<a id="pl.1.3"></a><var>1.3</var>the benefit of creditors, and nonprofit corporations; changing, updating, and <br/>
<a id="pl.1.4"></a><var>1.4</var>clarifying certain provisions of the Uniform Disclaimer of Property Interests <br/>
<a id="pl.1.5"></a><var>1.5</var>Act; amending Minnesota Statutes 2010, sections 302A.753, subdivisions 2, 3; <br/>
<a id="pl.1.6"></a><var>1.6</var>302A.755; 302A.759, subdivision 1; 302A.761; 308A.945, subdivisions 2, 3; <br/>
<a id="pl.1.7"></a><var>1.7</var>308A.951; 308A.961, subdivision 1; 308A.965; 308B.935, subdivisions 2, 3; <br/>
<a id="pl.1.8"></a><var>1.8</var>308B.941; 308B.951, subdivision 1; 308B.955; 316.11; 317A.753, subdivisions <br/>
<a id="pl.1.9"></a><var>1.9</var>3, 4; 317A.755; 317A.759, subdivision 1; 322B.836, subdivisions 2, 3; 322B.84; <br/>
<a id="pl.1.10"></a><var>1.10</var>462A.05, subdivision 32; 469.012, subdivision 2i; 524.2-1103; 524.2-1104; <br/>
<a id="pl.1.11"></a><var>1.11</var>524.2-1106; 524.2-1107; 524.2-1114; 524.2-1115; 524.2-1116; 540.14; 559.17, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 2; 576.04; 576.06; 576.08; 576.09; 576.11; 576.121; 576.123; <br/>
<a id="pl.1.13"></a><var>1.13</var>576.144; 576.15; 576.16; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.1.14"></a><var>1.14</var>chapters 576; 577; repealing Minnesota Statutes 2010, sections 302A.759, <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision 2; 308A.961, subdivision 2; 308B.951, subdivisions 2, 3; 317A.759, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivision 2; 576.01; 577.01; 577.02; 577.03; 577.04; 577.05; 577.06; 577.08; <br/>
<a id="pl.1.17"></a><var>1.17</var>577.09; 577.10.<br/>
<a id="pl.1.18"></a><var>1.18</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.21"></a><var>1.21</var>    Section 1. <b>[576.21] DEFINITIONS.</b><br/>
<a id="pl.1.22"></a><var>1.22</var>(a) The definitions in this section apply throughout this chapter unless the context <br/>
<a id="pl.1.23"></a><var>1.23</var>requires otherwise.<br/>
<a id="pl.1.24"></a><var>1.24</var>(b) "Court" means the district court in which the receivership is pending unless <br/>
<a id="pl.1.25"></a><var>1.25</var>the context requires otherwise.<br/>
<a id="pl.1.26"></a><var>1.26</var>(c) "Entity" means a person other than a natural person.<br/>
<a id="pl.1.27"></a><var>1.27</var>(d) "Executory contract" means a contract, including a lease, where the obligations <br/>
<a id="pl.1.28"></a><var>1.28</var>of both the respondent and the other party to the contract are unperformed to the extent <br/>
<a id="pl.1.29"></a><var>1.29</var>that the failure of either party to complete performance of its obligations would constitute <br/>
<a id="pl.2.1"></a><var>2.1</var>a material breach of the contract, thereby excusing the other party's performance of its <br/>
<a id="pl.2.2"></a><var>2.2</var>obligations under the contract.<br/>
<a id="pl.2.3"></a><var>2.3</var>(e) "Foreign receiver" means a receiver appointed in any foreign jurisdiction.<br/>
<a id="pl.2.4"></a><var>2.4</var>(f) "Foreign jurisdiction" means any state or federal jurisdiction other than that of <br/>
<a id="pl.2.5"></a><var>2.5</var>this state.<br/>
<a id="pl.2.6"></a><var>2.6</var>(g) "General receiver" means the receiver appointed in a general receivership.<br/>
<a id="pl.2.7"></a><var>2.7</var>(h) "General receivership" means a receivership over all or substantially all of <br/>
<a id="pl.2.8"></a><var>2.8</var>the nonexempt property of a respondent for the purpose of liquidation and distribution <br/>
<a id="pl.2.9"></a><var>2.9</var>to creditors and other parties in interest, including, without limitation, a receivership <br/>
<a id="pl.2.10"></a><var>2.10</var>resulting from the appointment of a receiver pursuant to section 302A.753, 308A.945, <br/>
<a id="pl.2.11"></a><var>2.11</var>308B.935, 317A.753, or 322B.836.<br/>
<a id="pl.2.12"></a><var>2.12</var>(i) "Lien" means a charge against or interest in property to secure payment of a debt <br/>
<a id="pl.2.13"></a><var>2.13</var>or the performance of an obligation, including any mortgage or security interest.<br/>
<a id="pl.2.14"></a><var>2.14</var>(j) "Limited receiver" means the receiver appointed in a limited receivership.<br/>
<a id="pl.2.15"></a><var>2.15</var>(k) "Limited receivership" means a receivership other than a general receivership.<br/>
<a id="pl.2.16"></a><var>2.16</var>(l) "Party" means a person who is a party within the meaning of the Minnesota Rules <br/>
<a id="pl.2.17"></a><var>2.17</var>of Civil Procedure in the action in which a receiver is appointed.<br/>
<a id="pl.2.18"></a><var>2.18</var>(m) "Party in interest" includes the respondent, any equity security holder in the <br/>
<a id="pl.2.19"></a><var>2.19</var>respondent, any person with an ownership interest in or lien on receivership property, and, <br/>
<a id="pl.2.20"></a><var>2.20</var>in a general receivership, any creditor of the respondent.<br/>
<a id="pl.2.21"></a><var>2.21</var>(n) "Person" has the meaning given it in section 645.44 and shall include limited <br/>
<a id="pl.2.22"></a><var>2.22</var>liability companies, limited liability partnerships, and other entities recognized under <br/>
<a id="pl.2.23"></a><var>2.23</var>the laws of this state.<br/>
<a id="pl.2.24"></a><var>2.24</var>(o) "Property" means all of respondent's right, title, and interest, both legal and <br/>
<a id="pl.2.25"></a><var>2.25</var>equitable, in real and personal property, regardless of the manner by which any of the <br/>
<a id="pl.2.26"></a><var>2.26</var>same were or are acquired. Property includes, but is not limited to, any proceeds, products, <br/>
<a id="pl.2.27"></a><var>2.27</var>offspring, rents, or profits of or from the property. Property does not include: (1) any power <br/>
<a id="pl.2.28"></a><var>2.28</var>that the respondent may exercise solely for the benefit of another person, or (2) property <br/>
<a id="pl.2.29"></a><var>2.29</var>impressed with a trust except to the extent that the respondent has a residual interest.<br/>
<a id="pl.2.30"></a><var>2.30</var>(p) "Receiver" means a person appointed by the court as the court's agent, and <br/>
<a id="pl.2.31"></a><var>2.31</var>subject to the court's direction, to take possession of, manage, and, if authorized by this <br/>
<a id="pl.2.32"></a><var>2.32</var>chapter or order of the court, dispose of receivership property.<br/>
<a id="pl.2.33"></a><var>2.33</var>(q) "Receivership" means the case in which the receiver is appointed, and, as the <br/>
<a id="pl.2.34"></a><var>2.34</var>context requires, the proceeding in which the receiver takes possession of, manages, <br/>
<a id="pl.2.35"></a><var>2.35</var>or disposes of the respondent's property.<br/>
<a id="pl.3.1"></a><var>3.1</var>(r) "Receivership property" means (1) in the case of a general receivership, all <br/>
<a id="pl.3.2"></a><var>3.2</var>or substantially all of the nonexempt property of the respondent, or (2) in the case of a <br/>
<a id="pl.3.3"></a><var>3.3</var>limited receivership, that property of the respondent identified in the order appointing <br/>
<a id="pl.3.4"></a><var>3.4</var>the receiver, or in any subsequent order.<br/>
<a id="pl.3.5"></a><var>3.5</var>(s) "Respondent" means the person over whose property the receiver is appointed.<br/>
<a id="pl.3.6"></a><var>3.6</var>(t) "State agent" and "state agency" means any office, department, division, bureau, <br/>
<a id="pl.3.7"></a><var>3.7</var>board, commission, or other agency of the state of Minnesota or of any subdivision thereof, <br/>
<a id="pl.3.8"></a><var>3.8</var>or any individual acting in an official capacity on behalf of any state agent or state agency.<br/>
<a id="pl.3.9"></a><var>3.9</var>(u) "Time of appointment" means the date and time specified in the first order <br/>
<a id="pl.3.10"></a><var>3.10</var>of appointment of a receiver or, if the date and time are not specified in the order of <br/>
<a id="pl.3.11"></a><var>3.11</var>appointment, the date and time that the court ruled on the motion for the appointment of <br/>
<a id="pl.3.12"></a><var>3.12</var>a receiver. Time of appointment does not mean any subsequent date or time, including <br/>
<a id="pl.3.13"></a><var>3.13</var>the execution of a written order, the filing or docketing of a written order, or the posting <br/>
<a id="pl.3.14"></a><var>3.14</var>of a bond.<br/>
<a id="pl.3.15"></a><var>3.15</var>(v) "Utility" means a person providing any service regulated by the Public Utilities <br/>
<a id="pl.3.16"></a><var>3.16</var>Commission.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.17"></a><var>3.17</var>    Sec. 2. <b>[576.22] APPLICABILITY OF CHAPTER AND OF COMMON LAW.</b><br/>
<a id="pl.3.18"></a><var>3.18</var>(a) This chapter applies to receiverships provided for in section 576.25, subdivisions <br/>
<a id="pl.3.19"></a><var>3.19</var>2 to 6, and to receiverships:<br/>
<a id="pl.3.20"></a><var>3.20</var>(1) pursuant to section 193.147, in connection with a mortgage on an armory;<br/>
<a id="pl.3.21"></a><var>3.21</var>(2) pursuant to section 223.17, subdivision 8, paragraph (b), in connection with <br/>
<a id="pl.3.22"></a><var>3.22</var>a defaulting grain buyer;<br/>
<a id="pl.3.23"></a><var>3.23</var>(3) pursuant to section 232.22, subdivision 7, paragraph (c), in connection with a <br/>
<a id="pl.3.24"></a><var>3.24</var>defaulting public grain warehouse;<br/>
<a id="pl.3.25"></a><var>3.25</var>(4) pursuant to section 296A.22, in connection with nonpayment of tax;<br/>
<a id="pl.3.26"></a><var>3.26</var>(5) pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or 322B.836, <br/>
<a id="pl.3.27"></a><var>3.27</var>in an action relating to the dissolution of an entity and relating to, in like cases, property <br/>
<a id="pl.3.28"></a><var>3.28</var>within the state of foreign entities;<br/>
<a id="pl.3.29"></a><var>3.29</var>(6) pursuant to section 321.0703, in connection with the rights of a creditor of a <br/>
<a id="pl.3.30"></a><var>3.30</var>partner or transferee;<br/>
<a id="pl.3.31"></a><var>3.31</var>(7) pursuant to section 322.22, in connection with the rights of creditors of limited <br/>
<a id="pl.3.32"></a><var>3.32</var>partners;<br/>
<a id="pl.3.33"></a><var>3.33</var>(8) pursuant to section 323A.0504, in connection with a partner's transferable <br/>
<a id="pl.3.34"></a><var>3.34</var>interest;<br/>
<a id="pl.3.35"></a><var>3.35</var>(9) pursuant to section 453.55, in connection with bonds and notes;<br/>
<a id="pl.4.1"></a><var>4.1</var>(10) pursuant to section 453A.05, in connection with bonds and notes;<br/>
<a id="pl.4.2"></a><var>4.2</var>(11) pursuant to section 513.47, in connection with a proceeding for relief with <br/>
<a id="pl.4.3"></a><var>4.3</var>respect to a transfer fraudulent as to a creditor or creditors;<br/>
<a id="pl.4.4"></a><var>4.4</var>(12) pursuant to section 514.06, in connection with the severance of a building <br/>
<a id="pl.4.5"></a><var>4.5</var>and resale;<br/>
<a id="pl.4.6"></a><var>4.6</var>(13) pursuant to section 515.23, in connection with an action by a unit owners' <br/>
<a id="pl.4.7"></a><var>4.7</var>association to foreclose a lien for nonpayment of delinquent assessments against <br/>
<a id="pl.4.8"></a><var>4.8</var>condominium units;<br/>
<a id="pl.4.9"></a><var>4.9</var>(14) pursuant to section 518A.71, in connection with the failure to pay, or to provide <br/>
<a id="pl.4.10"></a><var>4.10</var>security for, maintenance or support payments;<br/>
<a id="pl.4.11"></a><var>4.11</var>(15) pursuant to section 559.17, in connection with assignments of rents; however, <br/>
<a id="pl.4.12"></a><var>4.12</var>any receiver appointed under section 559.17 shall be a limited receiver, and the court shall <br/>
<a id="pl.4.13"></a><var>4.13</var>apply the provisions of this chapter to the extent not inconsistent with section 559.17;<br/>
<a id="pl.4.14"></a><var>4.14</var>(16) pursuant to section 571.84, in connection with a garnishee in possession of <br/>
<a id="pl.4.15"></a><var>4.15</var>property subject to a garnishment proceeding;<br/>
<a id="pl.4.16"></a><var>4.16</var>(17) pursuant to section 575.05, in connection with property applied to judgment;<br/>
<a id="pl.4.17"></a><var>4.17</var>(18) pursuant to section 575.06, in connection with adverse claimants;<br/>
<a id="pl.4.18"></a><var>4.18</var>(19) pursuant to sections 582.05 to 582.10, in connection with mortgage <br/>
<a id="pl.4.19"></a><var>4.19</var>foreclosures; however, any receiver appointed under sections 582.05 to 585.10 shall be a <br/>
<a id="pl.4.20"></a><var>4.20</var>limited receiver, and the court shall apply the provisions of this chapter to the extent not <br/>
<a id="pl.4.21"></a><var>4.21</var>inconsistent with sections 582.05 to 582.10;<br/>
<a id="pl.4.22"></a><var>4.22</var>(20) pursuant to section 609.904, in connection with criminal penalties; or<br/>
<a id="pl.4.23"></a><var>4.23</var>(21) pursuant to section 609.907, in connection with preservation of property <br/>
<a id="pl.4.24"></a><var>4.24</var>subject to forfeiture.<br/>
<a id="pl.4.25"></a><var>4.25</var>(b) This chapter does not apply to any receivership in which the receiver is a state <br/>
<a id="pl.4.26"></a><var>4.26</var>agency or in which the receiver is appointed, controlled, or regulated by a state agency <br/>
<a id="pl.4.27"></a><var>4.27</var>unless otherwise provided by law.<br/>
<a id="pl.4.28"></a><var>4.28</var>(c) In receiverships not specifically referenced in paragraph (a) or (b), the court, in <br/>
<a id="pl.4.29"></a><var>4.29</var>its discretion, may apply provisions of this chapter to the extent not inconsistent with <br/>
<a id="pl.4.30"></a><var>4.30</var>the statutes establishing the receiverships.<br/>
<a id="pl.4.31"></a><var>4.31</var>(d) Unless explicitly displaced by this chapter, the provisions of other statutory law <br/>
<a id="pl.4.32"></a><var>4.32</var>and the principles of common law remain in full force and effect and supplement the <br/>
<a id="pl.4.33"></a><var>4.33</var>provisions of this chapter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.34"></a><var>4.34</var>    Sec. 3. <b>[576.23] POWERS OF THE COURT.</b><br/>
<a id="pl.5.1"></a><var>5.1</var>The court has the exclusive authority to direct the receiver and the authority over <br/>
<a id="pl.5.2"></a><var>5.2</var>all receivership property wherever located including, without limitation, authority <br/>
<a id="pl.5.3"></a><var>5.3</var>to determine all controversies relating to the collection, preservation, improvement, <br/>
<a id="pl.5.4"></a><var>5.4</var>disposition, and distribution of receivership property, and all matters otherwise arising <br/>
<a id="pl.5.5"></a><var>5.5</var>in or relating to the receivership, the receivership property, the exercise of the receiver's <br/>
<a id="pl.5.6"></a><var>5.6</var>powers, or the performance of the receiver's duties.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.7"></a><var>5.7</var>    Sec. 4. <b>[576.24] TYPES OF RECEIVERSHIPS.</b><br/>
<a id="pl.5.8"></a><var>5.8</var>A receivership may be either a limited receivership or a general receivership. <br/>
<a id="pl.5.9"></a><var>5.9</var>Any receivership which is based upon the enforcement of an assignment of rents or <br/>
<a id="pl.5.10"></a><var>5.10</var>leases, or the foreclosure of a mortgage lien, judgment lien, mechanic's lien, or other lien <br/>
<a id="pl.5.11"></a><var>5.11</var>pursuant to which the respondent or any holder of a lien would have a statutory right of <br/>
<a id="pl.5.12"></a><var>5.12</var>redemption, shall be a limited receivership. If the order appointing the receiver does <br/>
<a id="pl.5.13"></a><var>5.13</var>not specify whether the receivership is a limited receivership or a general receivership, <br/>
<a id="pl.5.14"></a><var>5.14</var>the receivership shall be a limited receivership unless and until the court by later order <br/>
<a id="pl.5.15"></a><var>5.15</var>designates the receivership as a general receivership, notwithstanding that pursuant to <br/>
<a id="pl.5.16"></a><var>5.16</var>section 576.25, subdivision 8, a receiver may have control over all the property of the <br/>
<a id="pl.5.17"></a><var>5.17</var>respondent. At any time, the court may order a general receivership to be converted to a <br/>
<a id="pl.5.18"></a><var>5.18</var>limited receivership and a limited receivership to be converted to a general receivership.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.5.19"></a><var>5.19</var>    Sec. 5. <b>[576.25] APPOINTMENT OF RECEIVERS; RECEIVERSHIP NOT A </b><br/>
<a id="pl.5.20"></a><var>5.20</var><b>TRUST.</b><br/>
<a id="pl.5.21"></a><var>5.21</var>    Subdivision 1. <b>No necessity of separate action.</b> A receiver may be appointed under <br/>
<a id="pl.5.22"></a><var>5.22</var>this chapter whether or not the motion for appointment of a receiver is combined with, or <br/>
<a id="pl.5.23"></a><var>5.23</var>is ancillary to, an action seeking a money judgment.<br/>
<a id="pl.5.24"></a><var>5.24</var>    Subd. 2. <b>Before judgment.</b> Except where judgment for failure to answer may be <br/>
<a id="pl.5.25"></a><var>5.25</var>had without application to the court, a limited receiver may be appointed before judgment <br/>
<a id="pl.5.26"></a><var>5.26</var>to protect any party to an action who demonstrates an apparent right to property that is the <br/>
<a id="pl.5.27"></a><var>5.27</var>subject of the action and is in the possession of an adverse party, and that the property or <br/>
<a id="pl.5.28"></a><var>5.28</var>its rents and profits are in danger of loss or material impairment.<br/>
<a id="pl.5.29"></a><var>5.29</var>    Subd. 3. <b>In a judgment or after judgment.</b> A limited or general receiver may be <br/>
<a id="pl.5.30"></a><var>5.30</var>appointed in a judgment or after judgment to carry the judgment into effect, to preserve <br/>
<a id="pl.5.31"></a><var>5.31</var>property pending an appeal, or when an execution has been returned unsatisfied and the <br/>
<a id="pl.5.32"></a><var>5.32</var>judgment debtor refuses to apply the property in satisfaction of the judgment.<br/>
<a id="pl.5.33"></a><var>5.33</var>    Subd. 4. <b>Entities.</b> In addition to those situations specifically provided for in statute, <br/>
<a id="pl.5.34"></a><var>5.34</var>a limited or general receiver may be appointed when a corporation or other entity is <br/>
<a id="pl.6.1"></a><var>6.1</var>dissolved, insolvent, in imminent danger of insolvency, or has forfeited its corporate rights <br/>
<a id="pl.6.2"></a><var>6.2</var>and in like cases of the property within the state of foreign corporations and other entities.<br/>
<a id="pl.6.3"></a><var>6.3</var>    Subd. 5. <b>Appointment of receiver of mortgaged property.</b> (a) A limited <br/>
<a id="pl.6.4"></a><var>6.4</var>receiver shall be appointed at any time after the commencement of mortgage foreclosure <br/>
<a id="pl.6.5"></a><var>6.5</var>proceedings under chapter 580 or 581 and before the end of the period for redemption, if <br/>
<a id="pl.6.6"></a><var>6.6</var>the mortgage being foreclosed:<br/>
<a id="pl.6.7"></a><var>6.7</var> (1) secures an original principal amount of $100,000 or more or is a lien upon <br/>
<a id="pl.6.8"></a><var>6.8</var>residential real estate containing more than four dwelling units; and<br/>
<a id="pl.6.9"></a><var>6.9</var>(2) is not a lien upon property that was entirely homesteaded, residential real <br/>
<a id="pl.6.10"></a><var>6.10</var>estate containing four or fewer dwelling units where at least one unit is homesteaded; <br/>
<a id="pl.6.11"></a><var>6.11</var>or agricultural property.<br/>
<a id="pl.6.12"></a><var>6.12</var>The foreclosing mortgagee or the purchaser at foreclosure sale may at any time bring an <br/>
<a id="pl.6.13"></a><var>6.13</var>action in the district court of the county in which the mortgaged property or any part <br/>
<a id="pl.6.14"></a><var>6.14</var>thereof is located for the appointment of a receiver; provided, however, if the foreclosure <br/>
<a id="pl.6.15"></a><var>6.15</var>is by action under chapter 581, a separate action need not be filed.<br/>
<a id="pl.6.16"></a><var>6.16</var>(b) The court shall appoint a receiver upon a showing that the mortgagor has <br/>
<a id="pl.6.17"></a><var>6.17</var>breached a covenant contained in the mortgage relating to any of the following:<br/>
<a id="pl.6.18"></a><var>6.18</var>(1) application of tenant security deposits as required by section 504B.178;<br/>
<a id="pl.6.19"></a><var>6.19</var>(2) payment when due of prior or current real estate taxes or special assessments <br/>
<a id="pl.6.20"></a><var>6.20</var>with respect to the mortgaged property or the periodic escrow for the payment of the <br/>
<a id="pl.6.21"></a><var>6.21</var>taxes or special assessments;<br/>
<a id="pl.6.22"></a><var>6.22</var>(3) payment when due of premiums for insurance of the type required by the <br/>
<a id="pl.6.23"></a><var>6.23</var>mortgage or the periodic escrow for the payment of the premiums; or<br/>
<a id="pl.6.24"></a><var>6.24</var>(4) keeping of the covenants required of a landlord or licensor pursuant to section <br/>
<a id="pl.6.25"></a><var>6.25</var>504B.161, subdivision 1.<br/>
<a id="pl.6.26"></a><var>6.26</var>(c) The receiver shall be or shall retain an experienced property manager.<br/>
<a id="pl.6.27"></a><var>6.27</var>(d) The receiver shall collect the rents, profits, and all other income of any kind. <br/>
<a id="pl.6.28"></a><var>6.28</var>The receiver, after providing for payment of its reasonable fees and expenses, shall, to <br/>
<a id="pl.6.29"></a><var>6.29</var>the extent possible and in the order determined by the receiver to preserve the value of <br/>
<a id="pl.6.30"></a><var>6.30</var>the mortgaged property:<br/>
<a id="pl.6.31"></a><var>6.31</var>(1) manage the mortgaged property so as to prevent waste;<br/>
<a id="pl.6.32"></a><var>6.32</var>(2) execute contracts and leases within the period of the receivership, or beyond the <br/>
<a id="pl.6.33"></a><var>6.33</var>period of the receivership if approved by the court;<br/>
<a id="pl.6.34"></a><var>6.34</var>(3) pay the expenses listed in paragraph (b), clauses (1) to (3);<br/>
<a id="pl.6.35"></a><var>6.35</var>(4) pay all expenses for normal maintenance of the mortgaged property; and<br/>
<a id="pl.7.1"></a><var>7.1</var>(5) perform the terms of any assignment of rents that complies with section 559.17, <br/>
<a id="pl.7.2"></a><var>7.2</var>subdivision 2.<br/>
<a id="pl.7.3"></a><var>7.3</var>(e) The purchaser at a foreclosure sale shall have the right, at any time and without <br/>
<a id="pl.7.4"></a><var>7.4</var>limitation as provided in section 582.03, to advance money to the receiver to pay any or <br/>
<a id="pl.7.5"></a><var>7.5</var>all of the expenses that the receiver should otherwise pay if cash were available from <br/>
<a id="pl.7.6"></a><var>7.6</var>the mortgaged property. Sums so advanced, with interest, shall be a part of the sum <br/>
<a id="pl.7.7"></a><var>7.7</var>required to be paid to redeem from the sale. The sums shall be proved by the affidavit of <br/>
<a id="pl.7.8"></a><var>7.8</var>the purchaser, an agent, or attorney, stating the expenses and describing the mortgaged <br/>
<a id="pl.7.9"></a><var>7.9</var>property. The affidavit shall be furnished to the sheriff in the manner of expenses claimed <br/>
<a id="pl.7.10"></a><var>7.10</var>under section 582.03.<br/>
