at the commencement of the receivership new text end 16.9 new text begin and any receivership property added thereafter; new text end 16.10 new text begin (3) a list of expenditures, including all payments to professionals retained by the new text end 16.11 new text begin receiver; new text end 16.12 new text begin (4) a list of any unpaid expenses incurred during the receivership; new text end 16.13 new text begin (5) a list of all dispositions of receivership property; new text end 16.14 new text begin (6) a list of all distributions made or proposed to be made; and new text end 16.15 new text begin (7) if not done separately, a motion or application for approval of the payment of new text end 16.16 new text begin fees and expenses of the receiver. new text end 16.17     new text begin Subd. 4. new text end new text begin Notice of final report. new text end new text begin The receiver shall give notice of the filing of the new text end 16.18 new text begin final report and request for discharge to all persons who have filed notices of appearance. new text end 16.19 new text begin If there is no objection within 21 days, the court may enter an order approving the final new text end 16.20 new text begin report and discharging the receiver without the necessity of a hearing. new text end 16.21     new text begin Subd. 5. new text end new text begin Effect of discharge. new text end new text begin A discharge removes all authority of the receiver, new text end 16.22 new text begin excuses the receiver from further performance of any duties, and discharges any lis new text end 16.23 new text begin pendens recorded by the receiver. new text end 16.24    Sec. 19. new text begin [576.39] ACTIONS BY OR AGAINST RECEIVER OR RELATING TO new text end 16.25 new text begin RECEIVERSHIP PROPERTY. new text end 16.26     new text begin Subdivision 1. new text end new text begin Actions by or against receiver. new text end new text begin The receiver may sue in the new text end 16.27 new text begin receiver's capacity and, subject to other sections of this chapter and all immunities new text end 16.28 new text begin provided at common law, may be sued in that capacity. new text end 16.29     new text begin Subd. 2. new text end new text begin Venue. new text end new text begin Unless applicable law requires otherwise or the court orders new text end 16.30 new text begin otherwise, an action by or against the receiver or relating to the receivership or new text end 16.31 new text begin receivership property shall be commenced in the court and assigned to the judge before new text end 16.32 new text begin whom the receivership is pending. new text end 16.33     new text begin Subd. 3. new text end new text begin Joinder. new text end new text begin Subject to section 576.42, a limited or general receiver may be new text end 16.34 new text begin joined or substituted as a party in any action or other proceeding that relates to receivership new text end 16.35 new text begin property that was pending at the time of appointment. Subject to other sections of this new text end 17.1 new text begin chapter, a general receiver may be joined or substituted as a party in any action or other new text end 17.2 new text begin proceeding that was pending at the time of appointment in which the respondent is a party. new text end 17.3 new text begin Pending actions may be transferred to the court upon the receiver's motion for change of new text end 17.4 new text begin venue made in the court in which the action is pending. new text end 17.5     new text begin Subd. 4. new text end new text begin Effect of judgments. new text end new text begin A judgment entered subsequent to the time of new text end 17.6 new text begin appointment against a receiver or the respondent shall not constitute a lien on receivership new text end 17.7 new text begin property, nor shall any execution issue thereon. Upon submission of a certified copy of the new text end 17.8 new text begin judgment in accordance with section 576.49, the amount of the judgment shall be treated new text end 17.9 new text begin as an allowed claim in a general receivership. A judgment against a limited receiver shall new text end 17.10 new text begin have the same effect as a judgment against the respondent, except that the judgment shall new text end 17.11 new text begin be enforceable against receivership property only to the extent ordered by the court. new text end 17.12    Sec. 20. new text begin [576.40] TURNOVER OF PROPERTY. new text end 17.13     new text begin Subdivision 1. new text end new text begin Demand by receiver. new text end new text begin Except as expressly provided in this section, new text end 17.14 new text begin and unless otherwise ordered by the court, upon demand by a receiver, any person shall new text end 17.15 new text begin turn over any receivership property that is within the possession or control of that person. new text end 17.16 new text begin Unless ordered by the court, a person in possession of receivership property pursuant new text end 17.17 new text begin to a valid lien perfected prior to the time of appointment is not required to turn over new text end 17.18 new text begin receivership property. new text end 17.19     new text begin Subd. 2. new text end new text begin Motion by receiver. new text end new text begin A receiver may seek to compel turnover of new text end 17.20 new text begin receivership property by motion in the receivership. If there exists a bona fide dispute new text end 17.21 new text begin with respect to the existence or nature of the receiver's or the respondent's interest in the new text end 17.22 new text begin property, turnover shall be sought by means of an action under section 576.39. In the new text end 17.23 new text begin absence of a bona fide dispute with respect to the receiver's or the respondent's right to new text end 17.24 new text begin possession of receivership property, the failure to relinquish possession and control to the new text end 17.25 new text begin receiver may be punishable as contempt of the court. new text end 17.26    Sec. 21. new text begin [576.41] ANCILLARY RECEIVERSHIPS. new text end 17.27     new text begin Subdivision 1. new text end new text begin Ancillary receiverships in foreign jurisdictions. new text end new text begin A receiver new text end 17.28 new text begin appointed by a court of this state may, without first seeking approval of the court, apply new text end 17.29 new text begin in any foreign jurisdiction for appointment as receiver with respect to any receivership new text end 17.30 new text begin property which is located within the foreign jurisdiction. new text end 17.31     new text begin Subd. 2. new text end new text begin Ancillary receiverships in the courts of this state. new text end new text begin (a) A foreign receiver new text end 17.32 new text begin may obtain appointment by a court of this state as a receiver in an ancillary receivership new text end 17.33 new text begin with respect to any property located in or subject to the jurisdiction of the court if (1) new text end 17.34 new text begin the foreign receiver would be eligible to serve as receiver under section 576.26, and new text end 18.1 new text begin (2) the appointment is in furtherance of the foreign receiver's possession, control, or new text end 18.2 new text begin disposition of property subject to the foreign receivership and in accordance with orders of new text end 18.3 new text begin the foreign jurisdiction. new text end 18.4 new text begin (b) The courts of this state may enter any order necessary to effectuate orders entered new text end 18.5 new text begin by the foreign jurisdiction's receivership proceeding. Unless the court orders otherwise, new text end 18.6 new text begin a receiver appointed in an ancillary receivership in this state shall have the powers and new text end 18.7 new text begin duties of a limited receiver as set forth in this chapter and shall otherwise comply with the new text end 18.8 new text begin provisions of this chapter applicable to limited receivers. new text end 18.9    Sec. 22. new text begin [576.42] STAYS. new text end 18.10     new text begin Subdivision 1. new text end new text begin Control of property. new text end new text begin All receivership property is under the control new text end 18.11 new text begin and supervision of the court appointing the receiver. new text end 18.12     new text begin Subd. 2. new text end new text begin Stay by court order. new text end new text begin In addition to any stay provided in this section, new text end 18.13 new text begin the court may order a stay or stays to protect receivership property and to facilitate the new text end 18.14 new text begin administration of the receivership. new text end 18.15     new text begin Subd. 3. new text end new text begin Stay in all receiverships. new text end new text begin Except as otherwise ordered by the court, the new text end 18.16 new text begin entry of an order appointing a receiver shall operate as a stay, applicable to all persons, of: new text end 18.17 new text begin (1) any act to obtain possession of receivership property, or to interfere with or new text end 18.18 new text begin exercise control over receivership property, other than the commencement or continuation new text end 18.19 new text begin of a judicial, administrative, or other action or proceeding, including the issuance or use of new text end 18.20 new text begin process, to enforce any lien having priority over the rights of the receiver in receivership new text end 18.21 new text begin property; and new text end 18.22 new text begin (2) any act to create or perfect any lien against receivership property, except by new text end 18.23 new text begin exercise of a right of setoff, to the extent that the lien secures a claim that arose before new text end 18.24 new text begin the time of appointment. new text end 18.25     new text begin Subd. 4. new text end new text begin Limited additional stay in general receiverships. new text end new text begin (a) Except as otherwise new text end 18.26 new text begin ordered by the court, in addition to the stay provided in subdivision 3, the entry of an order new text end 18.27 new text begin appointing a general receiver shall operate as a stay, applicable to all persons, of: new text end 18.28 new text begin (1) the commencement or continuation of a judicial, administrative, or other action new text end 18.29 new text begin or proceeding, including the issuance or use of process, against the respondent or the new text end 18.30 new text begin receiver that was or could have been commenced before the time of appointment, or to new text end 18.31 new text begin recover a claim against the respondent that arose before the time of appointment; new text end 18.32 new text begin (2) the commencement or continuation of a judicial, administrative, or other action new text end 18.33 new text begin or proceeding, including the issuance or use of process, to enforce any lien having priority new text end 18.34 new text begin over the rights of the receiver in receivership property. new text end 19.1 new text begin (b) As to the acts specified in this subdivision, the stay shall expire 30 days after new text end 19.2 new text begin the time of appointment unless, before the expiration of the 30-day period, the receiver new text end 19.3 new text begin or other party in interest files a motion seeking an order of the court extending the stay new text end 19.4 new text begin and before the expiration of an additional 30 days following the 30-day period, the court new text end 19.5 new text begin orders the stay extended. new text end 19.6     new text begin Subd. 5. new text end new text begin Modification of stay. new text end new text begin The court may modify any stay provided in this new text end 19.7 new text begin section upon the motion of any party in interest affected by the stay. new text end 19.8     new text begin Subd. 6. new text end new text begin Inapplicability of stay. new text end new text begin The entry of an order appointing a receiver does new text end 19.9 new text begin not operate as a stay of: new text end 19.10 new text begin (1) the commencement or continuation of a criminal proceeding against the new text end 19.11 new text begin respondent; new text end 19.12 new text begin (2) the commencement or continuation of an action or proceeding by a governmental new text end 19.13 new text begin unit to enforce its police or regulatory power; new text end 19.14 new text begin (3) the enforcement of a judgment, other than a money judgment, obtained in an new text end 19.15 new text begin action or proceeding by a governmental unit to enforce its police or regulatory