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1984 Minnesota Session Laws

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                         Laws of Minnesota 1984 

                        CHAPTER 552-S.F.No. 1750 
           An act relating to commerce; providing for the 
          classification of crime reports of the department of 
          commerce; providing a certain limitation on insurance 
          agent continuing education requirements; including 
          certain financial institutions within the definition 
          of broker-dealer of securities; broadening the 
          securities transaction exemption for corporate 
          transactions; providing for the receipt of 
          applications for renewal of real estate broker and 
          salesperson licenses; establishing certain fees 
          relating to the regulation of real estate brokers and 
          salespersons; providing for real estate salesperson 
          licensing requirements after examination; clarifying a 
          certain definition relating to recovery from the real 
          estate education, research, and recovery fund; 
          limiting recovery to cases involving judgments against 
          licensed individuals; providing for the depositing of 
          funds under the unclaimed property statutes; 
          regulating sales of unclaimed property; appropriating 
          money; amending Minnesota Statutes 1982, sections 
          13.81, subdivision 1; 13.82, subdivision 1; 80A.14, 
          subdivision 4; 80A.15, subdivision 2; 80A.30, 
          subdivision 2; 82.17, subdivision 3; 82.20, 
          subdivisions 8 and 9; 82.21, subdivision 1; 82.22, 
          subdivisions 2 and 5; 345.32; 345.47, subdivision 1; 
          345.48; 345.49; Minnesota Statutes 1983 Supplement, 
          sections 60A.1701, subdivision 8; 82.22, subdivisions 
          6 and 13; and 82.34, subdivision 7; proposing new law 
          coded in Minnesota Statutes, chapter 345. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 13.81, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CRIME REPORTS.] When collected, created, 
or maintained by law enforcement agencies including municipal 
police departments, county sheriff departments, fire 
departments, the bureau of criminal apprehension, the Minnesota 
state patrol, department of commerce, or the peace officers 
standards and training board: 
    (a) Data contained on incident complaint reports, variously 
called logs or dockets, comprising a chronological record of 
events, shall be public; provided that data on individuals which 
could reasonably be used to determine the identity of an 
undercover agent, informant, or victim of criminal sexual 
conduct or intrafamilial sexual abuse shall be private data on 
individuals; provided further that any other data classified by 
law as private or confidential contained in incident complaint 
reports shall remain private or confidential data. 
    (b) Data in arrest warrant indices are classified as 
confidential pursuant to section 13.02, subdivision 3, until the 
defendant has been taken into custody, served with a warrant, or 
appears before the court except when the law enforcement agency 
determines that the public purpose is served by making the 
information public.  
    (c) Data which uniquely describes stolen, lost, confiscated 
, or recovered property or property described in pawn shop 
transaction records are classified as either private or 
nonpublic depending on the content of the specific data.  
    (d) To the extent that the release of program data would 
reveal the identity of an informant or adversely affect the 
integrity of the fund, financial records of a program which pays 
rewards to informants shall be protected nonpublic data in the 
case of data not on individuals or confidential data in the case 
of data on individuals.  
    Sec. 2.  Minnesota Statutes 1982, section 13.82, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPLICATION.] This section shall apply to 
agencies which carry on a law enforcement function, including 
but not limited to municipal police departments, county sheriff 
departments, fire departments, the bureau of criminal 
apprehension, the Minnesota state patrol, and the securities and 
real estate division of the department of commerce.  
     Sec. 3.  Minnesota Statutes 1983 Supplement, section 
60A.1701, subdivision 8, is amended to read:  
    Subd. 8.  [MINIMUM EDUCATION REQUIREMENT.] Each person 
subject to this section shall complete annually a minimum of 20 
credit hours of courses accredited by the commissioner.  No 
person shall be granted more than ten credit hours per year 
toward the annual requirement as a result of attending 
accredited courses developed or offered by an insurer employing 
that person.  Any person teaching or lecturing at an accredited 
course qualifies for 1-1/2 times the number of credit hours that 
would be granted to a person completing the accredited course.  
