<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to fraudulent transfers; excluding certain transfers to charitable or <br />
         		<a id="pl.1.3"></a><var>1.3</var>religious organizations from the fraudulent transfers act;amending Minnesota <br />
         		<a id="pl.1.4"></a><var>1.4</var>Statutes 2010, section 513.41.<br />
         		<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 513.41, is amended to read:<br />
         		<a id="pl.1.7"></a><var>1.7</var><b>513.41 DEFINITIONS.</b><br />
         		<a id="pl.1.8"></a><var>1.8</var>As used in sections 
         <statute_ref>513.41</statute_ref> to 
         <statute_ref>513.51</statute_ref>: <br />
         		<a id="pl.1.9"></a><var>1.9</var>(1) "Affiliate" means:<br />
         		<a id="pl.1.10"></a><var>1.10</var>(i) a person who directly or indirectly owns, controls, or holds with power to vote, <br />
         		<a id="pl.1.11"></a><var>1.11</var>20 percent or more of the outstanding voting securities of the debtor, other than a person <br />
         		<a id="pl.1.12"></a><var>1.12</var>who holds the securities,<br />
         		<a id="pl.1.13"></a><var>1.13</var>(A) as a fiduciary or agent without sole discretionary power to vote the securities; or<br />
         		<a id="pl.1.14"></a><var>1.14</var>(B) solely to secure a debt, if the person has not exercised the power to vote;<br />
         		<a id="pl.1.15"></a><var>1.15</var>(ii) a corporation 20 percent or more of whose outstanding voting securities are <br />
         		<a id="pl.1.16"></a><var>1.16</var>directly or indirectly owned, controlled, or held with power to vote, by the debtor or a <br />
         		<a id="pl.1.17"></a><var>1.17</var>person who directly or indirectly owns, controls, or holds with power to vote, 20 percent <br />
         		<a id="pl.1.18"></a><var>1.18</var>or more of the outstanding voting securities of the debtor, other than a person who holds <br />
         		<a id="pl.1.19"></a><var>1.19</var>the securities,<br />
         		<a id="pl.1.20"></a><var>1.20</var>(A) as a fiduciary or agent without sole power to vote the securities; or<br />
         		<a id="pl.1.21"></a><var>1.21</var>(B) solely to secure a debt, if the person has not in fact exercised the power to vote;<br />
         		<a id="pl.1.22"></a><var>1.22</var>(iii) a person whose business is operated by the debtor under a lease or other <br />
         		<a id="pl.1.23"></a><var>1.23</var>agreement, or a person substantially all of whose assets are controlled by the debtor; or<br />
         		<a id="pl.2.1"></a><var>2.1</var>(iv) a person who operates the debtor's business under a lease or other agreement or <br />
         		<a id="pl.2.2"></a><var>2.2</var>controls substantially all of the debtor's assets.<br />
         		<a id="pl.2.3"></a><var>2.3</var>(2) "Asset" means property of a debtor, but the term does not include:<br />
         		<a id="pl.2.4"></a><var>2.4</var>(i) property to the extent it is encumbered by a valid lien;<br />
         		<a id="pl.2.5"></a><var>2.5</var>(ii) property to the extent it is generally exempt under nonbankruptcy law; or<br />
         		<a id="pl.2.6"></a><var>2.6</var>(iii) an interest in property held in tenancy by the entireties to the extent it is not <br />
         		<a id="pl.2.7"></a><var>2.7</var>subject to process by a creditor holding a claim against only one tenant.<br />
         		<a id="pl.2.8"></a><var>2.8</var>(3) "Claim" means a right to payment, whether or not the right is reduced to <br />
         		<a id="pl.2.9"></a><var>2.9</var>judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, <br />
         		<a id="pl.2.10"></a><var>2.10</var>undisputed, legal, equitable, secured, or unsecured.<br />
         		<a id="pl.2.11"></a><var>2.11</var>(4) "Creditor" means a person who has a claim.<br />
         		<a id="pl.2.12"></a><var>2.12</var>(5) "Debt" means liability on a claim.<br />
