relating to commerce; regulating unclaimed property; enacting and modifying the
Uniform Unclaimed Property Act of 1995 adopted and recommended for passage
by the National Conference of Commissioners on Uniform State Laws; making
conforming changes in state law;amending Minnesota Statutes 2012, sections
16A.45, subdivisions 1, 4; 58.06, subdivision 2; 58.13, subdivision 1; 80C.03;
136G.09, subdivision 10; 198.231; 270B.14, subdivision 17; 276.19, subdivision
4; 308A.711, subdivision 1; 354B.25, subdivision 6; 356.65, subdivision 2;
624.68; proposing coding for new law in Minnesota Statutes, chapter 345;
repealing Minnesota Statutes 2012, sections 345.31; 345.32; 345.321; 345.33;
345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 345.41;
345.42, subdivisions 1, 4; 345.43, subdivisions 2a, 3; 345.44; 345.45; 345.46;
345.47; 345.48, subdivision 1; 345.485; 345.49; 345.50; 345.51; 345.515; 345.52;
345.525; 345.53; 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; 345.60.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.17UNIFORM UNCLAIMED PROPERTY ACT
Section 1. [345.601] DEFINITIONS.
1.19 Subdivision 1. Scope. For the purposes of sections
345.647, the terms
1.20defined in this section have the meanings given them.
1.21 Subd. 2. Administrator. "Administrator" means the commissioner of commerce.
1.22 Subd. 3. Apparent owner. "Apparent owner" means a person whose name appears
1.23on the records of a holder as the person entitled to property held, issued, or owing by
1.25 Subd. 4. Business association. "Business association" means a corporation, joint
1.26stock company, investment company, partnership, unincorporated association, joint
1.27venture, limited liability company, business trust, trust company, safe deposit company,
2.1financial organization, insurance company, mutual fund, utility, or other business entity
2.2consisting of one or more persons, whether or not for profit.
2.3 Subd. 5. Domicile. "Domicile" means the state of incorporation of a corporation
2.4and the state of the principal place of business of a holder other than a corporation.
2.5 Subd. 6. Financial organization. "Financial organization" means a savings
2.6association; savings bank or industrial loan and thrift company; banking organization;
2.7or credit union.
2.8 Subd. 7. Holder. "Holder" means a person obligated to hold for the account of, or
2.9deliver or pay to, the owner property that is subject to sections
2.10 Subd. 8. Insurance company. "Insurance company" means an association,
2.11corporation, or fraternal or mutual benefit organization, whether or not for profit, engaged
2.12in the business of providing life endowments, annuities, or insurance, including accident,
2.13burial, casualty, credit life, contract performance, dental, disability, fidelity, fire, health,
2.14hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection, and
2.15workers' compensation insurance.
2.16 Subd. 9. Mineral. "Mineral" means gas; oil; coal; other gaseous, liquid, and solid
2.17hydrocarbons; oil shale; cement material; sand and gravel; road material; building stone;
2.18chemical raw material; gemstone; fissionable and nonfissionable ores; colloidal and other
2.19clay; steam and other geothermal resource; or any other substance defined as a mineral
2.20by the law of this state.
2.21 Subd. 10. Mineral proceeds. "Mineral proceeds" means amounts payable for the
2.22extraction, production, or sale of minerals, or, upon the abandonment of those payments,
2.23all payments that become payable thereafter. The term includes amounts payable:
2.24 (1) for the acquisition and retention of a mineral lease, including bonuses, royalties,
2.25compensatory royalties, shut-in royalties, minimum royalties, and delay rentals;
2.26 (2) for the extraction, production, or sale of minerals, including net revenue interests,
2.27royalties, overriding royalties, extraction payments, and production payments; and
2.28 (3) under an agreement or option, including a joint operating agreement, unit
2.29agreement, pooling agreement, and farm-out agreement.
2.30 Subd. 11. Money order. "Money order" includes an express money order and a
2.31personal money order, on which the remitter is the purchaser. The term does not include a
2.32bank money order or any other instrument sold by a financial organization if the seller has
2.33obtained the name and address of the payee.
2.34 Subd. 12. Owner. "Owner" means a person who has a legal or equitable interest in
2.35property subject to sections
345.647 or the person's legal representative. The
3.1term includes a depositor in the case of a deposit, a beneficiary in the case of a trust other
3.2than a deposit in trust, and a claimant or payee in the case of other property.
3.3 Subd. 13. Person. "Person" means an individual, business association,
3.4financial organization, estate, trust, government, governmental subdivision, agency, or
3.5instrumentality, or any other legal or commercial entity.
3.6 Subd. 14. Property. "Property" means tangible property described in section
3.7345.605 or a fixed and certain interest in intangible property that is held, issued, or owed
3.8in the course of a holder's business, or by a government, governmental subdivision,
3.9agency, or instrumentality, and all income or increments therefrom. This term includes
3.10property that is referred to as or evidenced by:
3.11 (1) money, a check, draft, deposit, interest, or dividend;
3.12 (2) credit balance, customer's overpayment, gift certificate, security deposit, refund,
3.13credit memorandum, unpaid wage, unused ticket, mineral proceeds, or unidentified
3.15 (3) stock or other evidence of ownership of an interest in a business association
3.16or financial organization;
3.17 (4) a bond, debenture, note, or other evidence of indebtedness;
3.18 (5) money deposited to redeem stocks, bonds, coupons, or other securities or to
3.20 (6) an amount due and payable under the terms of an annuity or insurance policy,
3.21including policies providing life insurance, property and casualty insurance, workers'
3.22compensation insurance, or health and disability insurance; and
3.23 (7) an amount distributable from a trust or custodial fund established under a plan to
3.24provide health, welfare, pension, vacation, severance, retirement, death, stock purchase,
3.25profit sharing, employee savings, supplemental unemployment insurance, or similar
3.27 Subd. 15. Record. "Record" means information that is inscribed on a tangible
3.28medium or that is stored in an electronic or other medium and is retrievable in perceivable
3.30 Subd. 16. State. "State" means a state of the United States, the District of Columbia,
3.31the Commonwealth of Puerto Rico, or any territory or insular possession subject to the
3.32jurisdiction of the United States.
3.33 Subd. 17. Utility. "Utility" means a public utility as defined by section
Sec. 2. [345.603] PRESUMPTIONS OF ABANDONMENT.