Credit hours over 20 earned in any one year may be carried 
forward for the following two years.  The commissioner may 
recognize accredited courses completed in 1983, 1984, or 1985 
for the minimum education requirement for 1985.  
    Sec. 4.  Minnesota Statutes 1982, section 80A.14, 
subdivision 4, is amended to read: 
    Subd. 4.  [BROKER-DEALER.] "Broker-dealer" means any person 
engaged in the business of effecting transactions in securities 
for the account of others or for his own account. 
"Broker-dealer" does not include: 
    (1) an agent; 
    (2) an issuer; 
    (3) a bank, savings institution or trust company,; or 
    (4) a bank, savings institution, savings and loan 
association 
    (i) acting for the account of others, provided that such 
activities are conducted in compliance with such rules and 
regulations as may be adopted by the commissioner;  
    (ii) acting for its own account; or 
    (iii) acting in a fiduciary capacity pursuant to the powers 
and privileges described by sections 48.36 to 48.49 or United 
States Code, title 12, section 92(a);  
    (4) (5) a person who has no place of business in this state 
if he effects transactions in this state exclusively with or 
through (i) the issuers of the securities involved in the 
transactions, (ii) other broker-dealers, or (iii) banks, savings 
institutions, trust companies, insurance companies, investment 
companies as defined in the Investment Company Act of 1940, 
pension or profit sharing trusts, or other financial 
institutions or institutional buyers, or to broker-dealers, 
whether the purchaser is acting for itself or in some fiduciary 
capacity; or 
    (5) (6) other persons not within the intent of this 
subsection whom the commissioner by rule or order designates. 
    Sec. 5.  Minnesota Statutes 1982, section 80A.15, 
subdivision 2, is amended to read:  
    Subd. 2.  The following transactions are exempted from 
sections 80A.08 and 80A.16: 
    (a) Any isolated sales, whether or not effected through a 
broker-dealer, provided that no person shall make more than five 
sales of securities of the same issuer pursuant to this 
exemption during any period of 12 consecutive months; provided 
further, that in the case of sales by an issuer, except sales of 
securities registered under the Securities Act of 1933 or 
exempted by section 3(b) of that act, (1) the seller reasonably 
believes that all buyers are purchasing for investment, and (2) 
the securities are not advertised for sale to the general public 
in newspapers or other publications of general circulation or 
otherwise, or by radio, television, or direct mailing. 
    (b) Any nonissuer distribution of an outstanding security 
if (1) either Moody's, Fitch's, or Standard & Poor's Securities 
Manuals, or other recognized manuals approved by the 
commissioner contains the names of the issuer's officers and 
directors, a balance sheet of the issuer as of a date not more 
than 18 months prior to the date of the sale, and a profit and 
loss statement for the fiscal year preceding the date of the 
balance sheet, and (2) the issuer or its predecessor has been in 
active, continuous business operation for the five-year period 
next preceding the date of sale, and (3) if the security has a 
fixed maturity or fixed interest or dividend provision, the 
issuer has not, within the three preceding fiscal years, 
defaulted in payment of principal, interest, or dividends on the 
securities. 
    (c) The execution of any orders by a licensed broker-dealer 
for the purchase or sale of any security, pursuant to an 
unsolicited offer to purchase or sell; provided that the 
broker-dealer acts as agent for the purchaser or seller, and has 
no direct material interest in the sale or distribution of the 
security, receives no commission, profit, or other compensation 
from any source other than the purchaser and seller and delivers 
to the purchaser and seller written confirmation of the 
transaction which clearly itemizes his commission, or other 
compensation. 
    (d) Any nonissuer sale of notes or bonds secured by a 
mortgage lien if the entire mortgage, together with all notes or 
bonds secured thereby, is sold to a single purchaser at a single 
sale. 
    (e) Any judicial sale, exchange, or issuance of securities 
made pursuant to an order of a court of competent jurisdiction. 
    (f) The sale, by a pledge holder, of a security pledged 
with him in good faith as collateral for a bona fide debt. 