<a id="pl.7.11"></a><var>7.11</var>(f) Any sums collected that remain in the possession of the receiver at the <br/>
<a id="pl.7.12"></a><var>7.12</var>termination of the receivership shall, in the event the termination of the receivership is <br/>
<a id="pl.7.13"></a><var>7.13</var>due to the reinstatement of the mortgage debt or redemption of the mortgaged property by <br/>
<a id="pl.7.14"></a><var>7.14</var>the mortgagor, be paid to the mortgagor; and in the event termination of the receivership <br/>
<a id="pl.7.15"></a><var>7.15</var>occurs at the end of the period of redemption without redemption by the mortgagor <br/>
<a id="pl.7.16"></a><var>7.16</var>or any other party entitled to redeem, interest accrued upon the sale price pursuant to <br/>
<a id="pl.7.17"></a><var>7.17</var>section 580.23 or 581.10 shall be paid to the purchaser at the foreclosure sale. Any net <br/>
<a id="pl.7.18"></a><var>7.18</var>sum remaining shall be paid to the mortgagor, except if the receiver was enforcing an <br/>
<a id="pl.7.19"></a><var>7.19</var>assignment of rents that complies with section 559.17, subdivision 2, in which case any <br/>
<a id="pl.7.20"></a><var>7.20</var>net sum remaining shall be paid pursuant to the terms of the assignment.<br/>
<a id="pl.7.21"></a><var>7.21</var>(g) This subdivision applies to all mortgages executed on or after August 1, 1977, <br/>
<a id="pl.7.22"></a><var>7.22</var>and to amendments or modifications thereto, and to amendments or modifications made on <br/>
<a id="pl.7.23"></a><var>7.23</var>or after August 1, 1977, to mortgages executed before August 1, 1977, if the amendment <br/>
<a id="pl.7.24"></a><var>7.24</var>or modification is duly recorded and is for the principle purpose of curing a default.<br/>
<a id="pl.7.25"></a><var>7.25</var>    Subd. 6. <b>Other cases.</b> A receiver may be appointed in other cases as are provided <br/>
<a id="pl.7.26"></a><var>7.26</var>by law, or in accord with existing practice, except as otherwise prescribed.<br/>
<a id="pl.7.27"></a><var>7.27</var>    Subd. 7. <b>Motion for appointment of receiver.</b> The court may appoint a receiver <br/>
<a id="pl.7.28"></a><var>7.28</var>upon a motion with notice to the respondent, to all other parties in the action, and to <br/>
<a id="pl.7.29"></a><var>7.29</var>parties in interest and other persons as the court may require. Notice shall also be given <br/>
<a id="pl.7.30"></a><var>7.30</var>to any judgment creditor who is seeking the appointment of a receiver in any other <br/>
<a id="pl.7.31"></a><var>7.31</var>action. A motion to appoint a general receiver shall be treated as a dispositive motion. <br/>
<a id="pl.7.32"></a><var>7.32</var>The court may appoint a receiver ex parte or on shortened notice on a temporary basis <br/>
<a id="pl.7.33"></a><var>7.33</var>if it is clearly shown that an emergency exists requiring the immediate appointment of <br/>
<a id="pl.7.34"></a><var>7.34</var>a receiver. In that event, the court shall set a hearing as soon as practicable and at the <br/>
<a id="pl.7.35"></a><var>7.35</var>subsequent hearing, the burdens of proof shall be as would be applicable to a motion made <br/>
<a id="pl.7.36"></a><var>7.36</var>on notice that is not expedited.<br/>
<a id="pl.8.1"></a><var>8.1</var>    Subd. 8. <b>Description of receivership property.</b> The order appointing the receiver <br/>
<a id="pl.8.2"></a><var>8.2</var>or subsequent order shall describe the receivership property with particularity appropriate <br/>
<a id="pl.8.3"></a><var>8.3</var>to the circumstances. If the order does not so describe the receivership property, until <br/>
<a id="pl.8.4"></a><var>8.4</var>further order of the court, the receiver shall have control over all of the respondent's <br/>
<a id="pl.8.5"></a><var>8.5</var>nonexempt property.<br/>
<a id="pl.8.6"></a><var>8.6</var>    Subd. 9. <b>Receivership not a trust.</b> The order appointing the receiver does not <br/>
<a id="pl.8.7"></a><var>8.7</var>create a trust.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.8"></a><var>8.8</var>    Sec. 6. <b>[576.26] ELIGIBILITY OF RECEIVER.</b><br/>
<a id="pl.8.9"></a><var>8.9</var>    Subdivision 1. <b>Who may serve as receiver.</b> Unless otherwise prohibited by law or <br/>
<a id="pl.8.10"></a><var>8.10</var>prior order, any person, whether or not a resident of this state, may serve as a receiver, <br/>
<a id="pl.8.11"></a><var>8.11</var>provided that the court, in its order appointing the receiver, makes written conclusions <br/>
<a id="pl.8.12"></a><var>8.12</var>based in the record that the person proposed as receiver:<br/>
<a id="pl.8.13"></a><var>8.13</var>(1) is qualified to serve as receiver and as an officer of the court; and<br/>
<a id="pl.8.14"></a><var>8.14</var>(2) is independent as to the parties and the underlying dispute.<br/>
<a id="pl.8.15"></a><var>8.15</var>    Subd. 2. <b>Considerations regarding qualifications.</b> (a) In determining whether a <br/>
<a id="pl.8.16"></a><var>8.16</var>proposed receiver is qualified to serve as receiver and as an officer of the court, the court <br/>
<a id="pl.8.17"></a><var>8.17</var>shall consider any relevant information, including, but not limited to, whether:<br/>
<a id="pl.8.18"></a><var>8.18</var>(1) the proposed receiver has knowledge and experience sufficient to perform the <br/>
<a id="pl.8.19"></a><var>8.19</var>duties of receiver;<br/>
<a id="pl.8.20"></a><var>8.20</var>(2) the proposed receiver has the financial ability to post the bond required by <br/>
<a id="pl.8.21"></a><var>8.21</var>section 576.07;<br/>
<a id="pl.8.22"></a><var>8.22</var>(3) the proposed receiver or any insider of the proposed receiver has been previously <br/>
<a id="pl.8.23"></a><var>8.23</var>disqualified from serving as receiver and the reasons for disqualification;<br/>
<a id="pl.8.24"></a><var>8.24</var>(4) the proposed receiver or any insider of the proposed receiver has been convicted <br/>
<a id="pl.8.25"></a><var>8.25</var>of a felony or other crime involving moral turpitude; and<br/>
<a id="pl.8.26"></a><var>8.26</var>(5) the proposed receiver or any insider of the proposed receiver has been found <br/>
<a id="pl.8.27"></a><var>8.27</var>liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar misconduct.<br/>
<a id="pl.8.28"></a><var>8.28</var>(b) For the purposes of this subdivision, "insider" includes:<br/>
<a id="pl.8.29"></a><var>8.29</var>(1) if the proposed receiver is a corporation, an officer or director of the corporation, <br/>
<a id="pl.8.30"></a><var>8.30</var>or a person in control of the proposed receiver; and<br/>
<a id="pl.8.31"></a><var>8.31</var>(2) if the proposed receiver is a partnership, a general or limited partner of the <br/>
<a id="pl.8.32"></a><var>8.32</var>partnership, or a person in control of the proposed receiver.<br/>
<a id="pl.8.33"></a><var>8.33</var>    Subd. 3. <b>Considerations regarding independence.</b> (a) In determining whether a <br/>
<a id="pl.8.34"></a><var>8.34</var>proposed receiver is independent as to the parties and the underlying dispute, the court <br/>
<a id="pl.8.35"></a><var>8.35</var>shall consider any relevant information, including, but not limited to:<br/>
<a id="pl.9.1"></a><var>9.1</var>(1) the nature and extent of any relationship that the proposed receiver has to the <br/>
<a id="pl.9.2"></a><var>9.2</var>parties and the property proposed as receivership property including, without limitation, <br/>
<a id="pl.9.3"></a><var>9.3</var>whether the proposed receiver is a party to the action, a family member of a party to <br/>
<a id="pl.9.4"></a><var>9.4</var>the action, or an officer, director, member, employee, or owner of or controls a party <br/>
<a id="pl.9.5"></a><var>9.5</var>to the action;<br/>
<a id="pl.9.6"></a><var>9.6</var>(2) whether the proposed receiver has any interest materially adverse to the interests <br/>
<a id="pl.9.7"></a><var>9.7</var>of any of the parties to the action;<br/>
<a id="pl.9.8"></a><var>9.8</var>(3) whether the proposed receiver has any material financial or pecuniary interest, <br/>
<a id="pl.9.9"></a><var>9.9</var>other than receiver compensation allowed by court order, in the outcome of the underlying <br/>
<a id="pl.9.10"></a><var>9.10</var>dispute, including any proposed contingent or success fee compensation arrangement; and<br/>
<a id="pl.9.11"></a><var>9.11</var>(4) whether the proposed receiver is a debtor, secured or unsecured creditor, lienor <br/>
<a id="pl.9.12"></a><var>9.12</var>of, or holder of any equity interest in, any of the parties to the action of the receivership <br/>
<a id="pl.9.13"></a><var>9.13</var>property.<br/>
<a id="pl.9.14"></a><var>9.14</var>(b) In evaluating all information, the court may exercise its discretion and need not <br/>
<a id="pl.9.15"></a><var>9.15</var>consider any single item of information to be determinative of independence. Without <br/>
<a id="pl.9.16"></a><var>9.16</var>limiting the generality of the preceding sentence, the proposed receiver shall not be <br/>
<a id="pl.9.17"></a><var>9.17</var>disqualified solely because the proposed receiver was appointed receiver in other unrelated <br/>
<a id="pl.9.18"></a><var>9.18</var>matters involving any of the parties to the matter in which the appointment is sought, or <br/>
<a id="pl.9.19"></a><var>9.19</var>the proposed receiver has been engaged by any of the parties to the action in matters <br/>
<a id="pl.9.20"></a><var>9.20</var>unrelated to the underlying action.<br/>
<a id="pl.9.21"></a><var>9.21</var>    Subd. 4. <b>Information provided to court.</b> The proposed receiver, the parties, and <br/>
<a id="pl.9.22"></a><var>9.22</var>prospective parties in interest may provide any information relevant to the qualifications, <br/>
<a id="pl.9.23"></a><var>9.23</var>independence, and the selection of the receiver.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.9.24"></a><var>9.24</var>    Sec. 7. <b>[576.27] BOND.</b><br/>
<a id="pl.9.25"></a><var>9.25</var>After appointment, a receiver shall give a bond in the sum, nature, and with the <br/>
<a id="pl.9.26"></a><var>9.26</var>conditions that the court shall order in its discretion consistent with section 574.11. Unless <br/>
<a id="pl.9.27"></a><var>9.27</var>otherwise ordered by the court, the receiver's bond shall be conditioned on the receiver's <br/>
<a id="pl.9.28"></a><var>9.28</var>faithful discharge of its duties in accordance with the orders of the court and the laws of <br/>
<a id="pl.9.29"></a><var>9.29</var>this state. The receiver shall execute a bond with a surety authorized to write bonds in <br/>
<a id="pl.9.30"></a><var>9.30</var>the state.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.9.31"></a><var>9.31</var>    Sec. 8. <b>[576.28] IMMUNITY; DISCOVERY FROM RECEIVER.</b><br/>
<a id="pl.9.32"></a><var>9.32</var>(a) The receiver shall be entitled to all defenses and immunities provided at common <br/>
<a id="pl.9.33"></a><var>9.33</var>law for acts or omissions within the scope of the receiver's appointment.<br/>
<a id="pl.10.1"></a><var>10.1</var>(b) No person other than a successor receiver duly appointed by the court shall have <br/>
<a id="pl.10.2"></a><var>10.2</var>a right of action against a receiver to recover receivership property or the value thereof.<br/>
<a id="pl.10.3"></a><var>10.3</var>(c) A party or party in interest may conduct discovery of the receiver concerning any <br/>
<a id="pl.10.4"></a><var>10.4</var>mater relating to the receiver's administration of the receivership property after obtaining <br/>
<a id="pl.10.5"></a><var>10.5</var>an order authorizing the discovery.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.10.6"></a><var>10.6</var>    Sec. 9. <b>[576.29] POWERS AND DUTIES OF RECEIVERS; GENERALLY.</b><br/>
<a id="pl.10.7"></a><var>10.7</var>    Subdivision 1. <b>Powers.</b> (a) A receiver, whether general or limited, shall have the <br/>
<a id="pl.10.8"></a><var>10.8</var>following powers in addition to those specifically conferred by this chapter or otherwise <br/>
<a id="pl.10.9"></a><var>10.9</var>by statute, rule, or order of the court:<br/>
<a id="pl.10.10"></a><var>10.10</var>(1) the power to collect, control, manage, conserve, and protect receivership <br/>
<a id="pl.10.11"></a><var>10.11</var>property;<br/>
<a id="pl.10.12"></a><var>10.12</var>(2) the power to incur and pay expenses incidental to the receiver's exercise of the <br/>
<a id="pl.10.13"></a><var>10.13</var>powers or otherwise in the performance of the receiver's duties;<br/>
<a id="pl.10.14"></a><var>10.14</var>(3) the power to assert rights, claims, causes of action, or defenses that relate to <br/>
<a id="pl.10.15"></a><var>10.15</var>receivership property; and<br/>
<a id="pl.10.16"></a><var>10.16</var>(4) the power to seek and obtain instruction from the court with respect to any <br/>
<a id="pl.10.17"></a><var>10.17</var>matter relating to the receivership property, the exercise of the receiver's powers, or the <br/>
<a id="pl.10.18"></a><var>10.18</var>performance of the receiver's duties.<br/>
<a id="pl.10.19"></a><var>10.19</var>(b) In addition to the powers provided in paragraph (a), a general receiver shall <br/>
<a id="pl.10.20"></a><var>10.20</var>have the power:<br/>
<a id="pl.10.21"></a><var>10.21</var>(1) to (i) assert any rights, claims, causes of action, or defenses of the respondent to <br/>
<a id="pl.10.22"></a><var>10.22</var>the extent any rights, claims, causes of action, or defenses are receivership property; (ii) <br/>
<a id="pl.10.23"></a><var>10.23</var>maintain in the receiver's name or in the name of the respondent any action to enforce <br/>
<a id="pl.10.24"></a><var>10.24</var>any right, claim, cause of action, or defense; and (iii) intervene in actions in which the <br/>
<a id="pl.10.25"></a><var>10.25</var>respondent is a party for the purpose of exercising the powers under this clause or <br/>
<a id="pl.10.26"></a><var>10.26</var>requesting transfer of venue of the action to the court;<br/>
<a id="pl.10.27"></a><var>10.27</var>(2) to pursue any claim or remedy that may be asserted by a creditor of the <br/>
<a id="pl.10.28"></a><var>10.28</var>respondent under sections 513.41 to 513.51;<br/>
<a id="pl.10.29"></a><var>10.29</var>(3) to compel any person, including the respondent, and any party, by subpoena <br/>
<a id="pl.10.30"></a><var>10.30</var>pursuant to Rule 45 of the Minnesota Rules of Civil Procedure, to give testimony or to <br/>
<a id="pl.10.31"></a><var>10.31</var>produce and permit inspection and copying of designated books, documents, electronically <br/>
<a id="pl.10.32"></a><var>10.32</var>stored information, or tangible things with respect to receivership property or any other <br/>
<a id="pl.10.33"></a><var>10.33</var>matter that may affect the administration of the receivership;<br/>
<a id="pl.10.34"></a><var>10.34</var>(4) to operate any business constituting receivership property in the ordinary course <br/>
<a id="pl.10.35"></a><var>10.35</var>of the business, including the use, sale, or lease of property of the business or otherwise <br/>
<a id="pl.11.1"></a><var>11.1</var>constituting receivership property, and the incurring and payment of expenses of the <br/>
<a id="pl.11.2"></a><var>11.2</var>business or other receivership property;<br/>
<a id="pl.11.3"></a><var>11.3</var>(5) if authorized by an order of the court following notice and a hearing, to use, <br/>
<a id="pl.11.4"></a><var>11.4</var>improve, sell, or lease receivership property other than in the ordinary course of business; <br/>
<a id="pl.11.5"></a><var>11.5</var>and<br/>
<a id="pl.11.6"></a><var>11.6</var>(6) if appointed pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or <br/>
<a id="pl.11.7"></a><var>11.7</var>322B.836, to exercise all of the powers and authority provided by the section or order of <br/>
<a id="pl.11.8"></a><var>11.8</var>the court.<br/>
<a id="pl.11.9"></a><var>11.9</var>    Subd. 2. <b>Duties.</b> A receiver, whether general or limited, shall have the duties <br/>
<a id="pl.11.10"></a><var>11.10</var>specifically conferred by this chapter or otherwise by statute, rule, or order of the court.<br/>
<a id="pl.11.11"></a><var>11.11</var>    Subd. 3. <b>Modification of powers and duties.</b> Except as otherwise provided in this <br/>
<a id="pl.11.12"></a><var>11.12</var>chapter, the court may modify the powers and duties of a receiver provided by this section.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.11.13"></a><var>11.13</var>    Sec. 10. <b>[576.30] RECEIVER AS LIEN CREDITOR; REAL ESTATE </b><br/>
<a id="pl.11.14"></a><var>11.14</var><b>RECORDING; SUBSEQUENT SALES OF REAL ESTATE.</b><br/>
<a id="pl.11.15"></a><var>11.15</var>    Subdivision 1. <b>Receiver as lien creditor.</b> As of the time of appointment, the <br/>
<a id="pl.11.16"></a><var>11.16</var>receiver shall have the powers and priority as if it were a creditor that obtained a judicial <br/>
<a id="pl.11.17"></a><var>11.17</var>lien at the time of appointment pursuant to sections 548.09 and 550.10 on all of the <br/>
<a id="pl.11.18"></a><var>11.18</var>receivership property, subject to satisfying the recording requirements as to real property <br/>
<a id="pl.11.19"></a><var>11.19</var>described in subdivision 2.<br/>
<a id="pl.11.20"></a><var>11.20</var>    Subd. 2. <b>Real estate recording.</b> If any interest in real estate is included in the <br/>
<a id="pl.11.21"></a><var>11.21</var>receivership property, a notice of lis pendens shall be recorded as soon as practicable with <br/>
<a id="pl.11.22"></a><var>11.22</var>the county recorder or registrar of titles, as appropriate, of the county in which the real <br/>
<a id="pl.11.23"></a><var>11.23</var>property is located. The priority of the receiver as lien creditor against real property shall <br/>
<a id="pl.11.24"></a><var>11.24</var>be from the time of recording of the notice of lis pendens, except as to persons with actual <br/>
<a id="pl.11.25"></a><var>11.25</var>or implied knowledge of the appointment under section 507.34.<br/>
<a id="pl.11.26"></a><var>11.26</var>    Subd. 3. <b>Subsequent sales of real estate.</b> The notice of lis pendens, a court order <br/>
<a id="pl.11.27"></a><var>11.27</var>authorizing the receiver to sell real property certified by the court administrator, and <br/>
<a id="pl.11.28"></a><var>11.28</var>a deed executed by the receiver recorded with the county recorder or registrar of titles, <br/>
<a id="pl.11.29"></a><var>11.29</var>as appropriate, of the county in which the real property is located, and upon execution <br/>
<a id="pl.11.30"></a><var>11.30</var>of the deed by the receiver shall be prima facie evidence of the authority of the receiver <br/>
<a id="pl.11.31"></a><var>11.31</var>to sell and convey the real property described in the deed. The court may also require a <br/>
<a id="pl.11.32"></a><var>11.32</var>motion for an order for sale of the real property or a motion for an order confirming <br/>
<a id="pl.11.33"></a><var>11.33</var>sale of the real property.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.11.34"></a><var>11.34</var>    Sec. 11. <b>[576.31] DUTIES OF RESPONDENT.</b><br/>
<a id="pl.12.1"></a><var>12.1</var>The respondent shall:<br/>
<a id="pl.12.2"></a><var>12.2</var>(1) assist and cooperate fully with the receiver in the administration of the <br/>
<a id="pl.12.3"></a><var>12.3</var>receivership and the receivership property and the discharge of the receiver's duties, and <br/>
<a id="pl.12.4"></a><var>12.4</var>comply with all orders of the court;<br/>
<a id="pl.12.5"></a><var>12.5</var>(2) immediately upon the receiver's appointment, deliver to the receiver all of the <br/>
<a id="pl.12.6"></a><var>12.6</var>receivership property in the respondent's possession, custody, or control, including, but not <br/>
<a id="pl.12.7"></a><var>12.7</var>limited to, all books and records, electronic data, passwords, access codes, statements of <br/>
<a id="pl.12.8"></a><var>12.8</var>accounts, deeds, titles or other evidence of ownership, financial statements, and all other <br/>
<a id="pl.12.9"></a><var>12.9</var>papers and documents related to the receivership property;<br/>
<a id="pl.12.10"></a><var>12.10</var>(3) supply to the receiver information as requested relating to the administration <br/>
<a id="pl.12.11"></a><var>12.11</var>of the receivership and the receivership property, including information necessary to <br/>
<a id="pl.12.12"></a><var>12.12</var>complete any reports or other documents that the receiver may be required to file; and<br/>
<a id="pl.12.13"></a><var>12.13</var>(4) remain responsible for the filing of all tax returns, including those returns <br/>
<a id="pl.12.14"></a><var>12.14</var>applicable to periods which include those in which the receivership is in effect.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.12.15"></a><var>12.15</var>    Sec. 12. <b>[576.32] EMPLOYMENT AND COMPENSATION OF </b><br/>
<a id="pl.12.16"></a><var>12.16</var><b>PROFESSIONALS.</b><br/>
<a id="pl.12.17"></a><var>12.17</var>    Subdivision 1. <b>Employment.</b> (a) To represent or assist the receiver in carrying <br/>
<a id="pl.12.18"></a><var>12.18</var>out the receiver's duties, the receiver may employ attorneys, accountants, appraisers, <br/>
<a id="pl.12.19"></a><var>12.19</var>auctioneers, and other professionals that do not hold or represent an interest adverse <br/>
<a id="pl.12.20"></a><var>12.20</var>to the receivership.<br/>
<a id="pl.12.21"></a><var>12.21</var>(b) This section does not require prior court approval for the retention of <br/>
<a id="pl.12.22"></a><var>12.22</var>professionals. However, any professional to be retained shall provide the receiver with a <br/>
<a id="pl.12.23"></a><var>12.23</var>disclosure of any potential conflicts of interest, and the professional or the receiver shall <br/>
<a id="pl.12.24"></a><var>12.24</var>file with the court a notice of the retention and of the proposed compensation. Any party <br/>
<a id="pl.12.25"></a><var>12.25</var>in interest may bring a motion for disapproval of any retention within 21 days after the <br/>
<a id="pl.12.26"></a><var>12.26</var>filing of the notice of retention.<br/>
<a id="pl.12.27"></a><var>12.27</var>(c) A person is not disqualified for employment under this section solely because <br/>
<a id="pl.12.28"></a><var>12.28</var>of the person's employment by, representation of, or other relationship with the receiver, <br/>
<a id="pl.12.29"></a><var>12.29</var>respondent, a creditor, or other party in interest if the court determines that the employment <br/>
<a id="pl.12.30"></a><var>12.30</var>is appropriate.<br/>
<a id="pl.12.31"></a><var>12.31</var>    Subd. 2. <b>Compensation.</b> (a) The receiver and any professional retained by the <br/>
<a id="pl.12.32"></a><var>12.32</var>receiver shall be paid by the receiver from the receivership property in the same manner <br/>
<a id="pl.12.33"></a><var>12.33</var>as other expenses of administration and without separate orders, but subject to the <br/>
<a id="pl.12.34"></a><var>12.34</var>procedures, safeguards, and reporting that the court may order.<br/>
<a id="pl.13.1"></a><var>13.1</var>(b) Except to the extent fees and expenses have been approved by the court, or as <br/>
<a id="pl.13.2"></a><var>13.2</var>to parties in interest who are deemed to have waived the right to object, any interim <br/>
<a id="pl.13.3"></a><var>13.3</var>payments of fees and expenses to the receiver are subject to approval in connection with <br/>