4.1 (a) Property is presumed abandoned if it is unclaimed by the apparent owner during
4.2the time set forth below for the particular property:
4.3 (1) traveler's check, 15 years after issuance;
4.4 (2) money order, seven years after issuance;
4.5 (3) stock or other equity interest in a business association or financial organization,
4.6including a security entitlement under the Uniform Commercial Code - Investment
4.7Securities, three years after the earlier of (i) the date of the most recent dividend, stock
4.8split, or other distribution unclaimed by the apparent owner, or (ii) the date of the second
4.9mailing of a statement of account or other notification or communication that was
4.10returned as undeliverable or after the holder discontinued mailings, notifications, or
4.11communications to the apparent owner;
4.12 (4) debt of a business association or financial organization, other than a bearer bond
4.13or an original issue discount bond, three years after the date of the most recent interest
4.14payment unclaimed by the apparent owner;
4.15 (5) a demand, savings, or time deposit, including a deposit that is automatically
4.16renewable, three years after the earlier of maturity or the date of the last indication by the
4.17owner of interest in the property; but a deposit that is automatically renewable is deemed
4.18matured for purposes of this section upon its initial date of maturity, unless the owner has
4.19consented to a renewal at or about the time of the renewal and the consent is in writing or
4.20is evidenced by a memorandum or other record on file with the holder;
4.21 (6) money or credits owed to a customer as a result of a retail business transaction,
4.22three years after the obligation accrued;
4.23 (7) amount owed by an insurer on a life or endowment insurance policy or an
4.24annuity that has matured or terminated, three years after the obligation to pay arose or, in
4.25the case of a policy or annuity payable upon proof of death, three years after the insured
4.26has attained, or would have attained if living, the limiting age under the mortality table on
4.27which the reserve is based;
4.28 (8) property distributable by a business association or financial organization in a
4.29course of dissolution, one year after the property becomes distributable;
4.30 (9) property received by a court as proceeds of a class action, and not distributed
4.31pursuant to the judgment, three years after the distribution date;
4.32 (10) property held by a court, government, governmental subdivision, agency, or
4.33instrumentality, one year after the property becomes distributable;
4.34 (11) wages or other compensation for personal services, one year after the
4.35compensation becomes payable;
5.1 (12) deposit or refund owed to a subscriber by a utility, one year after the deposit or
5.2refund becomes payable;
5.3 (13) property in an individual retirement account, defined benefit plan, or other
5.4account or plan that is qualified for tax deferral under the income tax laws of the United
5.5States, three years after the earliest of the date of the distribution or attempted distribution
5.6of the property, the date of the required distribution as stated in the plan or trust agreement
5.7governing the plan, or the date, if determinable by the holder, specified in the income tax
5.8laws of the United States by which distribution of the property must begin in order to
5.9avoid a tax penalty; and
5.10 (14) all other property, three years after the owner's right to demand the property or
5.11after the obligation to pay or distribute the property arises, whichever first occurs.
5.12(b) Paragraph (a) does not include money held or owing by a public pension fund
5.13enumerated in section 356.20, subdivision 2, or 356.30, subdivision 3, or governed by
5.14sections 69.77 or 69.771 to 69.776 if the plan governing the public pension fund includes
5.15a provision governing the disposition of unclaimed amounts of money. Paragraph (a) also
5.16does not include gift certificates, gift cards, or layaway accounts issued or maintained by a
5.17person in the business of selling tangible property or services at retail.
5.18 (c) At the time that an interest is presumed abandoned under paragraph (a), any
5.19other property right accrued or accruing to the owner as a result of the interest, and not
5.20previously presumed abandoned, is also presumed abandoned.
5.21 (d) Property is unclaimed if, for the applicable period set forth in paragraph (a),
5.22the apparent owner has not communicated in writing or by other means reflected in a
5.23contemporaneous record prepared by or on behalf of the holder, with the holder concerning
5.24the property or the account in which the property is held, and has not otherwise indicated
5.25an interest in the property. A communication with an owner by a person other than the
5.26holder or its representative who has not in writing identified the property to the owner is
5.27not an indication of interest in the property by the owner.
5.28 (e) An indication of an owner's interest in property includes:
5.29 (1) the presentment of a check or other instrument of payment of a dividend or
5.30other distribution made with respect to an account or underlying stock or other interest in
5.31a business association or financial organization or, in the case of a distribution made by
5.32electronic or similar means, evidence that the distribution has been received;
5.33 (2) owner-directed activity in the account in which the property is held, including a
5.34direction by the owner to increase, decrease, or change the amount or type of property
5.35held in the account;
5.36 (3) the making of a deposit to or withdrawal from a bank account; and
6.1 (4) the payment of a premium with respect to a property interest in an insurance
6.2policy; but the application of an automatic premium loan provision or other nonforfeiture
6.3provision contained in an insurance policy does not prevent a policy from maturing or
6.4terminating if the insured has died or the insured or the beneficiary of the policy has
6.5otherwise become entitled to the proceeds before the depletion of the cash surrender value
6.6of a policy by the application of those provisions.
6.7 (f) Property is payable or distributable for purposes of sections
6.8 notwithstanding the owner's failure to make demand or present an instrument or document
6.9otherwise required to obtain payment.
Sec. 3. [345.605] CONTENTS OF SAFE DEPOSIT BOX OR OTHER
6.12 (a) Tangible property held in a safe deposit box or other safekeeping depository in
6.13this state in the ordinary course of the holder's business and proceeds resulting from
6.14the sale of the property permitted by other law are presumed abandoned if the property
6.15remains unclaimed by the owner for more than five years after expiration of the lease or
6.16rental period on the box or other depository.
6.17 (b) Any funds or other personal property, tangible or intangible, removed from a safe
6.18deposit box or any other safekeeping repository in this state on which the lease or rental
6.19period has expired due to nonpayment of rental charges or other reason, are presumed
6.20abandoned if the property remains unclaimed by the owner for more than five years from
6.21the date on which the lease or rental period expired.
6.22 (c) If the amount due for the use or rental of a safe deposit box has remained
6.23unpaid for a period of six months, the bank, savings bank, trust company, savings and
6.24loan, or safe deposit company shall, within 60 days of the expiration of that period, send
6.25by certified mail, addressed to the renter or lessee of the safe deposit box, directed to
6.26the address standing on its books, a written notice that, if the amount due for the use or
6.27rental of the safe deposit box is not paid within 60 days after the date of the mailing of
6.28the notice, it will cause the safe deposit box to be opened and its contents placed in one
6.29of its general safe deposit boxes.
6.30 (d) Upon the expiration of 60 days from the date of mailing the notice, and in default
6.31of payment within the 60 days of the amount due for the use or rental of the safe deposit
6.32box, the bank, savings bank, trust company, savings and loan, or safe deposit company,
6.33in the presence of its president, vice-president, secretary, treasurer, assistant secretary,
6.34assistant treasurer or superintendent, or such other person as specifically designated by its
6.35board of directors, and of a notary public not in its employ, shall cause the safe deposit
7.1box to be opened and the contents thereof, to be removed and sealed by the notary public
7.2in a package, in which the notary public shall enclose a detailed description of the contents
7.3of the safe deposit box and upon which the notary public shall mark the name of the renter
7.4or lessee and, in the presence of one of the bank officers listed above, the notary public
7.5shall place the package in one of the bank's general safe deposit boxes and set out the
7.6proceedings in a certificate under the notary public's official seal, which shall be delivered
7.7to the bank, savings bank, trust company, savings and loan, or safe deposit company.
7.8 (e) The bank, savings bank, trust company, savings and loan, or safe deposit
7.9company shall hold the contents of abandoned safe deposit boxes until they are claimed by
7.10the owner or the bank turns them over to the commissioner pursuant to this chapter.
Sec. 4. [345.607] RULES FOR TAKING CUSTODY.
7.12 Except as otherwise provided in sections
345.647 or by other statute of
7.13this state, property that is presumed abandoned, whether located in this or another state, is
7.14subject to the custody of this state if:
7.15 (1) the last known address of the apparent owner, as shown on the records of the
7.16holder, is in this state;
7.17 (2) the records of the holder do not reflect the identity of the person entitled to the
7.18property and it is established that the last known address of the person entitled to the
7.19property is in this state;
7.20 (3) the records of the holder do not reflect the last known address of the apparent
7.21owner and it is established that:
7.22 (i) the last known address of the person entitled to the property is in this state; or
7.23 (ii) the holder is domiciled in this state or is a government or governmental
7.24subdivision, agency, or instrumentality of this state and has not previously paid or
7.25delivered the property to the state of the last known address of the apparent owner or other
7.26person entitled to the property;
7.27 (4) the last known address of the apparent owner, as shown on the records of the
7.28holder, is in a state that does not provide for the escheat or custodial taking of the property
7.29and the holder is domiciled in this state or is a government or governmental subdivision,
7.30agency, or instrumentality of this state;
7.31 (5) the last known address of the apparent owner, as shown on the records of the
7.32holder, is in a foreign country and the holder is domiciled in this state or is a government
7.33or governmental subdivision, agency, or instrumentality of this state;
7.34 (6) the transaction out of which the property arose occurred in this state, the holder
7.35is domiciled in a state that does not provide for the escheat or custodial taking of the
8.1property, and the last known address of the apparent owner or other person entitled to the
8.2property is unknown or is in a state that does not provide for the escheat or custodial
8.3taking of the property; or
8.4 (7) the property is a traveler's check or money order purchased in this state, or the
8.5issuer of the traveler's check or money order has its principal place of business in this
8.6state and the issuer's records show that the instrument was purchased in a state that does
8.7not provide for the escheat or custodial taking of the property, or do not show the state
8.8in which the instrument was purchased.