    (g) Any offer or sale to a bank, savings institution, trust 
company, insurance company, investment company as defined in the 
Investment Company Act of 1940, pension or profit sharing trust, 
or other financial institution or institutional buyer, or to a 
broker-dealer, whether the purchaser is acting for itself or in 
some fiduciary capacity. 
    (h) Any sales by an issuer to the number of persons as, 
when aggregated with the number of persons to whom sales have 
been made pursuant to clauses clause (a) or (k), shall not 
exceed 25 persons in this state (other than those designated in 
clause (g)) during any period of 12 consecutive months, whether 
or not any of the purchasers is then present in this state, if 
(1) the issuer reasonably believes that all of the buyers in 
this state (other than those designated in clause (g)) are 
purchasing for investment, and (2) no commission or other 
remuneration is paid or given directly or indirectly for 
soliciting any prospective buyer in this state (other than those 
designated in clause (g)), except reasonable and customary 
commissions paid by the issuer to a broker-dealer licensed under 
this chapter, and (3) the issuer has, ten days prior to any sale 
pursuant to this paragraph, supplied the commissioner with a 
statement of issuer on forms prescribed by the commissioner, 
containing the following information:  (i) the name and address 
of the issuer, and the date and state of its organization; (ii) 
the number of units, price per unit, and a description of the 
securities to be sold; (iii) the amount of commissions to be 
paid and the persons to whom they will be paid; (iv) the names 
of all officers, directors and persons owning five percent or 
more of the equity of the issuer; (v) a brief description of the 
intended use of proceeds; (vi) a description of all sales of 
securities made by the issuer within the 12-month period next 
preceding the date of filing; and (vii) a copy of the investment 
letter, if any, intended to be used in connection with any 
sale.  The commissioner may by rule or order as to any security 
or transaction or any type of security or transaction, withdraw 
or further condition this exemption, or increase the number of 
offers and sales permitted, or waive the conditions in clauses 
clause (1), (2), or (3) with or without the substitution of a 
limitation or remuneration. 
     (i) Any offer (but not a sale) of a security for which a 
registration statement has been filed under sections 80A.01 to 
80A.31, if no stop order or refusal order is in effect and no 
public proceeding or examination looking toward an order is 
pending; and any offer of a security if the sale of the security 
is or would be exempt under this section.  The commissioner may 
by rule exempt offers (but not sales) of securities for which a 
registration statement has been filed as he deems appropriate, 
consistent with the purposes of sections 80A.01 to 80A.31. 
     (j) The offer and sale by a cooperative association 
organized under chapter 308, of its securities when the 
securities are offered and sold only to its members, or when the 
purchase of the securities is necessary or incidental to 
establishing membership in such association, or when such 
securities are issued as patronage dividends. 
     (k) Any offer or sale of securities, including offers and 
sales pursuant to preorganization subscriptions for the 
securities of an issuer to be formed, by a corporation having 
its principal office in this state if, after giving effect 
thereto, the aggregate number of holders of all of the issuer's 
securities, all of whom shall have purchased for investment, 
does not exceed ten, exclusive of persons designated in clause 
(g), provided that no commission or other remuneration has been 
paid and no advertising has been published or circulated in 
connection with the sale, and all sales are consummated within 
30 days after commencement of business by the issuer.  The 
commissioner may by rule or order increase the number of persons 
to whom sales may be made under this exemption. 
    (l) The issuance and delivery of any securities of one 
corporation to another corporation or its security holders in 
exchange for the acquisition by the issuer or a subsidiary of 
the issuer of all or substantially all of the assets of the 
other corporation, or in connection with a consolidation or 
merger of the corporation, exchange of shares, or transfer of 
assets whereby the approval of stockholders of the other 
corporation is required to be obtained, provided, that the 
commissioner of securities and real estate has been furnished 
with a general description of the transaction and with other 
information as he by rule prescribes not less than ten days 
prior to the issuance and delivery. 
    (m) Any transaction between the issuer or other person on 
whose behalf the offering is made and an underwriter or among 
underwriters. 
    (n) The distribution by a corporation of its or other 
securities to its own security holders as a stock dividend or as 
a dividend from earnings or surplus or as a liquidating 
distribution; or upon conversion of an outstanding convertible 
security; or pursuant to a stock split or reverse stock split. 