<a id="pl.13.4"></a><var>13.4</var>the receiver's final report pursuant to section 576.38.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.13.5"></a><var>13.5</var>    Sec. 13. <b>[576.33] SCHEDULES OF PROPERTY AND CLAIMS.</b><br/>
<a id="pl.13.6"></a><var>13.6</var>(a) The court may order the respondent or a general receiver to file under oath to <br/>
<a id="pl.13.7"></a><var>13.7</var>the best of its actual knowledge:<br/>
<a id="pl.13.8"></a><var>13.8</var>(1) a schedule of all receivership property and exempt property of the respondent, <br/>
<a id="pl.13.9"></a><var>13.9</var>describing, as of the time of appointment: (i) the location of the property and, if real <br/>
<a id="pl.13.10"></a><var>13.10</var>property, a legal description thereof; (ii) a description of all liens to which the property is <br/>
<a id="pl.13.11"></a><var>13.11</var>subject; and (iii) an estimated value of the property; and<br/>
<a id="pl.13.12"></a><var>13.12</var>(2) a schedule of all creditors and taxing authorities and regulatory authorities which <br/>
<a id="pl.13.13"></a><var>13.13</var>supervise the respondent, their mailing addresses, the amount and nature of their claims, <br/>
<a id="pl.13.14"></a><var>13.14</var>whether the claims are secured by liens of any kind, and whether the claims are disputed.<br/>
<a id="pl.13.15"></a><var>13.15</var>(b) The court may order inventories and appraisals if appropriate to the receivership.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.13.16"></a><var>13.16</var>    Sec. 14. <b>[576.34] NOTICE.</b><br/>
<a id="pl.13.17"></a><var>13.17</var>In a general receivership, unless the court orders otherwise, the receiver shall give <br/>
<a id="pl.13.18"></a><var>13.18</var>notice of the receivership to all creditors and other parties in interest actually known <br/>
<a id="pl.13.19"></a><var>13.19</var>to the receiver by mail or other means of transmission within 21 days after the time of <br/>
<a id="pl.13.20"></a><var>13.20</var>appointment. The notice of the receivership shall include the time of appointment and the <br/>
<a id="pl.13.21"></a><var>13.21</var>names and addresses of the respondent, the receiver, and the receiver's attorney, if any.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.13.22"></a><var>13.22</var>    Sec. 15. <b>[576.35] NOTICES, MOTIONS, AND ORDERS.</b><br/>
<a id="pl.13.23"></a><var>13.23</var>    Subdivision 1. <b>Notice of appearance.</b> Any party in interest may make an <br/>
<a id="pl.13.24"></a><var>13.24</var>appearance in a receivership by filing a written notice of appearance, including the name, <br/>
<a id="pl.13.25"></a><var>13.25</var>mailing address, fax number, e-mail address, if any, and telephone number of the party in <br/>
<a id="pl.13.26"></a><var>13.26</var>interest and its attorney, if any, and by serving a copy on the receiver and the receiver's <br/>
<a id="pl.13.27"></a><var>13.27</var>attorney, if any. It is not necessary for a party in interest to be joined as a party to be heard <br/>
<a id="pl.13.28"></a><var>13.28</var>in the receivership. A proof of claim does not constitute a written notice of appearance.<br/>
<a id="pl.13.29"></a><var>13.29</var>    Subd. 2. <b>Master service list.</b> From time to time the receiver shall file an updated <br/>
<a id="pl.13.30"></a><var>13.30</var>master service list consisting of the names, mailing addresses, and, where available, fax <br/>
<a id="pl.13.31"></a><var>13.31</var>numbers and e-mail addresses of the respondent, the receiver, all persons joined as parties <br/>
<a id="pl.13.32"></a><var>13.32</var>in the receivership, all persons known by the receiver to have asserted any ownership <br/>
<a id="pl.14.1"></a><var>14.1</var>or lien in receivership property, all persons who have filed a notice of appearance in <br/>
<a id="pl.14.2"></a><var>14.2</var>accordance with this section, and their attorneys, if any.<br/>
<a id="pl.14.3"></a><var>14.3</var>    Subd. 3. <b>Motions.</b> Except as otherwise provided in this chapter, an order shall be <br/>
<a id="pl.14.4"></a><var>14.4</var>sought by a motion brought in compliance with the Minnesota Rules of Civil Procedure <br/>
<a id="pl.14.5"></a><var>14.5</var>and the General Rules of Practice for the District Courts.<br/>
<a id="pl.14.6"></a><var>14.6</var>    Subd. 4. <b>Persons served.</b> Except as otherwise provided in this chapter, a motion <br/>
<a id="pl.14.7"></a><var>14.7</var>shall be served as provided in the Minnesota Rules of Civil Procedure, unless the court <br/>
<a id="pl.14.8"></a><var>14.8</var>orders otherwise, on all persons on the master service list, all persons who have asserted <br/>
<a id="pl.14.9"></a><var>14.9</var>an ownership interest or lien in receivership property that is the subject of the motion, <br/>
<a id="pl.14.10"></a><var>14.10</var>all persons who are identified in the motion as directly affected by the relief requested, <br/>
<a id="pl.14.11"></a><var>14.11</var>and other persons as the court may direct.<br/>
<a id="pl.14.12"></a><var>14.12</var>    Subd. 5. <b>Service on state agency.</b> Any request for relief against a state agency shall <br/>
<a id="pl.14.13"></a><var>14.13</var>be served as provided in the Minnesota Rules of Civil Procedure, unless the court orders <br/>
<a id="pl.14.14"></a><var>14.14</var>otherwise, on the specific state agency and on the Office of the Attorney General.<br/>
<a id="pl.14.15"></a><var>14.15</var>    Subd. 6. <b>Order without hearing.</b> Where a provision in this chapter, an order issued <br/>
<a id="pl.14.16"></a><var>14.16</var>in the receivership, or a court rule requires an objection or other response to a motion or <br/>
<a id="pl.14.17"></a><var>14.17</var>application within a specific time, and no objection or other response is interposed, the <br/>
<a id="pl.14.18"></a><var>14.18</var>court may grant the relief requested without a hearing.<br/>
<a id="pl.14.19"></a><var>14.19</var>    Subd. 7. <b>Order upon application.</b> Where a provision of this chapter permits, as to <br/>
<a id="pl.14.20"></a><var>14.20</var>administrative matters, or where it otherwise appears that no party in interest would be <br/>
<a id="pl.14.21"></a><var>14.21</var>materially prejudiced, the court may issue an order ex parte or based on an application <br/>
<a id="pl.14.22"></a><var>14.22</var>without a motion, notice, or hearing.<br/>
<a id="pl.14.23"></a><var>14.23</var>    Subd. 8. <b>Persons bound by orders of the court.</b> Except as to persons entitled to be <br/>
<a id="pl.14.24"></a><var>14.24</var>served pursuant to subdivision 4 and who were not served, an order of the court binds <br/>
<a id="pl.14.25"></a><var>14.25</var>parties in interest and all persons who file notices of appearance, submit proofs of claim, <br/>
<a id="pl.14.26"></a><var>14.26</var>receive written notice of the receivership, receive notice of any motion in the receivership, <br/>
<a id="pl.14.27"></a><var>14.27</var>or who have actual knowledge of the receivership whether they are joined as parties or <br/>
<a id="pl.14.28"></a><var>14.28</var>received notice of the specific motion or order.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.14.29"></a><var>14.29</var>    Sec. 16. <b>[576.36] RECORDS; INTERIM REPORTS.</b><br/>
<a id="pl.14.30"></a><var>14.30</var>    Subdivision 1. <b>Preparation and retention of records.</b> The receiver shall prepare <br/>
<a id="pl.14.31"></a><var>14.31</var>and retain appropriate business records, including records of all cash receipts and <br/>
<a id="pl.14.32"></a><var>14.32</var>disbursements and of all receipts and distributions or other dispositions of receivership <br/>
<a id="pl.14.33"></a><var>14.33</var>property. After due consideration of issues of confidentiality, the records may be provided <br/>
<a id="pl.14.34"></a><var>14.34</var>by the receiver to parties in interest or shall be provided as ordered by the court.<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 2. <b>Interim reports.</b> (a) The court may order the receiver to prepare and <br/>
<a id="pl.15.2"></a><var>15.2</var>file interim reports addressing:<br/>
<a id="pl.15.3"></a><var>15.3</var>(1) the activities of the receiver since the last report;<br/>
<a id="pl.15.4"></a><var>15.4</var>(2) cash receipts and disbursements, including payments made to professionals <br/>
<a id="pl.15.5"></a><var>15.5</var>retained by the receiver;<br/>
<a id="pl.15.6"></a><var>15.6</var>(3) receipts and dispositions of receivership property; and<br/>
<a id="pl.15.7"></a><var>15.7</var>(4) other matters.<br/>
<a id="pl.15.8"></a><var>15.8</var>(b) The order may provide for the delivery of the receiver's interim reports to persons <br/>
<a id="pl.15.9"></a><var>15.9</var>on the master service list and to other persons and may provide a procedure for objection <br/>
<a id="pl.15.10"></a><var>15.10</var>to the interim reports, and may also provide that the failure to object constitutes a waiver <br/>
<a id="pl.15.11"></a><var>15.11</var>of objection to matters addressed in the interim reports.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.15.12"></a><var>15.12</var>    Sec. 17. <b>[576.37] REMOVAL OF RECEIVERS.</b><br/>
<a id="pl.15.13"></a><var>15.13</var>    Subdivision 1. <b>Removal of receiver.</b> The court may remove the receiver if: (1) the <br/>
<a id="pl.15.14"></a><var>15.14</var>receiver fails to execute and file the bond required by section 576.27; (2) the receiver <br/>
<a id="pl.15.15"></a><var>15.15</var>resigns, refuses, or fails to serve for any reason; or (3) for other good cause.<br/>
<a id="pl.15.16"></a><var>15.16</var>    Subd. 2. <b>Successor receiver.</b> Upon removal of the receiver, if the court determines <br/>
<a id="pl.15.17"></a><var>15.17</var>that further administration of the receivership is required, the court shall appoint a <br/>
<a id="pl.15.18"></a><var>15.18</var>successor receiver. Upon executing and filing a bond under section 576.27, the successor <br/>
<a id="pl.15.19"></a><var>15.19</var>receiver shall immediately succeed the receiver so removed and shall assume the duties of <br/>
<a id="pl.15.20"></a><var>15.20</var>receiver.<br/>
<a id="pl.15.21"></a><var>15.21</var>    Subd. 3. <b>Report and discharge of removed receiver.</b> Within 14 days after <br/>
<a id="pl.15.22"></a><var>15.22</var>removal, the receiver so removed shall file with the court and serve a report pursuant to <br/>
<a id="pl.15.23"></a><var>15.23</var>section 576.38, subdivision 3, for matters up to the date of the removal. Upon approval <br/>
<a id="pl.15.24"></a><var>15.24</var>of the report, the court may enter an order pursuant to section 576.38 discharging the <br/>
<a id="pl.15.25"></a><var>15.25</var>removed receiver.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.15.26"></a><var>15.26</var>    Sec. 18. <b>[576.38] TERMINATION OF RECEIVERSHIPS; FINAL REPORT.</b><br/>
<a id="pl.15.27"></a><var>15.27</var>    Subdivision 1. <b>Termination of receivership.</b> The court may discharge a receiver <br/>
<a id="pl.15.28"></a><var>15.28</var>and terminate the receivership. If the court determines that the appointment of the receiver <br/>
<a id="pl.15.29"></a><var>15.29</var>was procured in bad faith, the court may assess against the person who procured the <br/>
<a id="pl.15.30"></a><var>15.30</var>receiver's appointment:<br/>
<a id="pl.15.31"></a><var>15.31</var>(1) all of the receiver's fees and expenses and other costs of the receivership; and<br/>
<a id="pl.15.32"></a><var>15.32</var>(2) any other sanctions the court deems appropriate.<br/>
<a id="pl.16.1"></a><var>16.1</var>    Subd. 2. <b>Request for discharge.</b> Upon distribution or disposition of all receivership <br/>
<a id="pl.16.2"></a><var>16.2</var>property, or the completion of the receiver's duties, the receiver shall file a final report and <br/>
<a id="pl.16.3"></a><var>16.3</var>shall request that the court approve the final report and discharge the receiver.<br/>
<a id="pl.16.4"></a><var>16.4</var>    Subd. 3. <b>Contents of final report.</b> The final report, which may incorporate by <br/>
<a id="pl.16.5"></a><var>16.5</var>reference interim reports, shall include, in addition to any matters required by the court in <br/>
<a id="pl.16.6"></a><var>16.6</var>the case:<br/>
<a id="pl.16.7"></a><var>16.7</var>(1) a description of the activities of the receiver in the conduct of the receivership;<br/>
<a id="pl.16.8"></a><var>16.8</var>(2) a schedule of all receivership property at the commencement of the receivership <br/>
<a id="pl.16.9"></a><var>16.9</var>and any receivership property added thereafter;<br/>
<a id="pl.16.10"></a><var>16.10</var>(3) a list of expenditures, including all payments to professionals retained by the <br/>
<a id="pl.16.11"></a><var>16.11</var>receiver;<br/>
<a id="pl.16.12"></a><var>16.12</var>(4) a list of any unpaid expenses incurred during the receivership;<br/>
<a id="pl.16.13"></a><var>16.13</var>(5) a list of all dispositions of receivership property;<br/>
<a id="pl.16.14"></a><var>16.14</var>(6) a list of all distributions made or proposed to be made; and<br/>
<a id="pl.16.15"></a><var>16.15</var>(7) if not done separately, a motion or application for approval of the payment of <br/>
<a id="pl.16.16"></a><var>16.16</var>fees and expenses of the receiver.<br/>
<a id="pl.16.17"></a><var>16.17</var>    Subd. 4. <b>Notice of final report.</b> The receiver shall give notice of the filing of the <br/>
<a id="pl.16.18"></a><var>16.18</var>final report and request for discharge to all persons who have filed notices of appearance. <br/>
<a id="pl.16.19"></a><var>16.19</var>If there is no objection within 21 days, the court may enter an order approving the final <br/>
<a id="pl.16.20"></a><var>16.20</var>report and discharging the receiver without the necessity of a hearing.<br/>
<a id="pl.16.21"></a><var>16.21</var>    Subd. 5. <b>Effect of discharge.</b> A discharge removes all authority of the receiver, <br/>
<a id="pl.16.22"></a><var>16.22</var>excuses the receiver from further performance of any duties, and discharges any lis <br/>
<a id="pl.16.23"></a><var>16.23</var>pendens recorded by the receiver.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.16.24"></a><var>16.24</var>    Sec. 19. <b>[576.39] ACTIONS BY OR AGAINST RECEIVER OR RELATING TO </b><br/>
<a id="pl.16.25"></a><var>16.25</var><b>RECEIVERSHIP PROPERTY.</b><br/>
<a id="pl.16.26"></a><var>16.26</var>    Subdivision 1. <b>Actions by or against receiver.</b> The receiver may sue in the <br/>
<a id="pl.16.27"></a><var>16.27</var>receiver's capacity and, subject to other sections of this chapter and all immunities <br/>
<a id="pl.16.28"></a><var>16.28</var>provided at common law, may be sued in that capacity.<br/>
<a id="pl.16.29"></a><var>16.29</var>    Subd. 2. <b>Venue.</b> Unless applicable law requires otherwise or the court orders <br/>
<a id="pl.16.30"></a><var>16.30</var>otherwise, an action by or against the receiver or relating to the receivership or <br/>
<a id="pl.16.31"></a><var>16.31</var>receivership property shall be commenced in the court and assigned to the judge before <br/>
<a id="pl.16.32"></a><var>16.32</var>whom the receivership is pending.<br/>
<a id="pl.16.33"></a><var>16.33</var>    Subd. 3. <b>Joinder.</b> Subject to section 576.42, a limited or general receiver may be <br/>
<a id="pl.16.34"></a><var>16.34</var>joined or substituted as a party in any action or other proceeding that relates to receivership <br/>
<a id="pl.16.35"></a><var>16.35</var>property that was pending at the time of appointment. Subject to other sections of this <br/>
<a id="pl.17.1"></a><var>17.1</var>chapter, a general receiver may be joined or substituted as a party in any action or other <br/>
<a id="pl.17.2"></a><var>17.2</var>proceeding that was pending at the time of appointment in which the respondent is a party. <br/>
<a id="pl.17.3"></a><var>17.3</var>Pending actions may be transferred to the court upon the receiver's motion for change of <br/>
<a id="pl.17.4"></a><var>17.4</var>venue made in the court in which the action is pending.<br/>
<a id="pl.17.5"></a><var>17.5</var>    Subd. 4. <b>Effect of judgments.</b> A judgment entered subsequent to the time of <br/>
<a id="pl.17.6"></a><var>17.6</var>appointment against a receiver or the respondent shall not constitute a lien on receivership <br/>
<a id="pl.17.7"></a><var>17.7</var>property, nor shall any execution issue thereon. Upon submission of a certified copy of the <br/>
<a id="pl.17.8"></a><var>17.8</var>judgment in accordance with section 576.49, the amount of the judgment shall be treated <br/>
<a id="pl.17.9"></a><var>17.9</var>as an allowed claim in a general receivership. A judgment against a limited receiver shall <br/>
<a id="pl.17.10"></a><var>17.10</var>have the same effect as a judgment against the respondent, except that the judgment shall <br/>
<a id="pl.17.11"></a><var>17.11</var>be enforceable against receivership property only to the extent ordered by the court.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.17.12"></a><var>17.12</var>    Sec. 20. <b>[576.40] TURNOVER OF PROPERTY.</b><br/>
<a id="pl.17.13"></a><var>17.13</var>    Subdivision 1. <b>Demand by receiver.</b> Except as expressly provided in this section, <br/>
<a id="pl.17.14"></a><var>17.14</var>and unless otherwise ordered by the court, upon demand by a receiver, any person shall <br/>
<a id="pl.17.15"></a><var>17.15</var>turn over any receivership property that is within the possession or control of that person. <br/>
<a id="pl.17.16"></a><var>17.16</var>Unless ordered by the court, a person in possession of receivership property pursuant <br/>
<a id="pl.17.17"></a><var>17.17</var>to a valid lien perfected prior to the time of appointment is not required to turn over <br/>
<a id="pl.17.18"></a><var>17.18</var>receivership property.<br/>
<a id="pl.17.19"></a><var>17.19</var>    Subd. 2. <b>Motion by receiver.</b> A receiver may seek to compel turnover of <br/>
<a id="pl.17.20"></a><var>17.20</var>receivership property by motion in the receivership. If there exists a bona fide dispute <br/>
<a id="pl.17.21"></a><var>17.21</var>with respect to the existence or nature of the receiver's or the respondent's interest in the <br/>
<a id="pl.17.22"></a><var>17.22</var>property, turnover shall be sought by means of an action under section 576.39. In the <br/>
<a id="pl.17.23"></a><var>17.23</var>absence of a bona fide dispute with respect to the receiver's or the respondent's right to <br/>
<a id="pl.17.24"></a><var>17.24</var>possession of receivership property, the failure to relinquish possession and control to the <br/>
<a id="pl.17.25"></a><var>17.25</var>receiver may be punishable as contempt of the court.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.17.26"></a><var>17.26</var>    Sec. 21. <b>[576.41] ANCILLARY RECEIVERSHIPS.</b><br/>
<a id="pl.17.27"></a><var>17.27</var>    Subdivision 1. <b>Ancillary receiverships in foreign jurisdictions.</b> A receiver <br/>
<a id="pl.17.28"></a><var>17.28</var>appointed by a court of this state may, without first seeking approval of the court, apply <br/>
<a id="pl.17.29"></a><var>17.29</var>in any foreign jurisdiction for appointment as receiver with respect to any receivership <br/>
<a id="pl.17.30"></a><var>17.30</var>property which is located within the foreign jurisdiction.<br/>
<a id="pl.17.31"></a><var>17.31</var>    Subd. 2. <b>Ancillary receiverships in the courts of this state.</b> (a) A foreign receiver <br/>
<a id="pl.17.32"></a><var>17.32</var>may obtain appointment by a court of this state as a receiver in an ancillary receivership <br/>
<a id="pl.17.33"></a><var>17.33</var>with respect to any property located in or subject to the jurisdiction of the court if (1) <br/>
<a id="pl.17.34"></a><var>17.34</var>the foreign receiver would be eligible to serve as receiver under section 576.26, and <br/>
<a id="pl.18.1"></a><var>18.1</var>(2) the appointment is in furtherance of the foreign receiver's possession, control, or <br/>
<a id="pl.18.2"></a><var>18.2</var>disposition of property subject to the foreign receivership and in accordance with orders of <br/>
<a id="pl.18.3"></a><var>18.3</var>the foreign jurisdiction.<br/>
<a id="pl.18.4"></a><var>18.4</var>(b) The courts of this state may enter any order necessary to effectuate orders entered <br/>
<a id="pl.18.5"></a><var>18.5</var>by the foreign jurisdiction's receivership proceeding. Unless the court orders otherwise, <br/>
<a id="pl.18.6"></a><var>18.6</var>a receiver appointed in an ancillary receivership in this state shall have the powers and <br/>
<a id="pl.18.7"></a><var>18.7</var>duties of a limited receiver as set forth in this chapter and shall otherwise comply with the <br/>
<a id="pl.18.8"></a><var>18.8</var>provisions of this chapter applicable to limited receivers.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.18.9"></a><var>18.9</var>    Sec. 22. <b>[576.42] STAYS.</b><br/>
<a id="pl.18.10"></a><var>18.10</var>    Subdivision 1. <b>Control of property.</b> All receivership property is under the control <br/>
<a id="pl.18.11"></a><var>18.11</var>and supervision of the court appointing the receiver.<br/>
<a id="pl.18.12"></a><var>18.12</var>    Subd. 2. <b>Stay by court order.</b> In addition to any stay provided in this section, <br/>
<a id="pl.18.13"></a><var>18.13</var>the court may order a stay or stays to protect receivership property and to facilitate the <br/>
<a id="pl.18.14"></a><var>18.14</var>administration of the receivership.<br/>
<a id="pl.18.15"></a><var>18.15</var>    Subd. 3. <b>Stay in all receiverships.</b> Except as otherwise ordered by the court, the <br/>
<a id="pl.18.16"></a><var>18.16</var>entry of an order appointing a receiver shall operate as a stay, applicable to all persons, of:<br/>
<a id="pl.18.17"></a><var>18.17</var>(1) any act to obtain possession of receivership property, or to interfere with or <br/>
<a id="pl.18.18"></a><var>18.18</var>exercise control over receivership property, other than the commencement or continuation <br/>
<a id="pl.18.19"></a><var>18.19</var>of a judicial, administrative, or other action or proceeding, including the issuance or use of <br/>
<a id="pl.18.20"></a><var>18.20</var>process, to enforce any lien having priority over the rights of the receiver in receivership <br/>
<a id="pl.18.21"></a><var>18.21</var>property; and<br/>
<a id="pl.18.22"></a><var>18.22</var>(2) any act to create or perfect any lien against receivership property, except by <br/>
<a id="pl.18.23"></a><var>18.23</var>exercise of a right of setoff, to the extent that the lien secures a claim that arose before <br/>
<a id="pl.18.24"></a><var>18.24</var>the time of appointment.<br/>
<a id="pl.18.25"></a><var>18.25</var>    Subd. 4. <b>Limited additional stay in general receiverships.</b> (a) Except as otherwise <br/>
<a id="pl.18.26"></a><var>18.26</var>ordered by the court, in addition to the stay provided in subdivision 3, the entry of an order <br/>
<a id="pl.18.27"></a><var>18.27</var>appointing a general receiver shall operate as a stay, applicable to all persons, of:<br/>
<a id="pl.18.28"></a><var>18.28</var>(1) the commencement or continuation of a judicial, administrative, or other action <br/>
<a id="pl.18.29"></a><var>18.29</var>or proceeding, including the issuance or use of process, against the respondent or the <br/>