         		<a id="pl.2.13"></a><var>2.13</var>(6) "Debtor" means a person who is liable on a claim.<br />
         		<a id="pl.2.14"></a><var>2.14</var>(7) "Insider" includes:<br />
         		<a id="pl.2.15"></a><var>2.15</var>(i) if the debtor is an individual,<br />
         		<a id="pl.2.16"></a><var>2.16</var>(A) a relative of the debtor or of a general partner of the debtor;<br />
         		<a id="pl.2.17"></a><var>2.17</var>(B) a partnership in which the debtor is a general partner;<br />
         		<a id="pl.2.18"></a><var>2.18</var>(C) a general partner in a partnership described in clause (B); or<br />
         		<a id="pl.2.19"></a><var>2.19</var>(D) a corporation of which the debtor is a director, officer, or a person in control;<br />
         		<a id="pl.2.20"></a><var>2.20</var>(ii) if the debtor is a corporation,<br />
         		<a id="pl.2.21"></a><var>2.21</var>(A) a director of the debtor;<br />
         		<a id="pl.2.22"></a><var>2.22</var>(B) an officer of the debtor;<br />
         		<a id="pl.2.23"></a><var>2.23</var>(C) a person in control of the debtor;<br />
         		<a id="pl.2.24"></a><var>2.24</var>(D) a partnership in which the debtor is a general partner;<br />
         		<a id="pl.2.25"></a><var>2.25</var>(E) a general partner in a partnership described in clause (D); or<br />
         		<a id="pl.2.26"></a><var>2.26</var>(F) a relative of a general partner, director, officer, or person in control of the debtor;<br />
         		<a id="pl.2.27"></a><var>2.27</var>(iii) if the debtor is a partnership,<br />
         		<a id="pl.2.28"></a><var>2.28</var>(A) a general partner in the debtor;<br />
         		<a id="pl.2.29"></a><var>2.29</var>(B) a relative of a general partner in, or a general partner of, or a person in control <br />
         		<a id="pl.2.30"></a><var>2.30</var>of the debtor;<br />
         		<a id="pl.2.31"></a><var>2.31</var>(C) another partnership in which the debtor is a general partner;<br />
         		<a id="pl.2.32"></a><var>2.32</var>(D) a general partner in a partnership described in clause (C); or<br />
         		<a id="pl.2.33"></a><var>2.33</var>(E) a person in control of the debtor;<br />
         		<a id="pl.2.34"></a><var>2.34</var>(iv) an affiliate, or an insider of an affiliate as if the affiliate were the debtor; and<br />
         		<a id="pl.2.35"></a><var>2.35</var>(v) a managing agent of the debtor.<br />
         		<a id="pl.3.1"></a><var>3.1</var>(8) "Lien" means a charge against or an interest in property to secure payment <br />
         		<a id="pl.3.2"></a><var>3.2</var>of a debt or performance of an obligation, and includes a security interest created by <br />
         		<a id="pl.3.3"></a><var>3.3</var>agreement, a judicial lien obtained by legal or equitable process or proceedings, a <br />
         		<a id="pl.3.4"></a><var>3.4</var>common-law lien, or a statutory lien.<br />
         		<a id="pl.3.5"></a><var>3.5</var>(9) "Person" means an individual, partnership, corporation, association, organization, <br />
         		<a id="pl.3.6"></a><var>3.6</var>government or governmental subdivision or agency, business trust, estate, trust, or any <br />
         		<a id="pl.3.7"></a><var>3.7</var>other legal or commercial entity.<br />
         		<a id="pl.3.8"></a><var>3.8</var>(10) "Property" means anything that may be subject of ownership.<br />
         		<a id="pl.3.9"></a><var>3.9</var>(11) "Relative" means an individual related by consanguinity within the third degree <br />
         		<a id="pl.3.10"></a><var>3.10</var>as determined by the common law, a spouse, or an individual related to a spouse within <br />
         		<a id="pl.3.11"></a><var>3.11</var>the third degree as so determined, and includes an individual in an adoptive relationship <br />
         		<a id="pl.3.12"></a><var>3.12</var>within the third degree.<br />