    (o) Any offer or sale of securities by an affiliate of the 
issuer thereof if:  (1) a registration statement is in effect 
with respect to securities of the same class of the issuer and 
(2) the offer or sale has been exempted from registration by 
rule or order of the commissioner.  
    Sec. 6.  Minnesota Statutes 1982, section 80A.30, 
subdivision 2, is amended to read: 
    Subd. 2.  This section shall not apply to any isolated sale 
not made or occurring in the course of repeated or successive 
sale; nor to any judicial sale or any transaction lawfully 
ordered, authorized, or approved by a court of competent 
jurisdiction in this state; nor to any sale to a bank or 
financial institution under the supervision of any 
instrumentality or officer of the United States or of the 
commissioner of banks or of the commissioner of insurance 
commerce of this state, or a licensed broker-dealer; nor to any 
sale made in compliance with the provisions of section 80A.15, 
subdivision 2, clause (g) or (h).  In any complaint, information 
or indictment charging a sale in violation of this section, it 
shall not be necessary to specifically name or identify persons 
other than the complainant to whom like sales have been made.  
    Sec. 7.  Minnesota Statutes 1982, section 82.17, 
subdivision 3, is amended to read:  
    Subd. 3.  "Commissioner" means the commissioner of 
securities and real estate commerce or his designee.  
    Sec. 8.  Minnesota Statutes 1982, section 82.20, 
subdivision 8, is amended to read:  
    Subd. 8.  [RENEWALS.] (a) Persons whose applications have 
been properly and timely filed who have not received notice of 
denial of renewal are deemed to have been approved for renewal 
and may continue to transact business either as a real estate 
broker or salesperson whether or not the renewed license has 
been received on or before July 1.  Application for renewal of a 
license shall be deemed to have been timely filed if received by 
the commissioner on or before by, or mailed with proper postage 
and postmarked by, June 15 in each year.  Applications for 
renewal shall be deemed properly filed if made upon forms duly 
executed and sworn to, accompanied by fees prescribed by this 
chapter and contain any information which the commissioner may 
require.  An application mailed shall be deemed proper and 
timely received if addressed to the commissioner and postmarked 
prior to 12:01 A.M.  on June 14;  
    (b) Persons who have failed to make a timely application 
for renewal of a license and who have not received the renewal 
license as of July 1, shall be unlicensed until such time as the 
license has been issued by the commissioner and is received. 
    Sec. 9.  Minnesota Statutes 1982, section 82.20, 
subdivision 9, is amended to read: 
    Subd. 9.  [TERMINATIONS; TRANSFERS.] (a) Except as provided 
in paragraph (b), when a salesperson terminates his activity on 
behalf of a broker, the salesperson's license shall be 
ineffective.  Within ten days of the termination the broker 
shall notify the commissioner in writing, and shall return to 
the commissioner the license of the salesperson.  The 
salesperson may apply for transfer of the license to another 
broker at any time during the remainder of the license period, 
on forms provided by the commissioner.  If the application for 
transfer qualifies, the commissioner shall grant the 
application.  Upon receipt of a transfer application and payment 
of the transfer fee, the commissioner may issue a 45 day 
temporary license.  If an application for transfer is not made 
within the license period, the commissioner shall require that 
an application for a new license be filed. 
    (b) When a salesperson terminates his activity on behalf of 
a broker in order to begin association immediately with another 
broker, the commissioner shall permit the automatic transfer of 
the salesperson's license.  The transfer shall be effective 
either upon the mailing of the required fee and the executed 
documents by certified mail or upon personal delivery of the fee 
and documents to the commissioner's office.  The commissioner 
may adopt rules and prescribe forms as necessary to implement 
this paragraph. 
    (c) When a broker terminates his activity in order to begin 
association with another broker, the commissioner shall permit 
the automatic transfer of the broker's license to a 
salesperson's license.  If there are licensed salespersons 
working for the broker he shall certify that a broker will 
remain in the company he is leaving prior to issuance of the 
transfer.  The transfer shall be effective either upon the 
mailing of the required fee and the executed documents by 
certified mail or upon personal delivery of the fee and 
documents to the commissioner's office.  