power, or new text end 19.16 new text begin with respect to any licensure of the respondent; new text end 19.17 new text begin (4) the establishment by a governmental unit of any tax liability and any appeal new text end 19.18 new text begin thereof; new text end 19.19 new text begin (5) the commencement or continuation of an action or proceeding to establish new text end 19.20 new text begin paternity; to establish or modify an order for alimony, maintenance, or support; or to new text end 19.21 new text begin collect alimony, maintenance, or support under any order of a court; new text end 19.22 new text begin (6) the exercise of a right of setoff; new text end 19.23 new text begin (7) any act to maintain or continue the perfection of a lien on, or otherwise preserve new text end 19.24 new text begin or protect rights in, receivership property, but only to the extent that the act was necessary new text end 19.25 new text begin to preserve or protect the lien or other rights as they existed as of the time of the new text end 19.26 new text begin appointment. If the act would require seizure of receivership property or commencement new text end 19.27 new text begin of an action prohibited by a stay, the continued perfection shall instead be accomplished new text end 19.28 new text begin by filing a notice in the court before which the receivership is pending and by serving the new text end 19.29 new text begin notice upon the receiver and receiver's attorney, if any, within the time fixed by law for new text end 19.30 new text begin seizure or commencement of the action; new text end 19.31 new text begin (8) the commencement of a bankruptcy case under federal bankruptcy laws; or new text end 19.32 new text begin (9) any other exception as provided in United States Code, title 11, section 326(b), new text end 19.33 new text begin as to the automatic stay in federal bankruptcy cases to the extent not inconsistent with any new text end 19.34 new text begin provision in this section. new text end 19.35    Sec. 23. new text begin [576.43] UTILITY SERVICE. new text end 20.1 new text begin A utility providing service to receivership property may not alter, refuse, or new text end 20.2 new text begin discontinue service to the receivership property without first giving the receiver 21 days' new text end 20.3 new text begin written notice of any default and any intention to alter, refuse, or discontinue service to new text end 20.4 new text begin receivership property. The court may prohibit the alteration, refusal, or discontinuance new text end 20.5 new text begin of utility service if the receiver furnishes adequate assurance of payment for service to new text end 20.6 new text begin be provided after the time of appointment. new text end 20.7    Sec. 24. new text begin [576.44] RECEIVERSHIP FINANCING. new text end 20.8 new text begin (a) Without necessity of a court order, the receiver may obtain unsecured credit and new text end 20.9 new text begin incur unsecured debt on behalf of the receivership, and the amounts shall be allowable as new text end 20.10 new text begin expenses of the receivership under section 576.51, subdivision 1, clause (2). new text end 20.11 new text begin (b) Without necessity of a court order, the receiver may obtain secured financing new text end 20.12 new text begin on behalf of the receivership from any secured party under a financing facility existing new text end 20.13 new text begin at the time of the appointment. new text end 20.14 new text begin (c) The court may authorize the receiver to obtain credit or incur indebtedness, new text end 20.15 new text begin and the court may authorize the receiver to mortgage, pledge, hypothecate, or otherwise new text end 20.16 new text begin encumber receivership property as security for repayment of any indebtedness. new text end 20.17    Sec. 25. new text begin [576.45] EXECUTORY CONTRACTS. new text end 20.18     new text begin Subdivision 1. new text end new text begin Performance by receiver. new text end new text begin Unless a court orders otherwise, a new text end 20.19 new text begin receiver succeeds to all of the rights and duties of the respondent under any executory new text end 20.20 new text begin contract. The court may condition the continued performance by the receiver on terms new text end 20.21 new text begin that are appropriate under the circumstances. Performance of an executory contract shall new text end 20.22 new text begin create a claim against the receivership to the extent of the value of the performance new text end 20.23 new text begin received by the receivership after the time of appointment. The claim shall not constitute a new text end 20.24 new text begin personal obligation of the receiver. new text end 20.25     new text begin Subd. 2. new text end new text begin Assignment and delegation by receiver. new text end new text begin For good cause, the court may new text end 20.26 new text begin authorize a receiver to assign and delegate an executory contract to a third party under new text end 20.27 new text begin the same circumstances and under the same conditions as the respondent was permitted new text end 20.28 new text begin to do so pursuant to the terms of the executory contract and applicable law immediately new text end 20.29 new text begin before the time of appointment. new text end 20.30     new text begin Subd. 3. new text end new text begin Termination by receiver. new text end new text begin For good cause, the court may authorize new text end 20.31 new text begin the receiver to terminate an executory contract. The receiver's right to possess or use new text end 20.32 new text begin property pursuant to the executory contract shall terminate at the termination of the new text end 20.33 new text begin executory contract. Except as to the claim against the receivership under subdivision 1, new text end 20.34 new text begin the termination shall create a claim equal to the damages, if any, for a breach of contract as new text end 21.1 new text begin if the breach of contract had occurred immediately before the time of appointment. Any new text end 21.2 new text begin claim arising under this section for termination of an executory contract shall be presented new text end 21.3 new text begin or filed in the same manner as other claims in the receivership no later than the later of: new text end 21.4 new text begin (1) the time set for filing of claims in the receivership; or (2) 28 days after the notice by new text end 21.5 new text begin the receiver of the termination of the executory contract. new text end 21.6    Sec. 26. new text begin [576.46] SALES FREE AND CLEAR OF LIEN IN GENERAL new text end 21.7 new text begin RECEIVERSHIPS. new text end 21.8     new text begin Subdivision 1. new text end new text begin Sales free and clear of liens. new text end new text begin (a) The court may order that a general new text end 21.9 new text begin receiver's sale of receivership property is free and clear of all liens, except any lien for new text end 21.10 new text begin unpaid real estate taxes or assessments and liens arising under federal law, and may be free new text end 21.11 new text begin of the rights of redemption of the respondent if the rights of redemption are receivership new text end 21.12 new text begin property and the rights of redemption of the holders of any liens, regardless of whether the new text end 21.13 new text begin sale will generate proceeds sufficient to fully satisfy all liens on the property, unless either: new text end 21.14 new text begin (1) the property is (i) real property classified as agricultural land under section new text end 21.15 new text begin 273.13, subdivision 23, or the property is a homestead under section 510.01; and (ii) new text end 21.16 new text begin each of the owners of the property has not consented to the sale following the time new text end 21.17 new text begin of appointment; or new text end 21.18 new text begin (2) any owner of the property or holder of a lien on the property serves and files new text end 21.19 new text begin a timely objection, and the court determines that the amount likely to be realized from new text end 21.20 new text begin the sale by the objecting person is less than the objecting person would realize within a new text end 21.21 new text begin reasonable time in the absence of this sale. new text end 21.22 new text begin (b) The receiver shall have the burden of proof to establish that the amount likely to new text end 21.23 new text begin be realized by the objecting person from the sale is equal to or more than the objecting new text end 21.24 new text begin person would realize within a reasonable time in the absence of the sale. new text end 21.25 new text begin (c) Upon any sale free and clear of liens authorized by this section, all liens new text end 21.26 new text begin encumbering the property conveyed shall transfer and attach to the proceeds of the new text end 21.27 new text begin sale, net of reasonable expenses approved by the court incurred in the disposition of new text end 21.28 new text begin the property, in the same order, priority, and validity as the liens had with respect to the new text end 21.29 new text begin property immediately before the sale. The court may authorize the receiver to satisfy, new text end 21.30 new text begin in whole or in part, any ownership interest or lien out of the proceeds of the sale if the new text end 21.31 new text begin ownership interest or lien of any party in interest would not thereby be impaired. new text end 21.32     new text begin Subd. 2. new text end new text begin Co-owned property. new text end new text begin If any receivership property includes an interest as a new text end 21.33 new text begin co-owner of property, the receiver shall have the rights and powers afforded by applicable new text end 21.34 new text begin state or federal law of the respondent, including but not limited to any rights of partition, new text end 21.35 new text begin but may not sell the property free and clear of the co-owner's interest in the property. new text end 22.1     new text begin Subd. 3. new text end new text begin Right to credit bid. new text end new text begin A creditor with a claim secured by a valid and new text end 22.2 new text begin perfected lien against the property to be sold may bid on the property at a sale and may new text end 22.3 new text begin offset against the purchase price part or all of the amount secured by its lien, provided that new text end 22.4 new text begin the creditor tenders cash sufficient to satisfy in full the reasonable expenses, approved new text end 22.5 new text begin by the court, incurred in the disposition of the property and all liens payable out of the new text end 22.6 new text begin proceeds of sale having priority over the lien of that creditor. new text end 22.7     new text begin Subd. 4. new text end new text begin Effect of appeal. new text end new text begin The reversal or modification on appeal of an new text end 22.8 new text begin authorization to sell property under this section does not affect the validity of a sale to a new text end 22.9 new text begin person that purchased the property in good faith, whether or not the person knew of the new text end 22.10 new text begin pendency of the appeal, unless the authorization and sale is stayed pending the appeal. new text end 22.11    Sec. 27. new text begin [576.47] ABANDONMENT OF PROPERTY. new text end 22.12 new text begin The court may authorize the receiver to abandon any receivership property that is new text end 22.13 new text begin burdensome or is not of material value to the receivership. Property that is abandoned is new text end 22.14 new text begin no longer receivership property. new text end 22.15    Sec. 28. new text begin [576.48] LIENS AGAINST AFTER-ACQUIRED PROPERTY. new text end 22.16 new text begin Except as otherwise provided for by statute, property that becomes receivership new text end 22.17 new text begin property after the time of appointment is subject to a lien to the same extent as it would new text end 22.18 new text begin have been in the absence of the receivership. new text end 22.19    Sec. 29. new text begin [576.49] CLAIMS PROCESS. new text end 22.20     new text begin Subdivision 1. new text end new text begin Recommendation of receiver. new text end new text begin In a general receivership, and in a new text end 22.21 new text begin limited receivership if the circumstances require, the receiver shall submit to the court a new text end 22.22 new text begin recommendation concerning a claims process appropriate to the particular receivership. new text end 22.23     new text begin Subd. 2. new text end new text begin Order establishing process. new text