HF 382

1st Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 04/12/2012 10:07am

1.1A bill for an act

1.2relating to civil law; amending statutes regarding receiverships, assignments for
1.3the benefit of creditors, and nonprofit corporations; changing, updating, and
1.4clarifying certain provisions of the Uniform Disclaimer of Property Interests
1.5Act; amending Minnesota Statutes 2010, sections 302A.753, subdivisions 2, 3;
1.6302A.755; 302A.759, subdivision 1; 302A.761; 308A.945, subdivisions 2, 3;
1.7308A.951; 308A.961, subdivision 1; 308A.965; 308B.935, subdivisions 2, 3;
1.8308B.941; 308B.951, subdivision 1; 308B.955; 316.11; 317A.753, subdivisions
1.93, 4; 317A.755; 317A.759, subdivision 1; 322B.836, subdivisions 2, 3; 322B.84;
1.10462A.05, subdivision 32; 469.012, subdivision 2i; 524.2-1103; 524.2-1104;
1.11524.2-1106; 524.2-1107; 524.2-1114; 524.2-1115; 524.2-1116; 540.14; 559.17,
1.12subdivision 2; 576.04; 576.06; 576.08; 576.09; 576.11; 576.121; 576.123;
1.13576.144; 576.15; 576.16; proposing coding for new law in Minnesota Statutes,
1.14chapters 576; 577; repealing Minnesota Statutes 2010, sections 302A.759,
1.15subdivision 2; 308A.961, subdivision 2; 308B.951, subdivisions 2, 3; 317A.759,
1.16subdivision 2; 576.01; 577.01; 577.02; 577.03; 577.04; 577.05; 577.06; 577.08;
1.17577.09; 577.10.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19ARTICLE 1

1.20RECEIVERSHIPS

1.21    Section 1. [576.21] DEFINITIONS.
1.22(a) The definitions in this section apply throughout this chapter unless the context
1.23requires otherwise.
1.24(b) "Court" means the district court in which the receivership is pending unless
1.25the context requires otherwise.
1.26(c) "Entity" means a person other than a natural person.
1.27(d) "Executory contract" means a contract, including a lease, where the obligations
1.28of both the respondent and the other party to the contract are unperformed to the extent
1.29that the failure of either party to complete performance of its obligations would constitute
2.1a material breach of the contract, thereby excusing the other party's performance of its
2.2obligations under the contract.
2.3(e) "Foreign receiver" means a receiver appointed in any foreign jurisdiction.
2.4(f) "Foreign jurisdiction" means any state or federal jurisdiction other than that of
2.5this state.
2.6(g) "General receiver" means the receiver appointed in a general receivership.
2.7(h) "General receivership" means a receivership over all or substantially all of
2.8the nonexempt property of a respondent for the purpose of liquidation and distribution
2.9to creditors and other parties in interest, including, without limitation, a receivership
2.10resulting from the appointment of a receiver pursuant to section 302A.753, 308A.945,
2.11308B.935, 317A.753, or 322B.836.
2.12(i) "Lien" means a charge against or interest in property to secure payment of a debt
2.13or the performance of an obligation, including any mortgage or security interest.
2.14(j) "Limited receiver" means the receiver appointed in a limited receivership.
2.15(k) "Limited receivership" means a receivership other than a general receivership.
2.16(l) "Party" means a person who is a party within the meaning of the Minnesota Rules
2.17of Civil Procedure in the action in which a receiver is appointed.
2.18(m) "Party in interest" includes the respondent, any equity security holder in the
2.19respondent, any person with an ownership interest in or lien on receivership property, and,
2.20in a general receivership, any creditor of the respondent.
2.21(n) "Person" has the meaning given it in section 645.44 and shall include limited
2.22liability companies, limited liability partnerships, and other entities recognized under
2.23the laws of this state.
2.24(o) "Property" means all of respondent's right, title, and interest, both legal and
2.25equitable, in real and personal property, regardless of the manner by which any of the
2.26same were or are acquired. Property includes, but is not limited to, any proceeds, products,
2.27offspring, rents, or profits of or from the property. Property does not include: (1) any power
2.28that the respondent may exercise solely for the benefit of another person, or (2) property
2.29impressed with a trust except to the extent that the respondent has a residual interest.
2.30(p) "Receiver" means a person appointed by the court as the court's agent, and
2.31subject to the court's direction, to take possession of, manage, and, if authorized by this
2.32chapter or order of the court, dispose of receivership property.
2.33(q) "Receivership" means the case in which the receiver is appointed, and, as the
2.34context requires, the proceeding in which the receiver takes possession of, manages,
2.35or disposes of the respondent's property.
3.1(r) "Receivership property" means (1) in the case of a general receivership, all
3.2or substantially all of the nonexempt property of the respondent, or (2) in the case of a
3.3limited receivership, that property of the respondent identified in the order appointing
3.4the receiver, or in any subsequent order.
3.5(s) "Respondent" means the person over whose property the receiver is appointed.
3.6(t) "State agent" and "state agency" means any office, department, division, bureau,
3.7board, commission, or other agency of the state of Minnesota or of any subdivision thereof,
3.8or any individual acting in an official capacity on behalf of any state agent or state agency.
3.9(u) "Time of appointment" means the date and time specified in the first order
3.10of appointment of a receiver or, if the date and time are not specified in the order of
3.11appointment, the date and time that the court ruled on the motion for the appointment of
3.12a receiver. Time of appointment does not mean any subsequent date or time, including
3.13the execution of a written order, the filing or docketing of a written order, or the posting
3.14of a bond.
3.15(v) "Utility" means a person providing any service regulated by the Public Utilities
3.16Commission.

3.17    Sec. 2. [576.22] APPLICABILITY OF CHAPTER AND OF COMMON LAW.
3.18(a) This chapter applies to receiverships provided for in section 576.25, subdivisions
3.192 to 6, and to receiverships:
3.20(1) pursuant to section 193.147, in connection with a mortgage on an armory;
3.21(2) pursuant to section 223.17, subdivision 8, paragraph (b), in connection with
3.22a defaulting grain buyer;
3.23(3) pursuant to section 232.22, subdivision 7, paragraph (c), in connection with a
3.24defaulting public grain warehouse;
3.25(4) pursuant to section 296A.22, in connection with nonpayment of tax;
3.26(5) pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or 322B.836,
3.27in an action relating to the dissolution of an entity and relating to, in like cases, property
3.28within the state of foreign entities;
3.29(6) pursuant to section 321.0703, in connection with the rights of a creditor of a
3.30partner or transferee;
3.31(7) pursuant to section 322.22, in connection with the rights of creditors of limited
3.32partners;
3.33(8) pursuant to section 323A.0504, in connection with a partner's transferable
3.34interest;
3.35(9) pursuant to section 453.55, in connection with bonds and notes;
4.1(10) pursuant to section 453A.05, in connection with bonds and notes;
4.2(11) pursuant to section 513.47, in connection with a proceeding for relief with
4.3respect to a transfer fraudulent as to a creditor or creditors;
4.4(12) pursuant to section 514.06, in connection with the severance of a building
4.5and resale;
4.6(13) pursuant to section 515.23, in connection with an action by a unit owners'
4.7association to foreclose a lien for nonpayment of delinquent assessments against
4.8condominium units;
4.9(14) pursuant to section 518A.71, in connection with the failure to pay, or to provide
4.10security for, maintenance or support payments;
4.11(15) pursuant to section 559.17, in connection with assignments of rents; however,
4.12any receiver appointed under section 559.17 shall be a limited receiver, and the court shall
4.13apply the provisions of this chapter to the extent not inconsistent with section 559.17;
4.14(16) pursuant to section 571.84, in connection with a garnishee in possession of
4.15property subject to a garnishment proceeding;
4.16(17) pursuant to section 575.05, in connection with property applied to judgment;
4.17(18) pursuant to section 575.06, in connection with adverse claimants;
4.18(19) pursuant to sections 582.05 to 582.10, in connection with mortgage
4.19foreclosures; however, any receiver appointed under sections 582.05 to 585.10 shall be a
4.20limited receiver, and the court shall apply the provisions of this chapter to the extent not
4.21inconsistent with sections 582.05 to 582.10;
4.22(20) pursuant to section 609.904, in connection with criminal penalties; or
4.23(21) pursuant to section 609.907, in connection with preservation of property
4.24subject to forfeiture.
4.25(b) This chapter does not apply to any receivership in which the receiver is a state
4.26agency or in which the receiver is appointed, controlled, or regulated by a state agency
4.27unless otherwise provided by law.
4.28(c) In receiverships not specifically referenced in paragraph (a) or (b), the court, in
4.29its discretion, may apply provisions of this chapter to the extent not inconsistent with
4.30the statutes establishing the receiverships.
4.31(d) Unless explicitly displaced by this chapter, the provisions of other statutory law
4.32and the principles of common law remain in full force and effect and supplement the
4.33provisions of this chapter.

4.34    Sec. 3. [576.23] POWERS OF THE COURT.
5.1The court has the exclusive authority to direct the receiver and the authority over
5.2all receivership property wherever located including, without limitation, authority
5.3to determine all controversies relating to the collection, preservation, improvement,
5.4disposition, and distribution of receivership property, and all matters otherwise arising
5.5in or relating to the receivership, the receivership property, the exercise of the receiver's
5.6powers, or the performance of the receiver's duties.

5.7    Sec. 4. [576.24] TYPES OF RECEIVERSHIPS.
5.8A receivership may be either a limited receivership or a general receivership.
5.9Any receivership which is based upon the enforcement of an assignment of rents or
5.10leases, or the foreclosure of a mortgage lien, judgment lien, mechanic's lien, or other lien
5.11pursuant to which the respondent or any holder of a lien would have a statutory right of
5.12redemption, shall be a limited receivership. If the order appointing the receiver does
5.13not specify whether the receivership is a limited receivership or a general receivership,
5.14the receivership shall be a limited receivership unless and until the court by later order
5.15designates the receivership as a general receivership, notwithstanding that pursuant to
5.16section 576.25, subdivision 8, a receiver may have control over all the property of the
5.17respondent. At any time, the court may order a general receivership to be converted to a
5.18limited receivership and a limited receivership to be converted to a general receivership.