Sec. 5. [345.609] DORMANCY CHARGE.
8.10 A holder may deduct from property presumed abandoned a charge imposed by
8.11reason of the owner's failure to claim the property within a specified time only if there is a
8.12valid and enforceable written contract between the holder and the owner under which the
8.13holder may impose the charge and the holder regularly imposes the charge, which is not
8.14regularly reversed or otherwise canceled. The amount of the deduction is limited to an
8.15amount that is not unconscionable and may not be deducted for a period to exceed one year.
Sec. 6. [345.61] BURDEN OF PROOF AS TO PROPERTY EVIDENCED BY
8.17RECORD OF CHECK OR DRAFT.
8.18 A record of the issuance of a check, draft, or similar instrument is prima facie
8.19evidence of an obligation. In claiming property from a holder who is also the issuer,
8.20the administrator's burden of proof as to the existence and amount of the property and
8.21its abandonment is satisfied by showing issuance of the instrument and passage of the
8.22requisite period of abandonment. Defenses of payment, satisfaction, discharge, and want
8.23of consideration are affirmative defenses that must be established by the holder.
Sec. 7. [345.611] REPORT OF ABANDONED PROPERTY.
8.25 (a) A holder of property presumed abandoned shall make a report to the administrator
8.26concerning the property.
8.27 (b) The report must be verified and must contain:
8.28 (1) a description of the property;
8.29 (2) except with respect to a traveler's check or money order, the name, if known, and
8.30last known address, if any, and the social security number or taxpayer identification number,
8.31if readily ascertainable, of the apparent owner of property of the value of $100 or more;
8.32 (3) an aggregated amount of items valued under $100 each;
9.1 (4) in the case of an amount of $100 or more held or owing under an annuity or a life
9.2or endowment insurance policy, the full name and last known address of the annuitant
9.3or insured and of the beneficiary;
9.4 (5) in the case of property held in a safe deposit box or other safekeeping depository,
9.5an indication of the place where it is held and where it may be inspected by the
9.6administrator, and any amounts owing to the holder;
9.7 (6) the date, if any, on which the property became payable, demandable, or returnable,
9.8and the date of the last transaction with the apparent owner with respect to the property; and
9.9 (7) other information that the administrator by rule prescribes as necessary for the
9.10administration of sections
9.11 (c) If a holder of property presumed abandoned is a successor to another person who
9.12previously held the property for the apparent owner or the holder has changed its name
9.13while holding the property, the holder shall file with the report its former names, if any,
9.14and the known names and addresses of all previous holders of the property.
9.15 (d) The report must be filed before November 1 of each year and cover the 12
9.16months next preceding July 1 of that year, but a report with respect to a life insurance
9.17company must be filed before May 1 of each year for the calendar year next preceding.
9.18 (e) The holder of property presumed abandoned shall send written notice to the
9.19apparent owner, not more than 120 days or less than 60 days before filing the report, stating
9.20that the holder is in possession of property subject to sections
9.21 (1) the holder has in its records an address for the apparent owner which the holder's
9.22records do not disclose to be inaccurate;
9.23 (2) the claim of the apparent owner is not barred by a statute of limitations; and
9.24 (3) the value of the property is $100 or more.
9.25 (f) Before the date for filing the report, the holder of property presumed abandoned
9.26may request the administrator to extend the time for filing the report. The administrator
9.27may grant the extension for good cause. The holder, upon receipt of the extension, may
9.28make an interim payment on the amount the holder estimates will ultimately be due, which
9.29terminates the accrual of additional interest on the amount paid.
9.30(g) The holder must file the report electronically via the online portal designated
9.31by the administrator and utilizing the approved National Association of Unclaimed
9.32Property Administrators (NAUPPA) file format. The reporting requirement includes the
9.33filing of negative reports.
9.34 (h) The holder of property presumed abandoned shall file with the report an affidavit
9.35stating that the holder has complied with paragraph (e).
Sec. 8. [345.613] PAYMENT OR DELIVERY OF ABANDONED PROPERTY.
10.2 (a) Except for property held in a safe deposit box or other safekeeping depository,
10.3upon filing the report required by section
345.611, the holder of property presumed
10.4abandoned shall pay, deliver, or cause to be paid or delivered to the administrator the
10.5property described in the report as unclaimed, but if the property is an automatically
10.6renewable deposit, and a penalty or forfeiture in the payment of interest would result,
10.7the time for compliance is extended until a penalty or forfeiture would no longer result.
10.8Tangible property held in a safe deposit box or other safekeeping depository may not be
10.9delivered to the administrator until 120 days after filing the report required by section
10.11 (b) If the property reported to the administrator is a security or security entitlement
10.12under the Uniform Commercial Code - Investment Securities, the administrator is an
10.13appropriate person to make an endorsement, instruction, or entitlement order on behalf of
10.14the apparent owner to invoke the duty of the issuer or its transfer agent or the securities
10.15intermediary to transfer or dispose of the security or the security entitlement in accordance
10.16with the Uniform Commercial Code - Investment Securities.
10.17 (c) If the holder of property reported to the administrator is the issuer of a certificated
10.18security, the administrator has the right to obtain a replacement certificate pursuant to
336.8-405, but an indemnity bond is not required.
10.20 (d) An issuer, the holder, and any transfer agent or other person acting pursuant to
10.21the instructions of and on behalf of the issuer or holder in accordance with this section is
10.22not liable to the apparent owner and must be indemnified against claims of any person in
10.23accordance with section
Sec. 9. [345.615] NOTICE AND PUBLICATION OF LISTS OF ABANDONED
10.26Within the calendar year next following the year in which abandoned property has
10.27been paid or delivered to the administrator, the administrator shall provide public notice of
10.28the abandoned property in the manner and frequency the administrator determines to be
10.29most effective and efficient in communicating to the persons appearing to be owners of the
10.30property. Public notice may include the use of print, broadcast, or electronic media.
10.31 This section is not applicable to property having a total value less than $100, or
10.32information concerning a traveler's check, money order, or similar instrument.
Sec. 10. [345.617] CUSTODY BY STATE; RECOVERY BY HOLDER;
10.34DEFENSE OF HOLDER.
11.1 (a) In this section, payment or delivery is made in "good faith" if:
11.2 (1) payment or delivery was made in a reasonable attempt to comply with sections
11.4 (2) the holder was not then in breach of a fiduciary obligation with respect to the
11.5property and had a reasonable basis for believing, based on the facts then known, that the
11.6property was presumed abandoned; and
11.7 (3) there is no showing that the records under which the payment or delivery was
11.8made did not meet reasonable commercial standards of practice.
11.9 (b) Upon payment or delivery of property to the administrator, the state assumes
11.10custody and responsibility for the safekeeping of the property. A holder who pays or
11.11delivers property to the administrator in good faith is relieved of all liability, to the value
11.12of the property so paid or delivered, arising thereafter with respect to the property.