<a id="pl.18.30"></a><var>18.30</var>receiver that was or could have been commenced before the time of appointment, or to <br/>
<a id="pl.18.31"></a><var>18.31</var>recover a claim against the respondent that arose before the time of appointment;<br/>
<a id="pl.18.32"></a><var>18.32</var>(2) the commencement or continuation of a judicial, administrative, or other action <br/>
<a id="pl.18.33"></a><var>18.33</var>or proceeding, including the issuance or use of process, to enforce any lien having priority <br/>
<a id="pl.18.34"></a><var>18.34</var>over the rights of the receiver in receivership property.<br/>
<a id="pl.19.1"></a><var>19.1</var>(b) As to the acts specified in this subdivision, the stay shall expire 30 days after <br/>
<a id="pl.19.2"></a><var>19.2</var>the time of appointment unless, before the expiration of the 30-day period, the receiver <br/>
<a id="pl.19.3"></a><var>19.3</var>or other party in interest files a motion seeking an order of the court extending the stay <br/>
<a id="pl.19.4"></a><var>19.4</var>and before the expiration of an additional 30 days following the 30-day period, the court <br/>
<a id="pl.19.5"></a><var>19.5</var>orders the stay extended.<br/>
<a id="pl.19.6"></a><var>19.6</var>    Subd. 5. <b>Modification of stay.</b> The court may modify any stay provided in this <br/>
<a id="pl.19.7"></a><var>19.7</var>section upon the motion of any party in interest affected by the stay.<br/>
<a id="pl.19.8"></a><var>19.8</var>    Subd. 6. <b>Inapplicability of stay.</b> The entry of an order appointing a receiver does <br/>
<a id="pl.19.9"></a><var>19.9</var>not operate as a stay of:<br/>
<a id="pl.19.10"></a><var>19.10</var>(1) the commencement or continuation of a criminal proceeding against the <br/>
<a id="pl.19.11"></a><var>19.11</var>respondent;<br/>
<a id="pl.19.12"></a><var>19.12</var>(2) the commencement or continuation of an action or proceeding by a governmental <br/>
<a id="pl.19.13"></a><var>19.13</var>unit to enforce its police or regulatory power;<br/>
<a id="pl.19.14"></a><var>19.14</var>(3) the enforcement of a judgment, other than a money judgment, obtained in an <br/>
<a id="pl.19.15"></a><var>19.15</var>action or proceeding by a governmental unit to enforce its police or regulatory power, or <br/>
<a id="pl.19.16"></a><var>19.16</var>with respect to any licensure of the respondent;<br/>
<a id="pl.19.17"></a><var>19.17</var>(4) the establishment by a governmental unit of any tax liability and any appeal <br/>
<a id="pl.19.18"></a><var>19.18</var>thereof;<br/>
<a id="pl.19.19"></a><var>19.19</var>(5) the commencement or continuation of an action or proceeding to establish <br/>
<a id="pl.19.20"></a><var>19.20</var>paternity; to establish or modify an order for alimony, maintenance, or support; or to <br/>
<a id="pl.19.21"></a><var>19.21</var>collect alimony, maintenance, or support under any order of a court;<br/>
<a id="pl.19.22"></a><var>19.22</var>(6) the exercise of a right of setoff;<br/>
<a id="pl.19.23"></a><var>19.23</var>(7) any act to maintain or continue the perfection of a lien on, or otherwise preserve <br/>
<a id="pl.19.24"></a><var>19.24</var>or protect rights in, receivership property, but only to the extent that the act was necessary <br/>
<a id="pl.19.25"></a><var>19.25</var>to preserve or protect the lien or other rights as they existed as of the time of the <br/>
<a id="pl.19.26"></a><var>19.26</var>appointment. If the act would require seizure of receivership property or commencement <br/>
<a id="pl.19.27"></a><var>19.27</var>of an action prohibited by a stay, the continued perfection shall instead be accomplished <br/>
<a id="pl.19.28"></a><var>19.28</var>by filing a notice in the court before which the receivership is pending and by serving the <br/>
<a id="pl.19.29"></a><var>19.29</var>notice upon the receiver and receiver's attorney, if any, within the time fixed by law for <br/>
<a id="pl.19.30"></a><var>19.30</var>seizure or commencement of the action;<br/>
<a id="pl.19.31"></a><var>19.31</var>(8) the commencement of a bankruptcy case under federal bankruptcy laws; or<br/>
<a id="pl.19.32"></a><var>19.32</var>(9) any other exception as provided in United States Code, title 11, section 326(b), <br/>
<a id="pl.19.33"></a><var>19.33</var>as to the automatic stay in federal bankruptcy cases to the extent not inconsistent with any <br/>
<a id="pl.19.34"></a><var>19.34</var>provision in this section.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.19.35"></a><var>19.35</var>    Sec. 23. <b>[576.43] UTILITY SERVICE.</b><br/>
<a id="pl.20.1"></a><var>20.1</var>A utility providing service to receivership property may not alter, refuse, or <br/>
<a id="pl.20.2"></a><var>20.2</var>discontinue service to the receivership property without first giving the receiver 21 days' <br/>
<a id="pl.20.3"></a><var>20.3</var>written notice of any default and any intention to alter, refuse, or discontinue service to <br/>
<a id="pl.20.4"></a><var>20.4</var>receivership property. The court may prohibit the alteration, refusal, or discontinuance <br/>
<a id="pl.20.5"></a><var>20.5</var>of utility service if the receiver furnishes adequate assurance of payment for service to <br/>
<a id="pl.20.6"></a><var>20.6</var>be provided after the time of appointment.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.20.7"></a><var>20.7</var>    Sec. 24. <b>[576.44] RECEIVERSHIP FINANCING.</b><br/>
<a id="pl.20.8"></a><var>20.8</var>(a) Without necessity of a court order, the receiver may obtain unsecured credit and <br/>
<a id="pl.20.9"></a><var>20.9</var>incur unsecured debt on behalf of the receivership, and the amounts shall be allowable as <br/>
<a id="pl.20.10"></a><var>20.10</var>expenses of the receivership under section 576.51, subdivision 1, clause (2).<br/>
<a id="pl.20.11"></a><var>20.11</var>(b) Without necessity of a court order, the receiver may obtain secured financing <br/>
<a id="pl.20.12"></a><var>20.12</var>on behalf of the receivership from any secured party under a financing facility existing <br/>
<a id="pl.20.13"></a><var>20.13</var>at the time of the appointment.<br/>
<a id="pl.20.14"></a><var>20.14</var>(c) The court may authorize the receiver to obtain credit or incur indebtedness, <br/>
<a id="pl.20.15"></a><var>20.15</var>and the court may authorize the receiver to mortgage, pledge, hypothecate, or otherwise <br/>
<a id="pl.20.16"></a><var>20.16</var>encumber receivership property as security for repayment of any indebtedness.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.20.17"></a><var>20.17</var>    Sec. 25. <b>[576.45] EXECUTORY CONTRACTS.</b><br/>
<a id="pl.20.18"></a><var>20.18</var>    Subdivision 1. <b>Performance by receiver.</b> Unless a court orders otherwise, a <br/>
<a id="pl.20.19"></a><var>20.19</var>receiver succeeds to all of the rights and duties of the respondent under any executory <br/>
<a id="pl.20.20"></a><var>20.20</var>contract. The court may condition the continued performance by the receiver on terms <br/>
<a id="pl.20.21"></a><var>20.21</var>that are appropriate under the circumstances. Performance of an executory contract shall <br/>
<a id="pl.20.22"></a><var>20.22</var>create a claim against the receivership to the extent of the value of the performance <br/>
<a id="pl.20.23"></a><var>20.23</var>received by the receivership after the time of appointment. The claim shall not constitute a <br/>
<a id="pl.20.24"></a><var>20.24</var>personal obligation of the receiver.<br/>
<a id="pl.20.25"></a><var>20.25</var>    Subd. 2. <b>Assignment and delegation by receiver.</b> For good cause, the court may <br/>
<a id="pl.20.26"></a><var>20.26</var>authorize a receiver to assign and delegate an executory contract to a third party under <br/>
<a id="pl.20.27"></a><var>20.27</var>the same circumstances and under the same conditions as the respondent was permitted <br/>
<a id="pl.20.28"></a><var>20.28</var>to do so pursuant to the terms of the executory contract and applicable law immediately <br/>
<a id="pl.20.29"></a><var>20.29</var>before the time of appointment.<br/>
<a id="pl.20.30"></a><var>20.30</var>    Subd. 3. <b>Termination by receiver.</b> For good cause, the court may authorize <br/>
<a id="pl.20.31"></a><var>20.31</var>the receiver to terminate an executory contract. The receiver's right to possess or use <br/>
<a id="pl.20.32"></a><var>20.32</var>property pursuant to the executory contract shall terminate at the termination of the <br/>
<a id="pl.20.33"></a><var>20.33</var>executory contract. Except as to the claim against the receivership under subdivision 1, <br/>
<a id="pl.20.34"></a><var>20.34</var>the termination shall create a claim equal to the damages, if any, for a breach of contract as <br/>
<a id="pl.21.1"></a><var>21.1</var>if the breach of contract had occurred immediately before the time of appointment. Any <br/>
<a id="pl.21.2"></a><var>21.2</var>claim arising under this section for termination of an executory contract shall be presented <br/>
<a id="pl.21.3"></a><var>21.3</var>or filed in the same manner as other claims in the receivership no later than the later of: <br/>
<a id="pl.21.4"></a><var>21.4</var>(1) the time set for filing of claims in the receivership; or (2) 28 days after the notice by <br/>
<a id="pl.21.5"></a><var>21.5</var>the receiver of the termination of the executory contract.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.21.6"></a><var>21.6</var>    Sec. 26. <b>[576.46] SALES FREE AND CLEAR OF LIEN IN GENERAL </b><br/>
<a id="pl.21.7"></a><var>21.7</var><b>RECEIVERSHIPS.</b><br/>
<a id="pl.21.8"></a><var>21.8</var>    Subdivision 1. <b>Sales free and clear of liens.</b> (a) The court may order that a general <br/>
<a id="pl.21.9"></a><var>21.9</var>receiver's sale of receivership property is free and clear of all liens, except any lien for <br/>
<a id="pl.21.10"></a><var>21.10</var>unpaid real estate taxes or assessments and liens arising under federal law, and may be free <br/>
<a id="pl.21.11"></a><var>21.11</var>of the rights of redemption of the respondent if the rights of redemption are receivership <br/>
<a id="pl.21.12"></a><var>21.12</var>property and the rights of redemption of the holders of any liens, regardless of whether the <br/>
<a id="pl.21.13"></a><var>21.13</var>sale will generate proceeds sufficient to fully satisfy all liens on the property, unless either:<br/>
<a id="pl.21.14"></a><var>21.14</var>(1) the property is (i) real property classified as agricultural land under section <br/>
<a id="pl.21.15"></a><var>21.15</var>273.13, subdivision 23, or the property is a homestead under section 510.01; and (ii) <br/>
<a id="pl.21.16"></a><var>21.16</var>each of the owners of the property has not consented to the sale following the time <br/>
<a id="pl.21.17"></a><var>21.17</var>of appointment; or<br/>
<a id="pl.21.18"></a><var>21.18</var>(2) any owner of the property or holder of a lien on the property serves and files <br/>
<a id="pl.21.19"></a><var>21.19</var>a timely objection, and the court determines that the amount likely to be realized from <br/>
<a id="pl.21.20"></a><var>21.20</var>the sale by the objecting person is less than the objecting person would realize within a <br/>
<a id="pl.21.21"></a><var>21.21</var>reasonable time in the absence of this sale.<br/>
<a id="pl.21.22"></a><var>21.22</var>(b) The receiver shall have the burden of proof to establish that the amount likely to <br/>
<a id="pl.21.23"></a><var>21.23</var>be realized by the objecting person from the sale is equal to or more than the objecting <br/>
<a id="pl.21.24"></a><var>21.24</var>person would realize within a reasonable time in the absence of the sale.<br/>
<a id="pl.21.25"></a><var>21.25</var>(c) Upon any sale free and clear of liens authorized by this section, all liens <br/>
<a id="pl.21.26"></a><var>21.26</var>encumbering the property conveyed shall transfer and attach to the proceeds of the <br/>
<a id="pl.21.27"></a><var>21.27</var>sale, net of reasonable expenses approved by the court incurred in the disposition of <br/>
<a id="pl.21.28"></a><var>21.28</var>the property, in the same order, priority, and validity as the liens had with respect to the <br/>
<a id="pl.21.29"></a><var>21.29</var>property immediately before the sale. The court may authorize the receiver to satisfy, <br/>
<a id="pl.21.30"></a><var>21.30</var>in whole or in part, any ownership interest or lien out of the proceeds of the sale if the <br/>
<a id="pl.21.31"></a><var>21.31</var>ownership interest or lien of any party in interest would not thereby be impaired.<br/>
<a id="pl.21.32"></a><var>21.32</var>    Subd. 2. <b>Co-owned property.</b> If any receivership property includes an interest as a <br/>
<a id="pl.21.33"></a><var>21.33</var>co-owner of property, the receiver shall have the rights and powers afforded by applicable <br/>
<a id="pl.21.34"></a><var>21.34</var>state or federal law of the respondent, including but not limited to any rights of partition, <br/>
<a id="pl.21.35"></a><var>21.35</var>but may not sell the property free and clear of the co-owner's interest in the property.<br/>
<a id="pl.22.1"></a><var>22.1</var>    Subd. 3. <b>Right to credit bid.</b> A creditor with a claim secured by a valid and <br/>
<a id="pl.22.2"></a><var>22.2</var>perfected lien against the property to be sold may bid on the property at a sale and may <br/>
<a id="pl.22.3"></a><var>22.3</var>offset against the purchase price part or all of the amount secured by its lien, provided that <br/>
<a id="pl.22.4"></a><var>22.4</var>the creditor tenders cash sufficient to satisfy in full the reasonable expenses, approved <br/>
<a id="pl.22.5"></a><var>22.5</var>by the court, incurred in the disposition of the property and all liens payable out of the <br/>
<a id="pl.22.6"></a><var>22.6</var>proceeds of sale having priority over the lien of that creditor.<br/>
<a id="pl.22.7"></a><var>22.7</var>    Subd. 4. <b>Effect of appeal.</b> The reversal or modification on appeal of an <br/>
<a id="pl.22.8"></a><var>22.8</var>authorization to sell property under this section does not affect the validity of a sale to a <br/>
<a id="pl.22.9"></a><var>22.9</var>person that purchased the property in good faith, whether or not the person knew of the <br/>
<a id="pl.22.10"></a><var>22.10</var>pendency of the appeal, unless the authorization and sale is stayed pending the appeal.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.22.11"></a><var>22.11</var>    Sec. 27. <b>[576.47] ABANDONMENT OF PROPERTY.</b><br/>
<a id="pl.22.12"></a><var>22.12</var>The court may authorize the receiver to abandon any receivership property that is <br/>
<a id="pl.22.13"></a><var>22.13</var>burdensome or is not of material value to the receivership. Property that is abandoned is <br/>
<a id="pl.22.14"></a><var>22.14</var>no longer receivership property.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.22.15"></a><var>22.15</var>    Sec. 28. <b>[576.48] LIENS AGAINST AFTER-ACQUIRED PROPERTY.</b><br/>
<a id="pl.22.16"></a><var>22.16</var>Except as otherwise provided for by statute, property that becomes receivership <br/>
<a id="pl.22.17"></a><var>22.17</var>property after the time of appointment is subject to a lien to the same extent as it would <br/>
<a id="pl.22.18"></a><var>22.18</var>have been in the absence of the receivership.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.22.19"></a><var>22.19</var>    Sec. 29. <b>[576.49] CLAIMS PROCESS.</b><br/>
<a id="pl.22.20"></a><var>22.20</var>    Subdivision 1. <b>Recommendation of receiver.</b> In a general receivership, and in a <br/>
<a id="pl.22.21"></a><var>22.21</var>limited receivership if the circumstances require, the receiver shall submit to the court a <br/>
<a id="pl.22.22"></a><var>22.22</var>recommendation concerning a claims process appropriate to the particular receivership.<br/>
<a id="pl.22.23"></a><var>22.23</var>    Subd. 2. <b>Order establishing process.</b> In a general receivership and, if the court <br/>
<a id="pl.22.24"></a><var>22.24</var>orders, in a limited receivership, the court shall establish the claims process to be followed <br/>
<a id="pl.22.25"></a><var>22.25</var>in the receivership addressing whether proofs of claim must be submitted, the form of <br/>
<a id="pl.22.26"></a><var>22.26</var>any proofs of claim, the place where the proofs of claim must be submitted, the deadline <br/>
<a id="pl.22.27"></a><var>22.27</var>or deadlines for submitting the proofs of claim, and other matters bearing on the claims <br/>
<a id="pl.22.28"></a><var>22.28</var>process.<br/>
<a id="pl.22.29"></a><var>22.29</var>    Subd. 3. <b>Alternative procedures.</b> The court may authorize proofs of claim to be <br/>
<a id="pl.22.30"></a><var>22.30</var>filed with the receiver rather than the court. The court may authorize the receiver to treat <br/>
<a id="pl.22.31"></a><var>22.31</var>claims as allowed claims based on the amounts established in the books and records of the <br/>
<a id="pl.22.32"></a><var>22.32</var>respondent or the schedule of claims filed pursuant to section 576.33, without necessity of <br/>
<a id="pl.22.33"></a><var>22.33</var>formal proofs of claim.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.23.1"></a><var>23.1</var>    Sec. 30. <b>[576.50] OBJECTION TO AND ALLOWANCE OF CLAIMS.</b><br/>
<a id="pl.23.2"></a><var>23.2</var>    Subdivision 1. <b>Objections and allowance.</b> The receiver or any party in interest may <br/>
<a id="pl.23.3"></a><var>23.3</var>file a motion objecting to a claim and stating the grounds for the objection. The court may <br/>
<a id="pl.23.4"></a><var>23.4</var>order that a copy of the objection be served on the persons on the master mailing list at <br/>
<a id="pl.23.5"></a><var>23.5</var>least 30 days prior to the hearing. Claims allowed by court order, and claims properly <br/>
<a id="pl.23.6"></a><var>23.6</var>submitted and not disallowed by the court shall be allowed claims and shall be entitled to <br/>
<a id="pl.23.7"></a><var>23.7</var>share in distributions of receivership property in accordance with the priorities provided <br/>
<a id="pl.23.8"></a><var>23.8</var>by this chapter or otherwise by law.<br/>
<a id="pl.23.9"></a><var>23.9</var>    Subd. 2. <b>Examination of claims.</b> If the claims process does not require proofs of <br/>
<a id="pl.23.10"></a><var>23.10</var>claim to be filed with the court, at any time after expiration of the claim-filing period and <br/>
<a id="pl.23.11"></a><var>23.11</var>upon 14 days' written notice to the receiver, any party in interest shall have the right to <br/>
<a id="pl.23.12"></a><var>23.12</var>examine:<br/>
<a id="pl.23.13"></a><var>23.13</var>(1) all claims filed with the receiver; and<br/>
<a id="pl.23.14"></a><var>23.14</var>(2) all books and records in the receiver's possession that provided the receiver the <br/>
<a id="pl.23.15"></a><var>23.15</var>basis for concluding that creditors identified therein are entitled to participate in any <br/>
<a id="pl.23.16"></a><var>23.16</var>distributions of receivership property without having to file claims.<br/>
<a id="pl.23.17"></a><var>23.17</var>    Subd. 3. <b>Estimation of claims.</b> For the purpose of allowance of claims, the court <br/>
<a id="pl.23.18"></a><var>23.18</var>may estimate:<br/>
<a id="pl.23.19"></a><var>23.19</var>(1) any contingent or unliquidated claim, the fixing or liquidation of which would <br/>
<a id="pl.23.20"></a><var>23.20</var>unduly delay the administration of the receivership; or<br/>
<a id="pl.23.21"></a><var>23.21</var>(2) any right to payment arising from a right to an equitable remedy.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.23.22"></a><var>23.22</var>    Sec. 31. <b>[576.51] PRIORITY OF CLAIMS.</b><br/>
<a id="pl.23.23"></a><var>23.23</var>    Subdivision 1. <b>Priorities.</b> Allowed claims shall receive distribution under this <br/>
<a id="pl.23.24"></a><var>23.24</var>chapter in the following order of priority and, except as set forth in clause (1), on a pro <br/>
<a id="pl.23.25"></a><var>23.25</var>rata basis:<br/>
<a id="pl.23.26"></a><var>23.26</var>(1) claims secured by liens on receivership property, which liens are valid and <br/>
<a id="pl.23.27"></a><var>23.27</var>perfected before the time of appointment, to the extent of the proceeds from the disposition <br/>
<a id="pl.23.28"></a><var>23.28</var>of the collateral in accordance with their respective priorities under otherwise applicable <br/>
<a id="pl.23.29"></a><var>23.29</var>law, subject first to reimbursing the receiver for the reasonable and necessary expenses <br/>
<a id="pl.23.30"></a><var>23.30</var>of preserving, protecting, or disposing of the collateral, including allowed fees and <br/>
<a id="pl.23.31"></a><var>23.31</var>reimbursement of reasonable expenses of the receiver and professionals;<br/>
<a id="pl.23.32"></a><var>23.32</var>(2) actual, necessary costs and expenses incurred during the receivership, other than <br/>
<a id="pl.23.33"></a><var>23.33</var>those expenses allowable under clause (1), including allowed fees and reimbursement of <br/>
<a id="pl.23.34"></a><var>23.34</var>reasonable expenses of the receiver and professionals employed by the receiver under <br/>
<a id="pl.23.35"></a><var>23.35</var>section 576.32;<br/>
<a id="pl.24.1"></a><var>24.1</var>(3) claims for wages, salaries, or commissions, including vacation, severance, and <br/>
<a id="pl.24.2"></a><var>24.2</var>sick leave pay, or contributions to an employee benefit plan, earned by the claimant within <br/>
<a id="pl.24.3"></a><var>24.3</var>the 90 days before the time of appointment or the cessation of the respondent's business, <br/>
<a id="pl.24.4"></a><var>24.4</var>whichever occurs first, but only to the extent of the dollar amount in effect in United <br/>
<a id="pl.24.5"></a><var>24.5</var>States Code, title 11, section 507(4);<br/>
<a id="pl.24.6"></a><var>24.6</var>(4) allowed unsecured claims, to the extent of the dollar amount in effect in United <br/>
<a id="pl.24.7"></a><var>24.7</var>States Code, title 11, section 507(7) for each individual, arising from the deposit with the <br/>
<a id="pl.24.8"></a><var>24.8</var>respondent, before the time of appointment of the receiver, of money in connection with <br/>
<a id="pl.24.9"></a><var>24.9</var>the purchase, lease, or rental of property or the purchase of services for personal, family, <br/>
<a id="pl.24.10"></a><var>24.10</var>or household use by individuals that were not delivered or provided;<br/>
<a id="pl.24.11"></a><var>24.11</var>(5) claims for arrears in amounts owing pursuant to a support order as defined in <br/>
<a id="pl.24.12"></a><var>24.12</var>section 518A.26, subdivision 3;<br/>
<a id="pl.24.13"></a><var>24.13</var>(6) unsecured claims of governmental units for taxes that accrued before the time <br/>
<a id="pl.24.14"></a><var>24.14</var>of appointment of the receiver; <br/>
<a id="pl.24.15"></a><var>24.15</var>(7) all other unsecured claims due as of the time of appointment, including the <br/>
<a id="pl.24.16"></a><var>24.16</var>balance due the holders of secured claims to the extent not satisfied under clause (1); and<br/>
<a id="pl.24.17"></a><var>24.17</var>(8) interest pursuant to section 576.52.<br/>
<a id="pl.24.18"></a><var>24.18</var>    Subd. 2. <b>Payments to respondent.</b> If all of the amounts payable under subdivision <br/>
<a id="pl.24.19"></a><var>24.19</var>1 have been paid in full, any remaining receivership property shall be returned to the <br/>