5.19    Sec. 5. [576.25] APPOINTMENT OF RECEIVERS; RECEIVERSHIP NOT A
5.20TRUST.
5.21    Subdivision 1. No necessity of separate action. A receiver may be appointed under
5.22this chapter whether or not the motion for appointment of a receiver is combined with, or
5.23is ancillary to, an action seeking a money judgment.
5.24    Subd. 2. Before judgment. Except where judgment for failure to answer may be
5.25had without application to the court, a limited receiver may be appointed before judgment
5.26to protect any party to an action who demonstrates an apparent right to property that is the
5.27subject of the action and is in the possession of an adverse party, and that the property or
5.28its rents and profits are in danger of loss or material impairment.
5.29    Subd. 3. In a judgment or after judgment. A limited or general receiver may be
5.30appointed in a judgment or after judgment to carry the judgment into effect, to preserve
5.31property pending an appeal, or when an execution has been returned unsatisfied and the
5.32judgment debtor refuses to apply the property in satisfaction of the judgment.
5.33    Subd. 4. Entities. In addition to those situations specifically provided for in statute,
5.34a limited or general receiver may be appointed when a corporation or other entity is
6.1dissolved, insolvent, in imminent danger of insolvency, or has forfeited its corporate rights
6.2and in like cases of the property within the state of foreign corporations and other entities.
6.3    Subd. 5. Appointment of receiver of mortgaged property. (a) A limited
6.4receiver shall be appointed at any time after the commencement of mortgage foreclosure
6.5proceedings under chapter 580 or 581 and before the end of the period for redemption, if
6.6the mortgage being foreclosed:
6.7 (1) secures an original principal amount of $100,000 or more or is a lien upon
6.8residential real estate containing more than four dwelling units; and
6.9(2) is not a lien upon property that was entirely homesteaded, residential real
6.10estate containing four or fewer dwelling units where at least one unit is homesteaded;
6.11or agricultural property.
6.12The foreclosing mortgagee or the purchaser at foreclosure sale may at any time bring an
6.13action in the district court of the county in which the mortgaged property or any part
6.14thereof is located for the appointment of a receiver; provided, however, if the foreclosure
6.15is by action under chapter 581, a separate action need not be filed.
6.16(b) The court shall appoint a receiver upon a showing that the mortgagor has
6.17breached a covenant contained in the mortgage relating to any of the following:
6.18(1) application of tenant security deposits as required by section 504B.178;
6.19(2) payment when due of prior or current real estate taxes or special assessments
6.20with respect to the mortgaged property or the periodic escrow for the payment of the
6.21taxes or special assessments;
6.22(3) payment when due of premiums for insurance of the type required by the
6.23mortgage or the periodic escrow for the payment of the premiums; or
6.24(4) keeping of the covenants required of a landlord or licensor pursuant to section
6.25504B.161, subdivision 1.
6.26(c) The receiver shall be or shall retain an experienced property manager.
6.27(d) The receiver shall collect the rents, profits, and all other income of any kind.
6.28The receiver, after providing for payment of its reasonable fees and expenses, shall, to
6.29the extent possible and in the order determined by the receiver to preserve the value of
6.30the mortgaged property:
6.31(1) manage the mortgaged property so as to prevent waste;
6.32(2) execute contracts and leases within the period of the receivership, or beyond the
6.33period of the receivership if approved by the court;
6.34(3) pay the expenses listed in paragraph (b), clauses (1) to (3);
6.35(4) pay all expenses for normal maintenance of the mortgaged property; and
7.1(5) perform the terms of any assignment of rents that complies with section 559.17,
7.2subdivision 2.
7.3(e) The purchaser at a foreclosure sale shall have the right, at any time and without
7.4limitation as provided in section 582.03, to advance money to the receiver to pay any or
7.5all of the expenses that the receiver should otherwise pay if cash were available from
7.6the mortgaged property. Sums so advanced, with interest, shall be a part of the sum
7.7required to be paid to redeem from the sale. The sums shall be proved by the affidavit of
7.8the purchaser, an agent, or attorney, stating the expenses and describing the mortgaged
7.9property. The affidavit shall be furnished to the sheriff in the manner of expenses claimed
7.10under section 582.03.
7.11(f) Any sums collected that remain in the possession of the receiver at the
7.12termination of the receivership shall, in the event the termination of the receivership is
7.13due to the reinstatement of the mortgage debt or redemption of the mortgaged property by
7.14the mortgagor, be paid to the mortgagor; and in the event termination of the receivership
7.15occurs at the end of the period of redemption without redemption by the mortgagor
7.16or any other party entitled to redeem, interest accrued upon the sale price pursuant to
7.17section 580.23 or 581.10 shall be paid to the purchaser at the foreclosure sale. Any net
7.18sum remaining shall be paid to the mortgagor, except if the receiver was enforcing an
7.19assignment of rents that complies with section 559.17, subdivision 2, in which case any
7.20net sum remaining shall be paid pursuant to the terms of the assignment.
7.21(g) This subdivision applies to all mortgages executed on or after August 1, 1977,
7.22and to amendments or modifications thereto, and to amendments or modifications made on
7.23or after August 1, 1977, to mortgages executed before August 1, 1977, if the amendment
7.24or modification is duly recorded and is for the principle purpose of curing a default.
7.25    Subd. 6. Other cases. A receiver may be appointed in other cases as are provided
7.26by law, or in accord with existing practice, except as otherwise prescribed.
7.27    Subd. 7. Motion for appointment of receiver. The court may appoint a receiver
7.28upon a motion with notice to the respondent, to all other parties in the action, and to
7.29parties in interest and other persons as the court may require. Notice shall also be given
7.30to any judgment creditor who is seeking the appointment of a receiver in any other
7.31action. A motion to appoint a general receiver shall be treated as a dispositive motion.
7.32The court may appoint a receiver ex parte or on shortened notice on a temporary basis
7.33if it is clearly shown that an emergency exists requiring the immediate appointment of
7.34a receiver. In that event, the court shall set a hearing as soon as practicable and at the
7.35subsequent hearing, the burdens of proof shall be as would be applicable to a motion made
7.36on notice that is not expedited.
8.1    Subd. 8. Description of receivership property. The order appointing the receiver
8.2or subsequent order shall describe the receivership property with particularity appropriate
8.3to the circumstances. If the order does not so describe the receivership property, until
8.4further order of the court, the receiver shall have control over all of the respondent's
8.5nonexempt property.
8.6    Subd. 9. Receivership not a trust. The order appointing the receiver does not
8.7create a trust.

8.8    Sec. 6. [576.26] ELIGIBILITY OF RECEIVER.
8.9    Subdivision 1. Who may serve as receiver. Unless otherwise prohibited by law or
8.10prior order, any person, whether or not a resident of this state, may serve as a receiver,
8.11provided that the court, in its order appointing the receiver, makes written conclusions
8.12based in the record that the person proposed as receiver:
8.13(1) is qualified to serve as receiver and as an officer of the court; and
8.14(2) is independent as to the parties and the underlying dispute.
8.15    Subd. 2. Considerations regarding qualifications. (a) In determining whether a
8.16proposed receiver is qualified to serve as receiver and as an officer of the court, the court
8.17shall consider any relevant information, including, but not limited to, whether:
8.18(1) the proposed receiver has knowledge and experience sufficient to perform the
8.19duties of receiver;
8.20(2) the proposed receiver has the financial ability to post the bond required by
8.21section 576.07;
8.22(3) the proposed receiver or any insider of the proposed receiver has been previously
8.23disqualified from serving as receiver and the reasons for disqualification;
8.24(4) the proposed receiver or any insider of the proposed receiver has been convicted
8.25of a felony or other crime involving moral turpitude; and
8.26(5) the proposed receiver or any insider of the proposed receiver has been found
8.27liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar misconduct.
8.28(b) For the purposes of this subdivision, "insider" includes:
8.29(1) if the proposed receiver is a corporation, an officer or director of the corporation,
8.30or a person in control of the proposed receiver; and
8.31(2) if the proposed receiver is a partnership, a general or limited partner of the
8.32partnership, or a person in control of the proposed receiver.
8.33    Subd. 3. Considerations regarding independence. (a) In determining whether a
8.34proposed receiver is independent as to the parties and the underlying dispute, the court
8.35shall consider any relevant information, including, but not limited to:
9.1(1) the nature and extent of any relationship that the proposed receiver has to the
9.2parties and the property proposed as receivership property including, without limitation,
9.3whether the proposed receiver is a party to the action, a family member of a party to
9.4the action, or an officer, director, member, employee, or owner of or controls a party
9.5to the action;
9.6(2) whether the proposed receiver has any interest materially adverse to the interests
9.7of any of the parties to the action;
9.8(3) whether the proposed receiver has any material financial or pecuniary interest,
9.9other than receiver compensation allowed by court order, in the outcome of the underlying
9.10dispute, including any proposed contingent or success fee compensation arrangement; and
9.11(4) whether the proposed receiver is a debtor, secured or unsecured creditor, lienor
9.12of, or holder of any equity interest in, any of the parties to the action of the receivership
9.13property.
9.14(b) In evaluating all information, the court may exercise its discretion and need not
9.15consider any single item of information to be determinative of independence. Without
9.16limiting the generality of the preceding sentence, the proposed receiver shall not be
9.17disqualified solely because the proposed receiver was appointed receiver in other unrelated
9.18matters involving any of the parties to the matter in which the appointment is sought, or
9.19the proposed receiver has been engaged by any of the parties to the action in matters
9.20unrelated to the underlying action.
9.21    Subd. 4. Information provided to court. The proposed receiver, the parties, and
9.22prospective parties in interest may provide any information relevant to the qualifications,
9.23independence, and the selection of the receiver.

9.24    Sec. 7. [576.27] BOND.
9.25After appointment, a receiver shall give a bond in the sum, nature, and with the
9.26conditions that the court shall order in its discretion consistent with section 574.11. Unless
9.27otherwise ordered by the court, the receiver's bond shall be conditioned on the receiver's
9.28faithful discharge of its duties in accordance with the orders of the court and the laws of
9.29this state. The receiver shall execute a bond with a surety authorized to write bonds in
9.30the state.

9.31    Sec. 8. [576.28] IMMUNITY; DISCOVERY FROM RECEIVER.
9.32(a) The receiver shall be entitled to all defenses and immunities provided at common
9.33law for acts or omissions within the scope of the receiver's appointment.
10.1(b) No person other than a successor receiver duly appointed by the court shall have
10.2a right of action against a receiver to recover receivership property or the value thereof.
10.3(c) A party or party in interest may conduct discovery of the receiver concerning any
10.4mater relating to the receiver's administration of the receivership property after obtaining
10.5an order authorizing the discovery.

10.6    Sec. 9. [576.29] POWERS AND DUTIES OF RECEIVERS; GENERALLY.
10.7    Subdivision 1. Powers. (a) A receiver, whether general or limited, shall have the
10.8following powers in addition to those specifically conferred by this chapter or otherwise
10.9by statute, rule, or order of the court:
10.10(1) the power to collect, control, manage, conserve, and protect receivership
10.11property;
10.12(2) the power to incur and pay expenses incidental to the receiver's exercise of the
10.13powers or otherwise in the performance of the receiver's duties;
10.14(3) the power to assert rights, claims, causes of action, or defenses that relate to
10.15receivership property; and
10.16(4) the power to seek and obtain instruction from the court with respect to any
10.17matter relating to the receivership property, the exercise of the receiver's powers, or the
10.18performance of the receiver's duties.
10.19(b) In addition to the powers provided in paragraph (a), a general receiver shall
10.20have the power:
10.21(1) to (i) assert any rights, claims, causes of action, or defenses of the respondent to
10.22the extent any rights, claims, causes of action, or defenses are receivership property; (ii)
10.23maintain in the receiver's name or in the name of the respondent any action to enforce
10.24any right, claim, cause of action, or defense; and (iii) intervene in actions in which the
10.25respondent is a party for the purpose of exercising the powers under this clause or
10.26requesting transfer of venue of the action to the court;
10.27(2) to pursue any claim or remedy that may be asserted by a creditor of the
10.28respondent under sections 513.41 to 513.51;
10.29(3) to compel any person, including the respondent, and any party, by subpoena
10.30pursuant to Rule 45 of the Minnesota Rules of Civil Procedure, to give testimony or to
10.31produce and permit inspection and copying of designated books, documents, electronically
10.32stored information, or tangible things with respect to receivership property or any other
10.33matter that may affect the administration of the receivership;
10.34(4) to operate any business constituting receivership property in the ordinary course
10.35of the business, including the use, sale, or lease of property of the business or otherwise
11.1constituting receivership property, and the incurring and payment of expenses of the
11.2business or other receivership property;
11.3(5) if authorized by an order of the court following notice and a hearing, to use,
11.4improve, sell, or lease receivership property other than in the ordinary course of business;
11.5and
11.6(6) if appointed pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or
11.7322B.836, to exercise all of the powers and authority provided by the section or order of
11.8the court.
11.9    Subd. 2. Duties. A receiver, whether general or limited, shall have the duties
11.10specifically conferred by this chapter or otherwise by statute, rule, or order of the court.
11.11    Subd. 3. Modification of powers and duties. Except as otherwise provided in this
11.12chapter, the court may modify the powers and duties of a receiver provided by this section.

11.13    Sec. 10. [576.30] RECEIVER AS LIEN CREDITOR; REAL ESTATE
11.14RECORDING; SUBSEQUENT SALES OF REAL ESTATE.
11.15    Subdivision 1. Receiver as lien creditor. As of the time of appointment, the
11.16receiver shall have the powers and priority as if it were a creditor that obtained a judicial
11.17lien at the time of appointment pursuant to sections 548.09 and 550.10 on all of the
11.18receivership property, subject to satisfying the recording requirements as to real property
11.19described in subdivision 2.
11.20    Subd. 2. Real estate recording. If any interest in real estate is included in the
11.21receivership property, a notice of lis pendens shall be recorded as soon as practicable with
11.22the county recorder or registrar of titles, as appropriate, of the county in which the real
11.23property is located. The priority of the receiver as lien creditor against real property shall
11.24be from the time of recording of the notice of lis pendens, except as to persons with actual
11.25or implied knowledge of the appointment under section 507.34.
11.26    Subd. 3. Subsequent sales of real estate. The notice of lis pendens, a court order
11.27authorizing the receiver to sell real property certified by the court administrator, and
11.28a deed executed by the receiver recorded with the county recorder or registrar of titles,
11.29as appropriate, of the county in which the real property is located, and upon execution
11.30of the deed by the receiver shall be prima facie evidence of the authority of the receiver
11.31to sell and convey the real property described in the deed. The court may also require a
11.32motion for an order for sale of the real property or a motion for an order confirming
11.33sale of the real property.

11.34    Sec. 11. [576.31] DUTIES OF RESPONDENT.
12.1The respondent shall:
12.2(1) assist and cooperate fully with the receiver in the administration of the
12.3receivership and the receivership property and the discharge of the receiver's duties, and
12.4comply with all orders of the court;
12.5(2) immediately upon the receiver's appointment, deliver to the receiver all of the
12.6receivership property in the respondent's possession, custody, or control, including, but not
12.7limited to, all books and records, electronic data, passwords, access codes, statements of
12.8accounts, deeds, titles or other evidence of ownership, financial statements, and all other
12.9papers and documents related to the receivership property;
12.10(3) supply to the receiver information as requested relating to the administration
12.11of the receivership and the receivership property, including information necessary to
12.12complete any reports or other documents that the receiver may be required to file; and
12.13(4) remain responsible for the filing of all tax returns, including those returns
12.14applicable to periods which include those in which the receivership is in effect.