11.13 (c) A holder who has paid money to the administrator pursuant to sections
345.647 may subsequently make payment to a person reasonably appearing to the
11.15holder to be entitled to payment. Upon a filing by the holder of proof of payment and proof
11.16that the payee was entitled to the payment, the administrator shall promptly reimburse
11.17the holder for the payment without imposing a fee or other charge. If reimbursement is
11.18sought for a payment made on a negotiable instrument, including a traveler's check or
11.19money order, the holder must be reimbursed upon filing proof that the instrument was duly
11.20presented and that payment was made to a person who reasonably appeared to be entitled
11.21to payment. The holder must be reimbursed for payment made even if the payment was
11.22made to a person whose claim was barred under section
345.631, paragraph (a).
11.23 (d) A holder who has delivered property other than money to the administrator
11.24pursuant to sections
345.647 may reclaim the property if it is still in the
11.25possession of the administrator, without paying any fee or other charge, upon filing proof
11.26that the apparent owner has claimed the property from the holder.
11.27 (e) The administrator may accept a holder's affidavit as sufficient proof of the
11.28holder's right to recover money and property under this section.
11.29 (f) If a holder pays or delivers property to the administrator in good faith and
11.30thereafter another person claims the property from the holder or another state claims the
11.31money or property under its laws relating to escheat or abandoned or unclaimed property,
11.32the administrator, upon written notice of the claim, shall defend the holder against the
11.33claim and indemnify the holder against any liability, to the value of the property so paid
11.34or delivered, on the claim resulting from payment or delivery of the property to the
Sec. 11. [345.619] INCOME ACCRUING AFTER PAYMENT OR DELIVERY.
12.2 When property is paid or delivered to the administrator under sections
12.3345.647, the owner is not entitled to receive income or other increments accruing on
12.4the property after the payment or delivery.
Sec. 12. [345.62] PUBLIC SALE OF ABANDONED PROPERTY.
12.6 (a) Except as otherwise provided in this section, the administrator, within ten years
12.7after the receipt of abandoned property, shall sell it to the highest bidder at public sale at a
12.8location in the state which in the judgment of the administrator affords the most favorable
12.9market for the property. The administrator may decline the highest bid and reoffer the
12.10property for sale if the administrator considers the bid to be insufficient. The administrator
12.11need not offer the property for sale if the administrator considers that the probable cost of
12.12the sale will exceed the proceeds of the sale.
12.13 (b) Securities listed on an established stock exchange shall be sold at the prevailing
12.14prices on the exchange. Other securities may be sold over the counter at prevailing prices
12.15or by another method the commissioner determines advisable. United States government
12.16savings bonds and United States war bonds shall be presented to the United States for
12.18(c) Holding period. If the property is of a type customarily sold on a recognized
12.19market or the type that may be sold over the counter at prevailing prices, the administrator
12.20may sell the property without notice by publication or otherwise. The administrator may
12.21proceed with the liquidation after holding for one year, with the exception of securities
12.22being held as the result of an insurance demutualization; these types of securities may
12.23be sold upon receipt. This section grants the administrator express authority to sell any
12.24property, including, but not limited to, stocks, bonds, notes, bills, and all other public or
12.25private securities. A person making a claim under section 345.617 is entitled to receive
12.26the securities delivered to the administrator by the holder, if they remain in custody of the
12.27administrator, or the net proceeds received from the sale, and is not entitled to receive
12.28any appreciation in the value of the property occurring after the sale by the administrator.
12.29The administrator may liquidate all unclaimed securities currently held in custody in
12.30accordance with this section.
12.31 (d) A purchaser of property at a sale conducted by the administrator pursuant to
345.647 takes the property free of all claims of the owner or previous
12.33holder and of all persons claiming through or under them. The administrator shall execute
12.34all documents necessary to complete the transfer of ownership.
Sec. 13. [345.621] DEPOSIT OF FUNDS.
13.2 The administrator shall promptly deposit in the general fund of this state all funds
13.3received under sections
345.647, including the proceeds from the sale of
13.4abandoned property under section
345.62; except that unclaimed restitution payments held
13.5by a court under section 345.38 shall be deposited in the crime victim account created in
13.6section 611A.612. The administrator shall record the name and last known address of each
13.7person appearing from the holders' reports to be entitled to the property and the name and
13.8last known address of each insured person or annuitant and beneficiary and with respect
13.9to each policy or annuity listed in the report of an insurance company, its number, the
13.10name of the company, and the amount due.
Sec. 14. [345.623] CLAIM OF ANOTHER STATE TO RECOVER PROPERTY.
13.12 (a) After property has been paid or delivered to the administrator under sections
345.647, another state may recover the property if:
13.14 (1) the property was paid or delivered to the custody of this state because the
13.15records of the holder did not reflect a last known location of the apparent owner within
13.16the borders of the other state and the other state establishes that the apparent owner or
13.17other person entitled to the property was last known to be located within the borders of
13.18that state and under the laws of that state the property has escheated or become subject
13.19to a claim of abandonment by that state;
13.20 (2) the property was paid or delivered to the custody of this state because the laws of
13.21the other state did not provide for the escheat or custodial taking of the property, and under
13.22the laws of that state subsequently enacted the property has escheated or become subject
13.23to a claim of abandonment by that state;
13.24 (3) the records of the holder were erroneous in that they did not accurately identify
13.25the owner of the property and the last known location of the owner within the borders of
13.26another state and under the laws of that state the property has escheated or become subject
13.27to a claim of abandonment by that state;
13.28 (4) the property was subjected to custody by this state under section
13.29(6), and under the laws of the state of domicile of the holder the property has escheated or
13.30become subject to a claim of abandonment by that state; or
13.31 (5) the property is a sum payable on a traveler's check, money order, or similar
13.32instrument that was purchased in the other state and delivered into the custody of this state
345.607, clause (7), and under the laws of the other state the property has
13.34escheated or become subject to a claim of abandonment by that state.
14.1 (b) A claim of another state to recover escheated or abandoned property must be
14.2presented in a form prescribed by the administrator, who shall decide the claim within 90
14.3days after it is presented. The administrator shall allow the claim upon determining that
14.4the other state is entitled to the abandoned property under paragraph (a).
14.5 (c) The administrator shall require another state, before recovering property under
14.6this section, to agree to indemnify this state and its officers and employees against any
14.7liability on a claim to the property.
Sec. 15. [345.625] FILING CLAIM WITH ADMINISTRATOR; HANDLING
14.9OF CLAIMS BY ADMINISTRATOR.
14.10 (a) A person, excluding another state, claiming property paid or delivered to the
14.11administrator may file a claim on a form prescribed by the administrator and verified by
14.13 (b) Within 90 days after a claim is filed, the administrator shall allow or deny the
14.14claim and give written notice of the decision to the claimant. If the claim is denied, the
14.15administrator shall inform the claimant of the reasons for the denial and specify what
14.16additional evidence is required before the claim will be allowed. The claimant may then
14.17file a new claim with the administrator or maintain an action under section
14.18 (c) A holder who pays the owner for property that has been delivered to the state and
14.19which, if claimed from the administrator by the owner would be subject to an increment
345.62, may recover from the administrator the amount of
Sec. 16. [345.627] ACTION TO ESTABLISH CLAIM.
14.23 A person aggrieved by a decision of the administrator or whose claim has not been
14.24acted upon within 90 days after its filing may maintain an original action to establish the
14.25claim in the district court, naming the administrator as a defendant.
Sec. 17. [345.629] ELECTION TO TAKE PAYMENT OR DELIVERY.
14.27 (a) The administrator may decline to receive property reported under sections
345.647 which the administrator considers to have a value less than the
14.29expenses of notice and sale.
