2006 Minnesota Statutes

501B.25 APPLICATION.
Sections 501B.16 to 501B.23 do not apply to trusts in the nature of mortgages or to trusts
commonly known as voting trusts. Sections 501B.16 to 501B.23 apply, however, unless otherwise
provided in the trust instrument, to trusts established in connection with bonds issued under
chapter 469, and, at the sole election of the issuer of bonds issued under chapter 469, without
a trust indenture, to the pledges and other bond covenants made by the issuer in one or more
resolutions with respect to the bonds. If the issuer so elects to apply sections 501B.16 to 501B.23,
for such purposes only, the pledges and other bond covenants shall be deemed the "trust," the
resolution or resolutions shall be deemed the "trust instrument," and the issuer shall be deemed
the "trustee" notwithstanding the absence of any fiduciary responsibility owed by the "issuer"
toward the bondholders. Nothing in this section shall preclude the issuer from seeking approval
under sections 501B.16 to 501B.23 of the creation of any express trust under a trust indenture and
the appointment of a trustee thereunder to act as a fiduciary for the benefit of the bondholders.
As used in sections 501B.16 to 501B.23, "person" includes an artificial as well as a natural
person, and "beneficiary" includes a bondholder.
History: 1989 c 340 art 1 s 22; 1993 c 271 s 8