12.15    Sec. 12. [576.32] EMPLOYMENT AND COMPENSATION OF
12.16PROFESSIONALS.
12.17    Subdivision 1. Employment. (a) To represent or assist the receiver in carrying
12.18out the receiver's duties, the receiver may employ attorneys, accountants, appraisers,
12.19auctioneers, and other professionals that do not hold or represent an interest adverse
12.20to the receivership.
12.21(b) This section does not require prior court approval for the retention of
12.22professionals. However, any professional to be retained shall provide the receiver with a
12.23disclosure of any potential conflicts of interest, and the professional or the receiver shall
12.24file with the court a notice of the retention and of the proposed compensation. Any party
12.25in interest may bring a motion for disapproval of any retention within 21 days after the
12.26filing of the notice of retention.
12.27(c) A person is not disqualified for employment under this section solely because
12.28of the person's employment by, representation of, or other relationship with the receiver,
12.29respondent, a creditor, or other party in interest if the court determines that the employment
12.30is appropriate.
12.31    Subd. 2. Compensation. (a) The receiver and any professional retained by the
12.32receiver shall be paid by the receiver from the receivership property in the same manner
12.33as other expenses of administration and without separate orders, but subject to the
12.34procedures, safeguards, and reporting that the court may order.
13.1(b) Except to the extent fees and expenses have been approved by the court, or as
13.2to parties in interest who are deemed to have waived the right to object, any interim
13.3payments of fees and expenses to the receiver are subject to approval in connection with
13.4the receiver's final report pursuant to section 576.38.

13.5    Sec. 13. [576.33] SCHEDULES OF PROPERTY AND CLAIMS.
13.6(a) The court may order the respondent or a general receiver to file under oath to
13.7the best of its actual knowledge:
13.8(1) a schedule of all receivership property and exempt property of the respondent,
13.9describing, as of the time of appointment: (i) the location of the property and, if real
13.10property, a legal description thereof; (ii) a description of all liens to which the property is
13.11subject; and (iii) an estimated value of the property; and
13.12(2) a schedule of all creditors and taxing authorities and regulatory authorities which
13.13supervise the respondent, their mailing addresses, the amount and nature of their claims,
13.14whether the claims are secured by liens of any kind, and whether the claims are disputed.
13.15(b) The court may order inventories and appraisals if appropriate to the receivership.

13.16    Sec. 14. [576.34] NOTICE.
13.17In a general receivership, unless the court orders otherwise, the receiver shall give
13.18notice of the receivership to all creditors and other parties in interest actually known
13.19to the receiver by mail or other means of transmission within 21 days after the time of
13.20appointment. The notice of the receivership shall include the time of appointment and the
13.21names and addresses of the respondent, the receiver, and the receiver's attorney, if any.

13.22    Sec. 15. [576.35] NOTICES, MOTIONS, AND ORDERS.
13.23    Subdivision 1. Notice of appearance. Any party in interest may make an
13.24appearance in a receivership by filing a written notice of appearance, including the name,
13.25mailing address, fax number, e-mail address, if any, and telephone number of the party in
13.26interest and its attorney, if any, and by serving a copy on the receiver and the receiver's
13.27attorney, if any. It is not necessary for a party in interest to be joined as a party to be heard
13.28in the receivership. A proof of claim does not constitute a written notice of appearance.
13.29    Subd. 2. Master service list. From time to time the receiver shall file an updated
13.30master service list consisting of the names, mailing addresses, and, where available, fax
13.31numbers and e-mail addresses of the respondent, the receiver, all persons joined as parties
13.32in the receivership, all persons known by the receiver to have asserted any ownership
14.1or lien in receivership property, all persons who have filed a notice of appearance in
14.2accordance with this section, and their attorneys, if any.
14.3    Subd. 3. Motions. Except as otherwise provided in this chapter, an order shall be
14.4sought by a motion brought in compliance with the Minnesota Rules of Civil Procedure
14.5and the General Rules of Practice for the District Courts.
14.6    Subd. 4. Persons served. Except as otherwise provided in this chapter, a motion
14.7shall be served as provided in the Minnesota Rules of Civil Procedure, unless the court
14.8orders otherwise, on all persons on the master service list, all persons who have asserted
14.9an ownership interest or lien in receivership property that is the subject of the motion,
14.10all persons who are identified in the motion as directly affected by the relief requested,
14.11and other persons as the court may direct.
14.12    Subd. 5. Service on state agency. Any request for relief against a state agency shall
14.13be served as provided in the Minnesota Rules of Civil Procedure, unless the court orders
14.14otherwise, on the specific state agency and on the Office of the Attorney General.
14.15    Subd. 6. Order without hearing. Where a provision in this chapter, an order issued
14.16in the receivership, or a court rule requires an objection or other response to a motion or
14.17application within a specific time, and no objection or other response is interposed, the
14.18court may grant the relief requested without a hearing.
14.19    Subd. 7. Order upon application. Where a provision of this chapter permits, as to
14.20administrative matters, or where it otherwise appears that no party in interest would be
14.21materially prejudiced, the court may issue an order ex parte or based on an application
14.22without a motion, notice, or hearing.
14.23    Subd. 8. Persons bound by orders of the court. Except as to persons entitled to be
14.24served pursuant to subdivision 4 and who were not served, an order of the court binds
14.25parties in interest and all persons who file notices of appearance, submit proofs of claim,
14.26receive written notice of the receivership, receive notice of any motion in the receivership,
14.27or who have actual knowledge of the receivership whether they are joined as parties or
14.28received notice of the specific motion or order.

14.29    Sec. 16. [576.36] RECORDS; INTERIM REPORTS.
14.30    Subdivision 1. Preparation and retention of records. The receiver shall prepare
14.31and retain appropriate business records, including records of all cash receipts and
14.32disbursements and of all receipts and distributions or other dispositions of receivership
14.33property. After due consideration of issues of confidentiality, the records may be provided
14.34by the receiver to parties in interest or shall be provided as ordered by the court.
15.1    Subd. 2. Interim reports. (a) The court may order the receiver to prepare and
15.2file interim reports addressing:
15.3(1) the activities of the receiver since the last report;
15.4(2) cash receipts and disbursements, including payments made to professionals
15.5retained by the receiver;
15.6(3) receipts and dispositions of receivership property; and
15.7(4) other matters.
15.8(b) The order may provide for the delivery of the receiver's interim reports to persons
15.9on the master service list and to other persons and may provide a procedure for objection
15.10to the interim reports, and may also provide that the failure to object constitutes a waiver
15.11of objection to matters addressed in the interim reports.

15.12    Sec. 17. [576.37] REMOVAL OF RECEIVERS.
15.13    Subdivision 1. Removal of receiver. The court may remove the receiver if: (1) the
15.14receiver fails to execute and file the bond required by section 576.27; (2) the receiver
15.15resigns, refuses, or fails to serve for any reason; or (3) for other good cause.
15.16    Subd. 2. Successor receiver. Upon removal of the receiver, if the court determines
15.17that further administration of the receivership is required, the court shall appoint a
15.18successor receiver. Upon executing and filing a bond under section 576.27, the successor
15.19receiver shall immediately succeed the receiver so removed and shall assume the duties of
15.20receiver.
15.21    Subd. 3. Report and discharge of removed receiver. Within 14 days after
15.22removal, the receiver so removed shall file with the court and serve a report pursuant to
15.23section 576.38, subdivision 3, for matters up to the date of the removal. Upon approval
15.24of the report, the court may enter an order pursuant to section 576.38 discharging the
15.25removed receiver.

15.26    Sec. 18. [576.38] TERMINATION OF RECEIVERSHIPS; FINAL REPORT.
15.27    Subdivision 1. Termination of receivership. The court may discharge a receiver
15.28and terminate the receivership. If the court determines that the appointment of the receiver
15.29was procured in bad faith, the court may assess against the person who procured the
15.30receiver's appointment:
15.31(1) all of the receiver's fees and expenses and other costs of the receivership; and
15.32(2) any other sanctions the court deems appropriate.
16.1    Subd. 2. Request for discharge. Upon distribution or disposition of all receivership
16.2property, or the completion of the receiver's duties, the receiver shall file a final report and
16.3shall request that the court approve the final report and discharge the receiver.
16.4    Subd. 3. Contents of final report. The final report, which may incorporate by
16.5reference interim reports, shall include, in addition to any matters required by the court in
16.6the case:
16.7(1) a description of the activities of the receiver in the conduct of the receivership;
16.8(2) a schedule of all receivership property at the commencement of the receivership
16.9and any receivership property added thereafter;
16.10(3) a list of expenditures, including all payments to professionals retained by the
16.11receiver;
16.12(4) a list of any unpaid expenses incurred during the receivership;
16.13(5) a list of all dispositions of receivership property;
16.14(6) a list of all distributions made or proposed to be made; and
16.15(7) if not done separately, a motion or application for approval of the payment of
16.16fees and expenses of the receiver.
16.17    Subd. 4. Notice of final report. The receiver shall give notice of the filing of the
16.18final report and request for discharge to all persons who have filed notices of appearance.
16.19If there is no objection within 21 days, the court may enter an order approving the final
16.20report and discharging the receiver without the necessity of a hearing.
16.21    Subd. 5. Effect of discharge. A discharge removes all authority of the receiver,
16.22excuses the receiver from further performance of any duties, and discharges any lis
16.23pendens recorded by the receiver.

16.24    Sec. 19. [576.39] ACTIONS BY OR AGAINST RECEIVER OR RELATING TO
16.25RECEIVERSHIP PROPERTY.
16.26    Subdivision 1. Actions by or against receiver. The receiver may sue in the
16.27receiver's capacity and, subject to other sections of this chapter and all immunities
16.28provided at common law, may be sued in that capacity.
16.29    Subd. 2. Venue. Unless applicable law requires otherwise or the court orders
16.30otherwise, an action by or against the receiver or relating to the receivership or
16.31receivership property shall be commenced in the court and assigned to the judge before
16.32whom the receivership is pending.
16.33    Subd. 3. Joinder. Subject to section 576.42, a limited or general receiver may be
16.34joined or substituted as a party in any action or other proceeding that relates to receivership
16.35property that was pending at the time of appointment. Subject to other sections of this
17.1chapter, a general receiver may be joined or substituted as a party in any action or other
17.2proceeding that was pending at the time of appointment in which the respondent is a party.
17.3Pending actions may be transferred to the court upon the receiver's motion for change of
17.4venue made in the court in which the action is pending.
17.5    Subd. 4. Effect of judgments. A judgment entered subsequent to the time of
17.6appointment against a receiver or the respondent shall not constitute a lien on receivership
17.7property, nor shall any execution issue thereon. Upon submission of a certified copy of the
17.8judgment in accordance with section 576.49, the amount of the judgment shall be treated
17.9as an allowed claim in a general receivership. A judgment against a limited receiver shall
17.10have the same effect as a judgment against the respondent, except that the judgment shall
17.11be enforceable against receivership property only to the extent ordered by the court.

17.12    Sec. 20. [576.40] TURNOVER OF PROPERTY.
17.13    Subdivision 1. Demand by receiver. Except as expressly provided in this section,
17.14and unless otherwise ordered by the court, upon demand by a receiver, any person shall
17.15turn over any receivership property that is within the possession or control of that person.
17.16Unless ordered by the court, a person in possession of receivership property pursuant
17.17to a valid lien perfected prior to the time of appointment is not required to turn over
17.18receivership property.
17.19    Subd. 2. Motion by receiver. A receiver may seek to compel turnover of
17.20receivership property by motion in the receivership. If there exists a bona fide dispute
17.21with respect to the existence or nature of the receiver's or the respondent's interest in the
17.22property, turnover shall be sought by means of an action under section 576.39. In the
17.23absence of a bona fide dispute with respect to the receiver's or the respondent's right to
17.24possession of receivership property, the failure to relinquish possession and control to the
17.25receiver may be punishable as contempt of the court.

17.26    Sec. 21. [576.41] ANCILLARY RECEIVERSHIPS.
17.27    Subdivision 1. Ancillary receiverships in foreign jurisdictions. A receiver
17.28appointed by a court of this state may, without first seeking approval of the court, apply
17.29in any foreign jurisdiction for appointment as receiver with respect to any receivership
17.30property which is located within the foreign jurisdiction.
17.31    Subd. 2. Ancillary receiverships in the courts of this state. (a) A foreign receiver
17.32may obtain appointment by a court of this state as a receiver in an ancillary receivership
17.33with respect to any property located in or subject to the jurisdiction of the court if (1)
17.34the foreign receiver would be eligible to serve as receiver under section 576.26, and
18.1(2) the appointment is in furtherance of the foreign receiver's possession, control, or
18.2disposition of property subject to the foreign receivership and in accordance with orders of
18.3the foreign jurisdiction.
18.4(b) The courts of this state may enter any order necessary to effectuate orders entered
18.5by the foreign jurisdiction's receivership proceeding. Unless the court orders otherwise,
18.6a receiver appointed in an ancillary receivership in this state shall have the powers and
18.7duties of a limited receiver as set forth in this chapter and shall otherwise comply with the
18.8provisions of this chapter applicable to limited receivers.

