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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                         CHAPTER 34--S.F.No. 269
           An act relating to trusts; clarifying the time limits 
          and applicable interest rates for certain employee 
          trusts; amending Minnesota Statutes 1982, sections 
          334.01; and 501.11. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 334.01, is 
amended to read: 
    334.01 [RATE OF INTEREST.] 
    Subdivision 1.  [GENERAL.] The interest for any legal 
indebtedness shall be at the rate of $6 upon $100 for a year, 
unless a different rate is contracted for in writing; and.  No 
person shall directly or indirectly take or receive in money, 
goods, or things in action, or in any other way, any greater 
sum, or any greater value, for the loan or forbearance of money, 
goods, or things in action, than $8 on $100 for one year; and,.  
In the computation of interest upon any bond, note, or other 
instrument or agreement, interest shall not be compounded, but 
any contract to pay interest, not usurious, upon interest 
overdue, shall not be construed to be usury.  Contracts shall 
bear the same rate of interest after they become due as before, 
and any provision in any contract, note, or instrument providing 
for an increase of the rate of interest after maturity, or any 
increase therein after making and delivery, shall work a 
forfeiture of the entire interest; but this provision shall not 
apply to notes or contracts which bear no interest before 
maturity nor shall it apply to any agreement which extends the 
maturity date of any contract, note, or instrument, and provides 
for an increased rate of interest after the original maturity 
date on the indebtedness then due, provided that.  Any agreement 
which extends maturity date of any contract, note or instrument 
shall not provide for an increased rate of interest in excess of 
$8 on $100 for one year. 
    Subd. 2.  [CONTRACTS OF $100,000 OR MORE.] A contract for 
the loan or forbearance of money, goods, or things in action, in 
the amount of $100,000 or more, and any extensions, including 
extensions of installments and related changes in the terms 
thereof, shall be exempt from the provisions of this chapter and 
the interest for the indebtedness shall be at the rate of $6 
upon $100 for a year, unless a different rate is contracted for 
in writing. 
    Subd. 3.  [CONTRACTS UNDER EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974.] A contract entered into on or after 
December 31, 1974, for the loan or forbearance of money, goods, 
or things in action and any extensions, including extensions of 
installments and related changes in its terms between a 
participant, former participant, or beneficiary, and a plan 
which is subject to the provisions of the Employee Retirement 
Income Security Act of 1974, United States Code, title 29, 
chapter 18, as amended through December 31, 1982, is exempt from 
the provisions of this chapter.  
    Sec. 2.  Minnesota Statutes 1982, section 501.11, is 
amended to read: 
    501.11 [EXPRESS TRUSTS, PURPOSES.] 
    Express trusts may be created for any of the following 
purposes: 
    (1) To sell lands for the benefit of creditors; 
    (2) To sell, mortgage, or lease lands for the benefit of 
legatees, or for the purpose of satisfying any charge thereon; 
    (3) To receive the rents and profits of lands, and apply 
them to the use of any person, during the life of such the 
person, or for any shorter term, subject to the rules prescribed 
in chapter 500; 
    (4) To receive the rents and profits of lands, and to 
accumulate the same them, for either of the purposes, and within 
the limits prescribed in chapter 500; 
    (5) To receive and take charge of any money, stocks, bonds, 
or valuable chattels of any kind and to invest and loan the same 
them for the benefit of the beneficiaries of such the express 
trust; and the district and county courts of the state shall, 
upon petition and hearing, have power to appoint a trustee for 
the purpose herein set forth, requiring such the trustee to give 
such a bond for the faithful execution of such the express trust 
as to the court may seem deems right and proper; and express 
trusts created under the provisions of this paragraph shall be 
administered under the direction of the court; 
    (6) For the beneficial interests of any person, whether 
such the trust embraces real or personal property or both, when 
the trust is fully expressed and clearly defined on the face of 
the instrument creating it, provided that the trust shall not 
continue for a period longer than the life or lives of specified 
persons in being at the time of its creation, and for 21 years 
after the death of the survivor of them, and that the free 
alienation of the legal estate by the trustee is not suspended 
for a period exceeding the limit prescribed in chapter 500; 
provided, however, that the aforesaid limitation on the period 
of continuance of such trusts shall not apply to a trust forming 
a part of a disability, medical, or other employee welfare plan 
or a part of a stock bonus, pension, or profit sharing plan of 
an employer or an employee organization for the exclusive 
benefit of some or all of his employees or members of an 
employee organization, nor to a trust forming a part of a 
retirement plan created by and for the benefit of self-employed 
persons for the purpose of receiving their contributions 
thereunder and investing, accumulating, and distributing to such 
those persons or their beneficiaries the corpus, profits, and 
earnings of the trust in accordance with the plan. 
    (7) Any city may receive, by grant, gift, devise, or 
bequest, and take charge of, invest, and administer, free from 
taxation, in accordance with the terms of the trust, real or 
personal property, or both, for the benefit of any public 
library, or any public cemetery, or any public park, located in, 
or within ten miles of, such the city, or for the purpose of 
establishing or maintaining a kindergarten or other school or 
institution of learning therein. 
    Provided that any such the city shall, with the approval of 
the district court of the county wherein such in which the city 
is located, sell, lease, or otherwise dispose of, freed of the 
provisions of such the trust, any such tract, lot, parcel, 
reserve, block, or subdivision of the platted part of any such 
the city, embraced within the area described in such the grant, 
gift, devise, or bequest when any such the tract, lot, parcel, 
reserve, block, or subdivision of the platted part of any such 
the city shall be is found to be unfit for the uses and purposes 
expressed in any such the grant, gift, devise or bequest. 
    The income realized from any such the sale, lease, or 
disposal of such the trust property shall be credited to the 
funds of said the trust of the city wherein said in which the 
property is located. 
    Each city in this state, in addition to the foregoing, may 
receive by grant, gift, devise, or bequest, and take charge of, 
convert, invest, and administer, free from taxation, in 
accordance with the terms of the trust, real or personal 
property, or both, of any kind or nature and wherever located, 
for any public or charitable purpose, or to provide, enlarge, 
improve, lease, and maintain for the use and benefit of the 
inhabitants of such the city, animal, bird, fish, game, and 
hunting preserves, public parks, public grounds, public 
waterways, public bath houses and grounds used in connection 
therewith, and public playgrounds within or without the limits 
of such the city, whether within or without this state, or for 
the support, medical treatment, and nursing of the worthy poor 
residing in such the city. 
    Sec. 3.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment and 
applies to all contracts and trusts created before, on, or after 
that day. 
    Approved April 13, 1983