    Sec. 10.  Minnesota Statutes 1982, section 82.21, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
to the commissioner: 
    (a) A fee of $50 for each initial individual broker's 
license, and a fee of $25 for each annual renewal thereof; 
    (b) A fee of $25 for each initial salesperson's license, 
and a fee of $10 for each annual renewal thereof; 
    (c) A fee of $50 for each initial corporate or partnership 
license, and a fee of $25 for each annual renewal thereof; 
    (d) A fee not to exceed $40 per year for payment to the 
education, research and recovery fund in accordance with section 
82.34; 
    (e) A fee of $10 for each transfer;  
    (f) A fee of $25 for a corporation or partnership name 
change;  
    (g) A fee of $5 for an agent name change;  
    (h) A fee of $10 for a license history;  
    (i) A fee of $15 for a NSF check;  
    (j) A fee of $50 for an initial course approval;  
    (k) A fee of $10 for notices of repeat course offerings;  
    (l) A fee of $50 for instructor or coordinator approval; 
and 
    (m) A fee of $5 for a duplicate license. 
    Sec. 11.  Minnesota Statutes 1982, section 82.22, 
subdivision 2, is amended to read:  
    Subd. 2.  [BROKER'S EXAMINATION.] (a) The examination for a 
real estate broker's license shall be more exacting than that 
for a real estate salesperson, and shall require a higher degree 
of knowledge of the fundamentals of real estate practice and law.
    (b) Every application for a broker's examination shall be 
accompanied by proof that the applicant has had a minimum of two 
years of actual experience within the previous five-year period 
prior to application as a licensed real estate salesperson in 
this or in another state having comparable requirements or is, 
in the opinion of the commissioner, otherwise or similarly 
qualified by reason of education or practical experience.  The 
applicant shall have completed educational requirements in 
accordance with section 82.22, subdivision 6.  An applicant for 
a limited broker's license pursuant to section 82.20, 
subdivision 13, shall not be required to have a minimum of two 
years of actual experience as a real estate person in order to 
obtain a limited broker's license to act as principal only. 
    Sec. 12.  Minnesota Statutes 1982, section 82.22, 
subdivision 5, is amended to read:  
    Subd. 5.  [PERIOD FOR APPLICATION.] An applicant who 
obtains an acceptable score on a salesperson's examination must 
file an application for and obtain the license within one year 
of the date of successful completion of the examination or a 
second examination must be taken to qualify for the license.  If 
a new examination is required, prelicense education must be 
completed in accordance with section 82.22, subdivision 6.  
    Sec. 13.  Minnesota Statutes 1983 Supplement, section 
82.22, subdivision 6, is amended to read:  
    Subd. 6.  [INSTRUCTION; NEW LICENSES.] (a) Every 
salesperson, licensed after July 1, 1973 and before July 1, 1976 
shall, within two years of the date his license was first 
granted be required to successfully complete a course of study 
in the real estate field consisting of not less than 60 hours of 
instruction, approved by the commissioner.  Upon appropriate 
showing of hardship by the licensee, or for persons licensed 
pursuant to section 82.20, subdivision 1, clause (b), the 
commissioner may waive or modify the requirements of this 
subdivision.  Every salesperson licensed after July 1, 1976 and 
before July 1, 1978 shall, within three years of the date his 
license was first issued, be required to successfully complete a 
course of study in the real estate field consisting of not less 
than 90 hours of instruction, approved by the commissioner; 
    (b) After July 1, 1978, and before January 1, 1984, every 
applicant for a salesperson's license shall be required to 
successfully complete a course of study in the real estate field 
consisting of 30 hours of instruction approved by the 
commissioner before taking the examination specified in 
subdivision 1.  Every salesperson licensed after July 1, 1978, 
and before January 1, 1984, shall, within one year of the date 
his license was first issued, be required to successfully 
complete a course of study in the real estate field consisting 
of 60 hours of instruction approved by the commissioner. 