18.9    Sec. 22. [576.42] STAYS.
18.10    Subdivision 1. Control of property. All receivership property is under the control
18.11and supervision of the court appointing the receiver.
18.12    Subd. 2. Stay by court order. In addition to any stay provided in this section,
18.13the court may order a stay or stays to protect receivership property and to facilitate the
18.14administration of the receivership.
18.15    Subd. 3. Stay in all receiverships. Except as otherwise ordered by the court, the
18.16entry of an order appointing a receiver shall operate as a stay, applicable to all persons, of:
18.17(1) any act to obtain possession of receivership property, or to interfere with or
18.18exercise control over receivership property, other than the commencement or continuation
18.19of a judicial, administrative, or other action or proceeding, including the issuance or use of
18.20process, to enforce any lien having priority over the rights of the receiver in receivership
18.21property; and
18.22(2) any act to create or perfect any lien against receivership property, except by
18.23exercise of a right of setoff, to the extent that the lien secures a claim that arose before
18.24the time of appointment.
18.25    Subd. 4. Limited additional stay in general receiverships. (a) Except as otherwise
18.26ordered by the court, in addition to the stay provided in subdivision 3, the entry of an order
18.27appointing a general receiver shall operate as a stay, applicable to all persons, of:
18.28(1) the commencement or continuation of a judicial, administrative, or other action
18.29or proceeding, including the issuance or use of process, against the respondent or the
18.30receiver that was or could have been commenced before the time of appointment, or to
18.31recover a claim against the respondent that arose before the time of appointment;
18.32(2) the commencement or continuation of a judicial, administrative, or other action
18.33or proceeding, including the issuance or use of process, to enforce any lien having priority
18.34over the rights of the receiver in receivership property.
19.1(b) As to the acts specified in this subdivision, the stay shall expire 30 days after
19.2the time of appointment unless, before the expiration of the 30-day period, the receiver
19.3or other party in interest files a motion seeking an order of the court extending the stay
19.4and before the expiration of an additional 30 days following the 30-day period, the court
19.5orders the stay extended.
19.6    Subd. 5. Modification of stay. The court may modify any stay provided in this
19.7section upon the motion of any party in interest affected by the stay.
19.8    Subd. 6. Inapplicability of stay. The entry of an order appointing a receiver does
19.9not operate as a stay of:
19.10(1) the commencement or continuation of a criminal proceeding against the
19.11respondent;
19.12(2) the commencement or continuation of an action or proceeding by a governmental
19.13unit to enforce its police or regulatory power;
19.14(3) the enforcement of a judgment, other than a money judgment, obtained in an
19.15action or proceeding by a governmental unit to enforce its police or regulatory power, or
19.16with respect to any licensure of the respondent;
19.17(4) the establishment by a governmental unit of any tax liability and any appeal
19.18thereof;
19.19(5) the commencement or continuation of an action or proceeding to establish
19.20paternity; to establish or modify an order for alimony, maintenance, or support; or to
19.21collect alimony, maintenance, or support under any order of a court;
19.22(6) the exercise of a right of setoff;
19.23(7) any act to maintain or continue the perfection of a lien on, or otherwise preserve
19.24or protect rights in, receivership property, but only to the extent that the act was necessary
19.25to preserve or protect the lien or other rights as they existed as of the time of the
19.26appointment. If the act would require seizure of receivership property or commencement
19.27of an action prohibited by a stay, the continued perfection shall instead be accomplished
19.28by filing a notice in the court before which the receivership is pending and by serving the
19.29notice upon the receiver and receiver's attorney, if any, within the time fixed by law for
19.30seizure or commencement of the action;
19.31(8) the commencement of a bankruptcy case under federal bankruptcy laws; or
19.32(9) any other exception as provided in United States Code, title 11, section 326(b),
19.33as to the automatic stay in federal bankruptcy cases to the extent not inconsistent with any
19.34provision in this section.

19.35    Sec. 23. [576.43] UTILITY SERVICE.
20.1A utility providing service to receivership property may not alter, refuse, or
20.2discontinue service to the receivership property without first giving the receiver 21 days'
20.3written notice of any default and any intention to alter, refuse, or discontinue service to
20.4receivership property. The court may prohibit the alteration, refusal, or discontinuance
20.5of utility service if the receiver furnishes adequate assurance of payment for service to
20.6be provided after the time of appointment.

20.7    Sec. 24. [576.44] RECEIVERSHIP FINANCING.
20.8(a) Without necessity of a court order, the receiver may obtain unsecured credit and
20.9incur unsecured debt on behalf of the receivership, and the amounts shall be allowable as
20.10expenses of the receivership under section 576.51, subdivision 1, clause (2).
20.11(b) Without necessity of a court order, the receiver may obtain secured financing
20.12on behalf of the receivership from any secured party under a financing facility existing
20.13at the time of the appointment.
20.14(c) The court may authorize the receiver to obtain credit or incur indebtedness,
20.15and the court may authorize the receiver to mortgage, pledge, hypothecate, or otherwise
20.16encumber receivership property as security for repayment of any indebtedness.

20.17    Sec. 25. [576.45] EXECUTORY CONTRACTS.
20.18    Subdivision 1. Performance by receiver. Unless a court orders otherwise, a
20.19receiver succeeds to all of the rights and duties of the respondent under any executory
20.20contract. The court may condition the continued performance by the receiver on terms
20.21that are appropriate under the circumstances. Performance of an executory contract shall
20.22create a claim against the receivership to the extent of the value of the performance
20.23received by the receivership after the time of appointment. The claim shall not constitute a
20.24personal obligation of the receiver.
20.25    Subd. 2. Assignment and delegation by receiver. For good cause, the court may
20.26authorize a receiver to assign and delegate an executory contract to a third party under
20.27the same circumstances and under the same conditions as the respondent was permitted
20.28to do so pursuant to the terms of the executory contract and applicable law immediately
20.29before the time of appointment.
20.30    Subd. 3. Termination by receiver. For good cause, the court may authorize
20.31the receiver to terminate an executory contract. The receiver's right to possess or use
20.32property pursuant to the executory contract shall terminate at the termination of the
20.33executory contract. Except as to the claim against the receivership under subdivision 1,
20.34the termination shall create a claim equal to the damages, if any, for a breach of contract as
21.1if the breach of contract had occurred immediately before the time of appointment. Any
21.2claim arising under this section for termination of an executory contract shall be presented
21.3or filed in the same manner as other claims in the receivership no later than the later of:
21.4(1) the time set for filing of claims in the receivership; or (2) 28 days after the notice by
21.5the receiver of the termination of the executory contract.

21.6    Sec. 26. [576.46] SALES FREE AND CLEAR OF LIEN IN GENERAL
21.7RECEIVERSHIPS.
21.8    Subdivision 1. Sales free and clear of liens. (a) The court may order that a general
21.9receiver's sale of receivership property is free and clear of all liens, except any lien for
21.10unpaid real estate taxes or assessments and liens arising under federal law, and may be free
21.11of the rights of redemption of the respondent if the rights of redemption are receivership
21.12property and the rights of redemption of the holders of any liens, regardless of whether the
21.13sale will generate proceeds sufficient to fully satisfy all liens on the property, unless either:
21.14(1) the property is (i) real property classified as agricultural land under section
21.15273.13, subdivision 23, or the property is a homestead under section 510.01; and (ii)
21.16each of the owners of the property has not consented to the sale following the time
21.17of appointment; or
21.18(2) any owner of the property or holder of a lien on the property serves and files
21.19a timely objection, and the court determines that the amount likely to be realized from
21.20the sale by the objecting person is less than the objecting person would realize within a
21.21reasonable time in the absence of this sale.
21.22(b) The receiver shall have the burden of proof to establish that the amount likely to
21.23be realized by the objecting person from the sale is equal to or more than the objecting
21.24person would realize within a reasonable time in the absence of the sale.
21.25(c) Upon any sale free and clear of liens authorized by this section, all liens
21.26encumbering the property conveyed shall transfer and attach to the proceeds of the
21.27sale, net of reasonable expenses approved by the court incurred in the disposition of
21.28the property, in the same order, priority, and validity as the liens had with respect to the
21.29property immediately before the sale. The court may authorize the receiver to satisfy,
21.30in whole or in part, any ownership interest or lien out of the proceeds of the sale if the
21.31ownership interest or lien of any party in interest would not thereby be impaired.
21.32    Subd. 2. Co-owned property. If any receivership property includes an interest as a
21.33co-owner of property, the receiver shall have the rights and powers afforded by applicable
21.34state or federal law of the respondent, including but not limited to any rights of partition,
21.35but may not sell the property free and clear of the co-owner's interest in the property.
22.1    Subd. 3. Right to credit bid. A creditor with a claim secured by a valid and
22.2perfected lien against the property to be sold may bid on the property at a sale and may
22.3offset against the purchase price part or all of the amount secured by its lien, provided that
22.4the creditor tenders cash sufficient to satisfy in full the reasonable expenses, approved
22.5by the court, incurred in the disposition of the property and all liens payable out of the
22.6proceeds of sale having priority over the lien of that creditor.
22.7    Subd. 4. Effect of appeal. The reversal or modification on appeal of an
22.8authorization to sell property under this section does not affect the validity of a sale to a
22.9person that purchased the property in good faith, whether or not the person knew of the
22.10pendency of the appeal, unless the authorization and sale is stayed pending the appeal.

22.11    Sec. 27. [576.47] ABANDONMENT OF PROPERTY.
22.12The court may authorize the receiver to abandon any receivership property that is
22.13burdensome or is not of material value to the receivership. Property that is abandoned is
22.14no longer receivership property.

22.15    Sec. 28. [576.48] LIENS AGAINST AFTER-ACQUIRED PROPERTY.
22.16Except as otherwise provided for by statute, property that becomes receivership
22.17property after the time of appointment is subject to a lien to the same extent as it would
22.18have been in the absence of the receivership.

22.19    Sec. 29. [576.49] CLAIMS PROCESS.
22.20    Subdivision 1. Recommendation of receiver. In a general receivership, and in a
22.21limited receivership if the circumstances require, the receiver shall submit to the court a
22.22recommendation concerning a claims process appropriate to the particular receivership.
22.23    Subd. 2. Order establishing process. In a general receivership and, if the court
22.24orders, in a limited receivership, the court shall establish the claims process to be followed
22.25in the receivership addressing whether proofs of claim must be submitted, the form of
22.26any proofs of claim, the place where the proofs of claim must be submitted, the deadline
22.27or deadlines for submitting the proofs of claim, and other matters bearing on the claims
22.28process.
22.29    Subd. 3. Alternative procedures. The court may authorize proofs of claim to be
22.30filed with the receiver rather than the court. The court may authorize the receiver to treat
22.31claims as allowed claims based on the amounts established in the books and records of the
22.32respondent or the schedule of claims filed pursuant to section 576.33, without necessity of
22.33formal proofs of claim.

23.1    Sec. 30. [576.50] OBJECTION TO AND ALLOWANCE OF CLAIMS.
23.2    Subdivision 1. Objections and allowance. The receiver or any party in interest may
23.3file a motion objecting to a claim and stating the grounds for the objection. The court may
23.4order that a copy of the objection be served on the persons on the master mailing list at
23.5least 30 days prior to the hearing. Claims allowed by court order, and claims properly
23.6submitted and not disallowed by the court shall be allowed claims and shall be entitled to
23.7share in distributions of receivership property in accordance with the priorities provided
23.8by this chapter or otherwise by law.
23.9    Subd. 2. Examination of claims. If the claims process does not require proofs of
23.10claim to be filed with the court, at any time after expiration of the claim-filing period and
23.11upon 14 days' written notice to the receiver, any party in interest shall have the right to
23.12examine:
23.13(1) all claims filed with the receiver; and
23.14(2) all books and records in the receiver's possession that provided the receiver the
23.15basis for concluding that creditors identified therein are entitled to participate in any
23.16distributions of receivership property without having to file claims.
23.17    Subd. 3. Estimation of claims. For the purpose of allowance of claims, the court
23.18may estimate:
23.19(1) any contingent or unliquidated claim, the fixing or liquidation of which would
23.20unduly delay the administration of the receivership; or
23.21(2) any right to payment arising from a right to an equitable remedy.

23.22    Sec. 31. [576.51] PRIORITY OF CLAIMS.
23.23    Subdivision 1. Priorities. Allowed claims shall receive distribution under this
23.24chapter in the following order of priority and, except as set forth in clause (1), on a pro
23.25rata basis:
23.26(1) claims secured by liens on receivership property, which liens are valid and
23.27perfected before the time of appointment, to the extent of the proceeds from the disposition
23.28of the collateral in accordance with their respective priorities under otherwise applicable
23.29law, subject first to reimbursing the receiver for the reasonable and necessary expenses
23.30of preserving, protecting, or disposing of the collateral, including allowed fees and
23.31reimbursement of reasonable expenses of the receiver and professionals;
23.32(2) actual, necessary costs and expenses incurred during the receivership, other than
23.33those expenses allowable under clause (1), including allowed fees and reimbursement of
23.34reasonable expenses of the receiver and professionals employed by the receiver under
23.35section 576.32;
24.1(3) claims for wages, salaries, or commissions, including vacation, severance, and
24.2sick leave pay, or contributions to an employee benefit plan, earned by the claimant within
24.3the 90 days before the time of appointment or the cessation of the respondent's business,
24.4whichever occurs first, but only to the extent of the dollar amount in effect in United
24.5States Code, title 11, section 507(4);
24.6(4) allowed unsecured claims, to the extent of the dollar amount in effect in United
24.7States Code, title 11, section 507(7) for each individual, arising from the deposit with the
24.8respondent, before the time of appointment of the receiver, of money in connection with
24.9the purchase, lease, or rental of property or the purchase of services for personal, family,
24.10or household use by individuals that were not delivered or provided;
24.11(5) claims for arrears in amounts owing pursuant to a support order as defined in
24.12section 518A.26, subdivision 3;
24.13(6) unsecured claims of governmental units for taxes that accrued before the time
24.14of appointment of the receiver;
24.15(7) all other unsecured claims due as of the time of appointment, including the
24.16balance due the holders of secured claims to the extent not satisfied under clause (1); and
24.17(8) interest pursuant to section 576.52.
24.18    Subd. 2. Payments to respondent. If all of the amounts payable under subdivision
24.191 have been paid in full, any remaining receivership property shall be returned to the
24.20respondent.