end new text begin In a general receivership and, if the court new text end 22.24 new text begin orders, in a limited receivership, the court shall establish the claims process to be followed new text end 22.25 new text begin in the receivership addressing whether proofs of claim must be submitted, the form of new text end 22.26 new text begin any proofs of claim, the place where the proofs of claim must be submitted, the deadline new text end 22.27 new text begin or deadlines for submitting the proofs of claim, and other matters bearing on the claims new text end 22.28 new text begin process. new text end 22.29     new text begin Subd. 3. new text end new text begin Alternative procedures. new text end new text begin The court may authorize proofs of claim to be new text end 22.30 new text begin filed with the receiver rather than the court. The court may authorize the receiver to treat new text end 22.31 new text begin claims as allowed claims based on the amounts established in the books and records of the new text end 22.32 new text begin respondent or the schedule of claims filed pursuant to section 576.33, without necessity of new text end 22.33 new text begin formal proofs of claim. new text end 23.1    Sec. 30. new text begin [576.50] OBJECTION TO AND ALLOWANCE OF CLAIMS. new text end 23.2     new text begin Subdivision 1. new text end new text begin Objections and allowance. new text end new text begin The receiver or any party in interest may new text end 23.3 new text begin file a motion objecting to a claim and stating the grounds for the objection. The court may new text end 23.4 new text begin order that a copy of the objection be served on the persons on the master mailing list at new text end 23.5 new text begin least 30 days prior to the hearing. Claims allowed by court order, and claims properly new text end 23.6 new text begin submitted and not disallowed by the court shall be allowed claims and shall be entitled to new text end 23.7 new text begin share in distributions of receivership property in accordance with the priorities provided new text end 23.8 new text begin by this chapter or otherwise by law. new text end 23.9     new text begin Subd. 2. new text end new text begin Examination of claims. new text end new text begin If the claims process does not require proofs of new text end 23.10 new text begin claim to be filed with the court, at any time after expiration of the claim-filing period and new text end 23.11 new text begin upon 14 days' written notice to the receiver, any party in interest shall have the right to new text end 23.12 new text begin examine: new text end 23.13 new text begin (1) all claims filed with the receiver; and new text end 23.14 new text begin (2) all books and records in the receiver's possession that provided the receiver the new text end 23.15 new text begin basis for concluding that creditors identified therein are entitled to participate in any new text end 23.16 new text begin distributions of receivership property without having to file claims. new text end 23.17     new text begin Subd. 3. new text end new text begin Estimation of claims. new text end new text begin For the purpose of allowance of claims, the court new text end 23.18 new text begin may estimate: new text end 23.19 new text begin (1) any contingent or unliquidated claim, the fixing or liquidation of which would new text end 23.20 new text begin unduly delay the administration of the receivership; or new text end 23.21 new text begin (2) any right to payment arising from a right to an equitable remedy. new text end 23.22    Sec. 31. new text begin [576.51] PRIORITY OF CLAIMS. new text end 23.23     new text begin Subdivision 1. new text end new text begin Priorities. new text end new text begin Allowed claims shall receive distribution under this new text end 23.24 new text begin chapter in the following order of priority and, except as set forth in clause (1), on a pro new text end 23.25 new text begin rata basis: new text end 23.26 new text begin (1) claims secured by liens on receivership property, which liens are valid and new text end 23.27 new text begin perfected before the time of appointment, to the extent of the proceeds from the disposition new text end 23.28 new text begin of the collateral in accordance with their respective priorities under otherwise applicable new text end 23.29 new text begin law, subject first to reimbursing the receiver for the reasonable and necessary expenses new text end 23.30 new text begin of preserving, protecting, or disposing of the collateral, including allowed fees and new text end 23.31 new text begin reimbursement of reasonable expenses of the receiver and professionals; new text end 23.32 new text begin (2) actual, necessary costs and expenses incurred during the receivership, other than new text end 23.33 new text begin those expenses allowable under clause (1), including allowed fees and reimbursement of new text end 23.34 new text begin reasonable expenses of the receiver and professionals employed by the receiver under new text end 23.35 new text begin section 576.32; new text end 24.1 new text begin (3) claims for wages, salaries, or commissions, including vacation, severance, and new text end 24.2 new text begin sick leave pay, or contributions to an employee benefit plan, earned by the claimant within new text end 24.3 new text begin the 90 days before the time of appointment or the cessation of the respondent's business, new text end 24.4 new text begin whichever occurs first, but only to the extent of the dollar amount in effect in United new text end 24.5 new text begin States Code, title 11, section 507(4); new text end 24.6 new text begin (4) allowed unsecured claims, to the extent of the dollar amount in effect in United new text end 24.7 new text begin States Code, title 11, section 507(7) for each individual, arising from the deposit with the new text end 24.8 new text begin respondent, before the time of appointment of the receiver, of money in connection with new text end 24.9 new text begin the purchase, lease, or rental of property or the purchase of services for personal, family, new text end 24.10 new text begin or household use by individuals that were not delivered or provided; new text end 24.11 new text begin (5) claims for arrears in amounts owing pursuant to a support order as defined in new text end 24.12 new text begin section 518A.26, subdivision 3; new text end 24.13 new text begin (6) unsecured claims of governmental units for taxes that accrued before the time new text end 24.14 new text begin of appointment of the receiver; new text end 24.15 new text begin (7) all other unsecured claims due as of the time of appointment, including the new text end 24.16 new text begin balance due the holders of secured claims to the extent not satisfied under clause (1); and new text end 24.17 new text begin (8) interest pursuant to section 576.52. new text end 24.18     new text begin Subd. 2. new text end new text begin Payments to respondent. new text end new text begin If all of the amounts payable under subdivision new text end 24.19 new text begin 1 have been paid in full, any remaining receivership property shall be returned to the new text end 24.20 new text begin respondent. new text end 24.21    Sec. 32. new text begin [576.52] INTEREST ON UNSECURED CLAIMS. new text end 24.22 new text begin To the extent that funds are available to pay holders of allowed unsecured claims in new text end 24.23 new text begin full or the amounts due as of the time of appointment, each holder shall also be entitled new text end 24.24 new text begin to receive interest, calculated from the time of appointment, at the rate set forth in the new text end 24.25 new text begin agreement evidencing the claim, or if no rate is provided, at the judgment rate that would new text end 24.26 new text begin be payable as of the time of appointment; provided however, that no holder shall be entitled new text end 24.27 new text begin to interest on that portion, if any, of its unsecured claim that is itself interest calculated new text end 24.28 new text begin from the time of appointment. If there are not sufficient funds in the receivership to pay in new text end 24.29 new text begin full the interest owed to all the holders, then the interest shall be paid pro rata. new text end 24.30    Sec. 33. new text begin [576.53] DISTRIBUTIONS. new text end 24.31     new text begin Subdivision 1. new text end new text begin Proposed distributions. new text end new text begin Before any interim or final distribution is new text end 24.32 new text begin made, the receiver shall file a distribution schedule listing the proposed distributions. new text end 24.33 new text begin The distribution schedule may be filed at any time during the case or may be included new text end 24.34 new text begin in the final report. new text end 25.1     new text begin Subd. 2. new text end new text begin Notice. new text end new text begin The receiver shall give notice of the filing of the distribution new text end 25.2 new text begin schedule to all persons on the master mailing list or that have filed proofs of claim. If there new text end 25.3 new text begin is no objection within 21 days after the notice, the court may enter an order authorizing new text end 25.4 new text begin the receiver to make the distributions described in the distribution schedule without the new text end 25.5 new text begin necessity of a hearing. new text end 25.6     new text begin Subd. 3. new text end new text begin Other distributions. new text end new text begin In the order appointing the receiver or in subsequent new text end 25.7 new text begin orders, the court may authorize distribution of receivership property to persons with new text end 25.8 new text begin ownership interests or liens. new text end 25.9ARTICLE 2 25.10ASSIGNMENTS FOR THE BENEFITS OF CREDITORS 25.11    Section 1. new text begin [577.11] DEFINITIONS. new text end 25.12 new text begin (a) The definitions in this section and in section 576.21 apply throughout this chapter new text end 25.13 new text begin unless the context requires otherwise. new text end 25.14 new text begin (b) "Assignee" means the person to whom the assignment property is assigned. new text end 25.15 new text begin (c) "Assignment property" means the property assigned pursuant to the provisions new text end 25.16 new text begin of this chapter. new text end 25.17 new text begin (d) "Assignor" means the person who assigns the assignment property. new text end 25.18 new text begin (e) "Time of assignment" means the date and time endorsed by the court new text end 25.19 new text begin administrator pursuant to section 577.14. new text end 25.20    Sec. 2. new text begin [577.12] REQUISITES. new text end 25.21 new text begin A person may execute a written assignment of property to one or more assignees for new text end 25.22 new text begin the benefit of creditors in conformity with the provisions of this chapter. Every assignment new text end 25.23 new text begin for the benefit of creditors subject to this chapter made by an assignor of the whole or any new text end 25.24 new text begin part of the assignor's property, real or personal, for the benefit of creditors, shall be: (1) to new text end 25.25 new text begin a resident of the state eligible to be a receiver under section 576.26, in writing, subscribed new text end 25.26 new text begin and acknowledged by the assignor, and (2) filed by the assignor or the assignee with the new text end 25.27 new text begin court administrator of the district court of the county in which the assignor, or one of the new text end 25.28 new text begin assignors if there is more than one, resides, or in which the principal place of business of new text end 25.29 new text begin an assignor engaged in business is located. The district court shall have supervision over new text end 25.30 new text begin the assignment property and of all proceedings under this chapter. new text end 25.31    Sec. 3. new text begin [577.13] FORM OF ASSIGNMENT. new text end 25.32 new text begin An assignment for the benefit of creditors under this chapter shall be signed by the new text end 25.33 new text begin assignor and duly acknowledged in the same manner as conveyances of real property new text end 26.1 new text begin before a notary public of the state, shall include an acceptance of the assignment by the new text end 26.2 new text begin assignee, and shall be in substantially the following form: new text end 26.3 new text begin ASSIGNMENT new text end 26.4     new text begin THIS ASSIGNMENT is made this .... day of .............., .........., by and between new text end 26.5 new text begin ............, with a principal place of business at .......... (hereinafter "assignor"), and ............, new text end 26.6 new text begin whose address is ........... (hereinafter "assignee"). new text end 26.7     new text begin WHEREAS, the assignor has been engaged in the business of new text end 26.8 new text begin ............................................ new text end 26.9     new text begin WHEREAS, the assignor is indebted to creditors and is unable to pay debts as they new text end 26.10 new text begin become due, and is desirous of providing for the payment of debts, so far as it is possible new text end 26.11 new text begin by an assignment of property for that purpose. new text end 26.12     new text begin NOW, THEREFORE, the assignor, in consideration of the assignee's acceptance new text end 26.13 new text begin of this assignment, and for other good and valuable consideration, hereby assigns to new text end 26.14 new text begin the assignee, and the assignee's successors and assigns, the assignor's property, except new text end 26.15 new text begin the property as is exempt by law from levy and sale under an execution (and then only new text end 26.16 new text begin to the extent of the exemption), including but not limited to all real property, fixtures, new text end 26.17 new text begin goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general new text end 26.18 new text begin intangibles, bank deposits, cash, promissory notes, cash value and proceeds of insurance new text end 26.19 new text begin policies, claims, and demands belonging to the assignor, wherever the property may be new text end 26.20 new text begin located (hereinafter collectively the "assignment property"), which property is set forth new text end 26.21 new text begin on Schedule A attached hereto. new text end 26.22     new text begin A list of the creditors of the assignor is set forth in Schedule B annexed hereto. new text end 26.23     new text begin By making this assignment, the assignor consents to the appointment of the assignee new text end 26.24 new text begin as a general receiver with respect to the assignment property in accordance with Minnesota new text end 26.25 new text begin Statutes, chapters 576 and 577. new text end 26.26     new text begin The assignee shall take possession of and administer the assignment property new text end 26.27 new text begin and shall liquidate the assignment property with reasonable dispatch, collect all claims new text end 26.28 new text begin and demands hereby assigned as and to the extent they may be collectible, and pay new text end 26.29 new text begin and discharge all reasonable expenses, costs, and disbursements in connection with the new text end 26.30 new text begin execution and administration of this assignment from the proceeds of the liquidations and new text end 26.31 new text begin collections in accordance with Minnesota Statutes, chapters 576 and 577. new text end 26.32     new text begin The assignee shall then pay and discharge in full, to the extent that funds are available new text end 26.33 new text begin from the assignment property after payment of expenses, costs, and disbursements, all of new text end 26.34 new text begin the debts and liabilities now due from the assignor, including interest on the debts and new text end 26.35 new text begin liabilities in full, in accordance with Minnesota Statutes, chapters 576 and 577. new text end 27.1     new text begin In the event that all debts and liabilities are paid in full, the remainder of the new text end 27.2 new text begin assignment property shall be returned to the assignor. new text end 27.3     new text begin To accomplish the purposes of this assignment, the assignor hereby irrevocably new text end 27.4 new text begin appoints the assignee as the assignor's true and lawful attorney-in-fact, with full power new text end 27.5 new text begin and authority to do all acts and things which may be necessary to execute and fulfill the new text end 27.6 new text begin assignment hereby created, to the same extent as the acts and things might be done by new text end 27.7 new text begin the assignor in the absence of this assignment, including, but not limited to, the power new text end 27.8 new text begin to demand and recover from all persons all assignment property; to sue for the recovery new text end 27.9 new text begin of assignment property; to execute, acknowledge, and deliver all necessary deeds, new text end 27.10 new text begin instruments, and conveyances, and to grant and convey any or all of the real or personal new text end 27.11 new text begin property of the assignment property pursuant thereto; and to appoint one or more attorneys new text end 27.12 new text begin to assist the assignee in carrying out the assignee's duties hereunder. new text end 27.13     new text begin The assignor hereby authorizes the assignee to sign the name of the assignor to any new text end 27.14 new text begin check, draft, promissory note, or other instrument in writing which is payable to the order new text end 27.15 new text begin of the assignor, or to sign the name of the assignor to any instrument in writing, whenever new text end 27.16 new text begin it shall be necessary to do so, to carry out the purposes of this assignment. new text end 27.17     new text begin The assignor declares, under penalty of perjury under the laws of the state of new text end 27.18 new text begin Minnesota, that the attached schedules of the property or the assignor and creditors are new text end 27.19 new text begin true and complete to the best of the assignor's knowledge. new text end 27.20     new text begin The assignee hereby accepts the assignment property and agrees faithfully and new text end 27.21 new text begin without delay to carry out the assignee's duties under the foregoing assignment. new text end 27.22 27.23 new text begin ............................................. new text end new text begin Assignor new text end new text begin ............................................... new text end new text begin Assignee new text end 27.24 new text begin Dated: ................................... new text end new text begin Dated: ................................ new text end 27.25    Sec. 4. new text begin [577.14] DUTY OF COURT ADMINISTRATOR. new text end 27.26 new text begin The court administrator shall endorse the day, hour, and minute of the filing of the new text end 27.27 new text begin assignment. The assignment shall be entered in the court administrator's register, and all new text end 27.28 new text begin papers filed and orders made in the matter of the assignment shall be noted therein as in new text end 27.29 new text begin the case of a civil action. new text end 27.30    Sec. 5. new text begin [577.15] ASSIGNEE AS LIEN CREDITOR; REAL ESTATE new text end 27.31 new text begin RECORDING. new text end 27.32     new text begin Subdivision 1. new text end new text begin Assignee as lien creditor. new text end new text begin As of the filing of the assignment, the new text end 27.33 new text begin assignee shall have the powers and priority of a creditor that obtained a judicial lien at new text end 27.34 new text begin the time of assignment pursuant to sections 548.09 and 550.10 on all of the assignment new text end 28.1 new text begin property subject to satisfying the recording requirements as to real property described in new text end 28.2 new text begin subdivision 2. new text end 28.3     new text begin Subd. 2. new text end new text begin Real estate recording. new text end new text begin If any interest in real estate is included in the new text end 28.4 new text begin assignment property, the assignment shall be effective as a deed, and a notice of a lis new text end 28.5 new text begin pendens shall be recorded as soon as practicable with the county recorder or registrar of new text end 28.6 new text begin titles, as appropriate, of the county in which the real property is located. The priority of new text end 28.7 new text begin the assignee as lien creditor against real property shall be from the time of recording of new text end 28.8 new text begin the notice of lis pendens, except as to persons with actual or implied knowledge of the new text end 28.9 new text begin assignment under section 507.34. The assignment executed by the assignor and certified new text end 28.10 new text begin by the court administrator and a deed executed by the assignee shall be recorded with the new text end 28.11 new text begin county recorder or registrar of titles, as appropriate, of the county in which the real property new text end 28.12 new text begin is located, and upon execution of the deed by the assignee shall be prima facie evidence of new text end 28.13 new text begin the authority of the assignee to convey the real property described in the assignment. new text end 28.14    Sec. 6. new text begin [577.16] NOTICE. new text end 28.15 new text begin The assignee shall give notice of the assignment to all creditors and other parties new text end 28.16 new text begin in interest actually known to the assignee by mail or other means of transmission within new text end 28.17 new text begin 21 days after the time of assignment. The notice of the assignment shall include the new text end 28.18 new text begin time of assignment and the names and addresses of the assignor, the assignee, and the new text end 28.19 new text begin assignee's attorney, if any. new text end 28.20    Sec. 7. new text begin [577.17] REMOVAL OF ASSIGNEE. new text end 28.21 new text begin The court may remove the assignee and appoint another assignee by application of new text end 28.22 new text begin the standards and procedures under section 576.37. The order of removal and appointment new text end 28.23 new text begin shall transfer all of the assignment property to the new assignee, and with respect to real new text end 28.24 new text begin property may be recorded in the same manner as the initial assignment. new text end 28.25    Sec. 8. new text begin [577.18] APPLICATION OF CHAPTER GOVERNING new text end 28.26 new text begin RECEIVERSHIPS. new text end 28.27 new text begin Except as otherwise provided in this chapter, an assignee shall be treated as a new text end 28.28 new text begin general receiver, the assignment property shall be treated as receivership property, and all new text end 28.29 new text begin proceedings following the filing of the assignment shall be governed by sections 576.21 new text end 28.30 new text begin to 576.53. new text end 28.31    Sec. 9. new text begin REPEALER. new text end 29.1 new text begin Minnesota Statutes 2010, sections 577.01; 577.02; 577.03; 577.04; 577.05; 577.06; new text end 29.2 new text begin 577.08; 577.09; and 577.10, new text end new text begin are repealed. new text end 29.3ARTICLE 3 29.4CONFORMING AMENDMENTS 29.5    Section 1. Minnesota Statutes 2010, section 302A.753, subdivision 2, is amended to 29.6read: 29.7    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever 29.8notice the court directs to be given to all parties to the proceedings and to any other parties 29.9in interest designated by the court, the court may appoint a receiver to collect the corporate 29.10assets, including all amounts owing to the corporation by subscribers on account of any 29.11unpaid portion of the consideration for the issuance of shares. new text begin In addition to the powers set new text end 29.12 new text begin forth in chapter 576, new text end a receiver has authority, subject to the order of the court, to continue 29.13the business of the corporation and to sell, lease, transfer, or otherwise dispose of all or 29.14any of the property and assets of the corporation either at public or private sale. 29.15    Sec. 2. Minnesota Statutes 2010, section 302A.753, subdivision 3, is amended to read: 29.16    Subd. 3. Discharge of obligations. The assets of the corporation or the proceeds 29.17resulting from a sale, lease, transfer, or other disposition shall be applied in the following 29.18order of priority to the payment and discharge or: 29.19(a) the costs and expenses of the proceedings, including attorneys' fees and 29.20disbursements; 29.21(b) debts, taxes and assessments due the United States, the state of Minnesota and 29.22their subdivisions, and other states and their subdivisions, in that order; 29.23(c) claims duly proved and allowed to employees under the provisions of the 29.24Workers' Compensation Act; provided, that claims under this clause shall not be allowed if 29.25the corporation carried workers' compensation insurance, as provided by law, at the time 29.26the injury was sustained; 29.27(d) claims, including the value of all compensation paid in any medium other than 29.28money, duly proved and allowed to employees for services performed within three months 29.29preceding the appointment of the receiver, if any; and 29.30(e) other claims duly proved and allowed new text begin set forth in section 576.51 new text end . 