79A.071 CUSTODIAL ACCOUNTS.
Subdivision 1. Deposit.
All securities shall be deposited with the commissioner of finance or
in a custodial account with a depository institution acceptable to the commissioner of finance.
Surety bonds shall be filed with the commissioner. The commissioner and the commissioner of
finance may sell or collect, in the case of default of the employer or fund, the amount that yields
sufficient funds to pay compensation due under the Workers' Compensation Act.
Subd. 2. Assignment.
Securities in physical form deposited with the commissioner of
finance must bear the following assignment, which shall be signed by an officer, partner, or owner:
"Assigned to the state of Minnesota for the benefit of injured employees of the self-insured
employer under the Minnesota Workers' Compensation Act." Any securities held in a custodial
account, whether in physical form, book entry, or other form, need not bear the assignment
language. The instrument or contract creating and governing any custodial account must contain
the following assignment language: "This account is assigned to the commissioner of finance
by the Company to pay compensation and perform the obligations of employers imposed under
Minnesota Statutes, chapter 176. A depositor or other party has no right, title, or interest in the
security deposited in the account until released by the state."
Subd. 3. Custody.
All securities in physical form on deposit with the commissioner of
finance and surety bonds on deposit shall remain in the custody of the commissioner of finance or
the commissioner for a period of time dictated by the applicable statute of limitations provided in
the Workers' Compensation Act. All original instruments and contracts creating and governing
custodial accounts shall remain with the commissioner of finance or the commissioner for
a period of time dictated by the applicable statute of limitations provided in the Workers'
Subd. 4. Release.
No securities in physical form on deposit with the commissioner of
finance or custodial accounts assigned to the state shall be released without an order from the
Subd. 5. Exchanging or replacing.
Any securities deposited with the commissioner of
finance or with a custodial account assigned to the commissioner of finance or surety bonds
held by the commissioner may be exchanged or replaced by the depositor with other acceptable
securities or surety bonds of like amount so long as the market value of the securities or amount
of the surety bond equals or exceeds the amount of deposit required. If securities are replaced by a
surety bond, the self-insurer must maintain securities on deposit in an amount sufficient to meet
all outstanding workers' compensation liability arising during the period covered by the deposit
of the replaced securities, subject to the limitations on maximum security deposits established
in Minnesota Rules.
History: 1992 c 510 art 5 s 9; 2003 c 112 art 2 s 50