<a id="pl.24.20"></a><var>24.20</var>respondent.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.24.21"></a><var>24.21</var>    Sec. 32. <b>[576.52] INTEREST ON UNSECURED CLAIMS.</b><br/>
<a id="pl.24.22"></a><var>24.22</var>To the extent that funds are available to pay holders of allowed unsecured claims in <br/>
<a id="pl.24.23"></a><var>24.23</var>full or the amounts due as of the time of appointment, each holder shall also be entitled <br/>
<a id="pl.24.24"></a><var>24.24</var>to receive interest, calculated from the time of appointment, at the rate set forth in the <br/>
<a id="pl.24.25"></a><var>24.25</var>agreement evidencing the claim, or if no rate is provided, at the judgment rate that would <br/>
<a id="pl.24.26"></a><var>24.26</var>be payable as of the time of appointment; provided however, that no holder shall be entitled <br/>
<a id="pl.24.27"></a><var>24.27</var>to interest on that portion, if any, of its unsecured claim that is itself interest calculated <br/>
<a id="pl.24.28"></a><var>24.28</var>from the time of appointment. If there are not sufficient funds in the receivership to pay in <br/>
<a id="pl.24.29"></a><var>24.29</var>full the interest owed to all the holders, then the interest shall be paid pro rata.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.24.30"></a><var>24.30</var>    Sec. 33. <b>[576.53] DISTRIBUTIONS.</b><br/>
<a id="pl.24.31"></a><var>24.31</var>    Subdivision 1. <b>Proposed distributions.</b> Before any interim or final distribution is <br/>
<a id="pl.24.32"></a><var>24.32</var>made, the receiver shall file a distribution schedule listing the proposed distributions. <br/>
<a id="pl.24.33"></a><var>24.33</var>The distribution schedule may be filed at any time during the case or may be included <br/>
<a id="pl.24.34"></a><var>24.34</var>in the final report.<br/>
<a id="pl.25.1"></a><var>25.1</var>    Subd. 2. <b>Notice.</b> The receiver shall give notice of the filing of the distribution <br/>
<a id="pl.25.2"></a><var>25.2</var>schedule to all persons on the master mailing list or that have filed proofs of claim. If there <br/>
<a id="pl.25.3"></a><var>25.3</var>is no objection within 21 days after the notice, the court may enter an order authorizing <br/>
<a id="pl.25.4"></a><var>25.4</var>the receiver to make the distributions described in the distribution schedule without the <br/>
<a id="pl.25.5"></a><var>25.5</var>necessity of a hearing.<br/>
<a id="pl.25.6"></a><var>25.6</var>    Subd. 3. <b>Other distributions.</b> In the order appointing the receiver or in subsequent <br/>
<a id="pl.25.7"></a><var>25.7</var>orders, the court may authorize distribution of receivership property to persons with <br/>
<a id="pl.25.8"></a><var>25.8</var>ownership interests or liens.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.25.11"></a><var>25.11</var>    Section 1. <b>[577.11] DEFINITIONS.</b><br/>
<a id="pl.25.12"></a><var>25.12</var>(a) The definitions in this section and in section 576.21 apply throughout this chapter <br/>
<a id="pl.25.13"></a><var>25.13</var>unless the context requires otherwise.<br/>
<a id="pl.25.14"></a><var>25.14</var>(b) "Assignee" means the person to whom the assignment property is assigned.<br/>
<a id="pl.25.15"></a><var>25.15</var>(c) "Assignment property" means the property assigned pursuant to the provisions <br/>
<a id="pl.25.16"></a><var>25.16</var>of this chapter.<br/>
<a id="pl.25.17"></a><var>25.17</var>(d) "Assignor" means the person who assigns the assignment property.<br/>
<a id="pl.25.18"></a><var>25.18</var>(e) "Time of assignment" means the date and time endorsed by the court <br/>
<a id="pl.25.19"></a><var>25.19</var>administrator pursuant to section 577.14.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.25.20"></a><var>25.20</var>    Sec. 2. <b>[577.12] REQUISITES.</b><br/>
<a id="pl.25.21"></a><var>25.21</var>A person may execute a written assignment of property to one or more assignees for <br/>
<a id="pl.25.22"></a><var>25.22</var>the benefit of creditors in conformity with the provisions of this chapter. Every assignment <br/>
<a id="pl.25.23"></a><var>25.23</var>for the benefit of creditors subject to this chapter made by an assignor of the whole or any <br/>
<a id="pl.25.24"></a><var>25.24</var>part of the assignor's property, real or personal, for the benefit of creditors, shall be: (1) to <br/>
<a id="pl.25.25"></a><var>25.25</var>a resident of the state eligible to be a receiver under section 576.26, in writing, subscribed <br/>
<a id="pl.25.26"></a><var>25.26</var>and acknowledged by the assignor, and (2) filed by the assignor or the assignee with the <br/>
<a id="pl.25.27"></a><var>25.27</var>court administrator of the district court of the county in which the assignor, or one of the <br/>
<a id="pl.25.28"></a><var>25.28</var>assignors if there is more than one, resides, or in which the principal place of business of <br/>
<a id="pl.25.29"></a><var>25.29</var>an assignor engaged in business is located. The district court shall have supervision over <br/>
<a id="pl.25.30"></a><var>25.30</var>the assignment property and of all proceedings under this chapter.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.25.31"></a><var>25.31</var>    Sec. 3. <b>[577.13] FORM OF ASSIGNMENT.</b><br/>
<a id="pl.25.32"></a><var>25.32</var>An assignment for the benefit of creditors under this chapter shall be signed by the <br/>
<a id="pl.25.33"></a><var>25.33</var>assignor and duly acknowledged in the same manner as conveyances of real property <br/>
<a id="pl.26.1"></a><var>26.1</var>before a notary public of the state, shall include an acceptance of the assignment by the <br/>
<a id="pl.26.2"></a><var>26.2</var>assignee, and shall be in substantially the following form:<br/>

<a id="pl.26.5"></a><var>26.5</var>............, with a principal place of business at .......... (hereinafter "assignor"), and ............, <br/>
<a id="pl.26.6"></a><var>26.6</var>whose address is ........... (hereinafter "assignee").<br/>
<a id="pl.26.7"></a><var>26.7</var>    WHEREAS, the assignor has been engaged in the business of <br/>
<a id="pl.26.8"></a><var>26.8</var>............................................<br/>
<a id="pl.26.9"></a><var>26.9</var>    WHEREAS, the assignor is indebted to creditors and is unable to pay debts as they <br/>
<a id="pl.26.10"></a><var>26.10</var>become due, and is desirous of providing for the payment of debts, so far as it is possible <br/>
<a id="pl.26.11"></a><var>26.11</var>by an assignment of property for that purpose.<br/>
<a id="pl.26.12"></a><var>26.12</var>    NOW, THEREFORE, the assignor, in consideration of the assignee's acceptance <br/>
<a id="pl.26.13"></a><var>26.13</var>of this assignment, and for other good and valuable consideration, hereby assigns to <br/>
<a id="pl.26.14"></a><var>26.14</var>the assignee, and the assignee's successors and assigns, the assignor's property, except <br/>
<a id="pl.26.15"></a><var>26.15</var>the property as is exempt by law from levy and sale under an execution (and then only <br/>
<a id="pl.26.16"></a><var>26.16</var>to the extent of the exemption), including but not limited to all real property, fixtures, <br/>
<a id="pl.26.17"></a><var>26.17</var>goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general <br/>
<a id="pl.26.18"></a><var>26.18</var>intangibles, bank deposits, cash, promissory notes, cash value and proceeds of insurance <br/>
<a id="pl.26.19"></a><var>26.19</var>policies, claims, and demands belonging to the assignor, wherever the property may be <br/>
<a id="pl.26.20"></a><var>26.20</var>located (hereinafter collectively the "assignment property"), which property is set forth <br/>
<a id="pl.26.21"></a><var>26.21</var>on Schedule A attached hereto.<br/>
<a id="pl.26.22"></a><var>26.22</var>    A list of the creditors of the assignor is set forth in Schedule B annexed hereto.<br/>
<a id="pl.26.23"></a><var>26.23</var>    By making this assignment, the assignor consents to the appointment of the assignee <br/>
<a id="pl.26.24"></a><var>26.24</var>as a general receiver with respect to the assignment property in accordance with Minnesota <br/>
<a id="pl.26.25"></a><var>26.25</var>Statutes, chapters 576 and 577.<br/>
<a id="pl.26.26"></a><var>26.26</var>    The assignee shall take possession of and administer the assignment property <br/>
<a id="pl.26.27"></a><var>26.27</var>and shall liquidate the assignment property with reasonable dispatch, collect all claims <br/>
<a id="pl.26.28"></a><var>26.28</var>and demands hereby assigned as and to the extent they may be collectible, and pay <br/>
<a id="pl.26.29"></a><var>26.29</var>and discharge all reasonable expenses, costs, and disbursements in connection with the <br/>
<a id="pl.26.30"></a><var>26.30</var>execution and administration of this assignment from the proceeds of the liquidations and <br/>
<a id="pl.26.31"></a><var>26.31</var>collections in accordance with Minnesota Statutes, chapters 576 and 577.<br/>
<a id="pl.26.32"></a><var>26.32</var>    The assignee shall then pay and discharge in full, to the extent that funds are available <br/>
<a id="pl.26.33"></a><var>26.33</var>from the assignment property after payment of expenses, costs, and disbursements, all of <br/>
<a id="pl.26.34"></a><var>26.34</var>the debts and liabilities now due from the assignor, including interest on the debts and <br/>
<a id="pl.26.35"></a><var>26.35</var>liabilities in full, in accordance with Minnesota Statutes, chapters 576 and 577.<br/>
<a id="pl.27.1"></a><var>27.1</var>    In the event that all debts and liabilities are paid in full, the remainder of the <br/>
<a id="pl.27.2"></a><var>27.2</var>assignment property shall be returned to the assignor.<br/>
<a id="pl.27.3"></a><var>27.3</var>    To accomplish the purposes of this assignment, the assignor hereby irrevocably <br/>
<a id="pl.27.4"></a><var>27.4</var>appoints the assignee as the assignor's true and lawful attorney-in-fact, with full power <br/>
<a id="pl.27.5"></a><var>27.5</var>and authority to do all acts and things which may be necessary to execute and fulfill the <br/>
<a id="pl.27.6"></a><var>27.6</var>assignment hereby created, to the same extent as the acts and things might be done by <br/>
<a id="pl.27.7"></a><var>27.7</var>the assignor in the absence of this assignment, including, but not limited to, the power <br/>
<a id="pl.27.8"></a><var>27.8</var>to demand and recover from all persons all assignment property; to sue for the recovery <br/>
<a id="pl.27.9"></a><var>27.9</var>of assignment property; to execute, acknowledge, and deliver all necessary deeds, <br/>
<a id="pl.27.10"></a><var>27.10</var>instruments, and conveyances, and to grant and convey any or all of the real or personal <br/>
<a id="pl.27.11"></a><var>27.11</var>property of the assignment property pursuant thereto; and to appoint one or more attorneys <br/>
<a id="pl.27.12"></a><var>27.12</var>to assist the assignee in carrying out the assignee's duties hereunder.<br/>
<a id="pl.27.13"></a><var>27.13</var>    The assignor hereby authorizes the assignee to sign the name of the assignor to any <br/>
<a id="pl.27.14"></a><var>27.14</var>check, draft, promissory note, or other instrument in writing which is payable to the order <br/>
<a id="pl.27.15"></a><var>27.15</var>of the assignor, or to sign the name of the assignor to any instrument in writing, whenever <br/>
<a id="pl.27.16"></a><var>27.16</var>it shall be necessary to do so, to carry out the purposes of this assignment.<br/>
<a id="pl.27.17"></a><var>27.17</var>    The assignor declares, under penalty of perjury under the laws of the state of <br/>
<a id="pl.27.18"></a><var>27.18</var>Minnesota, that the attached schedules of the property or the assignor and creditors are <br/>
<a id="pl.27.19"></a><var>27.19</var>true and complete to the best of the assignor's knowledge.<br/>
<a id="pl.27.20"></a><var>27.20</var>    The assignee hereby accepts the assignment property and agrees faithfully and <br/>
<a id="pl.27.21"></a><var>27.21</var>without delay to carry out the assignee's duties under the foregoing assignment.<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.27.22"></a><var>27.22</var><br/>
<a id="pl.27.23"></a><var>27.23</var><br/>
</td>
<td>.............................................<br/>
Assignor<br/>
</td>
<td>...............................................<br/>
Assignee<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.24"></a><var>27.24</var><br/>
</td>
<td>Dated: ...................................<br/>
</td>
<td>Dated: ................................<br/>
</td>
</tr>
</table><br/>
<a id="bill.2.4.0"></a><a id="pl.27.25"></a><var>27.25</var>    Sec. 4. <b>[577.14] DUTY OF COURT ADMINISTRATOR.</b><br/>
<a id="pl.27.26"></a><var>27.26</var>The court administrator shall endorse the day, hour, and minute of the filing of the <br/>
<a id="pl.27.27"></a><var>27.27</var>assignment. The assignment shall be entered in the court administrator's register, and all <br/>
<a id="pl.27.28"></a><var>27.28</var>papers filed and orders made in the matter of the assignment shall be noted therein as in <br/>
<a id="pl.27.29"></a><var>27.29</var>the case of a civil action.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.27.30"></a><var>27.30</var>    Sec. 5. <b>[577.15] ASSIGNEE AS LIEN CREDITOR; REAL ESTATE </b><br/>
<a id="pl.27.31"></a><var>27.31</var><b>RECORDING.</b><br/>
<a id="pl.27.32"></a><var>27.32</var>    Subdivision 1. <b>Assignee as lien creditor.</b> As of the filing of the assignment, the <br/>
<a id="pl.27.33"></a><var>27.33</var>assignee shall have the powers and priority of a creditor that obtained a judicial lien at <br/>
<a id="pl.27.34"></a><var>27.34</var>the time of assignment pursuant to sections 548.09 and 550.10 on all of the assignment <br/>
<a id="pl.28.1"></a><var>28.1</var>property subject to satisfying the recording requirements as to real property described in <br/>
<a id="pl.28.2"></a><var>28.2</var>subdivision 2.<br/>
<a id="pl.28.3"></a><var>28.3</var>    Subd. 2. <b>Real estate recording.</b> If any interest in real estate is included in the <br/>
<a id="pl.28.4"></a><var>28.4</var>assignment property, the assignment shall be effective as a deed, and a notice of a lis <br/>
<a id="pl.28.5"></a><var>28.5</var>pendens shall be recorded as soon as practicable with the county recorder or registrar of <br/>
<a id="pl.28.6"></a><var>28.6</var>titles, as appropriate, of the county in which the real property is located. The priority of <br/>
<a id="pl.28.7"></a><var>28.7</var>the assignee as lien creditor against real property shall be from the time of recording of <br/>
<a id="pl.28.8"></a><var>28.8</var>the notice of lis pendens, except as to persons with actual or implied knowledge of the <br/>
<a id="pl.28.9"></a><var>28.9</var>assignment under section 507.34. The assignment executed by the assignor and certified <br/>
<a id="pl.28.10"></a><var>28.10</var>by the court administrator and a deed executed by the assignee shall be recorded with the <br/>
<a id="pl.28.11"></a><var>28.11</var>county recorder or registrar of titles, as appropriate, of the county in which the real property <br/>
<a id="pl.28.12"></a><var>28.12</var>is located, and upon execution of the deed by the assignee shall be prima facie evidence of <br/>
<a id="pl.28.13"></a><var>28.13</var>the authority of the assignee to convey the real property described in the assignment.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.28.14"></a><var>28.14</var>    Sec. 6. <b>[577.16] NOTICE.</b><br/>
<a id="pl.28.15"></a><var>28.15</var>The assignee shall give notice of the assignment to all creditors and other parties <br/>
<a id="pl.28.16"></a><var>28.16</var>in interest actually known to the assignee by mail or other means of transmission within <br/>
<a id="pl.28.17"></a><var>28.17</var>21 days after the time of assignment. The notice of the assignment shall include the <br/>
<a id="pl.28.18"></a><var>28.18</var>time of assignment and the names and addresses of the assignor, the assignee, and the <br/>
<a id="pl.28.19"></a><var>28.19</var>assignee's attorney, if any.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.28.20"></a><var>28.20</var>    Sec. 7. <b>[577.17] REMOVAL OF ASSIGNEE.</b><br/>
<a id="pl.28.21"></a><var>28.21</var>The court may remove the assignee and appoint another assignee by application of <br/>
<a id="pl.28.22"></a><var>28.22</var>the standards and procedures under section 576.37. The order of removal and appointment <br/>
<a id="pl.28.23"></a><var>28.23</var>shall transfer all of the assignment property to the new assignee, and with respect to real <br/>
<a id="pl.28.24"></a><var>28.24</var>property may be recorded in the same manner as the initial assignment.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.28.25"></a><var>28.25</var>    Sec. 8. <b>[577.18] APPLICATION OF CHAPTER GOVERNING </b><br/>
<a id="pl.28.26"></a><var>28.26</var><b>RECEIVERSHIPS.</b><br/>
<a id="pl.28.27"></a><var>28.27</var>Except as otherwise provided in this chapter, an assignee shall be treated as a <br/>
<a id="pl.28.28"></a><var>28.28</var>general receiver, the assignment property shall be treated as receivership property, and all <br/>
<a id="pl.28.29"></a><var>28.29</var>proceedings following the filing of the assignment shall be governed by sections 576.21 <br/>
<a id="pl.28.30"></a><var>28.30</var>to 576.53.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.28.31"></a><var>28.31</var>    Sec. 9. <b> REPEALER.</b><br/>
<a id="pl.29.1"></a><var>29.1</var>Minnesota Statutes 2010, sections 577.01; 577.02; 577.03; 577.04; 577.05; 577.06; <br/>
<a id="pl.29.2"></a><var>29.2</var>577.08; 577.09; and 577.10, are repealed.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.29.5"></a><var>29.5</var>    Section 1. Minnesota Statutes 2010, section 302A.753, subdivision 2, is amended to <br/>
<a id="pl.29.6"></a><var>29.6</var>read:<br/>
<a id="pl.29.7"></a><var>29.7</var>    Subd. 2. <b>Action after hearing.</b> After a full hearing has been held, upon whatever <br/>
<a id="pl.29.8"></a><var>29.8</var>notice the court directs to be given to all parties to the proceedings and to any other parties <br/>
<a id="pl.29.9"></a><var>29.9</var>in interest designated by the court, the court may appoint a receiver to collect the corporate <br/>
<a id="pl.29.10"></a><var>29.10</var>assets, including all amounts owing to the corporation by subscribers on account of any <br/>
<a id="pl.29.11"></a><var>29.11</var>unpaid portion of the consideration for the issuance of shares. In addition to the powers set <br/>
<a id="pl.29.12"></a><var>29.12</var>forth in chapter 576, a receiver has authority, subject to the order of the court, to continue <br/>
<a id="pl.29.13"></a><var>29.13</var>the business of the corporation and to sell, lease, transfer, or otherwise dispose of all or <br/>
<a id="pl.29.14"></a><var>29.14</var>any of the property and assets of the corporation either at public or private sale.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.29.15"></a><var>29.15</var>    Sec. 2. Minnesota Statutes 2010, section 302A.753, subdivision 3, is amended to read:<br/>
<a id="pl.29.16"></a><var>29.16</var>    Subd. 3. <b>Discharge of obligations.</b> The assets of the corporation or the proceeds <br/>
<a id="pl.29.17"></a><var>29.17</var>resulting from a sale, lease, transfer, or other disposition shall be applied in the following <br/>
<a id="pl.29.18"></a><var>29.18</var>order of priority to the payment and discharge or:<br/>
<a id="pl.29.19"></a><var>29.19</var>(a) the costs and expenses of the proceedings, including attorneys' fees and <br/>
<a id="pl.29.20"></a><var>29.20</var>disbursements;<br/>
<a id="pl.29.21"></a><var>29.21</var>(b) debts, taxes and assessments due the United States, the state of Minnesota and <br/>
<a id="pl.29.22"></a><var>29.22</var>their subdivisions, and other states and their subdivisions, in that order;<br/>
<a id="pl.29.23"></a><var>29.23</var>(c) claims duly proved and allowed to employees under the provisions of the <br/>
<a id="pl.29.24"></a><var>29.24</var>Workers' Compensation Act; provided, that claims under this clause shall not be allowed if <br/>
<a id="pl.29.25"></a><var>29.25</var>the corporation carried workers' compensation insurance, as provided by law, at the time <br/>
<a id="pl.29.26"></a><var>29.26</var>the injury was sustained;<br/>
<a id="pl.29.27"></a><var>29.27</var>(d) claims, including the value of all compensation paid in any medium other than <br/>
<a id="pl.29.28"></a><var>29.28</var>money, duly proved and allowed to employees for services performed within three months <br/>
<a id="pl.29.29"></a><var>29.29</var>preceding the appointment of the receiver, if any; and<br/>
<a id="pl.29.30"></a><var>29.30</var>(e) other claims duly proved and allowed set forth in section 576.51.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.29.31"></a><var>29.31</var>    Sec. 3. Minnesota Statutes 2010, section 302A.755, is amended to read:<br/>
<a id="pl.29.32"></a><var>29.32</var><b>302A.755 QUALIFICATIONS OF RECEIVERS; POWERS.</b><br/>
<a id="pl.30.1"></a><var>30.1</var>    Subdivision 1. <b>Qualifications.</b> A receiver shall be a natural person or a domestic <br/>
<a id="pl.30.2"></a><var>30.2</var>corporation or a foreign corporation authorized to transact business in this state. Any <br/>
<a id="pl.30.3"></a><var>30.3</var>person qualified under section 576.26 may be appointed as receiver. A receiver shall <br/>
<a id="pl.30.4"></a><var>30.4</var>give bond as directed by the court with the sureties required by the court required by <br/>
<a id="pl.30.5"></a><var>30.5</var>section 576.27.<br/>
<a id="pl.30.6"></a><var>30.6</var>    Subd. 2. <b>Powers.</b> A receiver may sue and defend in all courts actions as receiver <br/>
<a id="pl.30.7"></a><var>30.7</var>of the corporation. The court appointing the receiver has exclusive jurisdiction of over <br/>
<a id="pl.30.8"></a><var>30.8</var>the corporation and its property, the receiver, and all receivership property pursuant to <br/>
<a id="pl.30.9"></a><var>30.9</var>section 576.23.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.30.10"></a><var>30.10</var>    Sec. 4. Minnesota Statutes 2010, section 302A.759, subdivision 1, is amended to read:<br/>
<a id="pl.30.11"></a><var>30.11</var>    Subdivision 1. <b>Manner and form.</b> In proceedings referred to in section 
         <statute_ref>302A.751</statute_ref> to <br/>
<a id="pl.30.12"></a><var>30.12</var>dissolve a corporation, the court may require all creditors and claimants of the corporation <br/>
<a id="pl.30.13"></a><var>30.13</var>to file their claims under oath with the court administrator or with the receiver in a form <br/>
<a id="pl.30.14"></a><var>30.14</var>prescribed by the court pursuant to section 576.49. The receiver or any party in interest <br/>
<a id="pl.30.15"></a><var>30.15</var>may object to any claim pursuant to section 576.50. <br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.30.16"></a><var>30.16</var>    Sec. 5. Minnesota Statutes 2010, section 302A.761, is amended to read:<br/>
<a id="pl.30.17"></a><var>30.17</var><b>302A.761 DISCONTINUANCE OF DISSOLUTION PROCEEDINGS.</b><br/>
<a id="pl.30.18"></a><var>30.18</var>The involuntary or supervised voluntary dissolution of a corporation shall be <br/>
<a id="pl.30.19"></a><var>30.19</var>discontinued at any time during the dissolution proceedings when it is established that <br/>
