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Minnesota Legislature

Office of the Revisor of Statutes

50.17 DEPOSITS, DIVIDENDS, INTEREST, BONUS, BENEFITS.
    Subdivision 1. Deposit accounts. A deposit account with a savings bank is subject to a lien
for the payment of charges that may accrue on the account under this chapter. A deposit account is
subject to a debt offset for the debts of the deposit account holder to the savings bank. Deposit
accounts may not be assessed for any debts or losses of the savings bank.
    Subd. 2. Interest. The savings bank shall determine the rate and amount of interest, if
any, to be paid on or credited to deposit accounts. The savings bank may establish reasonable
classifications of accounts based on the types of accounts, the length of time accounts are
continued in effect, the size of initial deposits into accounts, the minimum balances of accounts
required for payment of interest, the frequency and extent of the activity on accounts, or location
of the account, or on other classifications the savings bank considers appropriate.
    Subd. 3. Deposit accounts. Deposit accounts must be represented only by the account of
each deposit account holder on the books of the savings bank, and the accounts or any interest is
transferable only on the books of the savings bank and upon proper written application by the
transferee. The savings bank may treat the holder of record of a deposit account as the owner of
it for all purposes without being affected by any notice to the contrary unless the savings bank
has acknowledged in writing notice of a pledge of the deposit account. A savings bank may
also offer negotiable time deposits.
    Subd. 4. Deposit accounts for minors. A savings bank may issue deposit accounts to or
in the name of a minor, which shall be held for the exclusive right and benefit of the minor,
free from the control or lien of all other persons, except creditors, and, together with interest or
dividends, shall be paid to the minor. The minor's receipt, draft, negotiable order of withdrawal, or
acquittance in any form, is sufficient release and discharge of the savings bank for withdrawal,
until a guardian appointed in this state for the minor has delivered a certificate of appointment
to the savings bank.
    Subd. 5. School or institution thrift savings plan. A savings bank may contract with the
proper authorities of any public or nonpublic elementary or secondary school or institution of
higher learning, or any public or charitable institution caring for minors, for the participation
and implementation by the savings bank in any school or institution thrift or savings plan, and
it may accept savings accounts at the school or institution, either by its own collector or by
any representative of the school or institution which becomes the agent of the association for
this purpose.
    Subd. 6. P.O.D. deposits. When a deposit is made in the names of two or more persons
jointly, or by a person payable on death (P.O.D.) to another, or by a person in trust for another, the
rights of the parties and the savings bank are determined by sections 524.6-201 to 524.6-214.
    Subd. 7. Deposit accounts in joint tenancy. The pledge or hypothecation to a savings bank
of all or part of a deposit account in joint tenancy signed by a tenant or tenants whether minor
or adult, upon whose signature or signatures withdrawals may be made from the account must,
unless the terms of the deposit account provide specifically to the contrary, be a valid pledge and
transfer to the savings bank of that part of the account pledged or hypothecated, and must not
operate to sever or terminate the joint and survivorship ownership of all or any part of the account.
    Subd. 8. Fiduciary deposits. A savings bank may accept deposits in the name of any
administrator, executor, custodian, conservator, guardian, trustee, or other fiduciary for a named
beneficiary or beneficiaries. The fiduciary may open, make additions to, and withdraw the account
in whole or in part. The withdrawal value of the account, and interest, or other rights relating to it
may be paid or delivered, in whole or in part, to the fiduciary without regard to any notice to the
contrary as long as the fiduciary is living. The payment or delivery to the fiduciary or a receipt or
acquittance signed by the fiduciary to whom the payment or any delivery of rights is made is a
valid and sufficient release and discharge of a savings bank for the payment or delivery so made.
Whenever a person holding an account in a fiduciary capacity dies and no written notice of the
revocation or termination of the fiduciary relationship has been given to a savings bank and the
savings bank has no written notice of any other disposition of the beneficial estate, the withdrawal
value of the account, and interest or dividends, or other rights relating to it may, at the option
of a savings bank, be paid or delivered, in whole or in part, to the beneficiary or beneficiaries.
The payment or delivery to the beneficiary, beneficiaries, or designated person, or a receipt or
acquittance signed by the beneficiary, beneficiaries, or designated person, for the payment or
delivery is a valid and sufficient release and discharge of a savings bank for the payment or
delivery. This section does not apply to P.O.D. accounts under sections 524.6-201 to 524.6-214.
    Subd. 9. Payments to guardian. When a deposit account is held in a savings bank by a
person who becomes incompetent and an adjudication of incompetency has been made by a court
of competent jurisdiction, the savings bank may pay or deliver the withdrawal value of the deposit
account and any earnings that may have accrued on it to the guardian for the person upon proof of
appointment and qualification. If the savings bank has received no written notice and is not on
actual notice that the deposit account holder has been adjudicated incompetent, it may pay or
deliver the funds to the holder in accordance with the provisions of the deposit account contract,
and the receipt or acquittance of the holder is a valid and sufficient release and discharge of the
savings bank for the payment or delivery so made.
    Subd. 10. Investment by certain entities. Administrators, executors, custodians,
conservators, guardians, trustees, and other fiduciaries of every kind and nature, insurance
companies, business and manufacturing companies, banks, trust companies, credit unions,
and other types of similar financial organizations, charitable, educational, eleemosynary, and
public corporations authorized by law, funds, and organizations, are specifically authorized and
empowered to invest funds held by them, without any order of any court, in deposit accounts of a
savings bank, and the investments are considered legal investments for the funds.
    Subd. 11. Service charges. A savings bank may contract with depositors for service charges
in connection with the opening and maintaining of deposit accounts and for providing services
ancillary to the opening and maintaining of deposit accounts. The service charges are a matter of
contract between the savings bank and the depositor, and the contract will be fully enforceable
in accordance with its stated terms.
History: (7717) RL s 3025; 1907 c 468 s 9; 1951 c 411 s 1; 1953 c 82 s 1; 1957 c 601
s 23; 1986 c 444; 1995 c 171 s 51