14.30 (b) A holder, with the written consent of the administrator and upon conditions and
14.31terms prescribed by the administrator, may report and deliver property before the property
14.32is presumed abandoned. Property so delivered must be held by the administrator and is
15.1not presumed abandoned until it otherwise would be presumed abandoned under sections
Sec. 18. [345.63] DESTRUCTION OR DISPOSITION OF PROPERTY HAVING
15.4NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM LIABILITY.
15.5 If the administrator determines after investigation that property delivered under
345.647 has no substantial commercial value, the administrator may
15.7destroy or otherwise dispose of the property at any time. An action or proceeding may not
15.8be maintained against the state or any officer or against the holder for or on account of an act
15.9of the administrator under this section, except for intentional misconduct or malfeasance.
Sec. 19. [345.631] PERIODS OF LIMITATION.
15.11 (a) The expiration, before or after the effective date of sections
15.12of a period of limitation on the owner's right to receive or recover property, whether
15.13specified by contract, statute, or court order, does not preclude the property from being
15.14presumed abandoned or affect a duty to file a report or to pay or deliver or transfer
15.15property to the administrator as required by sections
15.16 (b) An action or proceeding may not be maintained by the administrator to enforce
345.647 in regard to the reporting, delivery, or payment of property
15.18more than ten years after the holder specifically identified the property in a report filed with
15.19the administrator or gave express notice to the administrator of a dispute regarding the
15.20property. In the absence of such a report or other express notice, the period of limitation is
15.21tolled. The period of limitation is also tolled by the filing of a report that is fraudulent.
Sec. 20. [345.633] REQUESTS FOR REPORTS AND EXAMINATION OF
15.24 (a) The administrator may require a person who has not filed a report, or a person
15.25who the administrator believes has filed an inaccurate, incomplete, or false report, to file a
15.26verified report in a form specified by the administrator. The report must state whether the
15.27person is holding property reportable under sections
345.647, describe property
15.28not previously reported or as to which the administrator has made inquiry, and specifically
15.29identify and state the amounts of property that may be in issue.
15.30 (b) The administrator, at reasonable times and upon reasonable notice, may examine
15.31the records of any person to determine whether the person has complied with sections
345.647. The administrator may conduct the examination even if the person
15.33believes it is not in possession of any property that must be reported, paid, or delivered
345.647. The administrator may contract with any other person
16.2to conduct the examination on behalf of the administrator.
16.3 (c) The administrator at reasonable times may examine the records of an agent,
16.4including a dividend disbursing agent or transfer agent, of a business association or
16.5financial association that is the holder of property presumed abandoned if the administrator
16.6has given the notice required by paragraph (b) to both the association or organization and
16.7the agent at least 90 days before the examination.
16.8 (d) Documents and working papers obtained or compiled by the administrator, or
16.9the administrator's agents, employees, or designated representatives, in the course of
16.10conducting an examination are confidential and are not public records, but the documents
16.11and papers may be:
16.12 (1) used by the administrator in the course of an action to collect unclaimed property
16.13or otherwise enforce sections
16.14 (2) used in joint examinations conducted with or pursuant to an agreement with
16.15another state, the federal government, or any other governmental subdivision, agency,
16.17 (3) produced pursuant to subpoena or court order; or
16.18 (4) disclosed to the abandoned property office of another state for that state's use in
16.19circumstances equivalent to those described in this section, if the other state is bound to
16.20keep the documents and papers confidential.
16.21 (e) If an examination of the records of a person results in the disclosure of property
16.22reportable under sections
345.647, the administrator may assess the cost of the
16.23examination against the holder at the rate of $200 a day for each examiner, or a greater
16.24amount that is reasonable and was incurred, but the assessment may not exceed the value of
16.25the property found to be reportable. The cost of an examination made pursuant to paragraph
16.26(c) may be assessed only against the business association or financial organization.
16.27 (f) If, after the effective date of sections
345.647, a holder does not
16.28maintain the records required by section
345.635 and the records of the holder available
16.29for the periods subject to sections
345.647 are insufficient to permit the
16.30preparation of a report, the administrator may require the holder to report and pay to the
16.31administrator the amount the administrator reasonably estimates, on the basis of any
16.32available records of the holder or by any other reasonable method of estimation, should
16.33have been but was not reported.
Sec. 21. [345.635] RETENTION OF RECORDS.
17.1 (a) Except as otherwise provided in paragraph (b), a holder required to file a report
345.611 shall maintain the records containing the information required to be
17.3included in the report for ten years after the holder files the report, unless a shorter period
17.4is provided by rule of the administrator.
17.5 (b) A business association or financial organization that sells, issues, or provides
17.6to others for sale or issue in this state, traveler's checks, money orders, or similar
17.7instruments other than third-party bank checks, on which the business association or
17.8financial organization is directly liable, shall maintain a record of the instruments while
17.9they remain outstanding, indicating the state and date of issue, for three years after the
17.10holder files the report.
Sec. 22. [345.637] ENFORCEMENT.
17.12 The administrator may maintain an action in this or another state to enforce sections
Sec. 23. [345.639] INTERSTATE AGREEMENTS AND COOPERATION;
17.15JOINT AND RECIPROCAL ACTIONS WITH OTHER STATES.
17.16 (a) The administrator may enter into an agreement with another state to exchange
17.17information relating to abandoned property or its possible existence. The agreement may
17.18permit the other state, or another person acting on behalf of a state, to examine records
17.19as authorized in section
345.633. The administrator by rule may require the reporting of
17.20information needed to enable compliance with an agreement made under this section
17.21and prescribe the form.
17.22 (b) The administrator may join with another state to seek enforcement of sections
345.647 against any person who is or may be holding property reportable
17.25 (c) At the request of another state, the attorney general of this state may maintain an
17.26action on behalf of the other state to enforce, in this state, the unclaimed property laws of
17.27the other state against a holder of property subject to escheat or a claim of abandonment
17.28by the other state, if the other state has agreed to pay expenses incurred by the attorney
17.29general in maintaining the action.
17.30 (d) The administrator may request that the attorney general of another state or
17.31another attorney commence an action in the other state on behalf of the administrator.
17.32With the approval of the attorney general of this state, the administrator may retain any
17.33other attorney to commence an action in this state on behalf of the administrator. This
17.34state shall pay all expenses, including attorney's fees, in maintaining an action under this
18.1paragraph. With the administrator's approval, the expenses and attorney's fees may be
18.2paid from money received under sections
345.647. The administrator may
18.3agree to pay expenses and attorney's fees based in whole or in part on a percentage of the
18.4value of any property recovered in the action. Any expenses or attorney's fees paid under
18.5this paragraph may not be deducted from the amount that is subject to the claim by the
18.6owner under sections
Sec. 24. [345.64] INTEREST AND PENALTIES.
18.8 (a) A holder who fails to report, pay, or deliver property within the time prescribed
345.647 shall pay to the administrator interest at the annual rate of
18.10two percentage points above the annual rate of discount in effect on the date the property
18.11should have been paid or delivered for the most recent issue of 52-week United States
18.12Treasury bills on the property or value thereof from the date the property should have
18.13been reported, paid, or delivered.
18.14 (b) Except as otherwise provided in paragraph (c), a holder who fails to report,
18.15pay, or deliver property within the time prescribed by sections
18.16fails to perform other duties imposed by sections
345.647, shall pay to the
18.17administrator, in addition to interest as provided in paragraph (a), a civil penalty of $200
18.18for each day the report, payment, or delivery is withheld, or the duty is not performed, up
18.19to a maximum of $5,000.
18.20 (c) A holder who willfully fails to report, pay, or deliver property within the time
18.21prescribed by sections
345.647, or willfully fails to perform other duties
18.22imposed by sections
345.647, shall pay to the administrator, in addition to
18.23interest as provided in paragraph (a), a civil penalty of $1,000 for each day the report,
18.24payment, or delivery is withheld, or the duty is not performed, up to a maximum of $25,000,
18.25plus 25 percent of the value of any property that should have been but was not reported.