<a id="pl.30.20"></a><var>30.20</var>cause for dissolution no longer exists. When this is established, the court shall dismiss the <br/>
<a id="pl.30.21"></a><var>30.21</var>proceedings and direct the receiver, if any, to redeliver to the corporation all its remaining <br/>
<a id="pl.30.22"></a><var>30.22</var>property and assets and to file a final report pursuant to section 576.38, subdivision 3.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.30.23"></a><var>30.23</var>    Sec. 6. Minnesota Statutes 2010, section 308A.945, subdivision 2, is amended to read:<br/>
<a id="pl.30.24"></a><var>30.24</var>    Subd. 2. <b>Action after hearing.</b> After a hearing is completed, on notice the court <br/>
<a id="pl.30.25"></a><var>30.25</var>directs to be given to parties to the proceedings and to other parties in interest designated <br/>
<a id="pl.30.26"></a><var>30.26</var>by the court, the court may appoint a receiver to collect the cooperative's assets, including <br/>
<a id="pl.30.27"></a><var>30.27</var>amounts owing to the cooperative by subscribers on account of an unpaid portion of the <br/>
<a id="pl.30.28"></a><var>30.28</var>consideration for the issuance of shares. In addition to the powers set forth in chapter 576, <br/>
<a id="pl.30.29"></a><var>30.29</var>a receiver has authority, subject to the order of the court, to continue the business of the <br/>
<a id="pl.30.30"></a><var>30.30</var>cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of <br/>
<a id="pl.30.31"></a><var>30.31</var>the cooperative either at public or private sale.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.30.32"></a><var>30.32</var>    Sec. 7. Minnesota Statutes 2010, section 308A.945, subdivision 3, is amended to read:<br/>
<a id="pl.31.1"></a><var>31.1</var>    Subd. 3. <b>Discharge of obligations.</b> The assets of the cooperative or the proceeds <br/>
<a id="pl.31.2"></a><var>31.2</var>resulting from a sale, lease, transfer, or other disposition shall be applied in the following <br/>
<a id="pl.31.3"></a><var>31.3</var>order of priority or:<br/>
<a id="pl.31.4"></a><var>31.4</var>(1) the costs and expenses of the proceedings, including attorneys' fees and <br/>
<a id="pl.31.5"></a><var>31.5</var>disbursements;<br/>
<a id="pl.31.6"></a><var>31.6</var>(2) debts, taxes and assessments due the United States, the state of Minnesota and <br/>
<a id="pl.31.7"></a><var>31.7</var>their subdivisions, and other states and their subdivisions, in that order;<br/>
<a id="pl.31.8"></a><var>31.8</var>(3) claims duly proved and allowed to employees under the provisions of the <br/>
<a id="pl.31.9"></a><var>31.9</var>Workers' Compensation Act except that claims under this clause may not be allowed <br/>
<a id="pl.31.10"></a><var>31.10</var>if the cooperative has carried workers' compensation insurance, as provided by law, at <br/>
<a id="pl.31.11"></a><var>31.11</var>the time the injury was sustained;<br/>
<a id="pl.31.12"></a><var>31.12</var>(4) claims, including the value of all compensation paid in a medium other than <br/>
<a id="pl.31.13"></a><var>31.13</var>money, proved and allowed to employees for services performed within three months <br/>
<a id="pl.31.14"></a><var>31.14</var>preceding the appointment of the receiver, if any; and<br/>
<a id="pl.31.15"></a><var>31.15</var>(5) other claims proved and allowed set forth in section 576.51.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.31.16"></a><var>31.16</var>    Sec. 8. Minnesota Statutes 2010, section 308A.951, is amended to read:<br/>
<a id="pl.31.17"></a><var>31.17</var><b>308A.951 RECEIVER QUALIFICATIONS AND POWERS.</b><br/>
<a id="pl.31.18"></a><var>31.18</var>    Subdivision 1. <b>Qualifications.</b> A receiver must be a natural person or a domestic <br/>
<a id="pl.31.19"></a><var>31.19</var>corporation or a foreign corporation authorized to transact business in this state. Any <br/>
<a id="pl.31.20"></a><var>31.20</var>person qualified under section 576.26 may be appointed as a receiver. A receiver must <br/>
<a id="pl.31.21"></a><var>31.21</var>give a bond as directed by the court with the sureties required by the court required by <br/>
<a id="pl.31.22"></a><var>31.22</var>section 576.27.<br/>
<a id="pl.31.23"></a><var>31.23</var>    Subd. 2. <b>Powers.</b> A receiver may sue and defend in all courts actions as receiver <br/>
<a id="pl.31.24"></a><var>31.24</var>of the cooperative. The court appointing the receiver has exclusive jurisdiction of over <br/>
<a id="pl.31.25"></a><var>31.25</var>the cooperative and its property, the receiver, and all receivership property pursuant to <br/>
<a id="pl.31.26"></a><var>31.26</var>section 576.23.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.31.27"></a><var>31.27</var>    Sec. 9. Minnesota Statutes 2010, section 308A.961, subdivision 1, is amended to read:<br/>
<a id="pl.31.28"></a><var>31.28</var>    Subdivision 1. <b>Filing under oath.</b> In proceedings to dissolve a cooperative, the <br/>
<a id="pl.31.29"></a><var>31.29</var>court may require all creditors and claimants of the cooperative to file their claims under <br/>
<a id="pl.31.30"></a><var>31.30</var>oath with the court administrator or with the receiver in a form prescribed by the court <br/>
<a id="pl.31.31"></a><var>31.31</var>pursuant to section 576.49. The receiver or any party in interest may object to any claims <br/>
<a id="pl.31.32"></a><var>31.32</var>pursuant to section 576.50.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.32.1"></a><var>32.1</var>    Sec. 10. Minnesota Statutes 2010, section 308A.965, is amended to read:<br/>
<a id="pl.32.2"></a><var>32.2</var><b>308A.965 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION </b><br/>
<a id="pl.32.3"></a><var>32.3</var><b>PROCEEDINGS.</b><br/>
<a id="pl.32.4"></a><var>32.4</var>The involuntary or supervised voluntary dissolution of a cooperative may be <br/>
<a id="pl.32.5"></a><var>32.5</var>discontinued at any time during the dissolution proceedings if it is established that cause <br/>
<a id="pl.32.6"></a><var>32.6</var>for dissolution does not exist. The court shall dismiss the proceedings and direct the <br/>
<a id="pl.32.7"></a><var>32.7</var>receiver, if any, to redeliver to the cooperative its remaining property and assets and to file <br/>
<a id="pl.32.8"></a><var>32.8</var>a final report pursuant to section 576.38, subdivision 3.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.32.9"></a><var>32.9</var>    Sec. 11. Minnesota Statutes 2010, section 308B.935, subdivision 2, is amended to read:<br/>
<a id="pl.32.10"></a><var>32.10</var>    Subd. 2. <b>Action after hearing.</b> After a hearing is completed, upon notice to parties <br/>
<a id="pl.32.11"></a><var>32.11</var>to the proceedings and to other parties in interest designated by the court, the court may <br/>
<a id="pl.32.12"></a><var>32.12</var>appoint a receiver to collect the cooperative's assets, including amounts owing to the <br/>
<a id="pl.32.13"></a><var>32.13</var>cooperative by subscribers on account of an unpaid portion of the consideration for the <br/>
<a id="pl.32.14"></a><var>32.14</var>issuance of shares. In addition to the powers set forth in chapter 576, a receiver has <br/>
<a id="pl.32.15"></a><var>32.15</var>authority, subject to the order of the court, to continue the business of the cooperative and <br/>
<a id="pl.32.16"></a><var>32.16</var>to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative <br/>
<a id="pl.32.17"></a><var>32.17</var>either at public or private sale.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.32.18"></a><var>32.18</var>    Sec. 12. Minnesota Statutes 2010, section 308B.935, subdivision 3, is amended to read:<br/>
<a id="pl.32.19"></a><var>32.19</var>    Subd. 3. <b>Discharge of obligations.</b> The assets of the cooperative or the proceeds <br/>
<a id="pl.32.20"></a><var>32.20</var>resulting from a sale, lease, transfer, or other disposition shall be applied in the following <br/>
<a id="pl.32.21"></a><var>32.21</var>order of priority:<br/>
<a id="pl.32.22"></a><var>32.22</var>(1) the costs and expense of the proceedings, including attorney fees and <br/>
<a id="pl.32.23"></a><var>32.23</var>disbursements;<br/>
<a id="pl.32.24"></a><var>32.24</var>(2) debts, taxes, and assessments due the United States, this state, and other states <br/>
<a id="pl.32.25"></a><var>32.25</var>in that order;<br/>
<a id="pl.32.26"></a><var>32.26</var>(3) claims duly proved and allowed to employees under the provisions of the <br/>
<a id="pl.32.27"></a><var>32.27</var>Workers' Compensation Act except that claims under this clause may not be allowed if <br/>
<a id="pl.32.28"></a><var>32.28</var>the cooperative carried workers' compensation insurance, as provided by law, at the time <br/>
<a id="pl.32.29"></a><var>32.29</var>the injury was sustained;<br/>
<a id="pl.32.30"></a><var>32.30</var>(4) claims, including the value of all compensation paid in a medium other than <br/>
<a id="pl.32.31"></a><var>32.31</var>money, proved and allowed to employees for services performed within three months <br/>
<a id="pl.32.32"></a><var>32.32</var>preceding the appointment of the receiver, if any; and<br/>
<a id="pl.32.33"></a><var>32.33</var>(5) other claims proved and allowed set forth in section 576.51.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.33.1"></a><var>33.1</var>    Sec. 13. Minnesota Statutes 2010, section 308B.941, is amended to read:<br/>
<a id="pl.33.2"></a><var>33.2</var><b>308B.941 RECEIVER QUALIFICATIONS AND POWERS.</b><br/>
<a id="pl.33.3"></a><var>33.3</var>    Subdivision 1. <b>Qualifications.</b> A receiver shall be a natural person or a domestic <br/>
<a id="pl.33.4"></a><var>33.4</var>business entity or a foreign business entity authorized to transact business in this state. <br/>
<a id="pl.33.5"></a><var>33.5</var>Any person qualified under section 576.26 may be appointed as a receiver. A receiver <br/>
<a id="pl.33.6"></a><var>33.6</var>shall give a bond as directed by the court with the sureties required by the court required <br/>
<a id="pl.33.7"></a><var>33.7</var>by section 576.27.<br/>
<a id="pl.33.8"></a><var>33.8</var>    Subd. 2. <b>Powers.</b> A receiver may sue and defend in all courts actions as receiver <br/>
<a id="pl.33.9"></a><var>33.9</var>of the cooperative. The court appointing the receiver has exclusive jurisdiction of over <br/>
<a id="pl.33.10"></a><var>33.10</var>the cooperative and its property, the receiver, and all receivership property pursuant to <br/>
<a id="pl.33.11"></a><var>33.11</var>section 576.23.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.33.12"></a><var>33.12</var>    Sec. 14. Minnesota Statutes 2010, section 308B.951, subdivision 1, is amended to read:<br/>
<a id="pl.33.13"></a><var>33.13</var>    Subdivision 1. <b>Filing under oath.</b> In proceedings to dissolve a cooperative, the <br/>
<a id="pl.33.14"></a><var>33.14</var>court may require all creditors and claimants of the cooperative to file their claims under <br/>
<a id="pl.33.15"></a><var>33.15</var>oath with the court administrator or with the receiver in a form prescribed by the court <br/>
<a id="pl.33.16"></a><var>33.16</var>pursuant to section 576.49. The receiver or any party in interest may object to any claim <br/>
<a id="pl.33.17"></a><var>33.17</var>pursuant to section 576.50.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.33.18"></a><var>33.18</var>    Sec. 15. Minnesota Statutes 2010, section 308B.955, is amended to read:<br/>
<a id="pl.33.19"></a><var>33.19</var><b>308B.955 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION </b><br/>
<a id="pl.33.20"></a><var>33.20</var><b>PROCEEDINGS.</b><br/>
<a id="pl.33.21"></a><var>33.21</var>The involuntary or supervised voluntary dissolution of a cooperative may be <br/>
<a id="pl.33.22"></a><var>33.22</var>discontinued at any time during the dissolution proceedings if it is established that cause <br/>
<a id="pl.33.23"></a><var>33.23</var>for dissolution does not exist. The court shall dismiss the proceedings and direct the <br/>
<a id="pl.33.24"></a><var>33.24</var>receiver, if any, to redeliver to the cooperative its remaining property and assets and to file <br/>
<a id="pl.33.25"></a><var>33.25</var>a final report pursuant to section 576.38, subdivision 3.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.33.26"></a><var>33.26</var>    Sec. 16. Minnesota Statutes 2010, section 316.11, is amended to read:<br/>
<a id="pl.33.27"></a><var>33.27</var><b>316.11 RECEIVER, APPOINTMENT, DUTIES.</b><br/>
<a id="pl.33.28"></a><var>33.28</var>In any action or proceeding to dissolve a corporation, the court, at any time before <br/>
<a id="pl.33.29"></a><var>33.29</var>judgment, or within three years after judgment, of dissolution, may appoint a receiver to <br/>
<a id="pl.33.30"></a><var>33.30</var>take charge of its estate and effects and to collect the debts and property due and belonging <br/>
<a id="pl.33.31"></a><var>33.31</var>to it, with, in addition to the powers set forth in chapter 576, power to prosecute and <br/>
<a id="pl.33.32"></a><var>33.32</var>defend actions in its name or otherwise, to appoint agents, and do all other acts necessary <br/>
<a id="pl.34.1"></a><var>34.1</var>to the final settlement of the unfinished business of the corporation which it might do if in <br/>
<a id="pl.34.2"></a><var>34.2</var>being. The power of such receiver shall continue so long as the court deems necessary <br/>
<a id="pl.34.3"></a><var>34.3</var>for such purposes. The receiver shall pay all debts due from the corporation, if the funds <br/>
<a id="pl.34.4"></a><var>34.4</var>in hand are sufficient therefor; and, if not, shall distribute the same ratably among the <br/>
<a id="pl.34.5"></a><var>34.5</var>creditors who prove their debts, in the manner directed by the court; and, if there be any <br/>
<a id="pl.34.6"></a><var>34.6</var>balance after the payment of the debts, the receiver shall distribute and pay the same to <br/>
<a id="pl.34.7"></a><var>34.7</var>and among those who are justly entitled thereto, as having been stockholders or members. <br/>
<a id="pl.34.8"></a><var>34.8</var>Every receiver appointed under the provisions of this section shall give bond in such <br/>
<a id="pl.34.9"></a><var>34.9</var>amount as the court shall require, with sureties approved by it the assets of the corporation <br/>
<a id="pl.34.10"></a><var>34.10</var>or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied <br/>
<a id="pl.34.11"></a><var>34.11</var>in the order of priority set forth in section 576.51. After payment of the expenses of <br/>
<a id="pl.34.12"></a><var>34.12</var>the receivership and claims of creditors duly proved, the remaining assets, if any, shall <br/>
<a id="pl.34.13"></a><var>34.13</var>be distributed to the shareholders in accordance with section 302A.551, subdivision 4. <br/>
<a id="pl.34.14"></a><var>34.14</var>Every receiver appointed under the provisions of this section shall give bond as required <br/>
<a id="pl.34.15"></a><var>34.15</var>by section 576.27 in such amount as the court shall require, with sureties approved by it.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.34.16"></a><var>34.16</var>    Sec. 17. Minnesota Statutes 2010, section 317A.753, subdivision 3, is amended to read:<br/>
<a id="pl.34.17"></a><var>34.17</var>    Subd. 3. <b>Action after hearing.</b> After a full hearing has been held, upon whatever <br/>
<a id="pl.34.18"></a><var>34.18</var>notice the court directs to be given to the parties to the proceedings and to other parties in <br/>
<a id="pl.34.19"></a><var>34.19</var>interest designated by the court, the court may appoint a receiver to collect the corporate <br/>
<a id="pl.34.20"></a><var>34.20</var>assets. In addition to the powers set forth in chapter 576, a receiver has authority, subject to <br/>
<a id="pl.34.21"></a><var>34.21</var>the order of the court, to continue the business of the corporation and to sell, lease, transfer, <br/>
<a id="pl.34.22"></a><var>34.22</var>or otherwise dispose of all or any of the assets of the corporation at a public or private sale.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.34.23"></a><var>34.23</var>    Sec. 18. Minnesota Statutes 2010, section 317A.753, subdivision 4, is amended to read:<br/>
<a id="pl.34.24"></a><var>34.24</var>    Subd. 4. <b>Discharge of obligations.</b> The assets of the corporation or the proceeds <br/>
<a id="pl.34.25"></a><var>34.25</var>resulting from a sale, lease, transfer, or other disposition must be applied in the following <br/>
<a id="pl.34.26"></a><var>34.26</var>order of priority to the payment and discharge of:<br/>
<a id="pl.34.27"></a><var>34.27</var>(1) the costs and expenses of the dissolution proceedings, including attorneys fees <br/>
<a id="pl.34.28"></a><var>34.28</var>and disbursements;<br/>
<a id="pl.34.29"></a><var>34.29</var>(2) debts, taxes, and assessments due the United States, the state of Minnesota and <br/>
<a id="pl.34.30"></a><var>34.30</var>their subdivisions, and other states and their subdivisions, in that order;<br/>
<a id="pl.34.31"></a><var>34.31</var>(3) claims duly proved and allowed to employees under the Workers' Compensation <br/>
<a id="pl.34.32"></a><var>34.32</var>Act, provided that claims under this clause are not allowed if the corporation carried <br/>
<a id="pl.34.33"></a><var>34.33</var>workers' compensation insurance, as provided by law, at the time the injury was sustained;<br/>
<a id="pl.35.1"></a><var>35.1</var>(4) claims, including the value of compensation paid in a medium other than money, <br/>
<a id="pl.35.2"></a><var>35.2</var>duly proved and allowed to employees for services performed within three months <br/>
<a id="pl.35.3"></a><var>35.3</var>preceding the appointment of the receiver, if any; and<br/>
<a id="pl.35.4"></a><var>35.4</var>(5) other claims duly proved and allowed set forth in section 576.51.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.35.5"></a><var>35.5</var>    Sec. 19. Minnesota Statutes 2010, section 317A.755, is amended to read:<br/>
<a id="pl.35.6"></a><var>35.6</var><b>317A.755 QUALIFICATIONS OF RECEIVERS; POWERS.</b><br/>
<a id="pl.35.7"></a><var>35.7</var>    Subdivision 1. <b>Qualifications.</b> A receiver must be a natural person or a domestic <br/>
<a id="pl.35.8"></a><var>35.8</var>corporation or a foreign corporation authorized to transact business in this state. Any <br/>
<a id="pl.35.9"></a><var>35.9</var>person qualified under section 576.26 may be appointed as a receiver. A receiver shall <br/>
<a id="pl.35.10"></a><var>35.10</var>give bond as directed by the court with the sureties required by the court required by <br/>
<a id="pl.35.11"></a><var>35.11</var>section 576.27.<br/>
<a id="pl.35.12"></a><var>35.12</var>    Subd. 2. <b>Powers.</b> A receiver may sue and defend in courts all actions as receiver <br/>
<a id="pl.35.13"></a><var>35.13</var>of the corporation. The court appointing the receiver has exclusive jurisdiction of over <br/>
<a id="pl.35.14"></a><var>35.14</var>the corporation and its property, the receiver, and all receivership property pursuant to <br/>
<a id="pl.35.15"></a><var>35.15</var>section 576.23.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.35.16"></a><var>35.16</var>    Sec. 20. Minnesota Statutes 2010, section 317A.759, subdivision 1, is amended to read:<br/>
<a id="pl.35.17"></a><var>35.17</var>    Subdivision 1. <b>Filing may be required.</b> In a proceeding under section 
         <statute_ref>317A.751</statute_ref> to <br/>
<a id="pl.35.18"></a><var>35.18</var>dissolve a corporation, the court may require creditors and claimants of the corporation <br/>
<a id="pl.35.19"></a><var>35.19</var>to file their claims under oath with the court administrator or with the receiver in a form <br/>
<a id="pl.35.20"></a><var>35.20</var>prescribed by the court pursuant to section 576.49. The receiver or any party in interest <br/>
<a id="pl.35.21"></a><var>35.21</var>may object to any claim pursuant to section 576.50. <br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.35.22"></a><var>35.22</var>    Sec. 21. Minnesota Statutes 2010, section 322B.836, subdivision 2, is amended to read:<br/>
<a id="pl.35.23"></a><var>35.23</var>    Subd. 2. <b>Action after hearing.</b> After a full hearing has been held, upon whatever <br/>
<a id="pl.35.24"></a><var>35.24</var>notice the court directs to be given to all parties to the proceedings and to any other parties <br/>
<a id="pl.35.25"></a><var>35.25</var>in interest designated by the court, the court may appoint a receiver to collect the limited <br/>
<a id="pl.35.26"></a><var>35.26</var>liability company assets, including all amounts owing to the limited liability company <br/>
<a id="pl.35.27"></a><var>35.27</var>by persons who have made contribution agreements and by persons who have made <br/>
<a id="pl.35.28"></a><var>35.28</var>contributions by means of enforceable promises of future performance. In addition to the <br/>
<a id="pl.35.29"></a><var>35.29</var>powers set forth in chapter 576, a receiver has authority, subject to the order of the court, <br/>
<a id="pl.35.30"></a><var>35.30</var>to continue the business of the limited liability company and to sell, lease, transfer, or <br/>
<a id="pl.35.31"></a><var>35.31</var>otherwise dispose of all or any of the property and assets of the limited liability company <br/>
<a id="pl.35.32"></a><var>35.32</var>either at public or private sale.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 22. Minnesota Statutes 2010, section 322B.836, subdivision 3, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var>    Subd. 3. <b>Discharge of obligations upon liquidation.</b> If the court determines that <br/>
<a id="pl.36.3"></a><var>36.3</var>the limited liability company is to be dissolved with winding up to be accomplished by <br/>
<a id="pl.36.4"></a><var>36.4</var>liquidation, then the assets of the limited liability company or the proceeds resulting <br/>
<a id="pl.36.5"></a><var>36.5</var>from a sale, lease, transfer, or other disposition must be applied in the following order of <br/>
<a id="pl.36.6"></a><var>36.6</var>priority to the payment and discharge or:<br/>
<a id="pl.36.7"></a><var>36.7</var>(1) the costs and expenses of the proceedings, including attorneys' fees and <br/>
<a id="pl.36.8"></a><var>36.8</var>disbursements;<br/>
<a id="pl.36.9"></a><var>36.9</var>(2) debts, taxes, and assessments due the United States, the state of Minnesota and <br/>
<a id="pl.36.10"></a><var>36.10</var>their subdivisions, and other states and their subdivisions, in that order;<br/>
<a id="pl.36.11"></a><var>36.11</var>(3) claims duly proved and allowed to employees under the provisions of chapter <br/>
<a id="pl.36.12"></a><var>36.12</var>176; provided, that claims under this clause shall not be allowed if the limited liability <br/>
<a id="pl.36.13"></a><var>36.13</var>company carried workers' compensation insurance, as provided by law, at the time the <br/>
<a id="pl.36.14"></a><var>36.14</var>injury was sustained;<br/>
<a id="pl.36.15"></a><var>36.15</var>(4) claims, including the value of all compensation paid in any medium other than <br/>
<a id="pl.36.16"></a><var>36.16</var>money, duly proved and allowed to employees for services performed within three months <br/>
<a id="pl.36.17"></a><var>36.17</var>preceding the appointment of the receiver, if any; and<br/>