29.31    Sec. 3. Minnesota Statutes 2010, section 302A.755, is amended to read: 29.32302A.755 QUALIFICATIONS OF RECEIVERS; POWERS. 30.1    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic 30.2corporation or a foreign corporation authorized to transact business in this state. new text begin Any new text end 30.3 new text begin person qualified under section 576.26 may be appointed as receiver. new text end A receiver shall 30.4give bond as directed by the court with the sureties required by the court new text begin required by new text end 30.5 new text begin section 576.27 new text end . 30.6    Subd. 2. Powers. A receiver may sue and defend in all courts new text begin actions new text end as receiver 30.7of the corporation. The court appointing the receiver has exclusive jurisdiction of new text begin over new text end 30.8the corporation and its property new text begin , the receiver, and all receivership property pursuant to new text end 30.9 new text begin section 576.23 new text end . 30.10    Sec. 4. Minnesota Statutes 2010, section 302A.759, subdivision 1, is amended to read: 30.11    Subdivision 1. Manner and form. In proceedings referred to in section 302A.751 to 30.12dissolve a corporation, the court may require all creditors and claimants of the corporation 30.13to file their claims under oath with the court administrator or with the receiver in a form 30.14prescribed by the court new text begin pursuant to section 576.49. The receiver or any party in interest new text end 30.15 new text begin may object to any claim pursuant to section 576.50 new text end . 30.16    Sec. 5. Minnesota Statutes 2010, section 302A.761, is amended to read: 30.17302A.761 DISCONTINUANCE OF DISSOLUTION PROCEEDINGS. 30.18The involuntary or supervised voluntary dissolution of a corporation shall be 30.19discontinued at any time during the dissolution proceedings when it is established that 30.20cause for dissolution no longer exists. When this is established, the court shall dismiss the 30.21proceedings and direct the receiver, if any, to redeliver to the corporation all its remaining 30.22property and assets new text begin and to file a final report pursuant to section 576.38, subdivision 3 new text end . 30.23    Sec. 6. Minnesota Statutes 2010, section 308A.945, subdivision 2, is amended to read: 30.24    Subd. 2. Action after hearing. After a hearing is completed, on notice the court 30.25directs to be given to parties to the proceedings and to other parties in interest designated 30.26by the court, the court may appoint a receiver to collect the cooperative's assets, including 30.27amounts owing to the cooperative by subscribers on account of an unpaid portion of the 30.28consideration for the issuance of shares. new text begin In addition to the powers set forth in chapter 576, new text end 30.29a receiver has authority, subject to the order of the court, to continue the business of the 30.30cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of 30.31the cooperative either at public or private sale. 30.32    Sec. 7. Minnesota Statutes 2010, section 308A.945, subdivision 3, is amended to read: 31.1    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds 31.2resulting from a sale, lease, transfer, or other disposition shall be applied in the following 31.3order of priority or: 31.4(1) the costs and expenses of the proceedings, including attorneys' fees and 31.5disbursements; 31.6(2) debts, taxes and assessments due the United States, the state of Minnesota and 31.7their subdivisions, and other states and their subdivisions, in that order; 31.8(3) claims duly proved and allowed to employees under the provisions of the 31.9Workers' Compensation Act except that claims under this clause may not be allowed 31.10if the cooperative has carried workers' compensation insurance, as provided by law, at 31.11the time the injury was sustained; 31.12(4) claims, including the value of all compensation paid in a medium other than 31.13money, proved and allowed to employees for services performed within three months 31.14preceding the appointment of the receiver, if any; and 31.15(5) other claims proved and allowed new text begin set forth in section 576.51 new text end . 31.16    Sec. 8. Minnesota Statutes 2010, section 308A.951, is amended to read: 31.17308A.951 RECEIVER QUALIFICATIONS AND POWERS. 31.18    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic 31.19corporation or a foreign corporation authorized to transact business in this state. new text begin Any new text end 31.20 new text begin person qualified under section 576.26 may be appointed as a receiver. new text end A receiver must 31.21give a bond as directed by the court with the sureties required by the court new text begin required by new text end 31.22 new text begin section 576.27 new text end . 31.23    Subd. 2. Powers. A receiver may sue and defend in all courts new text begin actions new text end as receiver 31.24of the cooperative. The court appointing the receiver has exclusive jurisdiction of new text begin over new text end 31.25the cooperative and its property new text begin , the receiver, and all receivership property pursuant to new text end 31.26 new text begin section 576.23 new text end . 31.27    Sec. 9. Minnesota Statutes 2010, section 308A.961, subdivision 1, is amended to read: 31.28    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the 31.29court may require all creditors and claimants of the cooperative to file their claims under 31.30oath with the court administrator or with the receiver in a form prescribed by the court new text begin new text end 31.31 new text begin pursuant to section 576.49. The receiver or any party in interest may object to any claims new text end 31.32 new text begin pursuant to section 576.50 new text end . 32.1    Sec. 10. Minnesota Statutes 2010, section 308A.965, is amended to read: 32.2308A.965 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION 32.3PROCEEDINGS. 32.4The involuntary or supervised voluntary dissolution of a cooperative may be 32.5discontinued at any time during the dissolution proceedings if it is established that cause 32.6for dissolution does not exist. The court shall dismiss the proceedings and direct the 32.7receiver, if any, to redeliver to the cooperative its remaining property and assets new text begin and to file new text end 32.8 new text begin a final report pursuant to section 576.38, subdivision 3 new text end . 32.9    Sec. 11. Minnesota Statutes 2010, section 308B.935, subdivision 2, is amended to read: 32.10    Subd. 2. Action after hearing. After a hearing is completed, upon notice to parties 32.11to the proceedings and to other parties in interest designated by the court, the court may 32.12appoint a receiver to collect the cooperative's assets, including amounts owing to the 32.13cooperative by subscribers on account of an unpaid portion of the consideration for the 32.14issuance of shares. new text begin In addition to the powers set forth in chapter 576, new text end a receiver has 32.15authority, subject to the order of the court, to continue the business of the cooperative and 32.16to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative 32.17either at public or private sale. 32.18    Sec. 12. Minnesota Statutes 2010, section 308B.935, subdivision 3, is amended to read: 32.19    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds 32.20resulting from a sale, lease, transfer, or other disposition shall be applied in the following 32.21order of priority: 32.22(1) the costs and expense of the proceedings, including attorney fees and 32.23disbursements; 32.24(2) debts, taxes, and assessments due the United States, this state, and other states 32.25in that order; 32.26(3) claims duly proved and allowed to employees under the provisions of the 32.27Workers' Compensation Act except that claims under this clause may not be allowed if 32.28the cooperative carried workers' compensation insurance, as provided by law, at the time 32.29the injury was sustained; 32.30(4) claims, including the value of all compensation paid in a medium other than 32.31money, proved and allowed to employees for services performed within three months 32.32preceding the appointment of the receiver, if any; and 32.33(5) other claims proved and allowed new text begin set forth in section 576.51 new text end . 33.1    Sec. 13. Minnesota Statutes 2010, section 308B.941, is amended to read: 33.2308B.941 RECEIVER QUALIFICATIONS AND POWERS. 33.3    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic 33.4business entity or a foreign business entity authorized to transact business in this state. new text begin new text end 33.5 new text begin Any person qualified under section 576.26 may be appointed as a receiver. new text end A receiver 33.6shall give a bond as directed by the court with the sureties required by the court new text begin required new text end 33.7 new text begin by section 576.27 new text end . 33.8    Subd. 2. Powers. A receiver may sue and defend in all courts new text begin actions new text end as receiver 33.9of the cooperative. The court appointing the receiver has exclusive jurisdiction of new text begin over new text end 33.10the cooperative and its property new text begin , the receiver, and all receivership property pursuant to new text end 33.11 new text begin section 576.23 new text end . 33.12    Sec. 14. Minnesota Statutes 2010, section 308B.951, subdivision 1, is amended to read: 33.13    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the 33.14court may require all creditors and claimants of the cooperative to file their claims under 33.15oath with the court administrator or with the receiver in a form prescribed by the court new text begin new text end 33.16 new text begin pursuant to section 576.49. The receiver or any party in interest may object to any claim new text end 33.17 new text begin pursuant to section 576.50 new text end . 33.18    Sec. 15. Minnesota Statutes 2010, section 308B.955, is amended to read: 33.19308B.955 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION 33.20PROCEEDINGS. 33.21The involuntary or supervised voluntary dissolution of a cooperative may be 33.22discontinued at any time during the dissolution proceedings if it is established that cause 33.23for dissolution does not exist. The court shall dismiss the proceedings and direct the 33.24receiver, if any, to redeliver to the cooperative its remaining property and assets new text begin and to file new text end 33.25 new text begin a final report pursuant to section 576.38, subdivision 3 new text end . 33.26    Sec. 16. Minnesota Statutes 2010, section 316.11, is amended to read: 33.27316.11 RECEIVER, APPOINTMENT, DUTIES. 33.28In any action or proceeding to dissolve a corporation, the court, at any time before 33.29judgment, or within three years after judgment, of dissolution, may appoint a receiver to 33.30take charge of its estate and effects and to collect the debts and property due and belonging 33.31to it, with new text begin , in addition to the powers set forth in chapter 576, new text end power to prosecute and 33.32defend actions in its name or otherwise, to appoint agents, and do all other acts necessary 34.1to the final settlement of the unfinished business of the corporation which it might do if in 34.2being. The power of such receiver shall continue so long as the court deems necessary 34.3for such purposes. The receiver shall pay all debts due from the corporation, if the funds 34.4in hand are sufficient therefor; and, if not, shall distribute the same ratably among the 34.5creditors who prove their debts, in the manner directed by the court; and, if there be any 34.6balance after the payment of the debts, the receiver shall distribute and pay the same to 34.7and among those who are justly entitled thereto, as having been stockholders or members. 34.8Every receiver appointed under the provisions of this section shall give bond in such 34.9amount as the court shall require, with sureties approved by it new text begin the assets of the corporation new text end 34.10 new text begin or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied new text end 34.11 new text begin in the order of priority set forth in section 576.51. After payment of the expenses of new text end 34.12 new text begin the receivership and claims of creditors duly proved, the remaining assets, if any, shall new text end 34.13 new text begin be distributed to the shareholders in accordance with section 302A.551, subdivision 4. new text end 34.14 new text begin Every receiver appointed under the provisions of this section shall give bond as required new text end 34.15 new text begin by section 576.27 in such amount as the court shall require, with sureties approved by it new text end . 