24.21    Sec. 32. [576.52] INTEREST ON UNSECURED CLAIMS.
24.22To the extent that funds are available to pay holders of allowed unsecured claims in
24.23full or the amounts due as of the time of appointment, each holder shall also be entitled
24.24to receive interest, calculated from the time of appointment, at the rate set forth in the
24.25agreement evidencing the claim, or if no rate is provided, at the judgment rate that would
24.26be payable as of the time of appointment; provided however, that no holder shall be entitled
24.27to interest on that portion, if any, of its unsecured claim that is itself interest calculated
24.28from the time of appointment. If there are not sufficient funds in the receivership to pay in
24.29full the interest owed to all the holders, then the interest shall be paid pro rata.

24.30    Sec. 33. [576.53] DISTRIBUTIONS.
24.31    Subdivision 1. Proposed distributions. Before any interim or final distribution is
24.32made, the receiver shall file a distribution schedule listing the proposed distributions.
24.33The distribution schedule may be filed at any time during the case or may be included
24.34in the final report.
25.1    Subd. 2. Notice. The receiver shall give notice of the filing of the distribution
25.2schedule to all persons on the master mailing list or that have filed proofs of claim. If there
25.3is no objection within 21 days after the notice, the court may enter an order authorizing
25.4the receiver to make the distributions described in the distribution schedule without the
25.5necessity of a hearing.
25.6    Subd. 3. Other distributions. In the order appointing the receiver or in subsequent
25.7orders, the court may authorize distribution of receivership property to persons with
25.8ownership interests or liens.

25.9ARTICLE 2

25.10ASSIGNMENTS FOR THE BENEFITS OF CREDITORS

25.11    Section 1. [577.11] DEFINITIONS.
25.12(a) The definitions in this section and in section 576.21 apply throughout this chapter
25.13unless the context requires otherwise.
25.14(b) "Assignee" means the person to whom the assignment property is assigned.
25.15(c) "Assignment property" means the property assigned pursuant to the provisions
25.16of this chapter.
25.17(d) "Assignor" means the person who assigns the assignment property.
25.18(e) "Time of assignment" means the date and time endorsed by the court
25.19administrator pursuant to section 577.14.

25.20    Sec. 2. [577.12] REQUISITES.
25.21A person may execute a written assignment of property to one or more assignees for
25.22the benefit of creditors in conformity with the provisions of this chapter. Every assignment
25.23for the benefit of creditors subject to this chapter made by an assignor of the whole or any
25.24part of the assignor's property, real or personal, for the benefit of creditors, shall be: (1) to
25.25a resident of the state eligible to be a receiver under section 576.26, in writing, subscribed
25.26and acknowledged by the assignor, and (2) filed by the assignor or the assignee with the
25.27court administrator of the district court of the county in which the assignor, or one of the
25.28assignors if there is more than one, resides, or in which the principal place of business of
25.29an assignor engaged in business is located. The district court shall have supervision over
25.30the assignment property and of all proceedings under this chapter.

25.31    Sec. 3. [577.13] FORM OF ASSIGNMENT.
25.32An assignment for the benefit of creditors under this chapter shall be signed by the
25.33assignor and duly acknowledged in the same manner as conveyances of real property
26.1before a notary public of the state, shall include an acceptance of the assignment by the
26.2assignee, and shall be in substantially the following form:

26.3ASSIGNMENT

26.4    THIS ASSIGNMENT is made this .... day of .............., .........., by and between
26.5............, with a principal place of business at .......... (hereinafter "assignor"), and ............,
26.6whose address is ........... (hereinafter "assignee").
26.7    WHEREAS, the assignor has been engaged in the business of
26.8............................................
26.9    WHEREAS, the assignor is indebted to creditors and is unable to pay debts as they
26.10become due, and is desirous of providing for the payment of debts, so far as it is possible
26.11by an assignment of property for that purpose.
26.12    NOW, THEREFORE, the assignor, in consideration of the assignee's acceptance
26.13of this assignment, and for other good and valuable consideration, hereby assigns to
26.14the assignee, and the assignee's successors and assigns, the assignor's property, except
26.15the property as is exempt by law from levy and sale under an execution (and then only
26.16to the extent of the exemption), including but not limited to all real property, fixtures,
26.17goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general
26.18intangibles, bank deposits, cash, promissory notes, cash value and proceeds of insurance
26.19policies, claims, and demands belonging to the assignor, wherever the property may be
26.20located (hereinafter collectively the "assignment property"), which property is set forth
26.21on Schedule A attached hereto.
26.22    A list of the creditors of the assignor is set forth in Schedule B annexed hereto.
26.23    By making this assignment, the assignor consents to the appointment of the assignee
26.24as a general receiver with respect to the assignment property in accordance with Minnesota
26.25Statutes, chapters 576 and 577.
26.26    The assignee shall take possession of and administer the assignment property
26.27and shall liquidate the assignment property with reasonable dispatch, collect all claims
26.28and demands hereby assigned as and to the extent they may be collectible, and pay
26.29and discharge all reasonable expenses, costs, and disbursements in connection with the
26.30execution and administration of this assignment from the proceeds of the liquidations and
26.31collections in accordance with Minnesota Statutes, chapters 576 and 577.
26.32    The assignee shall then pay and discharge in full, to the extent that funds are available
26.33from the assignment property after payment of expenses, costs, and disbursements, all of
26.34the debts and liabilities now due from the assignor, including interest on the debts and
26.35liabilities in full, in accordance with Minnesota Statutes, chapters 576 and 577.
27.1    In the event that all debts and liabilities are paid in full, the remainder of the
27.2assignment property shall be returned to the assignor.
27.3    To accomplish the purposes of this assignment, the assignor hereby irrevocably
27.4appoints the assignee as the assignor's true and lawful attorney-in-fact, with full power
27.5and authority to do all acts and things which may be necessary to execute and fulfill the
27.6assignment hereby created, to the same extent as the acts and things might be done by
27.7the assignor in the absence of this assignment, including, but not limited to, the power
27.8to demand and recover from all persons all assignment property; to sue for the recovery
27.9of assignment property; to execute, acknowledge, and deliver all necessary deeds,
27.10instruments, and conveyances, and to grant and convey any or all of the real or personal
27.11property of the assignment property pursuant thereto; and to appoint one or more attorneys
27.12to assist the assignee in carrying out the assignee's duties hereunder.
27.13    The assignor hereby authorizes the assignee to sign the name of the assignor to any
27.14check, draft, promissory note, or other instrument in writing which is payable to the order
27.15of the assignor, or to sign the name of the assignor to any instrument in writing, whenever
27.16it shall be necessary to do so, to carry out the purposes of this assignment.
27.17    The assignor declares, under penalty of perjury under the laws of the state of
27.18Minnesota, that the attached schedules of the property or the assignor and creditors are
27.19true and complete to the best of the assignor's knowledge.
27.20    The assignee hereby accepts the assignment property and agrees faithfully and
27.21without delay to carry out the assignee's duties under the foregoing assignment.

27.22 27.23	............................................. Assignor	............................................... Assignee
27.24	Dated: ...................................	Dated: ................................

27.25    Sec. 4. [577.14] DUTY OF COURT ADMINISTRATOR.
27.26The court administrator shall endorse the day, hour, and minute of the filing of the
27.27assignment. The assignment shall be entered in the court administrator's register, and all
27.28papers filed and orders made in the matter of the assignment shall be noted therein as in
27.29the case of a civil action.

27.30    Sec. 5. [577.15] ASSIGNEE AS LIEN CREDITOR; REAL ESTATE
27.31RECORDING.
27.32    Subdivision 1. Assignee as lien creditor. As of the filing of the assignment, the
27.33assignee shall have the powers and priority of a creditor that obtained a judicial lien at
27.34the time of assignment pursuant to sections 548.09 and 550.10 on all of the assignment
28.1property subject to satisfying the recording requirements as to real property described in
28.2subdivision 2.
28.3    Subd. 2. Real estate recording. If any interest in real estate is included in the
28.4assignment property, the assignment shall be effective as a deed, and a notice of a lis
28.5pendens shall be recorded as soon as practicable with the county recorder or registrar of
28.6titles, as appropriate, of the county in which the real property is located. The priority of
28.7the assignee as lien creditor against real property shall be from the time of recording of
28.8the notice of lis pendens, except as to persons with actual or implied knowledge of the
28.9assignment under section 507.34. The assignment executed by the assignor and certified
28.10by the court administrator and a deed executed by the assignee shall be recorded with the
28.11county recorder or registrar of titles, as appropriate, of the county in which the real property
28.12is located, and upon execution of the deed by the assignee shall be prima facie evidence of
28.13the authority of the assignee to convey the real property described in the assignment.

28.14    Sec. 6. [577.16] NOTICE.
28.15The assignee shall give notice of the assignment to all creditors and other parties
28.16in interest actually known to the assignee by mail or other means of transmission within
28.1721 days after the time of assignment. The notice of the assignment shall include the
28.18time of assignment and the names and addresses of the assignor, the assignee, and the
28.19assignee's attorney, if any.

28.20    Sec. 7. [577.17] REMOVAL OF ASSIGNEE.
28.21The court may remove the assignee and appoint another assignee by application of
28.22the standards and procedures under section 576.37. The order of removal and appointment
28.23shall transfer all of the assignment property to the new assignee, and with respect to real
28.24property may be recorded in the same manner as the initial assignment.

28.25    Sec. 8. [577.18] APPLICATION OF CHAPTER GOVERNING
28.26RECEIVERSHIPS.
28.27Except as otherwise provided in this chapter, an assignee shall be treated as a
28.28general receiver, the assignment property shall be treated as receivership property, and all
28.29proceedings following the filing of the assignment shall be governed by sections 576.21
28.30to 576.53.

28.31    Sec. 9. REPEALER.
29.1Minnesota Statutes 2010, sections 577.01; 577.02; 577.03; 577.04; 577.05; 577.06;
29.2577.08; 577.09; and 577.10, are repealed.

29.3ARTICLE 3

29.4CONFORMING AMENDMENTS

29.5    Section 1. Minnesota Statutes 2010, section 302A.753, subdivision 2, is amended to
29.6read:
29.7    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever
29.8notice the court directs to be given to all parties to the proceedings and to any other parties
29.9in interest designated by the court, the court may appoint a receiver to collect the corporate
29.10assets, including all amounts owing to the corporation by subscribers on account of any
29.11unpaid portion of the consideration for the issuance of shares. In addition to the powers set
29.12forth in chapter 576, a receiver has authority, subject to the order of the court, to continue
29.13the business of the corporation and to sell, lease, transfer, or otherwise dispose of all or
29.14any of the property and assets of the corporation either at public or private sale.

29.15    Sec. 2. Minnesota Statutes 2010, section 302A.753, subdivision 3, is amended to read:
29.16    Subd. 3. Discharge of obligations. The assets of the corporation or the proceeds
29.17resulting from a sale, lease, transfer, or other disposition shall be applied in the following
29.18order of priority to the payment and discharge or:
29.19(a) the costs and expenses of the proceedings, including attorneys' fees and
29.20disbursements;
29.21(b) debts, taxes and assessments due the United States, the state of Minnesota and
29.22their subdivisions, and other states and their subdivisions, in that order;
29.23(c) claims duly proved and allowed to employees under the provisions of the
29.24Workers' Compensation Act; provided, that claims under this clause shall not be allowed if
29.25the corporation carried workers' compensation insurance, as provided by law, at the time
29.26the injury was sustained;
29.27(d) claims, including the value of all compensation paid in any medium other than
29.28money, duly proved and allowed to employees for services performed within three months
29.29preceding the appointment of the receiver, if any; and
29.30(e) other claims duly proved and allowed set forth in section 576.51.

29.31    Sec. 3. Minnesota Statutes 2010, section 302A.755, is amended to read:
29.32302A.755 QUALIFICATIONS OF RECEIVERS; POWERS.
30.1    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic
30.2corporation or a foreign corporation authorized to transact business in this state. Any
30.3person qualified under section 576.26 may be appointed as receiver. A receiver shall
30.4give bond as directed by the court with the sureties required by the court required by
30.5section 576.27.
30.6    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
30.7of the corporation. The court appointing the receiver has exclusive jurisdiction of over
30.8the corporation and its property, the receiver, and all receivership property pursuant to
30.9section 576.23.

