1.1 	A bill for an act
1.2 	relating to real property; providing a procedure for conveying title to real 
1.3 	property held by a custodian; proposing coding for new law in Minnesota 
1.4 	Statutes, chapter 501B.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [501B.561] CERTIFICATE OF CUSTODIANSHIP.
1.7 		Subdivision 1.Contents of certificate. (a) A custodian or the owner of property 
1.8 	held in a custodianship, at any time after execution or creation of a custodianship 
1.9 	instrument, may execute a certificate of custodianship that sets forth less than all of 
1.10 	the provisions of the custodial instrument and any amendments to the instrument.  The 
1.11 	certificate of custodianship may be used for purposes of selling, conveying, pledging, 
1.12 	mortgaging, leasing, or transferring title to any interest in real or personal property.  The 
1.13 	certificate of custodianship must include:
1.14 	(1) the name of the custodianship, if one is given;
1.15 	(2) the date of the custodianship instrument;
1.16 	(3) the name of each owner of property held in the custodianship;
1.17 	(4) the name of each original custodian;
1.18 	(5) the name and address of each custodian empowered to act under the custodianship 
1.19 	instrument at the time of execution of the certificate;
1.20 	(6) the following statement:  "The custodians are authorized by the instrument to 
1.21 	sell, convey, pledge, mortgage, lease, or transfer title to any interest in real or personal 
1.22 	property, except as limited by the following:  (if none, so indicate)";
1.23 	(7) any other custodianship provisions the custodians or owners of property held 
1.24 	in the custodianship include; and 
2.1 	(8) a statement as to whether the custodianship instrument has terminated or been 
2.2 	revoked.
2.3 	(b) The certificate of custodianship must be upon the representation of the custodians 
2.4 	or the owners of property held in the custodianship that the statements contained in the 
2.5 	certificate of custodianship are true and correct and that there are no other provisions 
2.6 	in the custodianship instrument or amendments to it that limit the powers of the 
2.7 	custodianship to sell, convey, pledge, mortgage, lease, or transfer title to interests in real 
2.8 	or personal property.  The signature of the custodians or the owners of property held in 
2.9 	the custodianship must be under oath before a notary public or other official authorized 
2.10 	to administer oaths.
2.11 		Subd. 2.Effect. A certificate of custodianship executed under subdivision 1 may 
2.12 	be recorded in the office of the county recorder for any county, or filed with the office 
2.13 	of the registrar of titles with respect to registered land described in the certificate of 
2.14 	custodianship or any attachment to it.  When it is recorded or filed in a county where real 
2.15 	property is situated, or in the case of personal property, when it is presented to a third party, 
2.16 	the certificate of custodianship serves to document the existence of the custodianship, the 
2.17 	identity of the custodians, the powers of the custodians and any limitations on those 
2.18 	powers, and other matters the certificate of custodianship sets out, as though the full 
2.19 	custodianship instrument had been recorded, filed, or presented.  Until amended or 
2.20 	revoked under subdivision 3, or until the full custodianship instrument is recorded, filed, 
2.21 	or presented, a certificate of custodianship is prima facie proof as to the matters contained 
2.22 	in it, and any party may rely upon the continued effectiveness of the certificate.
2.23 		Subd. 3.Amendment or revocation. (a) Amendment or revocation of a certificate 
2.24 	of custodianship may be made only by a written instrument executed by a custodian or an 
2.25 	owner of property held in the custodianship.  Amendment or revocation of a certificate 
2.26 	of custodianship is not effective as to a party unless that party has actual notice of the 
2.27 	amendment or revocation.
2.28 	(b) For purposes of this subdivision, "actual notice" means that a written instrument 
2.29 	of amendment or revocation has been received by the party or, in the case of real property, 
2.30 	that either a written instrument of amendment or revocation has been received by the party 
2.31 	or that a written instrument of amendment or revocation containing the legal description 
2.32 	of the real property has been recorded in the office of the county recorder or filed in the 
2.33 	office of the registrar of titles where the real property is situated.
2.34 		Subd. 4.Application. (a) Subdivisions 1 to 3 are effective August 1, 2005, but 
2.35 	apply to custodianship instruments whenever created or executed.
3.1 	(b) Subdivisions 1 to 3 apply only to custodianships established under a federal 
3.2 	law or under a statute of this or any other state.  Subdivisions 1 to 3 do not apply to 
3.3 	custodianships governed by chapter 527 or by the similar laws of another state.