34.16    Sec. 17. Minnesota Statutes 2010, section 317A.753, subdivision 3, is amended to read: 34.17    Subd. 3. Action after hearing. After a full hearing has been held, upon whatever 34.18notice the court directs to be given to the parties to the proceedings and to other parties in 34.19interest designated by the court, the court may appoint a receiver to collect the corporate 34.20assets. new text begin In addition to the powers set forth in chapter 576, new text end a receiver has authority, subject to 34.21the order of the court, to continue the business of the corporation and to sell, lease, transfer, 34.22or otherwise dispose of all or any of the assets of the corporation at a public or private sale. 34.23    Sec. 18. Minnesota Statutes 2010, section 317A.753, subdivision 4, is amended to read: 34.24    Subd. 4. Discharge of obligations. The assets of the corporation or the proceeds 34.25resulting from a sale, lease, transfer, or other disposition must be applied in the following 34.26order of priority to the payment and discharge of: 34.27(1) the costs and expenses of the dissolution proceedings, including attorneys fees 34.28and disbursements; 34.29(2) debts, taxes, and assessments due the United States, the state of Minnesota and 34.30their subdivisions, and other states and their subdivisions, in that order; 34.31(3) claims duly proved and allowed to employees under the Workers' Compensation 34.32Act, provided that claims under this clause are not allowed if the corporation carried 34.33workers' compensation insurance, as provided by law, at the time the injury was sustained; 35.1(4) claims, including the value of compensation paid in a medium other than money, 35.2duly proved and allowed to employees for services performed within three months 35.3preceding the appointment of the receiver, if any; and 35.4(5) other claims duly proved and allowed new text begin set forth in section 576.51 new text end . 35.5    Sec. 19. Minnesota Statutes 2010, section 317A.755, is amended to read: 35.6317A.755 QUALIFICATIONS OF RECEIVERS; POWERS. 35.7    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic 35.8corporation or a foreign corporation authorized to transact business in this state. new text begin Any new text end 35.9 new text begin person qualified under section 576.26 may be appointed as a receiver. new text end A receiver shall 35.10give bond as directed by the court with the sureties required by the court new text begin required by new text end 35.11 new text begin section 576.27 new text end . 35.12    Subd. 2. Powers. A receiver may sue and defend in courts new text begin all actions new text end as receiver 35.13of the corporation. The court appointing the receiver has exclusive jurisdiction of new text begin over new text end 35.14the corporation and its property new text begin , the receiver, and all receivership property pursuant to new text end 35.15 new text begin section 576.23 new text end . 35.16    Sec. 20. Minnesota Statutes 2010, section 317A.759, subdivision 1, is amended to read: 35.17    Subdivision 1. Filing may be required. In a proceeding under section 317A.751 to 35.18dissolve a corporation, the court may require creditors and claimants of the corporation 35.19to file their claims under oath with the court administrator or with the receiver in a form 35.20prescribed by the court new text begin pursuant to section 576.49. The receiver or any party in interest new text end 35.21 new text begin may object to any claim pursuant to section 576.50 new text end . 35.22    Sec. 21. Minnesota Statutes 2010, section 322B.836, subdivision 2, is amended to read: 35.23    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever 35.24notice the court directs to be given to all parties to the proceedings and to any other parties 35.25in interest designated by the court, the court may appoint a receiver to collect the limited 35.26liability company assets, including all amounts owing to the limited liability company 35.27by persons who have made contribution agreements and by persons who have made 35.28contributions by means of enforceable promises of future performance. new text begin In addition to the new text end 35.29 new text begin powers set forth in chapter 576, new text end a receiver has authority, subject to the order of the court, 35.30to continue the business of the limited liability company and to sell, lease, transfer, or 35.31otherwise dispose of all or any of the property and assets of the limited liability company 35.32either at public or private sale. 36.1    Sec. 22. Minnesota Statutes 2010, section 322B.836, subdivision 3, is amended to read: 36.2    Subd. 3. Discharge of obligations upon liquidation. If the court determines that 36.3the limited liability company is to be dissolved with winding up to be accomplished by 36.4liquidation, then the assets of the limited liability company or the proceeds resulting 36.5from a sale, lease, transfer, or other disposition must be applied in the following order of 36.6priority to the payment and discharge or: 36.7(1) the costs and expenses of the proceedings, including attorneys' fees and 36.8disbursements; 36.9(2) debts, taxes, and assessments due the United States, the state of Minnesota and 36.10their subdivisions, and other states and their subdivisions, in that order; 36.11(3) claims duly proved and allowed to employees under the provisions of chapter 36.12176; provided, that claims under this clause shall not be allowed if the limited liability 36.13company carried workers' compensation insurance, as provided by law, at the time the 36.14injury was sustained; 36.15(4) claims, including the value of all compensation paid in any medium other than 36.16money, duly proved and allowed to employees for services performed within three months 36.17preceding the appointment of the receiver, if any; and 36.18(5) other claims duly proved and allowed new text begin set forth in section 576.51 new text end . 36.19    Sec. 23. Minnesota Statutes 2010, section 322B.84, is amended to read: 36.20322B.84 QUALIFICATIONS OF RECEIVERS AND POWERS. 36.21    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic or 36.22foreign organization authorized to transact business in this state. new text begin Any person qualified new text end 36.23 new text begin under section 576.26 may be appointed as a receiver. new text end A receiver shall give bond as 36.24directed by the court with the sureties required by the court new text begin required by section 576.27 new text end . 36.25    Subd. 2. Powers. A receiver may sue and defend in all courts new text begin actions new text end as receiver of 36.26the limited liability company. The court appointing the receiver has exclusive jurisdiction 36.27of new text begin over new text end the limited liability company and its property new text begin , the receiver, and all receivership new text end 36.28 new text begin property pursuant to section 576.23 new text end . 36.29    Sec. 24. Minnesota Statutes 2010, section 462A.05, subdivision 32, is amended to read: 36.30    Subd. 32. Appointment of receivers. The agency may obtain the appointment of 36.31receivers or assignments of rents and profits under sections 559.17 and 576.01 new text begin 576.25, new text end 36.32 new text begin subdivision 5, new text end except that the limitation relating to the minimum amounts of the original 36.33principal balances of mortgages contained in sections 576.01, subdivision 2 new text begin 576.25, new text end 37.1 new text begin subdivision 5, paragraph (a), clause (i) new text end , and 559.17, subdivision 2, clause (2), shall 37.2be inapplicable to it. 37.3    Sec. 25. Minnesota Statutes 2010, section 469.012, subdivision 2i, is amended to read: 37.4    Subd. 2i. Receivers, assignment of rent as security. An authority may secure a 37.5mortgage or loan for a rental housing project by obtaining the appointment of receivers or 37.6assignments of rents and profits under sections 559.17 and 576.01 new text begin 576.25, subdivision new text end 37.7 new text begin 5 new text end , except that the limitation relating to the minimum amounts of the original principal 37.8balances of mortgages specified in sections 559.17, subdivision 2, clause (2); and 576.01, 37.9subdivision 2 new text begin 576.25, subdivision 5, paragraph (a), clause (1) new text end , does not apply. 37.10    Sec. 26. Minnesota Statutes 2010, section 540.14, is amended to read: 37.11540.14 ACTIONS AGAINST RECEIVERS; TRIAL; JUDGMENT, HOW 37.12SATISFIED. 37.13 new text begin Except as limited in chapters 576 and 577, new text end any receiver, assignee, or other person 37.14appointed by a court to hold or manage property under its direction new text begin , new text end may be sued on 37.15account of any acts or transactions in carrying on the business connected with such 37.16property without prior leave of court. 37.17Such action may be brought in any county in which it could have been brought 37.18against the person or corporation represented by such receiver or other person, shall be 37.19tried in the same manner and subject to the same rules of procedure, and any judgment 37.20recovered therein against such receiver or other person shall be paid by the receiver or 37.21other person as a part of the expenses of managing such property. 37.22    Sec. 27. Minnesota Statutes 2010, section 559.17, subdivision 2, is amended to read: 37.23    Subd. 2. Assignment; conditions. A mortgagor may assign, as additional security 37.24for the debt secured by the mortgage, the rents and profits from the mortgaged real 37.25property, if the mortgage: 37.26(1) was executed, modified or amended subsequent to August 1, 1977; 37.27(2) secured an original principal amount of $100,000 or more or is a lien upon 37.28residential real estate containing more than four dwelling units; and 37.29(3) is not a lien upon property which was: 37.30(i) entirely homesteaded as agricultural property; or 37.31(ii) residential real estate containing four or fewer dwelling units where at least 37.32one of the units is homesteaded. The assignment may be enforced, but only against the 37.33nonhomestead portion of the mortgaged property, as follows: 38.1(a) if, by the terms of an assignment, a receiver is to be appointed upon the 38.2occurrence of some specified event, and a showing is made that the event has occurred, 38.3the court shall, without regard to waste, adequacy of the security, or solvency of the 38.4mortgagor, appoint a receiver who shall, with respect to the excess cash remaining after 38.5application as provided in section 576.01, subdivision 2 new text begin 576.25, subdivision 5 new text end , apply it as 38.6prescribed by the assignment. If the assignment so provides, the receiver shall apply the 38.7excess cash in the manner set out herein from the date of appointment through the entire 38.8redemption period from any foreclosure sale. Subject to the terms of the assignment, the 38.9receiver shall have the powers and duties as set forth in section 576.01, subdivision 2 new text begin new text end 38.10 new text begin 576.25, subdivision 5 new text end ; or 38.11(b) if no provision is made for the appointment of a receiver in the assignment or 38.12if by the terms of the assignment a receiver may be appointed, the assignment shall be 38.13binding upon the assignor unless or until a receiver is appointed without regard to waste, 38.14adequacy of the security or solvency of the mortgagor, but only in the event of default in 38.15the terms and conditions of the mortgage, and only in the event the assignment requires 38.16the holder thereof to first apply the rents and profits received as provided in section 38.17576.01, subdivision 2 new text begin 576.25, subdivision 5 new text end , in which case the same shall operate against 38.18and be binding upon the occupiers of the premises from the date of recording by the 38.19holder of the assignment in the office of the county recorder or the office of the registrar of 38.20titles for the county in which the property is located of a notice of default in the terms 38.21and conditions of the mortgage and service of a copy of the notice upon the occupiers of 38.22the premises. The holder of the assignment shall apply the rents and profits received in 38.23accordance with the terms of the assignment, and, if the assignment so provides, for 38.24the entire redemption period from any foreclosure sale. A holder of an assignment who 38.25enforces it in accordance with this clause shall not be deemed to be a mortgagee in 38.26possession with attendant liability. 