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    Subdivision 1. Authority. In addition to the inherent and granted powers of corporations in
general, any such bank shall have power to exercise, by its board of directors, or duly authorized
officers and agents, subject to law, all such powers as shall be necessary to carry on the business
of banking by discounting bills, notes, and other evidences of debt, by receiving deposits, by
buying and selling gold and silver bullion, foreign coin, promissory notes, mortgages, and other
evidences of debt legal for investment, and foreign and inland bills of exchange, by lending
money on real and personal securities and receiving interest on any of the same in advance, and
by exercising all the usual and incidental powers and privileges belonging to the business; but
it shall not transact any business, except such as is incidental and necessarily preliminary to its
establishment, until authorized by the commissioner to commence business.
    Subd. 2. Activity authorized by federal authority. The commissioner of commerce may
authorize banks, bank and trust companies, or trust companies organized under the laws of this
state to engage in any banking or trust activity in which banks subject to the jurisdiction of
the federal government may hereafter be authorized to engage by federal legislation, ruling, or
regulation and those activities authorized in section 48.61, subdivision 7, paragraph (a), clause
(3). The commissioner may not authorize state banks as defined by section 48.01, to engage in
any activity prohibited by the laws of this state.
    Subd. 2a. Authorized activities. The commissioner may authorize a state bank to undertake
any activities, exercise any powers, or make any investments that are authorized by chapter 50,
as of August 1, 1995, for any state savings bank, or that become authorized by chapter 50, for
state savings banks after August 1, 1995. The commissioner may not authorize state banks to
engage in any banking activity prohibited by the laws of this state.
    Subd. 3. Limits on authority to act as paying agent for public issuers. No such bank shall
act as paying agent of any municipality or other public issuer of obligations, other than an issuer
within whose corporate limits the principal office of the bank is situated, unless the bank is
authorized to execute the powers conferred in section 48A.07.
    Subd. 4. Retirement, health savings, and medical savings accounts. (a) A state bank may
act as trustee or custodian:
(1) of a self-employed retirement plan under the Federal Self-Employed Individual Tax
Retirement Act of 1962, as amended;
(2) of a medical savings account under the Federal Health Insurance Portability and
Accountability Act of 1996, as amended;
(3) of a health savings account under the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003, as amended; and
(4) of an individual retirement account under the Federal Employee Retirement Income
Security Act of 1974, as amended, if the bank's duties as trustee or custodian are essentially
ministerial or custodial in nature and the funds are invested only (i) in the bank's own savings
or time deposits; or (ii) in any other assets at the direction of the customer if the bank does not
exercise any investment discretion, invest the funds in collective investment funds administered
by it, or provide any investment advice with respect to those account assets.
(b) Affiliated discount brokers may be utilized by the bank acting as trustee or custodian
for self-directed IRAs, if specifically authorized and directed in appropriate documents. The
relationship between the affiliated broker and the bank must be fully disclosed. Brokerage
commissions to be charged to the IRA by the affiliated broker should be accurately disclosed.
Provisions should be made for disclosure of any changes in commission rates prior to their
becoming effective. The affiliated broker may not provide investment advice to the customer.
(c) All funds held in the fiduciary capacity may be commingled by the financial institution in
the conduct of its business, but individual records shall be maintained by the fiduciary for each
participant and shall show in detail all transactions engaged under authority of this subdivision.
(d) The authority granted by this section is in addition to, and not limited by, section 47.75.
History: (7660) RL s 2984; 1965 c 171 s 9; 1969 c 1129 art 4 s 9; 1976 c 324 s 25; 1983
c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 353 s 1; 1987 c 349 art 1 s 13; 1995 c 171
s 30; 1997 c 157 s 22,23; 1999 c 151 s 19,20; 2005 c 118 s 4

Official Publication of the State of Minnesota
Revisor of Statutes