    (c) After December 31, 1983, every applicant for a 
salesperson's license shall be required to successfully complete 
a course of study in the real estate field consisting of 30 
hours of instruction approved by the commissioner before taking 
the examination specified in subdivision 1.  After December 31, 
1983, every applicant for a salesperson's license shall be 
required to successfully complete an additional course of study 
in the real estate field consisting of 30 hours of instruction 
approved by the commissioner before filing an application for 
the license.  Every salesperson licensed after December 31, 
1983, shall, within one year of the date his license was first 
issued, be required to successfully complete a course of study 
in the real estate field consisting of 30 hours of instruction 
approved by the commissioner.  
    (d) The commissioner may approve courses of study in the 
real estate field offered in educational institutions of higher 
learning in this state or courses of study in the real estate 
field developed by and offered under the auspices of the 
national association of realtors, its affiliates, or private 
real estate schools licensed by the state department of 
education.  The commissioner may by rule prescribe the 
curriculum and qualification of those employed as instructors. 
    Sec. 14.  Minnesota Statutes 1983 Supplement, section 
82.22, subdivision 13, is amended to read: 
    Subd. 13.  [CONTINUING EDUCATION.] (a) After July 1, 1978, 
all real estate salespersons not subject to or who have 
completed the educational requirements contained in subdivision 
6 and all real estate brokers shall be required to successfully 
complete 45 hours of real estate education, either as a student 
or a lecturer, in courses of study approved by the commissioner, 
within three years after their annual renewal date. 
    (b) For the purposes of administration, the commissioner 
shall classify by lot, the real estate brokers and salespersons 
subject to (a) above, in three classifications of substantially 
equal size.  The first class shall complete 15 hours of approved 
real estate study between July 1, 1978 and June 30, 1979 
inclusive.  The second class shall complete 30 hours of approved 
real estate study between the dates of July 1, 1978 and June 30, 
1980 inclusive.  The third class shall complete 45 hours of 
approved real estate study between the dates of July 1, 1978 and 
June 30, 1981.  After the first period, each class shall 
complete the prescribed educational requirements during 
successive three year periods. 
    (c) The commissioner shall adopt rules defining the 
standards for course and instructor approval, and may adopt 
rules for the proper administration of this subdivision. 
    (d) Any program approved by Minnesota Continuing Legal 
Education shall be approved by the commissioner of securities 
and real estate commerce for continuing education for real 
estate brokers and salespeople if the program or any part 
thereof relates to real estate.  
    Sec. 15.  Minnesota Statutes 1983 Supplement, section 
82.34, subdivision 7, is amended to read: 
    Subd. 7.  When any aggrieved person obtains a final 
judgment in any court of competent jurisdiction against any 
person an individual licensed under this chapter, on grounds of 
fraudulent, deceptive or dishonest practices, or conversion of 
trust funds arising directly out of any transaction when the 
judgment debtor was licensed and performed acts for which a 
license is required under this chapter, or performed acts 
permitted by section 327.55, subdivision 1a, and which cause of 
action occurred on or after July 1, 1973, the aggrieved person 
may, upon the judgment becoming final, and upon termination of 
all proceedings, including reviews and appeals, file a verified 
application in the court in which the judgment was entered for 
an order directing payment out of the recovery portion of the 
fund of the amount of actual and direct out of pocket loss in 
the transaction, but excluding any attorney's fees, interest on 
the loss and on any judgment obtained as a result of the loss, 
up to the sum of $20,000 of the amount unpaid upon the judgment, 
provided that nothing in this chapter shall be construed to 
obligate the fund for more than $20,000 per transaction, subject 
to the limitations set forth in subdivisions 12 and 14, 
regardless of the number of persons aggrieved or parcels of real 
estate involved in the transaction.  A copy of the verified 
application shall be served upon the commissioner and upon the 
judgment debtor, and a certificate or affidavit of service filed 
with the court.  For the purpose of this section "aggrieved 
person" shall not include a real estate licensee who is seeking 
to recover a commission unless (1) the licensee is acting in the 
capacity of principal in the sale of interests in real property 
owned by the licensee; or (2) the licensee is acting in the 
capacity of principal in the purchase of interests in real 
property to be owned by the licensee.  Under no circumstances 
shall a real estate licensee be entitled to payment under this 
section for the loss of a commission.  