<a id="pl.36.18"></a><var>36.18</var>(5) other claims duly proved and allowed set forth in section 576.51.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.36.19"></a><var>36.19</var>    Sec. 23. Minnesota Statutes 2010, section 322B.84, is amended to read:<br/>
<a id="pl.36.20"></a><var>36.20</var><b>322B.84 QUALIFICATIONS OF RECEIVERS AND POWERS.</b><br/>
<a id="pl.36.21"></a><var>36.21</var>    Subdivision 1. <b>Qualifications.</b> A receiver shall be a natural person or a domestic or <br/>
<a id="pl.36.22"></a><var>36.22</var>foreign organization authorized to transact business in this state. Any person qualified <br/>
<a id="pl.36.23"></a><var>36.23</var>under section 576.26 may be appointed as a receiver. A receiver shall give bond as <br/>
<a id="pl.36.24"></a><var>36.24</var>directed by the court with the sureties required by the court required by section 576.27.<br/>
<a id="pl.36.25"></a><var>36.25</var>    Subd. 2. <b>Powers.</b> A receiver may sue and defend in all courts actions as receiver of <br/>
<a id="pl.36.26"></a><var>36.26</var>the limited liability company. The court appointing the receiver has exclusive jurisdiction <br/>
<a id="pl.36.27"></a><var>36.27</var>of over the limited liability company and its property, the receiver, and all receivership <br/>
<a id="pl.36.28"></a><var>36.28</var>property pursuant to section 576.23.<br/>
<br/>
<a id="bill.3.24.0"></a><a id="pl.36.29"></a><var>36.29</var>    Sec. 24. Minnesota Statutes 2010, section 462A.05, subdivision 32, is amended to read:<br/>
<a id="pl.36.30"></a><var>36.30</var>    Subd. 32. <b>Appointment of receivers.</b> The agency may obtain the appointment of <br/>
<a id="pl.36.31"></a><var>36.31</var>receivers or assignments of rents and profits under sections 
         <statute_ref>559.17</statute_ref> and 576.01 576.25, <br/>
<a id="pl.36.32"></a><var>36.32</var>subdivision 5, except that the limitation relating to the minimum amounts of the original <br/>
<a id="pl.36.33"></a><var>36.33</var>principal balances of mortgages contained in sections 576.01, subdivision 2 576.25, <br/>
<a id="pl.37.1"></a><var>37.1</var>subdivision 5, paragraph (a), clause (i), and 
         <statute_ref>559.17, subdivision 2</statute_ref>, clause (2), shall <br/>
<a id="pl.37.2"></a><var>37.2</var>be inapplicable to it.<br/>
<br/>
<a id="bill.3.25.0"></a><a id="pl.37.3"></a><var>37.3</var>    Sec. 25. Minnesota Statutes 2010, section 469.012, subdivision 2i, is amended to read:<br/>
<a id="pl.37.4"></a><var>37.4</var>    Subd. 2i. <b>Receivers, assignment of rent as security.</b> An authority may secure a <br/>
<a id="pl.37.5"></a><var>37.5</var>mortgage or loan for a rental housing project by obtaining the appointment of receivers or <br/>
<a id="pl.37.6"></a><var>37.6</var>assignments of rents and profits under sections 
         <statute_ref>559.17</statute_ref> and 576.01 576.25, subdivision <br/>
<a id="pl.37.7"></a><var>37.7</var>5, except that the limitation relating to the minimum amounts of the original principal <br/>
<a id="pl.37.8"></a><var>37.8</var>balances of mortgages specified in sections 
         <statute_ref>559.17, subdivision 2</statute_ref>, clause (2); and 576.01, <br/>
<a id="pl.37.9"></a><var>37.9</var>subdivision 2 576.25, subdivision 5, paragraph (a), clause (1), does not apply.<br/>
<br/>
<a id="bill.3.26.0"></a><a id="pl.37.10"></a><var>37.10</var>    Sec. 26. Minnesota Statutes 2010, section 540.14, is amended to read:<br/>
<a id="pl.37.11"></a><var>37.11</var><b>540.14 ACTIONS AGAINST RECEIVERS; TRIAL; JUDGMENT, HOW </b><br/>
<a id="pl.37.12"></a><var>37.12</var><b>SATISFIED.</b><br/>
<a id="pl.37.13"></a><var>37.13</var>Except as limited in chapters 576 and 577, any receiver, assignee, or other person <br/>
<a id="pl.37.14"></a><var>37.14</var>appointed by a court to hold or manage property under its direction, may be sued on <br/>
<a id="pl.37.15"></a><var>37.15</var>account of any acts or transactions in carrying on the business connected with such <br/>
<a id="pl.37.16"></a><var>37.16</var>property without prior leave of court.<br/>
<a id="pl.37.17"></a><var>37.17</var>Such action may be brought in any county in which it could have been brought <br/>
<a id="pl.37.18"></a><var>37.18</var>against the person or corporation represented by such receiver or other person, shall be <br/>
<a id="pl.37.19"></a><var>37.19</var>tried in the same manner and subject to the same rules of procedure, and any judgment <br/>
<a id="pl.37.20"></a><var>37.20</var>recovered therein against such receiver or other person shall be paid by the receiver or <br/>
<a id="pl.37.21"></a><var>37.21</var>other person as a part of the expenses of managing such property.<br/>
<br/>
<a id="bill.3.27.0"></a><a id="pl.37.22"></a><var>37.22</var>    Sec. 27. Minnesota Statutes 2010, section 559.17, subdivision 2, is amended to read:<br/>
<a id="pl.37.23"></a><var>37.23</var>    Subd. 2. <b>Assignment; conditions.</b> A mortgagor may assign, as additional security <br/>
<a id="pl.37.24"></a><var>37.24</var>for the debt secured by the mortgage, the rents and profits from the mortgaged real <br/>
<a id="pl.37.25"></a><var>37.25</var>property, if the mortgage:<br/>
<a id="pl.37.26"></a><var>37.26</var>(1) was executed, modified or amended subsequent to August 1, 1977;<br/>
<a id="pl.37.27"></a><var>37.27</var>(2) secured an original principal amount of $100,000 or more or is a lien upon <br/>
<a id="pl.37.28"></a><var>37.28</var>residential real estate containing more than four dwelling units; and<br/>
<a id="pl.37.29"></a><var>37.29</var>(3) is not a lien upon property which was:<br/>
<a id="pl.37.30"></a><var>37.30</var>(i) entirely homesteaded as agricultural property; or<br/>
<a id="pl.37.31"></a><var>37.31</var>(ii) residential real estate containing four or fewer dwelling units where at least <br/>
<a id="pl.37.32"></a><var>37.32</var>one of the units is homesteaded. The assignment may be enforced, but only against the <br/>
<a id="pl.37.33"></a><var>37.33</var>nonhomestead portion of the mortgaged property, as follows:<br/>
<a id="pl.38.1"></a><var>38.1</var>(a) if, by the terms of an assignment, a receiver is to be appointed upon the <br/>
<a id="pl.38.2"></a><var>38.2</var>occurrence of some specified event, and a showing is made that the event has occurred, <br/>
<a id="pl.38.3"></a><var>38.3</var>the court shall, without regard to waste, adequacy of the security, or solvency of the <br/>
<a id="pl.38.4"></a><var>38.4</var>mortgagor, appoint a receiver who shall, with respect to the excess cash remaining after <br/>
<a id="pl.38.5"></a><var>38.5</var>application as provided in section 576.01, subdivision 2 576.25, subdivision 5, apply it as <br/>
<a id="pl.38.6"></a><var>38.6</var>prescribed by the assignment. If the assignment so provides, the receiver shall apply the <br/>
<a id="pl.38.7"></a><var>38.7</var>excess cash in the manner set out herein from the date of appointment through the entire <br/>
<a id="pl.38.8"></a><var>38.8</var>redemption period from any foreclosure sale. Subject to the terms of the assignment, the <br/>
<a id="pl.38.9"></a><var>38.9</var>receiver shall have the powers and duties as set forth in section 576.01, subdivision 2 <br/>
<a id="pl.38.10"></a><var>38.10</var>576.25, subdivision 5; or<br/>
<a id="pl.38.11"></a><var>38.11</var>(b) if no provision is made for the appointment of a receiver in the assignment or <br/>
<a id="pl.38.12"></a><var>38.12</var>if by the terms of the assignment a receiver may be appointed, the assignment shall be <br/>
<a id="pl.38.13"></a><var>38.13</var>binding upon the assignor unless or until a receiver is appointed without regard to waste, <br/>
<a id="pl.38.14"></a><var>38.14</var>adequacy of the security or solvency of the mortgagor, but only in the event of default in <br/>
<a id="pl.38.15"></a><var>38.15</var>the terms and conditions of the mortgage, and only in the event the assignment requires <br/>
<a id="pl.38.16"></a><var>38.16</var>the holder thereof to first apply the rents and profits received as provided in section <br/>
<a id="pl.38.17"></a><var>38.17</var>576.01, subdivision 2 576.25, subdivision 5, in which case the same shall operate against <br/>
<a id="pl.38.18"></a><var>38.18</var>and be binding upon the occupiers of the premises from the date of recording by the <br/>
<a id="pl.38.19"></a><var>38.19</var>holder of the assignment in the office of the county recorder or the office of the registrar of <br/>
<a id="pl.38.20"></a><var>38.20</var>titles for the county in which the property is located of a notice of default in the terms <br/>
<a id="pl.38.21"></a><var>38.21</var>and conditions of the mortgage and service of a copy of the notice upon the occupiers of <br/>
<a id="pl.38.22"></a><var>38.22</var>the premises. The holder of the assignment shall apply the rents and profits received in <br/>
<a id="pl.38.23"></a><var>38.23</var>accordance with the terms of the assignment, and, if the assignment so provides, for <br/>
<a id="pl.38.24"></a><var>38.24</var>the entire redemption period from any foreclosure sale. A holder of an assignment who <br/>
<a id="pl.38.25"></a><var>38.25</var>enforces it in accordance with this clause shall not be deemed to be a mortgagee in <br/>
<a id="pl.38.26"></a><var>38.26</var>possession with attendant liability.<br/>
<a id="pl.38.27"></a><var>38.27</var>Nothing contained herein shall prohibit the right to reinstate the mortgage <br/>
<a id="pl.38.28"></a><var>38.28</var>debt granted pursuant to section 
         <statute_ref>580.30</statute_ref>, nor the right to redeem granted pursuant to <br/>
<a id="pl.38.29"></a><var>38.29</var>sections 
         <statute_ref>580.23</statute_ref> and 
         <statute_ref>581.10</statute_ref>, and any excess cash, as that term is used herein, collected <br/>
<a id="pl.38.30"></a><var>38.30</var>by the receiver under clause (a), or any rents and profits taken by the holder of the <br/>
<a id="pl.38.31"></a><var>38.31</var>assignment under clause (b), shall be credited to the amount required to be paid to effect <br/>
<a id="pl.38.32"></a><var>38.32</var>a reinstatement or redemption.<br/>
<br/>
<a id="bill.3.28.0"></a><a id="pl.38.33"></a><var>38.33</var>    Sec. 28. Minnesota Statutes 2010, section 576.04, is amended to read:<br/>
<a id="pl.38.34"></a><var>38.34</var><b>576.04 ABSENTEES; POSSESSION, MANAGEMENT, AND DISPOSITION </b><br/>
<a id="pl.38.35"></a><var>38.35</var><b>OF PROPERTY.</b><br/>
<a id="pl.39.1"></a><var>39.1</var>If a person entitled to or having an interest in property within or without the <br/>
<a id="pl.39.2"></a><var>39.2</var>jurisdiction of the state has disappeared or absconded from the place within or without the <br/>
<a id="pl.39.3"></a><var>39.3</var>state where last known to be, and has no agent in the state, and it is not known where the <br/>
<a id="pl.39.4"></a><var>39.4</var>person is, or if such person, having a spouse or minor child or children dependent to any <br/>
<a id="pl.39.5"></a><var>39.5</var>extent upon the person for support, has thus disappeared, or absconded without making <br/>
<a id="pl.39.6"></a><var>39.6</var>sufficient provision for such support, and it is not known where the person is, or, if it is <br/>
<a id="pl.39.7"></a><var>39.7</var>known that the person is without the state, any one who would under the law of the state <br/>
<a id="pl.39.8"></a><var>39.8</var>be entitled to administer upon the estate of such absentee if deceased, or if no one is <br/>
<a id="pl.39.9"></a><var>39.9</var>known to be so entitled, some person deemed suitable by the court, or such spouse, or <br/>
<a id="pl.39.10"></a><var>39.10</var>some one in such spouse's or minors' behalf, may file a petition, under oath, in the court for <br/>
<a id="pl.39.11"></a><var>39.11</var>the county where any such property is situated or found, stating the name, age, occupation, <br/>
<a id="pl.39.12"></a><var>39.12</var>and last known residence or address of such absentee, the date and circumstances of the <br/>
<a id="pl.39.13"></a><var>39.13</var>disappearance or absconding, and the names and residences of other persons, whether <br/>
<a id="pl.39.14"></a><var>39.14</var>members of such absentee's family or otherwise, of whom inquiry may be made, whether <br/>
<a id="pl.39.15"></a><var>39.15</var>or not such absentee is a citizen of the United States, and if not, of what country the <br/>
<a id="pl.39.16"></a><var>39.16</var>absentee is a citizen or native, and containing a schedule of the property, real and personal, <br/>
<a id="pl.39.17"></a><var>39.17</var>so far as known, and its location within or without the state, and a schedule of contractual <br/>
<a id="pl.39.18"></a><var>39.18</var>or property rights contingent upon the absentee's death, and praying that real and personal <br/>
<a id="pl.39.19"></a><var>39.19</var>property may be taken possession of and a receiver thereof appointed under this chapter <br/>
<a id="pl.39.20"></a><var>39.20</var>576. No proceedings shall be commenced under the provisions of sections 576.04 to <br/>
<a id="pl.39.21"></a><var>39.21</var>576.16 this chapter, except upon good cause shown until at least three months after the <br/>
<a id="pl.39.22"></a><var>39.22</var>date on which it is alleged in such petition that such person so disappeared or absconded. <br/>
<br/>
<a id="bill.3.29.0"></a><a id="pl.39.23"></a><var>39.23</var>    Sec. 29. Minnesota Statutes 2010, section 576.06, is amended to read:<br/>
<a id="pl.39.24"></a><var>39.24</var><b>576.06 NOTICE OF SEIZURE; APPOINTMENT OF RECEIVER; </b><br/>
<a id="pl.39.25"></a><var>39.25</var><b>DISPOSITION OF PROPERTY.</b><br/>
<a id="pl.39.26"></a><var>39.26</var>Upon the return of such warrant, the court may issue a notice reciting the substance <br/>
<a id="pl.39.27"></a><var>39.27</var>of the petition, warrant, and officer's return, which shall be addressed to such absentee and <br/>
<a id="pl.39.28"></a><var>39.28</var>to all persons who claim an interest in such property, and to all whom it may concern, <br/>
<a id="pl.39.29"></a><var>39.29</var>citing them to appear at a time and place named and show cause why a receiver of the <br/>
<a id="pl.39.30"></a><var>39.30</var>property named in the officer's schedule should not be appointed and the property held and <br/>
<a id="pl.39.31"></a><var>39.31</var>disposed of under sections 576.04 to 576.16 this chapter. <br/>
<br/>
<a id="bill.3.30.0"></a><a id="pl.39.32"></a><var>39.32</var>    Sec. 30. Minnesota Statutes 2010, section 576.08, is amended to read:<br/>
<a id="pl.39.33"></a><var>39.33</var><b>576.08 HEARING BY COURT; DISMISSAL OF PROCEEDING; </b><br/>
<a id="pl.39.34"></a><var>39.34</var><b>APPOINTMENT AND BOND OF RECEIVER.</b><br/>
<a id="pl.40.1"></a><var>40.1</var>The absentee, or any person who claims an interest in any of the property, may <br/>
<a id="pl.40.2"></a><var>40.2</var>appear and show cause why the prayer of the petition should not be granted. The court <br/>
<a id="pl.40.3"></a><var>40.3</var>may, after hearing, dismiss the petition and order the property in possession of the officer <br/>
<a id="pl.40.4"></a><var>40.4</var>to be returned to the person entitled thereto, or it may appoint a receiver of the property <br/>
<a id="pl.40.5"></a><var>40.5</var>which is in the possession of the officer and named in the schedule. If a receiver is <br/>
<a id="pl.40.6"></a><var>40.6</var>appointed, the court shall find and record the date of the disappearance or absconding <br/>
<a id="pl.40.7"></a><var>40.7</var>of the absentee; and the receiver shall give a bond to the state in the sum and with the <br/>
<a id="pl.40.8"></a><var>40.8</var>conditions the court orders, to be approved by the court pursuant to section 576.27. In the <br/>
<a id="pl.40.9"></a><var>40.9</var>appointment of the receiver the court shall give preference to the spouse of the absentee, if <br/>
<a id="pl.40.10"></a><var>40.10</var>the spouse is competent and suitable eligible to serve as receiver under section 576.26.<br/>
<br/>
<a id="bill.3.31.0"></a><a id="pl.40.11"></a><var>40.11</var>    Sec. 31. Minnesota Statutes 2010, section 576.09, is amended to read:<br/>
<a id="pl.40.12"></a><var>40.12</var><b>576.09 </b><b>POSSESSION</b><b> TRANSFER</b><b> OF PROPERTY </b><b>BY</b><b> TO</b><b> RECEIVER.</b><br/>
<a id="pl.40.13"></a><var>40.13</var>After the approval of the receiver gives its bond the court may order the sheriff or a <br/>
<a id="pl.40.14"></a><var>40.14</var>deputy to transfer and deliver to such receiver the possession of the property under the <br/>
<a id="pl.40.15"></a><var>40.15</var>warrant, and the receiver shall file in the office of the court administrator a schedule <br/>
<a id="pl.40.16"></a><var>40.16</var>of the property received.<br/>
<br/>
<a id="bill.3.32.0"></a><a id="pl.40.17"></a><var>40.17</var>    Sec. 32. Minnesota Statutes 2010, section 576.11, is amended to read:<br/>
<a id="pl.40.18"></a><var>40.18</var><b>576.11 WHERE NO CORPOREAL PROPERTY; RECEIVER; BOND.</b><br/>
<a id="pl.40.19"></a><var>40.19</var>If the absentee has left no corporeal property within or without the state, but there <br/>
<a id="pl.40.20"></a><var>40.20</var>are debts and obligations due or owing to the absentee from persons within or without <br/>
<a id="pl.40.21"></a><var>40.21</var>the state, a petition may be filed, as provided in section 576.04 578.02, stating the nature <br/>
<a id="pl.40.22"></a><var>40.22</var>and amount of such debts and obligations, so far as known, and praying that a receiver <br/>
<a id="pl.40.23"></a><var>40.23</var>thereof may be appointed. The court may thereupon issue a notice, as above provided, <br/>
<a id="pl.40.24"></a><var>40.24</var>without issuing a warrant, and may, upon the return of the notice and after a hearing, <br/>
<a id="pl.40.25"></a><var>40.25</var>dismiss the petition or appoint a receiver and authorize and direct the receiver to demand <br/>
<a id="pl.40.26"></a><var>40.26</var>and collect the debts and obligations specified in the petition. The receiver shall give <br/>
<a id="pl.40.27"></a><var>40.27</var>bond, as provided in section 576.08 576.27, and hold the proceeds of such debts and <br/>
<a id="pl.40.28"></a><var>40.28</var>obligations and all property received, and distribute the same as provided in sections <br/>
<a id="pl.40.29"></a><var>40.29</var>576.12 to 576.16 chapter 576. The receiver may be further authorized and directed as <br/>
<a id="pl.40.30"></a><var>40.30</var>provided in section 576.10 578.08. <br/>
<br/>
<a id="bill.3.33.0"></a><a id="pl.41.1"></a><var>41.1</var>    Sec. 33. Minnesota Statutes 2010, section 576.121, is amended to read:<br/>
<a id="pl.41.2"></a><var>41.2</var><b>576.121 ADVANCE LIFE INSURANCE PAYMENTS TO ABSENTEE'S </b><br/>
<a id="pl.41.3"></a><var>41.3</var><b>BENEFICIARY.</b><br/>
<a id="pl.41.4"></a><var>41.4</var>If the beneficiary under an insurance policy on the life of an absentee is the <br/>
<a id="pl.41.5"></a><var>41.5</var>absentee's spouse, child, or other person dependent upon the absentee for support and <br/>
<a id="pl.41.6"></a><var>41.6</var>advance payments under the policy are necessary to support and maintain the beneficiary, <br/>
<a id="pl.41.7"></a><var>41.7</var>the beneficiary shall be entitled to advance payments as the court determines under section <br/>
<a id="pl.41.8"></a><var>41.8</var>576.122 578.12. "Beneficiary" under this section includes an heir at law of the person <br/>
<a id="pl.41.9"></a><var>41.9</var>whose life is insured if the policy is payable to the insured's estate. <br/>
<br/>
<a id="bill.3.34.0"></a><a id="pl.41.10"></a><var>41.10</var>    Sec. 34. Minnesota Statutes 2010, section 576.123, is amended to read:<br/>
<a id="pl.41.11"></a><var>41.11</var><b>576.123 REAPPEARANCE OF ABSENTEE.</b><br/>
<a id="pl.41.12"></a><var>41.12</var>    Subdivision 1. <b>Insurance payments; reduction.</b> If an absentee is declared dead <br/>
<a id="pl.41.13"></a><var>41.13</var>after advance insurance payments have been made pursuant to section 576.122 578.12, <br/>
<a id="pl.41.14"></a><var>41.14</var>the amount payable under the policy shall be reduced by the total amount of payments <br/>
<a id="pl.41.15"></a><var>41.15</var>made under section 576.122 578.12. <br/>
<a id="pl.41.16"></a><var>41.16</var>    Subd. 2. <b>Reimbursement of insurer.</b> If an absentee is found to be living after <br/>
<a id="pl.41.17"></a><var>41.17</var>advance insurance payments have been made to a beneficiary pursuant to section 576.122 <br/>
<a id="pl.41.18"></a><var>41.18</var>578.12, the absentee and beneficiary shall reimburse the insurer the amount of the <br/>
<a id="pl.41.19"></a><var>41.19</var>payments made. <br/>
<a id="pl.41.20"></a><var>41.20</var>If the insurer is unable to obtain full reimbursement, the amount payable under the <br/>
<a id="pl.41.21"></a><var>41.21</var>policy shall be reduced to the extent necessary to allow full reimbursement. Failure of the <br/>
<a id="pl.41.22"></a><var>41.22</var>absentee and beneficiary to reimburse the insurer upon demand for payment sent by the <br/>
<a id="pl.41.23"></a><var>41.23</var>insurer by certified mail to the last known address of the absentee and beneficiary shall be <br/>
<a id="pl.41.24"></a><var>41.24</var>sufficient to show the insurer's inability to obtain reimbursement.<br/>
<br/>
<a id="bill.3.35.0"></a><a id="pl.41.25"></a><var>41.25</var>    Sec. 35. Minnesota Statutes 2010, section 576.144, is amended to read:<br/>
<a id="pl.41.26"></a><var>41.26</var><b>576.144 DISSOLUTION OF MARRIAGE.</b><br/>
<a id="pl.41.27"></a><var>41.27</var>If the court finds the absentee dead in accordance with section 576.142 578.17, the <br/>
<a id="pl.41.28"></a><var>41.28</var>absentee's marriage is dissolved. The court shall enter the conclusion of law dissolving the <br/>
<a id="pl.41.29"></a><var>41.29</var>marriage on the order which establishes the death of the absentee as a matter of law. <br/>
<br/>
<a id="bill.3.36.0"></a><a id="pl.41.30"></a><var>41.30</var>    Sec. 36. Minnesota Statutes 2010, section 576.15, is amended to read:<br/>
<a id="pl.41.31"></a><var>41.31</var><b>576.15 COMPENSATION OF RECEIVER; TITLE OF ABSENTEE LOST </b><br/>
<a id="pl.41.32"></a><var>41.32</var><b>AFTER FOUR YEARS.</b><br/>
<a id="pl.42.1"></a><var>42.1</var>The receiver shall be allowed such compensation and disbursements as the court <br/>
<a id="pl.42.2"></a><var>42.2</var>orders, to be paid out of the property or proceeds provided in chapter 576. If, within <br/>
<a id="pl.42.3"></a><var>42.3</var>four years after the date of the disappearance or absconding, as found and recorded by <br/>
<a id="pl.42.4"></a><var>42.4</var>the court, the absentee appears, and has not been declared dead under section 576.142 <br/>
<a id="pl.42.5"></a><var>42.5</var>578.17, or an administrator, executor, assignee in insolvency, or trustee in bankruptcy of <br/>
<a id="pl.42.6"></a><var>42.6</var>the absentee is appointed, the receiver shall account for, deliver, and pay over to the <br/>
<a id="pl.42.7"></a><var>42.7</var>absentee the remainder of the property. If the absentee does not appear and claim the <br/>
<a id="pl.42.8"></a><var>42.8</var>property within four years, all the absentee's right, title, and interest in the property, real <br/>
<a id="pl.42.9"></a><var>42.9</var>or personal, or the proceeds thereof, shall cease, and no action shall be brought by the <br/>
<a id="pl.42.10"></a><var>42.10</var>absentee on account thereof. <br/>