30.10    Sec. 4. Minnesota Statutes 2010, section 302A.759, subdivision 1, is amended to read:
30.11    Subdivision 1. Manner and form. In proceedings referred to in section 302A.751 to
30.12dissolve a corporation, the court may require all creditors and claimants of the corporation
30.13to file their claims under oath with the court administrator or with the receiver in a form
30.14prescribed by the court pursuant to section 576.49. The receiver or any party in interest
30.15may object to any claim pursuant to section 576.50.

30.16    Sec. 5. Minnesota Statutes 2010, section 302A.761, is amended to read:
30.17302A.761 DISCONTINUANCE OF DISSOLUTION PROCEEDINGS.
30.18The involuntary or supervised voluntary dissolution of a corporation shall be
30.19discontinued at any time during the dissolution proceedings when it is established that
30.20cause for dissolution no longer exists. When this is established, the court shall dismiss the
30.21proceedings and direct the receiver, if any, to redeliver to the corporation all its remaining
30.22property and assets and to file a final report pursuant to section 576.38, subdivision 3.

30.23    Sec. 6. Minnesota Statutes 2010, section 308A.945, subdivision 2, is amended to read:
30.24    Subd. 2. Action after hearing. After a hearing is completed, on notice the court
30.25directs to be given to parties to the proceedings and to other parties in interest designated
30.26by the court, the court may appoint a receiver to collect the cooperative's assets, including
30.27amounts owing to the cooperative by subscribers on account of an unpaid portion of the
30.28consideration for the issuance of shares. In addition to the powers set forth in chapter 576,
30.29a receiver has authority, subject to the order of the court, to continue the business of the
30.30cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of
30.31the cooperative either at public or private sale.

30.32    Sec. 7. Minnesota Statutes 2010, section 308A.945, subdivision 3, is amended to read:
31.1    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds
31.2resulting from a sale, lease, transfer, or other disposition shall be applied in the following
31.3order of priority or:
31.4(1) the costs and expenses of the proceedings, including attorneys' fees and
31.5disbursements;
31.6(2) debts, taxes and assessments due the United States, the state of Minnesota and
31.7their subdivisions, and other states and their subdivisions, in that order;
31.8(3) claims duly proved and allowed to employees under the provisions of the
31.9Workers' Compensation Act except that claims under this clause may not be allowed
31.10if the cooperative has carried workers' compensation insurance, as provided by law, at
31.11the time the injury was sustained;
31.12(4) claims, including the value of all compensation paid in a medium other than
31.13money, proved and allowed to employees for services performed within three months
31.14preceding the appointment of the receiver, if any; and
31.15(5) other claims proved and allowed set forth in section 576.51.

31.16    Sec. 8. Minnesota Statutes 2010, section 308A.951, is amended to read:
31.17308A.951 RECEIVER QUALIFICATIONS AND POWERS.
31.18    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic
31.19corporation or a foreign corporation authorized to transact business in this state. Any
31.20person qualified under section 576.26 may be appointed as a receiver. A receiver must
31.21give a bond as directed by the court with the sureties required by the court required by
31.22section 576.27.
31.23    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
31.24of the cooperative. The court appointing the receiver has exclusive jurisdiction of over
31.25the cooperative and its property, the receiver, and all receivership property pursuant to
31.26section 576.23.

31.27    Sec. 9. Minnesota Statutes 2010, section 308A.961, subdivision 1, is amended to read:
31.28    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the
31.29court may require all creditors and claimants of the cooperative to file their claims under
31.30oath with the court administrator or with the receiver in a form prescribed by the court
31.31pursuant to section 576.49. The receiver or any party in interest may object to any claims
31.32pursuant to section 576.50.

32.1    Sec. 10. Minnesota Statutes 2010, section 308A.965, is amended to read:
32.2308A.965 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION
32.3PROCEEDINGS.
32.4The involuntary or supervised voluntary dissolution of a cooperative may be
32.5discontinued at any time during the dissolution proceedings if it is established that cause
32.6for dissolution does not exist. The court shall dismiss the proceedings and direct the
32.7receiver, if any, to redeliver to the cooperative its remaining property and assets and to file
32.8a final report pursuant to section 576.38, subdivision 3.

32.9    Sec. 11. Minnesota Statutes 2010, section 308B.935, subdivision 2, is amended to read:
32.10    Subd. 2. Action after hearing. After a hearing is completed, upon notice to parties
32.11to the proceedings and to other parties in interest designated by the court, the court may
32.12appoint a receiver to collect the cooperative's assets, including amounts owing to the
32.13cooperative by subscribers on account of an unpaid portion of the consideration for the
32.14issuance of shares. In addition to the powers set forth in chapter 576, a receiver has
32.15authority, subject to the order of the court, to continue the business of the cooperative and
32.16to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative
32.17either at public or private sale.

32.18    Sec. 12. Minnesota Statutes 2010, section 308B.935, subdivision 3, is amended to read:
32.19    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds
32.20resulting from a sale, lease, transfer, or other disposition shall be applied in the following
32.21order of priority:
32.22(1) the costs and expense of the proceedings, including attorney fees and
32.23disbursements;
32.24(2) debts, taxes, and assessments due the United States, this state, and other states
32.25in that order;
32.26(3) claims duly proved and allowed to employees under the provisions of the
32.27Workers' Compensation Act except that claims under this clause may not be allowed if
32.28the cooperative carried workers' compensation insurance, as provided by law, at the time
32.29the injury was sustained;
32.30(4) claims, including the value of all compensation paid in a medium other than
32.31money, proved and allowed to employees for services performed within three months
32.32preceding the appointment of the receiver, if any; and
32.33(5) other claims proved and allowed set forth in section 576.51.

33.1    Sec. 13. Minnesota Statutes 2010, section 308B.941, is amended to read:
33.2308B.941 RECEIVER QUALIFICATIONS AND POWERS.
33.3    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic
33.4business entity or a foreign business entity authorized to transact business in this state.
33.5Any person qualified under section 576.26 may be appointed as a receiver. A receiver
33.6shall give a bond as directed by the court with the sureties required by the court required
33.7by section 576.27.
33.8    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
33.9of the cooperative. The court appointing the receiver has exclusive jurisdiction of over
33.10the cooperative and its property, the receiver, and all receivership property pursuant to
33.11section 576.23.

33.12    Sec. 14. Minnesota Statutes 2010, section 308B.951, subdivision 1, is amended to read:
33.13    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the
33.14court may require all creditors and claimants of the cooperative to file their claims under
33.15oath with the court administrator or with the receiver in a form prescribed by the court
33.16pursuant to section 576.49. The receiver or any party in interest may object to any claim
33.17pursuant to section 576.50.

33.18    Sec. 15. Minnesota Statutes 2010, section 308B.955, is amended to read:
33.19308B.955 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION
33.20PROCEEDINGS.
33.21The involuntary or supervised voluntary dissolution of a cooperative may be
33.22discontinued at any time during the dissolution proceedings if it is established that cause
33.23for dissolution does not exist. The court shall dismiss the proceedings and direct the
33.24receiver, if any, to redeliver to the cooperative its remaining property and assets and to file
33.25a final report pursuant to section 576.38, subdivision 3.

33.26    Sec. 16. Minnesota Statutes 2010, section 316.11, is amended to read:
33.27316.11 RECEIVER, APPOINTMENT, DUTIES.
33.28In any action or proceeding to dissolve a corporation, the court, at any time before
33.29judgment, or within three years after judgment, of dissolution, may appoint a receiver to
33.30take charge of its estate and effects and to collect the debts and property due and belonging
33.31to it, with, in addition to the powers set forth in chapter 576, power to prosecute and
33.32defend actions in its name or otherwise, to appoint agents, and do all other acts necessary
34.1to the final settlement of the unfinished business of the corporation which it might do if in
34.2being. The power of such receiver shall continue so long as the court deems necessary
34.3for such purposes. The receiver shall pay all debts due from the corporation, if the funds
34.4in hand are sufficient therefor; and, if not, shall distribute the same ratably among the
34.5creditors who prove their debts, in the manner directed by the court; and, if there be any
34.6balance after the payment of the debts, the receiver shall distribute and pay the same to
34.7and among those who are justly entitled thereto, as having been stockholders or members.
34.8Every receiver appointed under the provisions of this section shall give bond in such
34.9amount as the court shall require, with sureties approved by it the assets of the corporation
34.10or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied
34.11in the order of priority set forth in section 576.51. After payment of the expenses of
34.12the receivership and claims of creditors duly proved, the remaining assets, if any, shall
34.13be distributed to the shareholders in accordance with section 302A.551, subdivision 4.
34.14Every receiver appointed under the provisions of this section shall give bond as required
34.15by section 576.27 in such amount as the court shall require, with sureties approved by it.

34.16    Sec. 17. Minnesota Statutes 2010, section 317A.753, subdivision 3, is amended to read:
34.17    Subd. 3. Action after hearing. After a full hearing has been held, upon whatever
34.18notice the court directs to be given to the parties to the proceedings and to other parties in
34.19interest designated by the court, the court may appoint a receiver to collect the corporate
34.20assets. In addition to the powers set forth in chapter 576, a receiver has authority, subject to
34.21the order of the court, to continue the business of the corporation and to sell, lease, transfer,
34.22or otherwise dispose of all or any of the assets of the corporation at a public or private sale.

34.23    Sec. 18. Minnesota Statutes 2010, section 317A.753, subdivision 4, is amended to read:
34.24    Subd. 4. Discharge of obligations. The assets of the corporation or the proceeds
34.25resulting from a sale, lease, transfer, or other disposition must be applied in the following
34.26order of priority to the payment and discharge of:
34.27(1) the costs and expenses of the dissolution proceedings, including attorneys fees
34.28and disbursements;
34.29(2) debts, taxes, and assessments due the United States, the state of Minnesota and
34.30their subdivisions, and other states and their subdivisions, in that order;
34.31(3) claims duly proved and allowed to employees under the Workers' Compensation
34.32Act, provided that claims under this clause are not allowed if the corporation carried
34.33workers' compensation insurance, as provided by law, at the time the injury was sustained;
35.1(4) claims, including the value of compensation paid in a medium other than money,
35.2duly proved and allowed to employees for services performed within three months
35.3preceding the appointment of the receiver, if any; and
35.4(5) other claims duly proved and allowed set forth in section 576.51.

35.5    Sec. 19. Minnesota Statutes 2010, section 317A.755, is amended to read:
35.6317A.755 QUALIFICATIONS OF RECEIVERS; POWERS.
35.7    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic
35.8corporation or a foreign corporation authorized to transact business in this state. Any
35.9person qualified under section 576.26 may be appointed as a receiver. A receiver shall
35.10give bond as directed by the court with the sureties required by the court required by
35.11section 576.27.
35.12    Subd. 2. Powers. A receiver may sue and defend in courts all actions as receiver
35.13of the corporation. The court appointing the receiver has exclusive jurisdiction of over
35.14the corporation and its property, the receiver, and all receivership property pursuant to
35.15section 576.23.

35.16    Sec. 20. Minnesota Statutes 2010, section 317A.759, subdivision 1, is amended to read:
35.17    Subdivision 1. Filing may be required. In a proceeding under section 317A.751 to
35.18dissolve a corporation, the court may require creditors and claimants of the corporation
35.19to file their claims under oath with the court administrator or with the receiver in a form
35.20prescribed by the court pursuant to section 576.49. The receiver or any party in interest
35.21may object to any claim pursuant to section 576.50.

35.22    Sec. 21. Minnesota Statutes 2010, section 322B.836, subdivision 2, is amended to read:
35.23    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever
35.24notice the court directs to be given to all parties to the proceedings and to any other parties
35.25in interest designated by the court, the court may appoint a receiver to collect the limited
35.26liability company assets, including all amounts owing to the limited liability company
35.27by persons who have made contribution agreements and by persons who have made
35.28contributions by means of enforceable promises of future performance. In addition to the
35.29powers set forth in chapter 576, a receiver has authority, subject to the order of the court,
35.30to continue the business of the limited liability company and to sell, lease, transfer, or
35.31otherwise dispose of all or any of the property and assets of the limited liability company
35.32either at public or private sale.

36.1    Sec. 22. Minnesota Statutes 2010, section 322B.836, subdivision 3, is amended to read:
36.2    Subd. 3. Discharge of obligations upon liquidation. If the court determines that
36.3the limited liability company is to be dissolved with winding up to be accomplished by
36.4liquidation, then the assets of the limited liability company or the proceeds resulting
36.5from a sale, lease, transfer, or other disposition must be applied in the following order of
36.6priority to the payment and discharge or:
36.7(1) the costs and expenses of the proceedings, including attorneys' fees and
36.8disbursements;
36.9(2) debts, taxes, and assessments due the United States, the state of Minnesota and
36.10their subdivisions, and other states and their subdivisions, in that order;
36.11(3) claims duly proved and allowed to employees under the provisions of chapter
36.12176; provided, that claims under this clause shall not be allowed if the limited liability
36.13company carried workers' compensation insurance, as provided by law, at the time the
36.14injury was sustained;
36.15(4) claims, including the value of all compensation paid in any medium other than
36.16money, duly proved and allowed to employees for services performed within three months
36.17preceding the appointment of the receiver, if any; and
36.18(5) other claims duly proved and allowed set forth in section 576.51.