38.27Nothing contained herein shall prohibit the right to reinstate the mortgage 38.28debt granted pursuant to section 580.30, nor the right to redeem granted pursuant to 38.29sections 580.23 and 581.10, and any excess cash, as that term is used herein, collected 38.30by the receiver under clause (a), or any rents and profits taken by the holder of the 38.31assignment under clause (b), shall be credited to the amount required to be paid to effect 38.32a reinstatement or redemption. 38.33    Sec. 28. Minnesota Statutes 2010, section 576.04, is amended to read: 38.34576.04 ABSENTEES; POSSESSION, MANAGEMENT, AND DISPOSITION 38.35OF PROPERTY. 39.1If a person entitled to or having an interest in property within or without the 39.2jurisdiction of the state has disappeared or absconded from the place within or without the 39.3state where last known to be, and has no agent in the state, and it is not known where the 39.4person is, or if such person, having a spouse or minor child or children dependent to any 39.5extent upon the person for support, has thus disappeared, or absconded without making 39.6sufficient provision for such support, and it is not known where the person is, or, if it is 39.7known that the person is without the state, any one who would under the law of the state 39.8be entitled to administer upon the estate of such absentee if deceased, or if no one is 39.9known to be so entitled, some person deemed suitable by the court, or such spouse, or 39.10some one in such spouse's or minors' behalf, may file a petition, under oath, in the court for 39.11the county where any such property is situated or found, stating the name, age, occupation, 39.12and last known residence or address of such absentee, the date and circumstances of the 39.13disappearance or absconding, and the names and residences of other persons, whether 39.14members of such absentee's family or otherwise, of whom inquiry may be made, whether 39.15or not such absentee is a citizen of the United States, and if not, of what country the 39.16absentee is a citizen or native, and containing a schedule of the property, real and personal, 39.17so far as known, and its location within or without the state, and a schedule of contractual 39.18or property rights contingent upon the absentee's death, and praying that real and personal 39.19property may be taken possession of and a receiver thereof appointed under this chapter new text begin new text end 39.20 new text begin 576 new text end . No proceedings shall be commenced under the provisions of sections 576.04 to 39.21576.16 new text begin this chapter new text end , except upon good cause shown until at least three months after the 39.22date on which it is alleged in such petition that such person so disappeared or absconded. 39.23    Sec. 29. Minnesota Statutes 2010, section 576.06, is amended to read: 39.24576.06 NOTICE OF SEIZURE; APPOINTMENT OF RECEIVER; 39.25DISPOSITION OF PROPERTY. 39.26Upon the return of such warrant, the court may issue a notice reciting the substance 39.27of the petition, warrant, and officer's return, which shall be addressed to such absentee and 39.28to all persons who claim an interest in such property, and to all whom it may concern, 39.29citing them to appear at a time and place named and show cause why a receiver of the 39.30property named in the officer's schedule should not be appointed and the property held and 39.31disposed of under sections 576.04 to 576.16 new text begin this chapter new text end . 39.32    Sec. 30. Minnesota Statutes 2010, section 576.08, is amended to read: 39.33576.08 HEARING BY COURT; DISMISSAL OF PROCEEDING; 39.34APPOINTMENT AND BOND OF RECEIVER. 40.1The absentee, or any person who claims an interest in any of the property, may 40.2appear and show cause why the prayer of the petition should not be granted. The court 40.3may, after hearing, dismiss the petition and order the property in possession of the officer 40.4to be returned to the person entitled thereto, or it may appoint a receiver of the property 40.5which is in the possession of the officer and named in the schedule. If a receiver is 40.6appointed, the court shall find and record the date of the disappearance or absconding 40.7of the absentee; and the receiver shall give a bond to the state in the sum and with the 40.8conditions the court orders, to be approved by the court new text begin pursuant to section 576.27 new text end . In the 40.9appointment of the receiver the court shall give preference to the spouse of the absentee, if 40.10the spouse is competent and suitable new text begin eligible to serve as receiver under section 576.26 new text end . 40.11    Sec. 31. Minnesota Statutes 2010, section 576.09, is amended to read: 40.12576.09 POSSESSION new text begin TRANSFER new text end OF PROPERTY BY new text begin TO new text end RECEIVER. 40.13After the approval of the new text begin receiver gives its new text end bond the court may order the sheriff or a 40.14deputy to transfer and deliver to such receiver the possession of the property under the 40.15warrant, and the receiver shall file in the office of the court administrator a schedule 40.16of the property received. 40.17    Sec. 32. Minnesota Statutes 2010, section 576.11, is amended to read: 40.18576.11 WHERE NO CORPOREAL PROPERTY; RECEIVER; BOND. 40.19If the absentee has left no corporeal property within or without the state, but there 40.20are debts and obligations due or owing to the absentee from persons within or without 40.21the state, a petition may be filed, as provided in section 576.04 new text begin 578.02 new text end , stating the nature 40.22and amount of such debts and obligations, so far as known, and praying that a receiver 40.23thereof may be appointed. The court may thereupon issue a notice, as above provided, 40.24without issuing a warrant, and may, upon the return of the notice and after a hearing, 40.25dismiss the petition or appoint a receiver and authorize and direct the receiver to demand 40.26and collect the debts and obligations specified in the petition. The receiver shall give 40.27bond, as provided in section 576.08 new text begin 576.27 new text end , and hold the proceeds of such debts and 40.28obligations and all property received, and distribute the same as provided in sections 40.29576.12 to 576.16 new text begin chapter 576 new text end . The receiver may be further authorized and directed as 40.30provided in section 576.10 new text begin 578.08 new text end . 41.1    Sec. 33. Minnesota Statutes 2010, section 576.121, is amended to read: 41.2576.121 ADVANCE LIFE INSURANCE PAYMENTS TO ABSENTEE'S 41.3BENEFICIARY. 41.4If the beneficiary under an insurance policy on the life of an absentee is the 41.5absentee's spouse, child, or other person dependent upon the absentee for support and 41.6advance payments under the policy are necessary to support and maintain the beneficiary, 41.7the beneficiary shall be entitled to advance payments as the court determines under section 41.8576.122 new text begin 578.12 new text end . "Beneficiary" under this section includes an heir at law of the person 41.9whose life is insured if the policy is payable to the insured's estate. 41.10    Sec. 34. Minnesota Statutes 2010, section 576.123, is amended to read: 41.11576.123 REAPPEARANCE OF ABSENTEE. 41.12    Subdivision 1. Insurance payments; reduction. If an absentee is declared dead 41.13after advance insurance payments have been made pursuant to section 576.122 new text begin 578.12 new text end , 41.14the amount payable under the policy shall be reduced by the total amount of payments 41.15made under section 576.122 new text begin 578.12 new text end . 41.16    Subd. 2. Reimbursement of insurer. If an absentee is found to be living after 41.17advance insurance payments have been made to a beneficiary pursuant to section 576.122 new text begin new text end 41.18 new text begin 578.12 new text end , the absentee and beneficiary shall reimburse the insurer the amount of the 41.19payments made. 41.20If the insurer is unable to obtain full reimbursement, the amount payable under the 41.21policy shall be reduced to the extent necessary to allow full reimbursement. Failure of the 41.22absentee and beneficiary to reimburse the insurer upon demand for payment sent by the 41.23insurer by certified mail to the last known address of the absentee and beneficiary shall be 41.24sufficient to show the insurer's inability to obtain reimbursement. 41.25    Sec. 35. Minnesota Statutes 2010, section 576.144, is amended to read: 41.26576.144 DISSOLUTION OF MARRIAGE. 41.27If the court finds the absentee dead in accordance with section 576.142 new text begin 578.17 new text end , the 41.28absentee's marriage is dissolved. The court shall enter the conclusion of law dissolving the 41.29marriage on the order which establishes the death of the absentee as a matter of law. 41.30    Sec. 36. Minnesota Statutes 2010, section 576.15, is amended to read: 41.31576.15 COMPENSATION OF RECEIVER; TITLE OF ABSENTEE LOST 41.32AFTER FOUR YEARS. 42.1The receiver shall be allowed such compensation and disbursements as the court 42.2orders, to be paid out of the property or proceeds new text begin provided in chapter 576 new text end . If, within 42.3four years after the date of the disappearance or absconding, as found and recorded by 42.4the court, the absentee appears, and has not been declared dead under section 576.142 new text begin new text end 42.5 new text begin 578.17 new text end , or an administrator, executor, assignee in insolvency, or trustee in bankruptcy of 42.6the absentee is appointed, the receiver shall account for, deliver, and pay over to the 42.7absentee the remainder of the property. If the absentee does not appear and claim the 42.8property within four years, all the absentee's right, title, and interest in the property, real 42.9or personal, or the proceeds thereof, shall cease, and no action shall be brought by the 42.10absentee on account thereof. 42.11If the absentee is declared dead pursuant to section 576.142 new text begin 578.17 new text end and appears 42.12before the expiration of four years, the absentee shall have no right, title and interest in the 42.13property, real or personal, or the proceeds thereof. 42.14    Sec. 37. Minnesota Statutes 2010, section 576.16, is amended to read: 42.15576.16 PROPERTY DISTRIBUTION; TIME LIMITATION. 42.16If the receiver is not appointed within three years after the date found by the court 42.17under section 576.08 new text begin 578.06 new text end , the time limited for accounting for, or fixed for distributing, 42.18the property or its proceeds, or for barring actions relative thereto, shall be one year after 42.19the date of the appointment of the receiver instead of the four years provided in sections 42.20576.14 new text begin 578.15 new text end and new text begin 578.20 new text end . 42.21The provisions of sections to new text begin this chapter new text end shall not be construed as 42.22exclusive, but as providing additional and cumulative remedies. 42.23    Sec. 38. new text begin REVISOR'S INSTRUCTION. new text end 42.24 new text begin The Revisor of Statutes shall renumber each section of Minnesota Statutes listed new text end 42.25 new text begin in Column A with the number in Column B. The Revisor shall correct any incorrect new text end 42.26 new text begin cross-references resulting from this renumbering. new text end 42.27 new text begin Column A new text end new text begin Column B new text end 42.28 new text begin 576.011 new text end new text begin 578.01 new text end 42.29 new text begin 576.04 new text end new text begin 578.02 new text end 42.30 new text begin 576.05 new text end new text begin 578.03 new text end 42.31 new text begin 576.06 new text end new text begin 578.04 new text end 42.32 new text begin 576.07 new text end new text begin 578.05 new text end 42.33 new text begin 576.08 new text end new text begin 578.06 new text end 42.34 new text begin 576.09 new text end new text begin 578.07 new text end 42.35 new text begin 576.10 new text end new text begin 578.08 new text end 43.1 new text begin 576.11 new text end new text begin 578.09 new text end 43.2 new text begin 576.12 new text end new text begin 578.10 new text end 43.3 new text begin 571.121 new text end new text begin 578.11 new text end 43.4 new text begin 576.122 new text end new text begin 578.12 new text end 43.5 new text begin 576.123 new text end new text begin 578.13 new text end 43.6 new text begin 576.13 new text end new text begin 578.14 new text end 43.7 new text begin 576.14 new text end new text begin 578.15 new text end 43.8 new text begin 576.141 new text end new text begin 578.16 new text end 43.9 new text begin 576.142 new text end new text begin 578.17 new text end 43.10 new text begin 576.143 new text end new text begin 578.18 new text end 43.11 new text begin 576.144 new text end new text begin 578.19 new text end 43.12 new text begin 576.15 new text end new text begin 578.20 new text end 43.13 new text begin 576.16 new text end new text begin 578.21 new text end 43.14    Sec. 39. new text begin REPEALER. new text end 43.15 new text begin Minnesota Statutes 2010, sections 302A.759, subdivision 2; 308A.961, subdivision new text end 43.16 new text begin 2; 308B.951, subdivisions 2 and 3; 317A.759, subdivision 2; and 576.01, new text end new text begin are repealed. new text end 43.17ARTICLE 4 43.18UNIFORM DISCLAIMER OF PROPERTY INTERESTS 43.19    Section 1. Minnesota Statutes 2010, section 524.2-1103, is amended to read: 43.20524.2-1103 SCOPE. 