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Minnesota Legislature

Office of the Revisor of Statutes

Besides its general books of account, it shall keep separate books of account for all fiduciary
accounts. All funds and property held by it in a fiduciary capacity shall at all times be kept
separate from its own funds and property, and all fiduciary funds deposited or held as fiduciary by
the bank awaiting investment shall be carried in a separate account, and shall not be used by the
bank in the conduct of its business, unless the bank, under authorization by its board of directors,
first delivers to the commissioner of commerce, as collateral security: (1) bonds, notes, bills,
certificates of indebtedness or other direct obligations of the United States or its instrumentalities,
or obligations fully guaranteed by the United States as to principal and interest; or (2) other readily
marketable securities of the classes in which said trust companies or state banks exercising trust
powers are authorized or permitted to invest trust funds under the laws of this state. The securities
so deposited as collateral shall be owned by the bank and shall at all times be at least equal in
market value to the amount of the trust funds so used in the conduct of the bank's business, and all
deposits made by it of such funds in any other banking institutions shall be deposited as fiduciary
funds, to its credit as fiduciary, and not otherwise. Every security or property in which the funds
held by it as trustee, personal representative, guardian, conservator, receiver, or assignee, or in any
other fiduciary capacity are invested, shall at once upon receipt thereof be immediately entered
in the proper books as belonging to the particular fiduciary account whose funds have been
invested therein. Any change in such investment shall be fully specified in and under the account
of the particular fiduciary account to which it belongs so that all fiduciary funds and property
can be readily identified at any time by any person. It shall be unlawful for any bank to lend any
officer, director or employee any funds held as fiduciary under the powers conferred by section
48.37. Any officer, director or employee to whom such a loan is made shall be guilty of theft of
the amount of such loan from the time of the making thereof. Any state bank, when acting in a
fiduciary capacity, either alone or jointly with an individual or individuals, may, with the consent
of such individual fiduciary or fiduciaries, who are hereby authorized to give such consent, cause
any stocks, securities, or other property now held or hereafter acquired in such capacity to be
registered and held in the name of a nominee or nominees of such state bank without mention of
the fiduciary relationship. Any such state bank shall be liable for any loss occasioned by the acts
of any of its nominees with respect to such stocks, securities or other property so registered.
History: (7664) 1923 c 274 s 4; 1943 c 338 s 1; 1957 c 311 s 1; 1965 c 35 s 2; 1983 c 289 s
114 subd 1; 1984 c 655 art 1 s 92; 1998 c 331 s 6; 1999 c 171 s 5