<a id="pl.42.11"></a><var>42.11</var>If the absentee is declared dead pursuant to section 576.142 578.17 and appears <br/>
<a id="pl.42.12"></a><var>42.12</var>before the expiration of four years, the absentee shall have no right, title and interest in the <br/>
<a id="pl.42.13"></a><var>42.13</var>property, real or personal, or the proceeds thereof. <br/>
<br/>
<a id="bill.3.37.0"></a><a id="pl.42.14"></a><var>42.14</var>    Sec. 37. Minnesota Statutes 2010, section 576.16, is amended to read:<br/>
<a id="pl.42.15"></a><var>42.15</var><b>576.16 PROPERTY DISTRIBUTION; TIME LIMITATION.</b><br/>
<a id="pl.42.16"></a><var>42.16</var>If the receiver is not appointed within three years after the date found by the court <br/>
<a id="pl.42.17"></a><var>42.17</var>under section 576.08 578.06, the time limited for accounting for, or fixed for distributing, <br/>
<a id="pl.42.18"></a><var>42.18</var>the property or its proceeds, or for barring actions relative thereto, shall be one year after <br/>
<a id="pl.42.19"></a><var>42.19</var>the date of the appointment of the receiver instead of the four years provided in sections <br/>
<a id="pl.42.20"></a><var>42.20</var>576.14 578.15 and 
         <statute_ref>576.15</statute_ref> 578.20. <br/>
<a id="pl.42.21"></a><var>42.21</var>The provisions of sections 
<statute_ref>576.04</statute_ref> to 
<statute_ref>576.16</statute_ref> this chapter shall not be construed as <br/>
<a id="pl.42.22"></a><var>42.22</var>exclusive, but as providing additional and cumulative remedies. <br/>
<br/>
<a id="bill.3.38.0"></a><a id="pl.42.23"></a><var>42.23</var>    Sec. 38. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.42.24"></a><var>42.24</var>The Revisor of Statutes shall renumber each section of Minnesota Statutes listed <br/>
<a id="pl.42.25"></a><var>42.25</var>in Column A with the number in Column B. The Revisor shall correct any incorrect <br/>
<a id="pl.42.26"></a><var>42.26</var>cross-references resulting from this renumbering.<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.42.27"></a><var>42.27</var><br/>
</td>
<td><b>Column A</b><br/>
</td>
<td><b>Column B</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.42.28"></a><var>42.28</var><br/>
</td>
<td>576.011<br/>
</td>
<td>578.01<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.29"></a><var>42.29</var><br/>
</td>
<td>576.04<br/>
</td>
<td>578.02<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.30"></a><var>42.30</var><br/>
</td>
<td>576.05<br/>
</td>
<td>578.03<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.31"></a><var>42.31</var><br/>
</td>
<td>576.06<br/>
</td>
<td>578.04<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.32"></a><var>42.32</var><br/>
</td>
<td>576.07<br/>
</td>
<td>578.05<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.33"></a><var>42.33</var><br/>
</td>
<td>576.08<br/>
</td>
<td>578.06<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.34"></a><var>42.34</var><br/>
</td>
<td>576.09<br/>
</td>
<td>578.07<br/>
</td>
</tr>
<tr>
<td><a id="pl.42.35"></a><var>42.35</var><br/>
</td>
<td>576.10<br/>
</td>
<td>578.08<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.1"></a><var>43.1</var><br/>
</td>
<td>576.11<br/>
</td>
<td>578.09<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.2"></a><var>43.2</var><br/>
</td>
<td>576.12<br/>
</td>
<td>578.10<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.3"></a><var>43.3</var><br/>
</td>
<td>571.121<br/>
</td>
<td>578.11<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.4"></a><var>43.4</var><br/>
</td>
<td>576.122<br/>
</td>
<td>578.12<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.5"></a><var>43.5</var><br/>
</td>
<td>576.123<br/>
</td>
<td>578.13<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.6"></a><var>43.6</var><br/>
</td>
<td>576.13<br/>
</td>
<td>578.14<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.7"></a><var>43.7</var><br/>
</td>
<td>576.14<br/>
</td>
<td>578.15<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.8"></a><var>43.8</var><br/>
</td>
<td>576.141<br/>
</td>
<td>578.16<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.9"></a><var>43.9</var><br/>
</td>
<td>576.142<br/>
</td>
<td>578.17<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.10"></a><var>43.10</var><br/>
</td>
<td>576.143<br/>
</td>
<td>578.18<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.11"></a><var>43.11</var><br/>
</td>
<td>576.144<br/>
</td>
<td>578.19<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.12"></a><var>43.12</var><br/>
</td>
<td>576.15<br/>
</td>
<td>578.20<br/>
</td>
</tr>
<tr>
<td><a id="pl.43.13"></a><var>43.13</var><br/>
</td>
<td>576.16<br/>
</td>
<td>578.21<br/>
</td>
</tr>
</table><br/>
<a id="bill.3.39.0"></a><a id="pl.43.14"></a><var>43.14</var>    Sec. 39. <b> REPEALER.</b><br/>
<a id="pl.43.15"></a><var>43.15</var>Minnesota Statutes 2010, sections 302A.759, subdivision 2; 308A.961, subdivision <br/>
<a id="pl.43.16"></a><var>43.16</var>2; 308B.951, subdivisions 2 and 3; 317A.759, subdivision 2; and 576.01, are repealed.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.43.19"></a><var>43.19</var>    Section 1. Minnesota Statutes 2010, section 524.2-1103, is amended to read:<br/>
<a id="pl.43.20"></a><var>43.20</var><b>524.2-1103 SCOPE.</b><br/>
<a id="pl.43.21"></a><var>43.21</var>Sections 
         <statute_ref>524.2-1101</statute_ref> to 
<statute_ref>524.2-1116</statute_ref> apply to disclaimers of any interest in or power <br/>
<a id="pl.43.22"></a><var>43.22</var>over property, whenever created. Except as provided in section 
<statute_ref>524.2-1116</statute_ref>, sections <br/>
<a id="pl.43.23"></a><var>43.23</var><statute_ref>524.2-1101</statute_ref> to 
         <statute_ref>524.2-1116</statute_ref> are the exclusive means by which a disclaimer may be made <br/>
<a id="pl.43.24"></a><var>43.24</var>under Minnesota law regardless of whether it is qualified under section 2518 of the <br/>
<a id="pl.43.25"></a><var>43.25</var>Internal Revenue Code of 1986 in effect on January 1, 2010 as defined in section 291.005, <br/>
<a id="pl.43.26"></a><var>43.26</var>subdivision 1, clause 3.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.43.27"></a><var>43.27</var>    Sec. 2. Minnesota Statutes 2010, section 524.2-1104, is amended to read:<br/>
<a id="pl.43.28"></a><var>43.28</var><b>524.2-1104 TAX-QUALIFIED DISCLAIMER.</b><br/>
<a id="pl.43.29"></a><var>43.29</var>Notwithstanding any other provision of this chapter, other than section 
         <statute_ref>524.2-1106</statute_ref>, <br/>
<a id="pl.43.30"></a><var>43.30</var>if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated <br/>
<a id="pl.43.31"></a><var>43.31</var>pursuant to the provisions of section 2518 of the Internal Revenue Code of 1986, as in <br/>
<a id="pl.43.32"></a><var>43.32</var>effect on January 1, 2010 defined in section 291.005, subdivision 1, clause 3, as never <br/>
<a id="pl.43.33"></a><var>43.33</var>having been transferred to the disclaimant, then the disclaimer or transfer is effective as a <br/>
<a id="pl.43.34"></a><var>43.34</var>disclaimer under sections 
         <statute_ref>524.2-1101</statute_ref> to 
         <statute_ref>524.2-1116</statute_ref>.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.44.1"></a><var>44.1</var>    Sec. 3. Minnesota Statutes 2010, section 524.2-1106, is amended to read:<br/>
<a id="pl.44.2"></a><var>44.2</var><b>524.2-1106 WHEN DISCLAIMER IS BARRED OR LIMITED.</b><br/>
<a id="pl.44.3"></a><var>44.3</var>(a) A disclaimer is barred by a written waiver of the right to disclaim.<br/>
<a id="pl.44.4"></a><var>44.4</var>(b) A disclaimer of an interest in property is barred if any of the following events <br/>
<a id="pl.44.5"></a><var>44.5</var>occur before the disclaimer becomes effective:<br/>
<a id="pl.44.6"></a><var>44.6</var>(1) the disclaimant accepts the portion of the interest sought to be disclaimed;<br/>
<a id="pl.44.7"></a><var>44.7</var>(2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the <br/>
<a id="pl.44.8"></a><var>44.8</var>portion of the interest sought to be disclaimed or contracts to do so;<br/>
<a id="pl.44.9"></a><var>44.9</var>(3) the portion of the interest sought to be disclaimed is sold pursuant to a judicial <br/>
<a id="pl.44.10"></a><var>44.10</var>sale; or<br/>
<a id="pl.44.11"></a><var>44.11</var>(4) the disclaimant is insolvent when the disclaimer becomes irrevocable.<br/>
<a id="pl.44.12"></a><var>44.12</var>(c) Acceptance of a distribution from a trust shall constitute acceptance of only <br/>
<a id="pl.44.13"></a><var>44.13</var>that portion of the beneficial interest in that trust that has been distributed, and shall not <br/>
<a id="pl.44.14"></a><var>44.14</var>constitute acceptance or bar disclaimer of that portion of the beneficial interest in the trust <br/>
<a id="pl.44.15"></a><var>44.15</var>that has not yet been distributed.<br/>
<a id="pl.44.16"></a><var>44.16</var>(d) A disclaimer, in whole or in part, of the future exercise of a power held in a <br/>
<a id="pl.44.17"></a><var>44.17</var>fiduciary capacity is not barred by its previous exercise.<br/>
<a id="pl.44.18"></a><var>44.18</var>(d) (e) A disclaimer, in whole or in part, of the future exercise of a power not held in <br/>
<a id="pl.44.19"></a><var>44.19</var>a fiduciary capacity is not barred by its previous exercise unless the power is exercisable <br/>
<a id="pl.44.20"></a><var>44.20</var>in favor of the disclaimant.<br/>
<a id="pl.44.21"></a><var>44.21</var>(e) (f) A disclaimer of an interest in, or a power over, property which is barred by <br/>
<a id="pl.44.22"></a><var>44.22</var>this section is ineffective.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.44.23"></a><var>44.23</var>    Sec. 4. Minnesota Statutes 2010, section 524.2-1107, is amended to read:<br/>
<a id="pl.44.24"></a><var>44.24</var><b>524.2-1107 POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN </b><br/>
<a id="pl.44.25"></a><var>44.25</var><b>IRREVOCABLE.</b><br/>
<a id="pl.44.26"></a><var>44.26</var>(a) A person may disclaim, in whole or in part, any interest in or power over <br/>
<a id="pl.44.27"></a><var>44.27</var>property, including a power of appointment. A person may disclaim the interest or power <br/>
<a id="pl.44.28"></a><var>44.28</var>even if its creator imposed a spendthrift provision or similar restriction on transfer or a <br/>
<a id="pl.44.29"></a><var>44.29</var>restriction or limitation on the right to disclaim.<br/>
<a id="pl.44.30"></a><var>44.30</var>(b) With court approval, a fiduciary may disclaim, in whole or in part, any interest in <br/>
<a id="pl.44.31"></a><var>44.31</var>or power over property, including a power of appointment when acting in a representative <br/>
<a id="pl.44.32"></a><var>44.32</var>capacity. Without court approval, a fiduciary may disclaim, in whole or in part, any interest <br/>
<a id="pl.44.33"></a><var>44.33</var>in or power over property, including a power of appointment, if and to the extent that the <br/>
<a id="pl.44.34"></a><var>44.34</var>instrument creating the fiduciary relationship explicitly grants the fiduciary the right to <br/>
<a id="pl.44.35"></a><var>44.35</var>disclaim. With court approval, a custodial parent may disclaim on behalf of a minor child <br/>
<a id="pl.45.1"></a><var>45.1</var>for whom no conservator has been appointed, in whole or in part, any interest in or power <br/>
<a id="pl.45.2"></a><var>45.2</var>over property, including a power of appointment, which the minor child is to receive.<br/>
<a id="pl.45.3"></a><var>45.3</var>(c) To be effective, a disclaimer must be in writing, declare the writing as a <br/>
<a id="pl.45.4"></a><var>45.4</var>disclaimer, describe the interest or power disclaimed, and be signed by the person or <br/>
<a id="pl.45.5"></a><var>45.5</var>fiduciary making the disclaimer and acknowledged in the manner provided for deeds of <br/>
<a id="pl.45.6"></a><var>45.6</var>real estate to be recorded in this state. In addition, for a disclaimer to be effective, an <br/>
<a id="pl.45.7"></a><var>45.7</var>original of the disclaimer must be delivered or filed in the manner provided in section <br/>
<statute_ref><a id="pl.45.8"></a><var>45.8</var>524.2-1114
         </statute_ref>.<br/>
<a id="pl.45.9"></a><var>45.9</var>(d) A partial disclaimer may be expressed as a fraction, percentage, monetary <br/>
<a id="pl.45.10"></a><var>45.10</var>amount, specific property, term of years, portion of a beneficial interest in or right to <br/>
<a id="pl.45.11"></a><var>45.11</var>distributions from a trust, limitation of a power, or any other interest or estate in the <br/>
<a id="pl.45.12"></a><var>45.12</var>property.<br/>
<a id="pl.45.13"></a><var>45.13</var>(e) A disclaimer becomes irrevocable when the disclaimer is delivered or filed <br/>
<a id="pl.45.14"></a><var>45.14</var>pursuant to section 
         <statute_ref>524.2-1114</statute_ref> or it becomes effective as provided in sections 
         <statute_ref>524.2-1108 <br/>
</statute_ref><a id="pl.45.15"></a><var>45.15</var>to 
         <statute_ref>524.2-1113</statute_ref>, whichever occurs later.<br/>
<a id="pl.45.16"></a><var>45.16</var>(f) A disclaimer made under sections 
         <statute_ref>524.2-1101</statute_ref> to 
         <statute_ref>524.2-1116</statute_ref> is not a transfer, <br/>
<a id="pl.45.17"></a><var>45.17</var>assignment, or release.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.45.18"></a><var>45.18</var>    Sec. 5. Minnesota Statutes 2010, section 524.2-1114, is amended to read:<br/>
<a id="pl.45.19"></a><var>45.19</var><b>524.2-1114 DELIVERY OR FILING.</b><br/>
<a id="pl.45.20"></a><var>45.20</var>(a) Subject to paragraphs (b) to (l), delivery of a disclaimer may be effective <br/>
<a id="pl.45.21"></a><var>45.21</var>by personal delivery, first-class mail, or any other method that results in its receipt. <br/>
<a id="pl.45.22"></a><var>45.22</var>A disclaimer sent by first-class mail is deemed to have been delivered on the date it is <br/>
<a id="pl.45.23"></a><var>45.23</var>postmarked. Delivery by any other method is effective upon receipt by the person to <br/>
<a id="pl.45.24"></a><var>45.24</var>whom the disclaimer is to be delivered under this section.<br/>
<a id="pl.45.25"></a><var>45.25</var>(b) In the case of a disclaimer of an interest created under the law of intestate <br/>
<a id="pl.45.26"></a><var>45.26</var>succession or an interest created by will, other than an interest in a testamentary trust:<br/>
<a id="pl.45.27"></a><var>45.27</var>(1) the disclaimer must be delivered to the personal representative of the decedent's <br/>
<a id="pl.45.28"></a><var>45.28</var>estate; or<br/>
<a id="pl.45.29"></a><var>45.29</var>(2) if no personal representative is serving when the disclaimer is sought to be <br/>
<a id="pl.45.30"></a><var>45.30</var>delivered, the disclaimer must be filed with the clerk of the court in any county where <br/>
<a id="pl.45.31"></a><var>45.31</var>venue of administration would be proper.<br/>
<a id="pl.45.32"></a><var>45.32</var>(c) In the case of a disclaimer of an interest in a testamentary trust:<br/>
<a id="pl.45.33"></a><var>45.33</var>(1) the disclaimer must be delivered to the trustee serving when the disclaimer is <br/>
<a id="pl.45.34"></a><var>45.34</var>delivered or, if no trustee is then serving, to the personal representative of the decedent's <br/>
<a id="pl.45.35"></a><var>45.35</var>estate; or<br/>
<a id="pl.46.1"></a><var>46.1</var>(2) if no personal representative is serving when the disclaimer is sought to be <br/>
<a id="pl.46.2"></a><var>46.2</var>delivered, the disclaimer must be filed with the clerk of the court in any county where <br/>
<a id="pl.46.3"></a><var>46.3</var>venue of administration of the decedent's estate would be proper.<br/>
<a id="pl.46.4"></a><var>46.4</var>(d) In the case of a disclaimer of an interest in an inter vivos trust:<br/>
<a id="pl.46.5"></a><var>46.5</var>(1) the disclaimer must be delivered to the trustee serving when the disclaimer is <br/>
<a id="pl.46.6"></a><var>46.6</var>delivered;<br/>
<a id="pl.46.7"></a><var>46.7</var>(2) if no trustee is then serving, it must be filed with the clerk of the court in any <br/>
<a id="pl.46.8"></a><var>46.8</var>county where the filing of a notice of trust would be proper; or<br/>
<a id="pl.46.9"></a><var>46.9</var>(3) if the disclaimer is made before the time the instrument creating the trust becomes <br/>
<a id="pl.46.10"></a><var>46.10</var>irrevocable, the disclaimer must be delivered to the person with the power to revoke the <br/>
<a id="pl.46.11"></a><var>46.11</var>revocable trust or the transferor of the interest or to such person's legal representative.<br/>
<a id="pl.46.12"></a><var>46.12</var>(e) In the case of a disclaimer of an interest created by a beneficiary designation made <br/>
<a id="pl.46.13"></a><var>46.13</var>before the time the designation becomes irrevocable, the disclaimer must be delivered to <br/>
<a id="pl.46.14"></a><var>46.14</var>the person making the beneficiary designation or to such person's legal representative.<br/>
<a id="pl.46.15"></a><var>46.15</var>(f) In the case of a disclaimer of an interest created by a beneficiary designation <br/>
<a id="pl.46.16"></a><var>46.16</var>made after the time the designation becomes irrevocable, the disclaimer must be delivered <br/>
<a id="pl.46.17"></a><var>46.17</var>to the person obligated to distribute the interest.<br/>
<a id="pl.46.18"></a><var>46.18</var>(g) In the case of a disclaimer by a surviving holder of jointly held property, the <br/>
<a id="pl.46.19"></a><var>46.19</var>disclaimer must be delivered to the person to whom the disclaimed interest passes or, if <br/>
<a id="pl.46.20"></a><var>46.20</var>such person cannot reasonably be located by the disclaimant, the disclaimer must be <br/>
<a id="pl.46.21"></a><var>46.21</var>delivered as provided in paragraph (b).<br/>
<a id="pl.46.22"></a><var>46.22</var>(h) In the case of a disclaimer by an object, or taker in default of exercise, of a <br/>
<a id="pl.46.23"></a><var>46.23</var>power of appointment at any time after the power was created, the disclaimer must be <br/>
<a id="pl.46.24"></a><var>46.24</var>delivered to:<br/>
<a id="pl.46.25"></a><var>46.25</var>(1) the holder of the power; or<br/>
<a id="pl.46.26"></a><var>46.26</var>(2) the fiduciary acting under the instrument that created the power or, if no fiduciary <br/>
<a id="pl.46.27"></a><var>46.27</var>is serving when the disclaimer is sought to be delivered, filed with a court having authority <br/>
<a id="pl.46.28"></a><var>46.28</var>to appoint the fiduciary.<br/>
<a id="pl.46.29"></a><var>46.29</var>(i) In the case of a disclaimer by an appointee of a nonfiduciary power of <br/>
<a id="pl.46.30"></a><var>46.30</var>appointment, the disclaimer must be delivered to:<br/>
<a id="pl.46.31"></a><var>46.31</var>(1) the holder of the power or the personal representative of the holder's estate; or<br/>
<a id="pl.46.32"></a><var>46.32</var>(2) the fiduciary under the instrument that created the power or, if no fiduciary is <br/>
<a id="pl.46.33"></a><var>46.33</var>serving when the disclaimer is sought to be delivered, filed with a court having authority <br/>
<a id="pl.46.34"></a><var>46.34</var>to appoint the fiduciary.<br/>
<a id="pl.47.1"></a><var>47.1</var>(j) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the <br/>
<a id="pl.47.2"></a><var>47.2</var>disclaimer must be delivered as provided in paragraph (b), (c), or (d) as if the power <br/>
<a id="pl.47.3"></a><var>47.3</var>disclaimed were an interest in property.<br/>
<a id="pl.47.4"></a><var>47.4</var>(k) In the case of a disclaimer of a power exercisable by an agent, other than a power <br/>
<a id="pl.47.5"></a><var>47.5</var>exercisable by a fiduciary over a trust or estate, the disclaimer must be delivered to the <br/>
<a id="pl.47.6"></a><var>47.6</var>principal or the principal's representative.<br/>
<a id="pl.47.7"></a><var>47.7</var>(l) Notwithstanding paragraph (a), delivery of a disclaimer of an interest in or <br/>
<a id="pl.47.8"></a><var>47.8</var>relating to real estate shall be presumed upon the recording of the disclaimer in the office <br/>
<a id="pl.47.9"></a><var>47.9</var>of the clerk of the court  county recorder or registrar of titles of the county or counties <br/>
<a id="pl.47.10"></a><var>47.10</var>where the real estate is located.<br/>
<a id="pl.47.11"></a><var>47.11</var>(m) A fiduciary or other person having custody of the disclaimed interest is not <br/>
<a id="pl.47.12"></a><var>47.12</var>liable for any otherwise proper distribution or other disposition made without actual <br/>
<a id="pl.47.13"></a><var>47.13</var>notice of the disclaimer or, if the disclaimer is barred under section 
         <statute_ref>524.2-1106</statute_ref>, for any <br/>
<a id="pl.47.14"></a><var>47.14</var>otherwise proper distribution or other disposition made in reliance on the disclaimer, if <br/>
<a id="pl.47.15"></a><var>47.15</var>the distribution or disposition is made without actual knowledge of the facts constituting <br/>
<a id="pl.47.16"></a><var>47.16</var>the bar of the right to disclaim.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.47.17"></a><var>47.17</var>    Sec. 6. Minnesota Statutes 2010, section 524.2-1115, is amended to read:<br/>
<a id="pl.47.18"></a><var>47.18</var><b>524.2-1115 RECORDING OF DISCLAIMER RELATING TO REAL ESTATE.</b><br/>
<a id="pl.47.19"></a><var>47.19</var>(a) A disclaimer of an interest in or relating to real estate does not provide <br/>
<a id="pl.47.20"></a><var>47.20</var>constructive notice to all persons unless the disclaimer contains a legal description of the <br/>
<a id="pl.47.21"></a><var>47.21</var>real estate to which the disclaimer relates and unless the disclaimer is filed for recording <br/>
<a id="pl.47.22"></a><var>47.22</var>recorded in the office of the county recorder or registrar of titles in the county or counties <br/>
<a id="pl.47.23"></a><var>47.23</var>where the real estate is located.<br/>
<a id="pl.47.24"></a><var>47.24</var>(b) An effective disclaimer meeting the requirements of paragraph (a) constitutes <br/>
<a id="pl.47.25"></a><var>47.25</var>constructive notice to all persons from the time of filing recording. Failure to record the <br/>
<a id="pl.47.26"></a><var>47.26</var>disclaimer does not affect its validity as between the disclaimant and persons to whom the <br/>
<a id="pl.47.27"></a><var>47.27</var>property interest or power passes by reason of the disclaimer.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.47.28"></a><var>47.28</var>    Sec. 7. Minnesota Statutes 2010, section 524.2-1116, is amended to read:<br/>
<a id="pl.47.29"></a><var>47.29</var><b>524.2-1116 APPLICATION TO EXISTING RELATIONSHIPS.</b><br/>
<a id="pl.47.30"></a><var>47.30</var>Except as otherwise provided in section 
<statute_ref>524.2-1106</statute_ref>, an Sections 524.2-1101 to <br/>
<a id="pl.47.31"></a><var>47.31</var>524.2-1116 apply to disclaimers of any interest in or power over property existing on <br/>
<a id="pl.47.32"></a><var>47.32</var>January 1, 2010, as to which the time for delivering or filing a disclaimer under laws <br/>
<a id="pl.47.33"></a><var>47.33</var>superseded by sections 
<statute_ref>524.2-1101</statute_ref> to 
<statute_ref>524.2-1116</statute_ref> has not expired, may be disclaimed <br/>
<a id="pl.47.34"></a><var>47.34</var>after January 1, 2010 whenever created.<br/>