    Sec. 16.  [345.25] [BONDS ISSUED BY RELIGIOUS 
ORGANIZATIONS.] 
    Bonds issued by religious organizations are exempt from 
sections 345.31 to 345.60 and are not otherwise subject to 
escheat.  
    Sec. 17.  Minnesota Statutes 1982, section 345.32, is 
amended to read: 
    345.32 [PROPERTY HELD BY BANKING OR FINANCIAL ORGANIZATIONS 
OR BY BUSINESS ASSOCIATIONS.] 
    The following property held or owing by a banking or 
financial organization or by a business association is presumed 
abandoned: 
    (a) Any demand, savings or matured time deposit made in 
this state with a banking organization, together with any 
interest or dividend thereon, excluding contracted service 
charges which may be deducted for a period not to exceed one 
year, unless the owner has, within five years: 
    (1) increased or decreased the amount of the deposit, or 
presented the passbook or other similar evidence of the deposit 
for the crediting of interest; or 
    (2) corresponded in writing with the banking organization 
concerning the deposit; or 
    (3) otherwise indicated an interest in the deposit as 
evidenced by a memorandum on file with the banking organization; 
or 
    (4) received tax reports or regular statements of the 
deposit by mail from the banking or financial organization 
regarding the deposit.  Receipt of the statement by the owner 
should be presumed if the statement is mailed first class by the 
banking or financial organization and not returned; or 
     (5) acted as provided in paragraphs (1), (2), (3) and (4) 
of this subsection in regard to another demand, savings or time 
deposit made with the banking or financial organization. 
     (b) Any funds or dividends deposited or paid in this state 
toward the purchase of shares or other interest in a business 
association where the stock certificates or other evidence of 
interest in the business have not been issued, or in a financial 
organization, and any interest or dividends thereon, excluding 
contracted service charges which may be deducted for a period 
not to exceed one year, unless the owner has within five years: 
     (1) increased or decreased the amount of the funds or 
deposit, or presented an appropriate record for the crediting of 
interest or dividends; or 
     (2) corresponded in writing with the financial organization 
concerning the funds or deposit; or 
     (3) otherwise indicated an interest in the funds or deposit 
as evidenced by a memorandum on file with the financial 
organization; or 
     (4) received tax reports or regular statements of the 
deposit or accounting by mail from the financial organization or 
business association regarding the deposit.  Receipt of the 
statement by the owner should be presumed if the statement is 
mailed first class by the financial organization or business 
association and not returned. 
     (c) Any sum, excluding contracted service charges which may 
be deducted for a period not to exceed one year, payable on 
checks certified in this state or on written instruments issued 
in this state, or issued in any other state the law in which for 
any reason does not apply to the abandonment of sums payable on 
checks certified in that state or written instruments issued in 
that state, on which a banking or financial organization or 
business association is directly liable, including, by way of 
illustration but not of limitation, drafts, money orders and 
traveler's checks, that has been outstanding for more than five 
years from the date it was payable, or from the date of its 
issuance if payable on demand, or, in the case of traveler's 
checks, has been outstanding for more than 15 years from the 
date of its issuance, or, in the case of money orders, has been 
outstanding for more than seven years from the date of its 
issuance, unless the owner has within five years, or within 15 
years in the case of traveler's checks, or within seven years in 
the case of money orders, corresponded in writing with the 
banking or financial organization or business association 
concerning it, or otherwise indicated an interest as evidenced 
by a memorandum on file with the banking or financial 
organization or business association. 
     (d) Any funds or other personal property, tangible or 
intangible, removed from a safe deposit box or any other 
safekeeping repository in this state on which the lease or 
rental period has expired due to nonpayment of rental charges or 
other reason, that have been unclaimed by the owner for more 
than five years from the date on which the lease or rental 
period expired. 