18.26 (d) A holder who makes a fraudulent report shall pay to the administrator, in addition
18.27to interest as provided in paragraph (a), a civil penalty of $1,000 for each day from the
18.28date a report under sections
345.647 was due, up to a maximum of $25,000,
18.29plus 25 percent of the value of any property that should have been but was not reported.
18.30 (e) The administrator for good cause may waive, in whole or in part, interest under
18.31paragraph (a) and penalties under paragraphs (b) and (c), and shall waive penalties if the
18.32holder acted in good faith and without negligence.
Sec. 25. [345.641] AGREEMENT TO LOCATE PROPERTY.
19.1 (a) An agreement by an owner, the primary purpose of which is to locate, deliver,
19.2recover, or assist in the recovery of property that is presumed abandoned, is void and
19.3unenforceable if it was entered into during the period commencing on the date the property
19.4was presumed abandoned and extending to a time that is 24 months after the date the
19.5property is paid or delivered to the administrator. This paragraph does not apply to an
19.6owner's agreement with an attorney to file a claim as to identified property or contest the
19.7administrator's denial of a claim.
19.8 (b) An agreement by an owner, the primary purpose of which is to locate, deliver,
19.9recover, or assist in the recovery of property, is enforceable only if the agreement is in
19.10writing, clearly sets forth the nature of the property and the services to be rendered, is
19.11signed by the apparent owner, and states the value of the property before and after the fee
19.12or other compensation has been deducted.
19.13 (c) If an agreement covered by this section applies to mineral proceeds and the
19.14agreement contains a provision to pay compensation that includes a portion of the
19.15underlying minerals or any mineral proceeds not then presumed abandoned, the provision
19.16is void and unenforceable.
19.17 (d) An agreement covered by this section which provides for compensation that
19.18is unconscionable is unenforceable except by the owner. To be enforceable under this
19.19section, the agreement must be in writing and signed by the owners and must disclose
19.20the nature and value of the property and the name and address of the holder thereof as
19.21these facts have been reported.
19.22 (e) This section does not preclude an owner from asserting that an agreement
19.23covered by this section is invalid on grounds other than unconscionable compensation.
Sec. 26. [345.643] TRANSITIONAL PROVISIONS.
19.25 (a) An initial report filed under sections
345.647 for property that was
19.26not required to be reported before the effective date of sections
19.27which is subject to sections
345.647 must include all items of property that
19.28would have been presumed abandoned during the ten-year period next preceding the
19.29effective date of sections
345.647 as if sections
345.647 had been in
19.30effect during that period.
19.31 (b) Sections
345.647 do not relieve a holder of a duty that arose before
19.32the effective date of sections
345.647 to report, pay, or deliver property. Except
19.33as otherwise provided in section
345.631, paragraph (b), a holder who did not comply
19.34with the law in effect before the effective date of sections
345.647 is subject
20.1to the applicable provisions for enforcement and penalties which then existed, which are
20.2continued in effect for the purpose of this section.
Sec. 27. [345.645] RULES.
20.4 The administrator may adopt rules under chapter 14 necessary to carry out sections
Sec. 28. [345.647] SHORT TITLE.
345.647 may be cited as the Uniform Unclaimed Property Act.
Sec. 29. REPEALER.
20.9Minnesota Statutes 2012, sections 345.31; 345.32; 345.321; 345.33; 345.34; 345.35;
20.10345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 345.41; 345.42, subdivisions 1 and 4;
20.11345.43, subdivisions 2a and 3; 345.44; 345.45; 345.46; 345.47; 345.48, subdivision 1;
20.12345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 345.54; 345.55;
20.13345.56; 345.57; 345.58; 345.59; and 345.60, are repealed.
Sec. 30. EFFECTIVE DATE.
20.15 This act is effective January 1, 2014.
Section 1. Minnesota Statutes 2012, section 16A.45, subdivision 1, is amended to read:
Subdivision 1. Cancel; credit.
Once each fiscal year the commissioner shall cancel
upon the books all outstanding unpaid commissioner's warrants that have been issued and
delivered on or before June 30 of the preceding year and credit state amounts subject
and federal amounts to the appropriate account in the federal fund.
These warrants are presumed abandoned under section
and are subject to
Sec. 2. Minnesota Statutes 2012, section 16A.45, subdivision 4, is amended to read:
Subd. 4. Locating unpaid warrants.
A person may not seek or receive from
another person, or contract with a person for, a fee or compensation for locating
outstanding unpaid commissioner's warrants before the warrants have been reported to the
commissioner of commerce under section
Sec. 3. Minnesota Statutes 2012, section 58.06, subdivision 2, is amended to read:
Subd. 2. Application contents.
(a) The application must contain the name and
complete business address or addresses of the license applicant. The license applicant
must be a partnership, limited liability partnership, association, limited liability company,
corporation, or other form of business organization, and the application must contain the
names and complete business addresses of each partner, member, director, and principal
officer. The application must also include a description of the activities of the license
applicant, in the detail and for the periods the commissioner may require.
(b) A residential mortgage originator applicant must submit a surety bond that meets
the requirements of section
58.08, subdivision 1a
(c) The application must also include all of the following:
(1) an affirmation under oath that the applicant:
(i) is in compliance with the requirements of section
(ii) will advise the commissioner of any material changes to the information
submitted in the most recent application within ten days of the change;
(iii) will advise the commissioner in writing immediately of any bankruptcy petitions
filed against or by the applicant or licensee;
(iv) will maintain at all times a surety bond in the amount of at least $100,000;
(v) complies with federal and state tax laws; and
(vi) complies with sections
(2) information as to the mortgage lending, servicing, or brokering experience of the
applicant and persons in control of the applicant;
(3) information as to criminal convictions, excluding traffic violations, of persons in
control of the license applicant;
(4) whether a court of competent jurisdiction has found that the applicant or persons
in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit in performing an act for which a license is required under
(5) whether the applicant or persons in control of the applicant have been the subject
of: an order of suspension or revocation, cease and desist order, or injunctive order, or
order barring involvement in an industry or profession issued by this or another state or
federal regulatory agency or by the Secretary of Housing and Urban Development within
the ten-year period immediately preceding submission of the application; and
(6) other information required by the commissioner.
Sec. 4. Minnesota Statutes 2012, section 58.13, subdivision 1, is amended to read:
Subdivision 1. Generally.