43.21Sections to apply to disclaimers of any interest in or power 43.22over property, whenever created. Except as provided in section , sections 43.23524.2-1101 to 524.2-1116 are the exclusive means by which a disclaimer may be made 43.24under Minnesota law regardless of whether it is qualified under section 2518 of the 43.25Internal Revenue Code of 1986 in effect on January 1, 2010 new text begin as defined in section 291.005, new text end 43.26 new text begin subdivision 1, clause 3 new text end . 43.27    Sec. 2. Minnesota Statutes 2010, section 524.2-1104, is amended to read: 43.28524.2-1104 TAX-QUALIFIED DISCLAIMER. 43.29Notwithstanding any other provision of this chapter, other than section 524.2-1106, 43.30if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated 43.31pursuant to the provisions of section 2518 of the Internal Revenue Code of 1986, as in 43.32effect on January 1, 2010 new text begin defined in section 291.005, subdivision 1, clause 3 new text end , as never 43.33having been transferred to the disclaimant, then the disclaimer or transfer is effective as a 43.34disclaimer under sections 524.2-1101 to 524.2-1116. 44.1    Sec. 3. Minnesota Statutes 2010, section 524.2-1106, is amended to read: 44.2524.2-1106 WHEN DISCLAIMER IS BARRED OR LIMITED. 44.3(a) A disclaimer is barred by a written waiver of the right to disclaim. 44.4(b) A disclaimer of an interest in property is barred if any of the following events 44.5occur before the disclaimer becomes effective: 44.6(1) the disclaimant accepts the portion of the interest sought to be disclaimed; 44.7(2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the 44.8portion of the interest sought to be disclaimed or contracts to do so; 44.9(3) the portion of the interest sought to be disclaimed is sold pursuant to a judicial 44.10sale; or 44.11(4) the disclaimant is insolvent when the disclaimer becomes irrevocable. 44.12(c) new text begin Acceptance of a distribution from a trust shall constitute acceptance of only new text end 44.13 new text begin that portion of the beneficial interest in that trust that has been distributed, and shall not new text end 44.14 new text begin constitute acceptance or bar disclaimer of that portion of the beneficial interest in the trust new text end 44.15 new text begin that has not yet been distributed. new text end 44.16 new text begin (d) new text end A disclaimer, in whole or in part, of the future exercise of a power held in a 44.17fiduciary capacity is not barred by its previous exercise. 44.18(d) new text begin (e) new text end A disclaimer, in whole or in part, of the future exercise of a power not held in 44.19a fiduciary capacity is not barred by its previous exercise unless the power is exercisable 44.20in favor of the disclaimant. 44.21(e) new text begin (f) new text end A disclaimer of an interest in, or a power over, property which is barred by 44.22this section is ineffective. 44.23    Sec. 4. Minnesota Statutes 2010, section 524.2-1107, is amended to read: 44.24524.2-1107 POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN 44.25IRREVOCABLE. 44.26(a) A person may disclaim, in whole or in part, any interest in or power over 44.27property, including a power of appointment. A person may disclaim the interest or power 44.28even if its creator imposed a spendthrift provision or similar restriction on transfer or a 44.29restriction or limitation on the right to disclaim. 44.30(b) With court approval, a fiduciary may disclaim, in whole or in part, any interest in 44.31or power over property, including a power of appointment when acting in a representative 44.32capacity. Without court approval, a fiduciary may disclaim, in whole or in part, any interest 44.33in or power over property, including a power of appointment, if and to the extent that the 44.34instrument creating the fiduciary relationship explicitly grants the fiduciary the right to 44.35disclaim. With court approval, a custodial parent may disclaim on behalf of a minor child 45.1for whom no conservator has been appointed, in whole or in part, any interest in or power 45.2over property, including a power of appointment, which the minor child is to receive. 45.3(c) To be effective, a disclaimer must be in writing, declare the writing as a 45.4disclaimer, describe the interest or power disclaimed, and be signed by the person or 45.5fiduciary making the disclaimer and acknowledged in the manner provided for deeds of 45.6real estate to be recorded in this state. In addition, for a disclaimer to be effective, an 45.7original of the disclaimer must be delivered or filed in the manner provided in section 45.8524.2-1114 . 45.9(d) A partial disclaimer may be expressed as a fraction, percentage, monetary 45.10amount, new text begin specific property, new text end term of years, new text begin portion of a beneficial interest in or right to new text end 45.11 new text begin distributions from a trust, new text end limitation of a power, or any other interest or estate in the 45.12property. 45.13(e) A disclaimer becomes irrevocable when the disclaimer is delivered or filed 45.14pursuant to section 524.2-1114 or it becomes effective as provided in sections 524.2-1108 45.15to 524.2-1113, whichever occurs later. 45.16(f) A disclaimer made under sections 524.2-1101 to 524.2-1116 is not a transfer, 45.17assignment, or release. 45.18    Sec. 5. Minnesota Statutes 2010, section 524.2-1114, is amended to read: 45.19524.2-1114 DELIVERY OR FILING. 45.20(a) Subject to paragraphs (b) to (l), delivery of a disclaimer may be effective 45.21by personal delivery, first-class mail, or any other method that results in its receipt. 45.22A disclaimer sent by first-class mail is deemed to have been delivered on the date it is 45.23postmarked. Delivery by any other method is effective upon receipt by the person to 45.24whom the disclaimer is to be delivered under this section. 45.25(b) In the case of a disclaimer of an interest created under the law of intestate 45.26succession or an interest created by will, other than an interest in a testamentary trust: 45.27(1) the disclaimer must be delivered to the personal representative of the decedent's 45.28estate; or 45.29(2) if no personal representative is serving when the disclaimer is sought to be 45.30delivered, the disclaimer must be filed with the clerk of the court in any county where 45.31venue of administration would be proper. 45.32(c) In the case of a disclaimer of an interest in a testamentary trust: 45.33(1) the disclaimer must be delivered to the trustee serving when the disclaimer is 45.34delivered or, if no trustee is then serving, to the personal representative of the decedent's 45.35estate; or 46.1(2) if no personal representative is serving when the disclaimer is sought to be 46.2delivered, the disclaimer must be filed with the clerk of the court in any county where 46.3venue of administration of the decedent's estate would be proper. 46.4(d) In the case of a disclaimer of an interest in an inter vivos trust: 46.5(1) the disclaimer must be delivered to the trustee serving when the disclaimer is 46.6delivered; 46.7(2) if no trustee is then serving, it must be filed with the clerk of the court in any 46.8county where the filing of a notice of trust would be proper; or 46.9(3) if the disclaimer is made before the time the instrument creating the trust becomes 46.10irrevocable, the disclaimer must be delivered to the person with the power to revoke the 46.11revocable trust or the transferor of the interest or to such person's legal representative. 46.12(e) In the case of a disclaimer of an interest created by a beneficiary designation made 46.13before the time the designation becomes irrevocable, the disclaimer must be delivered to 46.14the person making the beneficiary designation or to such person's legal representative. 46.15(f) In the case of a disclaimer of an interest created by a beneficiary designation 46.16made after the time the designation becomes irrevocable, the disclaimer must be delivered 46.17to the person obligated to distribute the interest. 46.18(g) In the case of a disclaimer by a surviving holder of jointly held property, the 46.19disclaimer must be delivered to the person to whom the disclaimed interest passes or, if 46.20such person cannot reasonably be located by the disclaimant, the disclaimer must be 46.21delivered as provided in paragraph (b). 46.22(h) In the case of a disclaimer by an object, or taker in default of exercise, of a 46.23power of appointment at any time after the power was created, the disclaimer must be 46.24delivered to: 46.25(1) the holder of the power; or 46.26(2) the fiduciary acting under the instrument that created the power or, if no fiduciary 46.27is serving when the disclaimer is sought to be delivered, filed with a court having authority 46.28to appoint the fiduciary. 46.29(i) In the case of a disclaimer by an appointee of a nonfiduciary power of 46.30appointment, the disclaimer must be delivered to: 46.31(1) the holder of the power or the personal representative of the holder's estate; or 46.32(2) the fiduciary under the instrument that created the power or, if no fiduciary is 46.33serving when the disclaimer is sought to be delivered, filed with a court having authority 46.34to appoint the fiduciary. 47.1(j) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the 47.2disclaimer must be delivered as provided in paragraph (b), (c), or (d) as if the power 47.3disclaimed were an interest in property. 47.4(k) In the case of a disclaimer of a power exercisable by an agent, other than a power 47.5exercisable by a fiduciary over a trust or estate, the disclaimer must be delivered to the 47.6principal or the principal's representative. 47.7(l) Notwithstanding paragraph (a), delivery of a disclaimer of an interest in or 47.8relating to real estate shall be presumed upon the recording of the disclaimer in the office 47.9of the clerk of the court new text begin county recorder or registrar of titles new text end of the county or counties 47.10where the real estate is located. 47.11(m) A fiduciary or other person having custody of the disclaimed interest is not 47.12liable for any otherwise proper distribution or other disposition made without actual 47.13notice of the disclaimer or, if the disclaimer is barred under section 524.2-1106, for any 47.14otherwise proper distribution or other disposition made in reliance on the disclaimer, if 47.15the distribution or disposition is made without actual knowledge of the facts constituting 47.16the bar of the right to disclaim. 47.17    Sec. 6. Minnesota Statutes 2010, section 524.2-1115, is amended to read: 47.18524.2-1115 RECORDING OF DISCLAIMER RELATING TO REAL ESTATE. 47.19(a) A disclaimer of an interest in or relating to real estate does not provide 47.20constructive notice to all persons unless the disclaimer contains a legal description of the 47.21real estate to which the disclaimer relates and unless the disclaimer is filed for recording new text begin new text end 47.22 new text begin recorded new text end in the office of the county recorder new text begin or registrar of titles new text end in the county or counties 47.23where the real estate is located. 47.24(b) An effective disclaimer meeting the requirements of paragraph (a) constitutes 47.25constructive notice to all persons from the time of filing new text begin recording new text end . Failure to record the 47.26disclaimer does not affect its validity as between the disclaimant and persons to whom the 47.27property interest or power passes by reason of the disclaimer. 47.28    Sec. 7. Minnesota Statutes 2010, section 524.2-1116, is amended to read: 47.29524.2-1116 APPLICATION TO EXISTING RELATIONSHIPS. 47.30Except as otherwise provided in section , an new text begin Sections 524.2-1101 to new text end 47.31 new text begin 524.2-1116 apply to disclaimers of any new text end interest in or power over property existing on 47.32January 1, 2010, as to which the time for delivering or filing a disclaimer under laws 47.33superseded by sections to has not expired, may be disclaimed 47.34after January 1, 2010 new text begin whenever created new text end .