     (1) If the amount due for the use or rental of a safe 
deposit box has remained unpaid for a period of six months, the 
bank, savings bank, trust company, savings and loan, or safe 
deposit company shall, within 60 days of the expiration of that 
period, send by certified mail, addressed to the renter or 
lessee of the safe deposit box, directed to the address standing 
on its books, a written notice that, if the amount due for the 
use or rental of the safe deposit box is not paid within 60 days 
after the date of the mailing of the notice, it will cause the 
safe deposit box to be opened and its contents placed in one of 
its general safe deposit boxes. 
    (2) Upon the expiration of 60 days from the date of mailing 
the notice, and in default of payment within the 60 days of the 
amount due for the use or rental of the safe deposit box, the 
bank, savings bank, trust company, savings and loan, or safe 
deposit company, in the presence of its president, 
vice-president, secretary, treasurer, assistant secretary, 
assistant treasurer or superintendent, or such other person as 
specifically designated by its board of directors, and of a 
notary public not in its employ, shall cause the safe deposit 
box to be opened and the contents thereof, to be removed and 
sealed by the notary public in a package, in which he shall 
enclose a detailed description of the contents of the safe 
deposit box and upon which he shall mark the name of the renter 
or lessee and also the estimated value of the contents of the 
safe deposit box and, in the presence of one of the bank 
officers listed above, the notary public shall place the package 
in one of the bank's general safe deposit boxes and set out the 
proceedings in a certificate under his official seal, which 
shall be delivered to the bank, savings bank, trust company, 
savings and loan, or safe deposit company. 
     (3) The bank, savings bank, trust company, savings and 
loan, or safe deposit company shall hold the contents of 
abandoned safe deposit boxes until they are claimed by the owner 
or the bank turns them over to the state treasurer pursuant to 
chapter 345. 
    Sec. 18.  Minnesota Statutes 1982, section 345.47, 
subdivision 1, is amended to read:  
    Subdivision 1.  Except as provided in subdivision 3, all 
abandoned property other than money delivered to the state 
treasurer commissioner under sections 345.31 to 345.60 shall 
within one year after the delivery be sold by him to the highest 
bidder at public sale in whatever city in the state affords in 
his judgment the most favorable market for the property 
involved.  The commissioner shall hold the sale whenever he 
deems necessary but at least once every ten years.  The state 
treasurer commissioner may decline the highest bid and reoffer 
the property for sale if he considers the price bid 
insufficient.  He need not offer any property for sale if, in 
his opinion, the probable cost of sale exceeds the value of the 
property. 
    Sec. 19.  Minnesota Statutes 1982, section 345.48, is 
amended to read:  
    345.48 [DEPOSIT OF FUNDS.] 
    Subdivision 1.  All funds received under sections 345.31 to 
345.60, including the proceeds from the sale of abandoned 
property pursuant to section 345.47, shall forthwith be 
deposited by the state treasurer in the general fund of the 
state, except that he shall retain in a separate trust fund an 
amount not exceeding $25,000 from which he shall make prompt 
payment of claims duly allowed by him as hereinafter provided.  
Before making the deposit he shall record the name and last 
known address of each person appearing from the holders' reports 
to be entitled to the abandoned property and of the name and 
last known address of each policyholder, insured person, or 
annuitant, and with respect to each policy or contract listed in 
the report of a life insurance corporation, its number, the name 
of the corporation, and the amount due.  The record shall be 
available for public inspection at all reasonable business hours.
    Sec. 20.  Minnesota Statutes 1982, section 345.49, is 
amended to read:  
    345.49 [CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED.] 
    Subdivision 1.  [FILING.] Any person claiming an interest 
in any property delivered to the state under sections 345.31 to 
345.60 may file a claim thereto or to the proceeds from the sale 
thereof on the form prescribed by the state treasurer 
commissioner.  
    Subd. 2.  [APPROPRIATION.] There is hereby appropriated to 
the persons entitled to a refund, from the fund in the state 
treasury to which the money was credited, an amount sufficient 
to make the refund and payment.  
     Sec. 21.  [EFFECTIVE DATE.] 
    Section 3 is effective July 1, 1985. 
    Approved April 25, 1984

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