         		<a id="pl.3.13"></a><var>3.13</var>(12) "Transfer" means every mode, direct or indirect, absolute or conditional, <br />
         		<a id="pl.3.14"></a><var>3.14</var>voluntary or involuntary, of disposing of or parting with an asset or an interest in an <br />
         		<a id="pl.3.15"></a><var>3.15</var>asset, and includes payment of money, release, lease, and creation of a lien or other <br />
         		<a id="pl.3.16"></a><var>3.16</var>encumbrance. "Transfer" does not include a contribution of money or an asset made to a <br />
         		<a id="pl.3.17"></a><var>3.17</var>qualified charitable or religious organization or entity unless the contribution was made <br />
         		<a id="pl.3.18"></a><var>3.18</var>within two years of commencement of an action under sections 513.41 to 513.51 against <br />
         		<a id="pl.3.19"></a><var>3.19</var>the qualified charitable or religious organization or entity and: <br />
         		<a id="pl.3.20"></a><var>3.20</var>(i) the debtor made the charitable contribution with actual intent to hinder, delay, <br />
         		<a id="pl.3.21"></a><var>3.21</var>or defraud any creditor of the debtor, or<br />
         		<a id="pl.3.22"></a><var>3.22</var>(ii) the debtor:<br />
         		<a id="pl.3.23"></a><var>3.23</var>(A) was insolvent at the time of the contribution or would be rendered insolvent by <br />
         		<a id="pl.3.24"></a><var>3.24</var>reason of the contribution;<br />
         		<a id="pl.3.25"></a><var>3.25</var>(B) was engaged or was about to engage in a business or a transaction for which <br />
         		<a id="pl.3.26"></a><var>3.26</var>the remaining assets of the debtor were unreasonably small in relation to the business or <br />
         		<a id="pl.3.27"></a><var>3.27</var>transaction; or<br />
         		<a id="pl.3.28"></a><var>3.28</var>(C) intended to incur, or the charitable or religious organization or entity believed <br />
         		<a id="pl.3.29"></a><var>3.29</var>or had reason to believe that the debtor would incur, debts beyond the debtor's ability <br />
         		<a id="pl.3.30"></a><var>3.30</var>to pay as the debts become due.<br />
         		<a id="pl.3.31"></a><var>3.31</var>A transfer of a charitable contribution to a qualified charitable or religious <br />
         		<a id="pl.3.32"></a><var>3.32</var>organization or entity is not considered a transfer covered under item (ii) if the amount <br />
         		<a id="pl.3.33"></a><var>3.33</var>of that contribution did not exceed 15 percent of the gross annual income of the debtor <br />
         		<a id="pl.3.34"></a><var>3.34</var>for the year in which the transfer of the contribution was made; or the contribution <br />
         		<a id="pl.3.35"></a><var>3.35</var>exceeded that amount but the transfer was consistent with practices of the debtor in <br />
         		<a id="pl.3.36"></a><var>3.36</var>making charitable contributions.<br />
         		<a id="pl.4.1"></a><var>4.1</var>Transfer does include a return on investment made by a qualified charitable <br />
         		<a id="pl.4.2"></a><var>4.2</var>or religious organization or entity. "Qualified charitable or religious organization or <br />
         		<a id="pl.4.3"></a><var>4.3</var>entity" means an organization or entity described in United States Code, title 26, section <br />
         		<a id="pl.4.4"></a><var>4.4</var>170(c)(1), (2), or (3). <br />
         		<a id="pl.4.5"></a><var>4.5</var>(13) "Valid lien" means a lien that is effective against the holder of a judicial lien <br />
         		<a id="pl.4.6"></a><var>4.6</var>subsequently obtained by legal or equitable process or proceedings.<br />
         		<a id="pl.4.7"></a><var>4.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.4.8"></a><var>4.8</var>and applies to a cause of action existing on, or arising on or after, that date.<br />
         		
      </div>