(a) No person acting as a residential mortgage originator
or servicer, including a person required to be licensed under this chapter, and no person
exempt from the licensing requirements of this chapter under section
, except as
otherwise provided in paragraph (b), shall:
(1) fail to maintain a trust account to hold trust funds received in connection with a
residential mortgage loan;
(2) fail to deposit all trust funds into a trust account within three business days of
receipt; commingle trust funds with funds belonging to the licensee or exempt person; or
use trust account funds for any purpose other than that for which they are received;
(3) unreasonably delay the processing of a residential mortgage loan application,
or the closing of a residential mortgage loan. For purposes of this clause, evidence of
unreasonable delay includes but is not limited to those factors identified in section
, clause (d);
(4) fail to disburse funds according to its contractual or statutory obligations;
(5) fail to perform in conformance with its written agreements with borrowers,
investors, other licensees, or exempt persons;
(6) charge a fee for a product or service where the product or service is not actually
provided, or misrepresent the amount charged by or paid to a third party for a product
(7) fail to comply with sections
(8) violate any provision of any other applicable state or federal law regulating
residential mortgage loans including, without limitation, sections
(9) make or cause to be made, directly or indirectly, any false, deceptive, or
misleading statement or representation in connection with a residential loan transaction
including, without limitation, a false, deceptive, or misleading statement or representation
regarding the borrower's ability to qualify for any mortgage product;
(10) conduct residential mortgage loan business under any name other than that
under which the license or certificate of exemption was issued;
(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
the purpose of influencing the independent judgment of the appraiser with respect to the
value of real estate that is to be covered by a residential mortgage or is being offered as
security according to an application for a residential mortgage loan;
(12) issue any document indicating conditional qualification or conditional approval
for a residential mortgage loan, unless the document also clearly indicates that final
qualification or approval is not guaranteed, and may be subject to additional review;
(13) make or assist in making any residential mortgage loan with the intent that the
loan will not be repaid and that the residential mortgage originator will obtain title to
the property through foreclosure;
(14) provide or offer to provide for a borrower, any brokering or lending services
under an arrangement with a person other than a licensee or exempt person, provided that
a person may rely upon a written representation by the residential mortgage originator that
it is in compliance with the licensing requirements of this chapter;
(15) claim to represent a licensee or exempt person, unless the person is an employee
of the licensee or exempt person or unless the person has entered into a written agency
agreement with the licensee or exempt person;
(16) fail to comply with the record keeping and notification requirements identified
or fail to abide by the affirmations made on the application for licensure;
(17) represent that the licensee or exempt person is acting as the borrower's agent
after providing the nonagency disclosure required by section
, unless the disclosure
is retracted and the licensee or exempt person complies with all of the requirements of
(18) make, provide, or arrange for a residential mortgage loan that is of a lower
investment grade if the borrower's credit score or, if the originator does not utilize credit
scoring or if a credit score is unavailable, then comparable underwriting data, indicates
that the borrower may qualify for a residential mortgage loan, available from or through
the originator, that is of a higher investment grade, unless the borrower is informed that the
borrower may qualify for a higher investment grade loan with a lower interest rate and/or
lower discount points, and consents in writing to receipt of the lower investment grade loan;
For purposes of this section, "investment grade" refers to a system of categorizing
residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or
"subprime"; (ii) commonly designated by an alphabetical character with "A" being the
highest investment grade; and (iii) are distinguished by interest rate or discount points
or both charged to the borrower, which vary according to the degree of perceived risk
of default based on factors such as the borrower's credit, including credit score and
credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
bankruptcy or foreclosure;
(19) make, publish, disseminate, circulate, place before the public, or cause to be
made, directly or indirectly, any advertisement or marketing materials of any type, or any
statement or representation relating to the business of residential mortgage loans that is
false, deceptive, or misleading;
(20) advertise loan types or terms that are not available from or through the licensee
or exempt person on the date advertised, or on the date specified in the advertisement.
For purposes of this clause, advertisement includes, but is not limited to, a list of sample
mortgage terms, including interest rates, discount points, and closing costs provided by
licensees or exempt persons to a print or electronic medium that presents the information
to the public;
(21) use or employ phrases, pictures, return addresses, geographic designations, or
other means that create the impression, directly or indirectly, that a licensee or other
person is a governmental agency, or is associated with, sponsored by, or in any manner
connected to, related to, or endorsed by a governmental agency, if that is not the case;
(22) violate section
, relating to table funding;
(23) make, provide, or arrange for a residential mortgage loan all or a portion
of the proceeds of which are used to fully or partially pay off a "special mortgage"
unless the borrower has obtained a written certification from an authorized independent
loan counselor that the borrower has received counseling on the advisability of the
loan transaction. For purposes of this section, "special mortgage" means a residential
mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or
local government, or nonprofit organization, that bears one or more of the following
nonstandard payment terms which substantially benefit the borrower: (i) payments vary
with income; (ii) payments of principal or interest are not required or can be deferred under
specified conditions; (iii) principal or interest is forgivable under specified conditions;
or (iv) where no interest or an annual interest rate of two percent or less is charged in
connection with the loan. For purposes of this section, "authorized independent loan
counselor" means a nonprofit, third-party individual or organization providing homebuyer
education programs, foreclosure prevention services, mortgage loan counseling, or credit
counseling certified by the United States Department of Housing and Urban Development,
the Minnesota Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention
Association, AARP, or NeighborWorks America;
(24) make, provide, or arrange for a residential mortgage loan without verifying
the borrower's reasonable ability to pay the scheduled payments of the following, as
applicable: principal; interest; real estate taxes; homeowner's insurance, assessments,
and mortgage insurance premiums. For loans in which the interest rate may vary, the
reasonable ability to pay shall be determined based on a fully indexed rate and a repayment
schedule which achieves full amortization over the life of the loan. For all residential
mortgage loans, the borrower's income and financial resources must be verified by tax
returns, payroll receipts, bank records, or other similarly reliable documents.
Nothing in this section shall be construed to limit a mortgage originator's or exempt
person's ability to rely on criteria other than the borrower's income and financial resources
to establish the borrower's reasonable ability to repay the residential mortgage loan,
including criteria established by the United States Department of Veterans Affairs or the
United States Department of Housing and Urban Development for interest rate reduction
refinancing loans or streamline loans, or criteria authorized or promulgated by the
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation;
however, such other criteria must be verified through reasonably reliable methods and
documentation. The mortgage originator's analysis of the borrower's reasonable ability
to repay may include, but is not limited to, consideration of the following items, if
verified: (1) the borrower's current and expected income; (2) current and expected cash
flow; (3) net worth and other financial resources other than the consumer's equity in the
dwelling that secures the loan; (4) current financial obligations; (5) property taxes and
insurance; (6) assessments on the property; (7) employment status; (8) credit history; (9)
debt-to-income ratio; (10) credit scores; (11) tax returns; (12) pension statements; and
(13) employment payment records, provided that no mortgage originator shall disregard
facts and circumstances that indicate that the financial or other information submitted by
the consumer is inaccurate or incomplete. A statement by the borrower to the residential
mortgage originator or exempt person of the borrower's income and resources or sole
reliance on any single item listed above is not sufficient to establish the existence of the
income or resources when verifying the reasonable ability to pay.
(25) engage in "churning." As used in this section, "churning" means knowingly or
intentionally making, providing, or arranging for a residential mortgage loan when the
new residential mortgage loan does not provide a reasonable, tangible net benefit to the
borrower considering all of the circumstances including the terms of both the new and
refinanced loans, the cost of the new loan, and the borrower's circumstances;
(26) the first time a residential mortgage originator orally informs a borrower of the
anticipated or actual periodic payment amount for a first-lien residential mortgage loan
which does not include an amount for payment of property taxes and hazard insurance,
the residential mortgage originator must inform the borrower that an additional amount
will be due for taxes and insurance and, if known, disclose to the borrower the amount of
the anticipated or actual periodic payments for property taxes and hazard insurance. This
same oral disclosure must be made each time the residential mortgage originator orally
informs the borrower of a different anticipated or actual periodic payment amount change
from the amount previously disclosed. A residential mortgage originator need not make
this disclosure concerning a refinancing loan if the residential mortgage originator knows
that the borrower's existing loan that is anticipated to be refinanced does not have an
escrow account; or
(27) make, provide, or arrange for a residential mortgage loan, other than a reverse
mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
with any repayment option offered pursuant to the terms of the loan will result in negative
amortization during any six-month period.
(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally
chartered bank, savings bank, or credit union, an institution chartered by Congress under
the Farm Credit Act, or to a person making, providing, or arranging a residential mortgage
loan originated or purchased by a state agency or a tribal or local unit of government. This
paragraph supersedes any inconsistent provision of this chapter.