36.19    Sec. 23. Minnesota Statutes 2010, section 322B.84, is amended to read:
36.20322B.84 QUALIFICATIONS OF RECEIVERS AND POWERS.
36.21    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic or
36.22foreign organization authorized to transact business in this state. Any person qualified
36.23under section 576.26 may be appointed as a receiver. A receiver shall give bond as
36.24directed by the court with the sureties required by the court required by section 576.27.
36.25    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver of
36.26the limited liability company. The court appointing the receiver has exclusive jurisdiction
36.27of over the limited liability company and its property, the receiver, and all receivership
36.28property pursuant to section 576.23.

36.29    Sec. 24. Minnesota Statutes 2010, section 462A.05, subdivision 32, is amended to read:
36.30    Subd. 32. Appointment of receivers. The agency may obtain the appointment of
36.31receivers or assignments of rents and profits under sections 559.17 and 576.01 576.25,
36.32subdivision 5, except that the limitation relating to the minimum amounts of the original
36.33principal balances of mortgages contained in sections 576.01, subdivision 2 576.25,
37.1subdivision 5, paragraph (a), clause (i), and 559.17, subdivision 2, clause (2), shall
37.2be inapplicable to it.

37.3    Sec. 25. Minnesota Statutes 2010, section 469.012, subdivision 2i, is amended to read:
37.4    Subd. 2i. Receivers, assignment of rent as security. An authority may secure a
37.5mortgage or loan for a rental housing project by obtaining the appointment of receivers or
37.6assignments of rents and profits under sections 559.17 and 576.01 576.25, subdivision
37.75, except that the limitation relating to the minimum amounts of the original principal
37.8balances of mortgages specified in sections 559.17, subdivision 2, clause (2); and 576.01,
37.9subdivision 2 576.25, subdivision 5, paragraph (a), clause (1), does not apply.

37.10    Sec. 26. Minnesota Statutes 2010, section 540.14, is amended to read:
37.11540.14 ACTIONS AGAINST RECEIVERS; TRIAL; JUDGMENT, HOW
37.12SATISFIED.
37.13Except as limited in chapters 576 and 577, any receiver, assignee, or other person
37.14appointed by a court to hold or manage property under its direction, may be sued on
37.15account of any acts or transactions in carrying on the business connected with such
37.16property without prior leave of court.
37.17Such action may be brought in any county in which it could have been brought
37.18against the person or corporation represented by such receiver or other person, shall be
37.19tried in the same manner and subject to the same rules of procedure, and any judgment
37.20recovered therein against such receiver or other person shall be paid by the receiver or
37.21other person as a part of the expenses of managing such property.

37.22    Sec. 27. Minnesota Statutes 2010, section 559.17, subdivision 2, is amended to read:
37.23    Subd. 2. Assignment; conditions. A mortgagor may assign, as additional security
37.24for the debt secured by the mortgage, the rents and profits from the mortgaged real
37.25property, if the mortgage:
37.26(1) was executed, modified or amended subsequent to August 1, 1977;
37.27(2) secured an original principal amount of $100,000 or more or is a lien upon
37.28residential real estate containing more than four dwelling units; and
37.29(3) is not a lien upon property which was:
37.30(i) entirely homesteaded as agricultural property; or
37.31(ii) residential real estate containing four or fewer dwelling units where at least
37.32one of the units is homesteaded. The assignment may be enforced, but only against the
37.33nonhomestead portion of the mortgaged property, as follows:
38.1(a) if, by the terms of an assignment, a receiver is to be appointed upon the
38.2occurrence of some specified event, and a showing is made that the event has occurred,
38.3the court shall, without regard to waste, adequacy of the security, or solvency of the
38.4mortgagor, appoint a receiver who shall, with respect to the excess cash remaining after
38.5application as provided in section 576.01, subdivision 2 576.25, subdivision 5, apply it as
38.6prescribed by the assignment. If the assignment so provides, the receiver shall apply the
38.7excess cash in the manner set out herein from the date of appointment through the entire
38.8redemption period from any foreclosure sale. Subject to the terms of the assignment, the
38.9receiver shall have the powers and duties as set forth in section 576.01, subdivision 2
38.10576.25, subdivision 5; or
38.11(b) if no provision is made for the appointment of a receiver in the assignment or
38.12if by the terms of the assignment a receiver may be appointed, the assignment shall be
38.13binding upon the assignor unless or until a receiver is appointed without regard to waste,
38.14adequacy of the security or solvency of the mortgagor, but only in the event of default in
38.15the terms and conditions of the mortgage, and only in the event the assignment requires
38.16the holder thereof to first apply the rents and profits received as provided in section
38.17576.01, subdivision 2 576.25, subdivision 5, in which case the same shall operate against
38.18and be binding upon the occupiers of the premises from the date of recording by the
38.19holder of the assignment in the office of the county recorder or the office of the registrar of
38.20titles for the county in which the property is located of a notice of default in the terms
38.21and conditions of the mortgage and service of a copy of the notice upon the occupiers of
38.22the premises. The holder of the assignment shall apply the rents and profits received in
38.23accordance with the terms of the assignment, and, if the assignment so provides, for
38.24the entire redemption period from any foreclosure sale. A holder of an assignment who
38.25enforces it in accordance with this clause shall not be deemed to be a mortgagee in
38.26possession with attendant liability.
38.27Nothing contained herein shall prohibit the right to reinstate the mortgage
38.28debt granted pursuant to section 580.30, nor the right to redeem granted pursuant to
38.29sections 580.23 and 581.10, and any excess cash, as that term is used herein, collected
38.30by the receiver under clause (a), or any rents and profits taken by the holder of the
38.31assignment under clause (b), shall be credited to the amount required to be paid to effect
38.32a reinstatement or redemption.

38.33    Sec. 28. Minnesota Statutes 2010, section 576.04, is amended to read:
38.34576.04 ABSENTEES; POSSESSION, MANAGEMENT, AND DISPOSITION
38.35OF PROPERTY.
39.1If a person entitled to or having an interest in property within or without the
39.2jurisdiction of the state has disappeared or absconded from the place within or without the
39.3state where last known to be, and has no agent in the state, and it is not known where the
39.4person is, or if such person, having a spouse or minor child or children dependent to any
39.5extent upon the person for support, has thus disappeared, or absconded without making
39.6sufficient provision for such support, and it is not known where the person is, or, if it is
39.7known that the person is without the state, any one who would under the law of the state
39.8be entitled to administer upon the estate of such absentee if deceased, or if no one is
39.9known to be so entitled, some person deemed suitable by the court, or such spouse, or
39.10some one in such spouse's or minors' behalf, may file a petition, under oath, in the court for
39.11the county where any such property is situated or found, stating the name, age, occupation,
39.12and last known residence or address of such absentee, the date and circumstances of the
39.13disappearance or absconding, and the names and residences of other persons, whether
39.14members of such absentee's family or otherwise, of whom inquiry may be made, whether
39.15or not such absentee is a citizen of the United States, and if not, of what country the
39.16absentee is a citizen or native, and containing a schedule of the property, real and personal,
39.17so far as known, and its location within or without the state, and a schedule of contractual
39.18or property rights contingent upon the absentee's death, and praying that real and personal
39.19property may be taken possession of and a receiver thereof appointed under this chapter
39.20576. No proceedings shall be commenced under the provisions of sections 576.04 to
39.21576.16 this chapter, except upon good cause shown until at least three months after the
39.22date on which it is alleged in such petition that such person so disappeared or absconded.

39.23    Sec. 29. Minnesota Statutes 2010, section 576.06, is amended to read:
39.24576.06 NOTICE OF SEIZURE; APPOINTMENT OF RECEIVER;
39.25DISPOSITION OF PROPERTY.
39.26Upon the return of such warrant, the court may issue a notice reciting the substance
39.27of the petition, warrant, and officer's return, which shall be addressed to such absentee and
39.28to all persons who claim an interest in such property, and to all whom it may concern,
39.29citing them to appear at a time and place named and show cause why a receiver of the
39.30property named in the officer's schedule should not be appointed and the property held and
39.31disposed of under sections 576.04 to 576.16 this chapter.

39.32    Sec. 30. Minnesota Statutes 2010, section 576.08, is amended to read:
39.33576.08 HEARING BY COURT; DISMISSAL OF PROCEEDING;
39.34APPOINTMENT AND BOND OF RECEIVER.
40.1The absentee, or any person who claims an interest in any of the property, may
40.2appear and show cause why the prayer of the petition should not be granted. The court
40.3may, after hearing, dismiss the petition and order the property in possession of the officer
40.4to be returned to the person entitled thereto, or it may appoint a receiver of the property
40.5which is in the possession of the officer and named in the schedule. If a receiver is
40.6appointed, the court shall find and record the date of the disappearance or absconding
40.7of the absentee; and the receiver shall give a bond to the state in the sum and with the
40.8conditions the court orders, to be approved by the court pursuant to section 576.27. In the
40.9appointment of the receiver the court shall give preference to the spouse of the absentee, if
40.10the spouse is competent and suitable eligible to serve as receiver under section 576.26.

40.11    Sec. 31. Minnesota Statutes 2010, section 576.09, is amended to read:
40.12576.09 POSSESSION TRANSFER OF PROPERTY BY TO RECEIVER.
40.13After the approval of the receiver gives its bond the court may order the sheriff or a
40.14deputy to transfer and deliver to such receiver the possession of the property under the
40.15warrant, and the receiver shall file in the office of the court administrator a schedule
40.16of the property received.

40.17    Sec. 32. Minnesota Statutes 2010, section 576.11, is amended to read:
40.18576.11 WHERE NO CORPOREAL PROPERTY; RECEIVER; BOND.
40.19If the absentee has left no corporeal property within or without the state, but there
40.20are debts and obligations due or owing to the absentee from persons within or without
40.21the state, a petition may be filed, as provided in section 576.04 578.02, stating the nature
40.22and amount of such debts and obligations, so far as known, and praying that a receiver
40.23thereof may be appointed. The court may thereupon issue a notice, as above provided,
40.24without issuing a warrant, and may, upon the return of the notice and after a hearing,
40.25dismiss the petition or appoint a receiver and authorize and direct the receiver to demand
40.26and collect the debts and obligations specified in the petition. The receiver shall give
40.27bond, as provided in section 576.08 576.27, and hold the proceeds of such debts and
40.28obligations and all property received, and distribute the same as provided in sections
40.29576.12 to 576.16 chapter 576. The receiver may be further authorized and directed as
40.30provided in section 576.10 578.08.

41.1    Sec. 33. Minnesota Statutes 2010, section 576.121, is amended to read:
41.2576.121 ADVANCE LIFE INSURANCE PAYMENTS TO ABSENTEE'S
41.3BENEFICIARY.
41.4If the beneficiary under an insurance policy on the life of an absentee is the
41.5absentee's spouse, child, or other person dependent upon the absentee for support and
41.6advance payments under the policy are necessary to support and maintain the beneficiary,
41.7the beneficiary shall be entitled to advance payments as the court determines under section
41.8576.122 578.12. "Beneficiary" under this section includes an heir at law of the person
41.9whose life is insured if the policy is payable to the insured's estate.

41.10    Sec. 34. Minnesota Statutes 2010, section 576.123, is amended to read:
41.11576.123 REAPPEARANCE OF ABSENTEE.
41.12    Subdivision 1. Insurance payments; reduction. If an absentee is declared dead
41.13after advance insurance payments have been made pursuant to section 576.122 578.12,
41.14the amount payable under the policy shall be reduced by the total amount of payments
41.15made under section 576.122 578.12.
41.16    Subd. 2. Reimbursement of insurer. If an absentee is found to be living after
41.17advance insurance payments have been made to a beneficiary pursuant to section 576.122
41.18578.12, the absentee and beneficiary shall reimburse the insurer the amount of the
41.19payments made.
41.20If the insurer is unable to obtain full reimbursement, the amount payable under the
41.21policy shall be reduced to the extent necessary to allow full reimbursement. Failure of the
41.22absentee and beneficiary to reimburse the insurer upon demand for payment sent by the
41.23insurer by certified mail to the last known address of the absentee and beneficiary shall be
41.24sufficient to show the insurer's inability to obtain reimbursement.

41.25    Sec. 35. Minnesota Statutes 2010, section 576.144, is amended to read:
41.26576.144 DISSOLUTION OF MARRIAGE.
41.27If the court finds the absentee dead in accordance with section 576.142 578.17, the
41.28absentee's marriage is dissolved. The court shall enter the conclusion of law dissolving the
41.29marriage on the order which establishes the death of the absentee as a matter of law.