3.4 	Sec. 2. [501B.571] AFFIDAVIT OF CUSTODIAN IN REAL PROPERTY 
3.5 	TRANSACTIONS.
3.6 		Subdivision 1.Form of affidavit for custodianship. An affidavit of a custodian 
3.7 	or of custodians of a custodianship in support of a real property transaction may be 
3.8 	substantially in the following form:

3.93.10

STATE OF 
MINNESOTA )

AFFIDAVIT OF CUSTODIAN

3.11 | ) | ss. |
3.12 | COUNTY OF ) | |
3.13 	.........................., being first duly sworn on oath says that:
3.14 	1.  Affiant is the custodian (one of the custodians) named in that certain Certificate of 
3.15 	Custodianship (or Custodianship Instrument) 
3.16 	filed for record ......., ...., as Document No. ..... (or in Book ..... of ............, Page 
3.17 	......) in the Office of the (County Recorder/Registrar of Titles) of ........... County, 
3.18 	Minnesota,
3.19 	OR 
3.20 	to which this Affidavit is attached,
3.21 	executed by Affiant or another custodian or by the owner of the property that is held 
3.22 	in the custodianship described in the Certificate of Custodianship (or set forth in 
3.23 	the Custodianship Instrument), and which relates to real property in .......... County, 
3.24 	Minnesota, legally described as follows:
3.25 	.......................................................... ............................................................... 
3.26 	............................................................... ...............................................................
3.27 	(If more space is needed, continue on back or on attachment.) 
3.28 	2.  The name(s) and address(es) of the custodian(s) empowered by the Custodian 
3.29 	Instrument to act at the time of the execution of this Affidavit are as follows:
3.30 	......................................................... .............................................................. 
3.31 	..............................................................
3.32 	3.  The custodian(s) who have executed that certain instrument relating to the real 
3.33 	property described above between ........................, as custodian(s) and ..........................., 
3.34 	dated .........., ....:
4.1 	(i) are empowered by the provisions of the custodianship to sell, convey, pledge, 
4.2 	mortgage, lease, or transfer title to any interest in real property held in custodianship; and 
4.3 	(ii) are the requisite number of custodians required by the provisions of the 
4.4 	custodianship to execute and deliver such an instrument.
4.5 	4.  The custodianship has not terminated and has not been revoked.
4.6 	- OR -
4.7 	4.  The custodianship has terminated (or has been revoked).  The execution and 
4.8 	delivery of the instrument described in paragraph 3 has been made pursuant to the 
4.9 	provisions of the custodianship.
4.10 	5.  There has been no amendment to the custodianship which limits the power of 
4.11 	custodian(s) to execute and deliver the instrument described in paragraph 3.
4.12 	6.  The custodianship is not supervised by any court.
4.13 	- OR -
4.14 	6.  The custodianship is supervised by the ............ Court of .............. County, 
4.15 	................  All necessary approval has been obtained from the court for the custodian(s) to 
4.16 	execute and deliver the instrument described in paragraph 3.
4.17 	7.  Affiant does not have actual knowledge of any facts indicating that the 
4.18 	custodianship is invalid.

4.19 | | .............................
4.20 | Subscribed and sworn to before me | , Affiant
4.21 | this .... day of ........., ..... |
4.22 | | ....................................................
4.23 | Notary Stamp or Seal | Signature of Notary Public or
4.24 | | Other Official
4.25 | This instrument was drafted by: |
4.26 | ..................................................... |
4.27 | ..................................................... |
4.28 		Subd. 2.Effect. An affidavit by the custodian or custodians under subdivision 1 
4.29 	is proof that:
4.30 	(1) the custodianship described in the affidavit is a valid custodianship;
4.31 	(2) either the custodianship has not terminated or been revoked or, if the 
4.32 	custodianship has terminated or been revoked, the conveyance described in the affidavit 
4.33 	is made pursuant to the provisions of the custodianship;
5.1 	(3) the powers granted the custodian or custodians extend to the real property 
5.2 	described in the affidavit or attachment to the affidavit;
5.3 	(4) no amendment to the custodianship has been made limiting the power of the 
5.4 	custodian or custodians to sell, convey, pledge, mortgage, lease, or transfer title to the real 
5.5 	property described in the affidavit or attachment to the affidavit, if any;
5.6 	(5) the requisite number of custodians have executed and delivered the instrument of 
5.7 	conveyance described in the affidavit; and 
5.8 	(6) any necessary court approval of the transaction has been obtained.
5.9 	The proof is conclusive as to any party relying on the affidavit, except a party dealing 
5.10 	directly with the custodian or custodians who has actual knowledge of facts to the contrary.
5.11 		Subd. 3.Recording or filing. An Affidavit of Custodian or Custodians under 
5.12 	subdivision 1 may be recorded in the office of the county recorder for any county, or 
5.13 	filed with the office of the registrar of titles for any county with respect to registered 
5.14 	land described in the affidavit, or in the Certificate of Custodianship or Custodianship 
5.15 	Instrument referred to in the affidavit, and may be recorded or filed as a separate 
5.16 	document or combined with or attached to an original or certified copy of a Certificate of 
5.17 	Custodianship or Custodianship Instrument, and recorded or filed as one document.
5.18 		Subd. 4.Application. (a) Subdivisions 1 to 3 are effective August 1, 2006, but 
5.19 	apply to custodianship instruments whenever created or executed.
5.20 	(b) Subdivisions 1 to 3 apply only to custodianships established under a federal 
5.21 	law or under a statute of this or any other state.  Subdivisions 1 to 3 do not apply to 
5.22 	custodianships governed by chapter 527 or by the similar laws of another state.

5.23 	Sec. 3. EFFECTIVE DATE.
 5.24 	Sections 1 and 2 are effective the day following final enactment.