Sec. 5. Minnesota Statutes 2012, section 80C.03, is amended to read:
The registration requirement imposed by section
shall not apply to the
following provided that the method of offer or sale is not used for the purpose of evading
(a) the offer or sale of a franchise owned by that franchisee, or the offer or sale of the
entire area franchise owned by the subfranchisor making the offer or sale if the sale is not
effected by or through a franchisor; provided, however, that no person shall make more
than one sale during any period of 12 consecutive months of a franchise or area franchise
granted by a single franchisor. A sale is not effected by or through a franchisor merely
because a franchisor has a right to approve or disapprove a different franchisee;
(b) any transaction by an executor, administrator, sheriff, receiver, trustee in
bankruptcy, guardian or conservator;
(c) any offer or sale to a
financial organization or
within the meanings given these terms by section
(d) securities currently registered in this state pursuant to chapter 80A;
(e) the offer or sale of a franchise, not including an area franchise, provided that:
(1) the franchisor shall make no more than one sale of a franchise pursuant to this
exemption during any period of 12 consecutive months;
(2) the franchisor has not advertised the franchise for sale to the general public in
newspapers or other publications of general circulation or otherwise by radio, television,
electronic means or similar communications media, or through a program of general
solicitation by means of mail or telephone;
(3) the franchisor deposits all franchisee fees within two days of receipt in an escrow
account until all obligations of the franchisor to the franchisee which are, pursuant to the
terms of the franchise agreement, to be performed prior to the opening of the franchise, have
been performed. The franchisor shall provide the franchisee with a purchase receipt for the
franchise fees paid, a copy of the escrow agreement and the name, address and telephone
number of the escrow agent. The escrow agent shall be a bank located in Minnesota. Upon
a showing of good cause the commissioner may waive the escrow of franchise fees; and
(4) the franchisor has provided to the commissioner, no later than ten business
days prior to the sale, a written notice of its intention to offer or sell a franchise pursuant
to this exemption;
(f) the offer or sale of a fractional franchise;
(g) any transaction which the commissioner by rule or order exempts as not being
within the purposes of this chapter and the registration of which the commissioner finds is
not necessary or appropriate in the public interest or for the protection of investors; and
(h) the offer or sale of a franchise to a resident of a foreign state, territory, or country
who is neither domiciled in this state nor actually present in this state, if the franchise
business is not to be operated wholly or partly in this state, and if the sale of this franchise
is not in violation of any law of the foreign state, territory, or county concerned.
Sec. 6. Minnesota Statutes 2012, section 136G.09, subdivision 10, is amended to read:
Subd. 10. Dormant accounts.
(a) The plan administrator shall attempt to locate
the account owner or the beneficiary, or both, to determine the disposition of a dormant
account. A fee of five percent of the total account balance of the dormant account, not to
exceed $100, plus allowable costs, may be charged for this service. Costs will not exceed
$100 or five percent of the total account balance in the dormant account, whichever is less.
(b) If the account owner, or the account owner's legal heirs, are not found after three
attempts by the plan administrator, the remaining funds in the dormant account must
be turned over to the office. The funds are treated as unclaimed property for purposes
, and the office shall turn all remaining
dormant account funds over to the commissioner of commerce. If the dormant account
has a matching grant account, all amounts in the beneficiary's matching grant account, if
any, must be returned to the office.
Sec. 7. Minnesota Statutes 2012, section 198.231, is amended to read:
28.2198.231 PERSONAL PROPERTY OF DISCHARGED RESIDENTS.
Personal property of discharged residents of the veterans homes that remains
unclaimed for one year after discharge may be inventoried, appraised, and sold. The
proceeds from the sale must be deposited into the state treasury. Proceeds from the sale of
personal property and any funds held on behalf of the resident in the member's depository
accounts must be credited to a separate state account and disposed of in accordance with
Sec. 8. Minnesota Statutes 2012, section 270B.14, subdivision 17, is amended to read:
Subd. 17. Disclosure to Department of Commerce.
The commissioner may
disclose to the commissioner of commerce information required to administer the Uniform
Unclaimed Property Act in sections
including the Social Security numbers of the taxpayers whose refunds are on the report of
abandoned property submitted by the commissioner to the commissioner of commerce
. Except for data published under section
the information received that is private or nonpublic data retains its classification, and can
be used by the commissioner of commerce only for the purpose of verifying that the
persons claiming the refunds are the owners.
Sec. 9. Minnesota Statutes 2012, section 276.19, subdivision 4, is amended to read:
Subd. 4. Applicability.
do not apply to
unclaimed property tax refunds, overpayments, and warrants.
Sec. 10. Minnesota Statutes 2012, section 308A.711, subdivision 1, is amended to read:
Subdivision 1. Alternate procedure to disburse property.
provisions of section
, a cooperative may, in lieu of paying or delivering to
the commissioner of commerce the unclaimed property specified in its report of unclaimed
property, distribute the unclaimed property to a corporation or organization that is exempt
from taxation under section
290.05, subdivision 1
, paragraph (b), or 2.
Sec. 11. Minnesota Statutes 2012, section 354B.25, subdivision 6, is amended to read:
Subd. 6. Disposition of abandoned public pension amounts.
(a) Any unclaimed
plan account amounts are presumed to be abandoned, but are not subject to the provisions
. If the account remains unclaimed after
five years following the date that the plan administrator first attempts to locate the former
member, surviving spouse, or other beneficiary, the unclaimed plan account amount
cancels and must be credited to the reserve account specified in paragraph (b).
(b) The board must establish a separate account to receive unclaimed plan account
amounts. A portion of this reserve account and any investment earnings attributable to
this reserve account are to be used to offset the reasonable and necessary expenses of
the individual retirement account plan, including costs incurred in efforts to locate lost
participants, surviving spouses, or other beneficiaries.
(c) If the unclaimed plan account amount exceeded $25 and the inactive member,
surviving spouse, or beneficiary, whichever is applicable, establishes a valid claim to the
forfeited account, the forfeited account is to be reestablished in an amount equal to the
amount originally forfeited. The board must ensure that the reserve account has sufficient
assets to cover any transfers needed to reestablish accounts.
Sec. 12. Minnesota Statutes 2012, section 356.65, subdivision 2, is amended to read:
Subd. 2. Disposition of abandoned amounts.
Any unclaimed public pension
fund amounts existing in any public pension fund are presumed to be abandoned, but are
not subject to the provisions of sections
. Unless the
benefit plan of the public pension fund specifically provides for a different disposition of
unclaimed or abandoned funds or amounts, any unclaimed public pension fund amounts
cancel and must be credited to the public pension fund. If the unclaimed public pension
fund amount exceeds $25 and the inactive or former member again becomes a member of
the applicable public pension plan or applies for a retirement annuity under section
, or 356.30, whichever applies, the canceled amount
must be restored to the credit of the person.
Sec. 13. Minnesota Statutes 2012, section 624.68, is amended to read:
29.25624.68 RECEIVING DEPOSIT IN INSOLVENT BANKS OR FINANCIAL
Every officer, director, agent, or employee of any
banking organization or
organization as defined in section
and every person, company, and
corporation engaged in whole or in part, in business as a
banking organization or
organization, who shall accept or receive on deposit from any person, any money, bank
bills, notes, currency, checks, bills, drafts, or paper circulating as money, knowing
or, in the case of officers or directors, having good reason to know that such
29.33 organization or
financial organization is insolvent, and every person knowing of such
insolvent condition who shall be accessory to, or permit, or connive at the accepting or
receiving on deposit therein any such deposits, shall be guilty of a felony and punished by
imprisonment in the Minnesota Correctional Facility-Stillwater for not less than one year
nor more than five years or by a fine of not less than $1,000 nor more than $20,000.