41.30    Sec. 36. Minnesota Statutes 2010, section 576.15, is amended to read:
41.31576.15 COMPENSATION OF RECEIVER; TITLE OF ABSENTEE LOST
41.32AFTER FOUR YEARS.
42.1The receiver shall be allowed such compensation and disbursements as the court
42.2orders, to be paid out of the property or proceeds provided in chapter 576. If, within
42.3four years after the date of the disappearance or absconding, as found and recorded by
42.4the court, the absentee appears, and has not been declared dead under section 576.142
42.5578.17, or an administrator, executor, assignee in insolvency, or trustee in bankruptcy of
42.6the absentee is appointed, the receiver shall account for, deliver, and pay over to the
42.7absentee the remainder of the property. If the absentee does not appear and claim the
42.8property within four years, all the absentee's right, title, and interest in the property, real
42.9or personal, or the proceeds thereof, shall cease, and no action shall be brought by the
42.10absentee on account thereof.
42.11If the absentee is declared dead pursuant to section 576.142 578.17 and appears
42.12before the expiration of four years, the absentee shall have no right, title and interest in the
42.13property, real or personal, or the proceeds thereof.

42.14    Sec. 37. Minnesota Statutes 2010, section 576.16, is amended to read:
42.15576.16 PROPERTY DISTRIBUTION; TIME LIMITATION.
42.16If the receiver is not appointed within three years after the date found by the court
42.17under section 576.08 578.06, the time limited for accounting for, or fixed for distributing,
42.18the property or its proceeds, or for barring actions relative thereto, shall be one year after
42.19the date of the appointment of the receiver instead of the four years provided in sections
42.20576.14 578.15 and 576.15 578.20.
42.21The provisions of sections 576.04 to 576.16 this chapter shall not be construed as
42.22exclusive, but as providing additional and cumulative remedies.

42.23    Sec. 38. REVISOR'S INSTRUCTION.
42.24The Revisor of Statutes shall renumber each section of Minnesota Statutes listed
42.25in Column A with the number in Column B. The Revisor shall correct any incorrect
42.26cross-references resulting from this renumbering.

42.27	Column A	Column B
42.28	576.011	578.01
42.29	576.04	578.02
42.30	576.05	578.03
42.31	576.06	578.04
42.32	576.07	578.05
42.33	576.08	578.06
42.34	576.09	578.07
42.35	576.10	578.08
43.1	576.11	578.09
43.2	576.12	578.10
43.3	571.121	578.11
43.4	576.122	578.12
43.5	576.123	578.13
43.6	576.13	578.14
43.7	576.14	578.15
43.8	576.141	578.16
43.9	576.142	578.17
43.10	576.143	578.18
43.11	576.144	578.19
43.12	576.15	578.20
43.13	576.16	578.21

43.14    Sec. 39. REPEALER.
43.15Minnesota Statutes 2010, sections 302A.759, subdivision 2; 308A.961, subdivision
43.162; 308B.951, subdivisions 2 and 3; 317A.759, subdivision 2; and 576.01, are repealed.

43.17ARTICLE 4

43.18UNIFORM DISCLAIMER OF PROPERTY INTERESTS

43.19    Section 1. Minnesota Statutes 2010, section 524.2-1103, is amended to read:
43.20524.2-1103 SCOPE.
43.21Sections 524.2-1101 to 524.2-1116 apply to disclaimers of any interest in or power
43.22over property, whenever created. Except as provided in section 524.2-1116, sections
43.23524.2-1101 to 524.2-1116 are the exclusive means by which a disclaimer may be made
43.24under Minnesota law regardless of whether it is qualified under section 2518 of the
43.25Internal Revenue Code of 1986 in effect on January 1, 2010 as defined in section 291.005,
43.26subdivision 1, clause 3.

43.27    Sec. 2. Minnesota Statutes 2010, section 524.2-1104, is amended to read:
43.28524.2-1104 TAX-QUALIFIED DISCLAIMER.
43.29Notwithstanding any other provision of this chapter, other than section 524.2-1106,
43.30if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated
43.31pursuant to the provisions of section 2518 of the Internal Revenue Code of 1986, as in
43.32effect on January 1, 2010 defined in section 291.005, subdivision 1, clause 3, as never
43.33having been transferred to the disclaimant, then the disclaimer or transfer is effective as a
43.34disclaimer under sections 524.2-1101 to 524.2-1116.

44.1    Sec. 3. Minnesota Statutes 2010, section 524.2-1106, is amended to read:
44.2524.2-1106 WHEN DISCLAIMER IS BARRED OR LIMITED.
44.3(a) A disclaimer is barred by a written waiver of the right to disclaim.
44.4(b) A disclaimer of an interest in property is barred if any of the following events
44.5occur before the disclaimer becomes effective:
44.6(1) the disclaimant accepts the portion of the interest sought to be disclaimed;
44.7(2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the
44.8portion of the interest sought to be disclaimed or contracts to do so;
44.9(3) the portion of the interest sought to be disclaimed is sold pursuant to a judicial
44.10sale; or
44.11(4) the disclaimant is insolvent when the disclaimer becomes irrevocable.
44.12(c) Acceptance of a distribution from a trust shall constitute acceptance of only
44.13that portion of the beneficial interest in that trust that has been distributed, and shall not
44.14constitute acceptance or bar disclaimer of that portion of the beneficial interest in the trust
44.15that has not yet been distributed.
44.16(d) A disclaimer, in whole or in part, of the future exercise of a power held in a
44.17fiduciary capacity is not barred by its previous exercise.
44.18(d) (e) A disclaimer, in whole or in part, of the future exercise of a power not held in
44.19a fiduciary capacity is not barred by its previous exercise unless the power is exercisable
44.20in favor of the disclaimant.
44.21(e) (f) A disclaimer of an interest in, or a power over, property which is barred by
44.22this section is ineffective.

44.23    Sec. 4. Minnesota Statutes 2010, section 524.2-1107, is amended to read:
44.24524.2-1107 POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN
44.25IRREVOCABLE.
44.26(a) A person may disclaim, in whole or in part, any interest in or power over
44.27property, including a power of appointment. A person may disclaim the interest or power
44.28even if its creator imposed a spendthrift provision or similar restriction on transfer or a
44.29restriction or limitation on the right to disclaim.
44.30(b) With court approval, a fiduciary may disclaim, in whole or in part, any interest in
44.31or power over property, including a power of appointment when acting in a representative
44.32capacity. Without court approval, a fiduciary may disclaim, in whole or in part, any interest
44.33in or power over property, including a power of appointment, if and to the extent that the
44.34instrument creating the fiduciary relationship explicitly grants the fiduciary the right to
44.35disclaim. With court approval, a custodial parent may disclaim on behalf of a minor child
45.1for whom no conservator has been appointed, in whole or in part, any interest in or power
45.2over property, including a power of appointment, which the minor child is to receive.
45.3(c) To be effective, a disclaimer must be in writing, declare the writing as a
45.4disclaimer, describe the interest or power disclaimed, and be signed by the person or
45.5fiduciary making the disclaimer and acknowledged in the manner provided for deeds of
45.6real estate to be recorded in this state. In addition, for a disclaimer to be effective, an
45.7original of the disclaimer must be delivered or filed in the manner provided in section
45.8524.2-1114 .
45.9(d) A partial disclaimer may be expressed as a fraction, percentage, monetary
45.10amount, specific property, term of years, portion of a beneficial interest in or right to
45.11distributions from a trust, limitation of a power, or any other interest or estate in the
45.12property.
45.13(e) A disclaimer becomes irrevocable when the disclaimer is delivered or filed
45.14pursuant to section 524.2-1114 or it becomes effective as provided in sections 524.2-1108
45.15to 524.2-1113, whichever occurs later.
45.16(f) A disclaimer made under sections 524.2-1101 to 524.2-1116 is not a transfer,
45.17assignment, or release.

45.18    Sec. 5. Minnesota Statutes 2010, section 524.2-1114, is amended to read:
45.19524.2-1114 DELIVERY OR FILING.
45.20(a) Subject to paragraphs (b) to (l), delivery of a disclaimer may be effective
45.21by personal delivery, first-class mail, or any other method that results in its receipt.
45.22A disclaimer sent by first-class mail is deemed to have been delivered on the date it is
45.23postmarked. Delivery by any other method is effective upon receipt by the person to
45.24whom the disclaimer is to be delivered under this section.
45.25(b) In the case of a disclaimer of an interest created under the law of intestate
45.26succession or an interest created by will, other than an interest in a testamentary trust:
45.27(1) the disclaimer must be delivered to the personal representative of the decedent's
45.28estate; or
45.29(2) if no personal representative is serving when the disclaimer is sought to be
45.30delivered, the disclaimer must be filed with the clerk of the court in any county where
45.31venue of administration would be proper.
45.32(c) In the case of a disclaimer of an interest in a testamentary trust:
45.33(1) the disclaimer must be delivered to the trustee serving when the disclaimer is
45.34delivered or, if no trustee is then serving, to the personal representative of the decedent's
45.35estate; or
46.1(2) if no personal representative is serving when the disclaimer is sought to be
46.2delivered, the disclaimer must be filed with the clerk of the court in any county where
46.3venue of administration of the decedent's estate would be proper.
46.4(d) In the case of a disclaimer of an interest in an inter vivos trust:
46.5(1) the disclaimer must be delivered to the trustee serving when the disclaimer is
46.6delivered;
46.7(2) if no trustee is then serving, it must be filed with the clerk of the court in any
46.8county where the filing of a notice of trust would be proper; or
46.9(3) if the disclaimer is made before the time the instrument creating the trust becomes
46.10irrevocable, the disclaimer must be delivered to the person with the power to revoke the
46.11revocable trust or the transferor of the interest or to such person's legal representative.
46.12(e) In the case of a disclaimer of an interest created by a beneficiary designation made
46.13before the time the designation becomes irrevocable, the disclaimer must be delivered to
46.14the person making the beneficiary designation or to such person's legal representative.
46.15(f) In the case of a disclaimer of an interest created by a beneficiary designation
46.16made after the time the designation becomes irrevocable, the disclaimer must be delivered
46.17to the person obligated to distribute the interest.
46.18(g) In the case of a disclaimer by a surviving holder of jointly held property, the
46.19disclaimer must be delivered to the person to whom the disclaimed interest passes or, if
46.20such person cannot reasonably be located by the disclaimant, the disclaimer must be
46.21delivered as provided in paragraph (b).
46.22(h) In the case of a disclaimer by an object, or taker in default of exercise, of a
46.23power of appointment at any time after the power was created, the disclaimer must be
46.24delivered to:
46.25(1) the holder of the power; or
46.26(2) the fiduciary acting under the instrument that created the power or, if no fiduciary
46.27is serving when the disclaimer is sought to be delivered, filed with a court having authority
46.28to appoint the fiduciary.
46.29(i) In the case of a disclaimer by an appointee of a nonfiduciary power of
46.30appointment, the disclaimer must be delivered to:
46.31(1) the holder of the power or the personal representative of the holder's estate; or
46.32(2) the fiduciary under the instrument that created the power or, if no fiduciary is
46.33serving when the disclaimer is sought to be delivered, filed with a court having authority
46.34to appoint the fiduciary.
47.1(j) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the
47.2disclaimer must be delivered as provided in paragraph (b), (c), or (d) as if the power
47.3disclaimed were an interest in property.
47.4(k) In the case of a disclaimer of a power exercisable by an agent, other than a power
47.5exercisable by a fiduciary over a trust or estate, the disclaimer must be delivered to the
47.6principal or the principal's representative.
47.7(l) Notwithstanding paragraph (a), delivery of a disclaimer of an interest in or
47.8relating to real estate shall be presumed upon the recording of the disclaimer in the office
47.9of the clerk of the court county recorder or registrar of titles of the county or counties
47.10where the real estate is located.
47.11(m) A fiduciary or other person having custody of the disclaimed interest is not
47.12liable for any otherwise proper distribution or other disposition made without actual
47.13notice of the disclaimer or, if the disclaimer is barred under section 524.2-1106, for any
47.14otherwise proper distribution or other disposition made in reliance on the disclaimer, if
47.15the distribution or disposition is made without actual knowledge of the facts constituting
47.16the bar of the right to disclaim.

47.17    Sec. 6. Minnesota Statutes 2010, section 524.2-1115, is amended to read:
47.18524.2-1115 RECORDING OF DISCLAIMER RELATING TO REAL ESTATE.
47.19(a) A disclaimer of an interest in or relating to real estate does not provide
47.20constructive notice to all persons unless the disclaimer contains a legal description of the
47.21real estate to which the disclaimer relates and unless the disclaimer is filed for recording
47.22recorded in the office of the county recorder or registrar of titles in the county or counties
47.23where the real estate is located.
47.24(b) An effective disclaimer meeting the requirements of paragraph (a) constitutes
47.25constructive notice to all persons from the time of filing recording. Failure to record the
47.26disclaimer does not affect its validity as between the disclaimant and persons to whom the
47.27property interest or power passes by reason of the disclaimer.

47.28    Sec. 7. Minnesota Statutes 2010, section 524.2-1116, is amended to read:
47.29524.2-1116 APPLICATION TO EXISTING RELATIONSHIPS.
47.30Except as otherwise provided in section 524.2-1106, an Sections 524.2-1101 to
47.31524.2-1116 apply to disclaimers of any interest in or power over property existing on
47.32January 1, 2010, as to which the time for delivering or filing a disclaimer under laws
47.33superseded by sections 524.2-1101 to 524.2-1116 has not expired, may be disclaimed
47.34after January 1, 2010 whenever created.