2006 Minnesota Statutes

51A.21 POWERS OF ASSOCIATION.
    Subdivision 1. Generally. Every association incorporated pursuant to or operating under the
provisions of sections 51A.01 to 51A.57 shall have all the powers enumerated, authorized, and
permitted by sections 51A.01 to 51A.57 and such other rights, privileges, and powers as may be
incidental to or reasonably necessary or appropriate for the accomplishment of the objects and
purposes of the association, and in addition shall have those powers possessed by corporations
organized under chapter 302A. Among others, and except as otherwise limited by the provisions
of sections 51A.01 to 51A.57, every association shall have the powers set forth in this section.
    Subd. 2. Existence; seal; bylaws. To have perpetual existence; to adopt and use a corporate
seal, which may be affixed by imprint, facsimile, or otherwise; and to adopt and amend bylaws as
provided in sections 51A.01 to 51A.57.
    Subd. 3. Plaintiff; defendant. To sue and be sued, complain and defend in any court of law
or equity.
    Subd. 4. Property transfers. To acquire, hold, sell, dispose of and convey real and personal
estate consistent with its objects and powers; to mortgage, pledge, or lease any real or personal
estate; and to take property by gifts, devise, or bequest.
    Subd. 5. Borrowing. To borrow from sources, individual or corporate, not more than an
aggregate amount equal to one-half of its total assets on the date of borrowing and additional sums
the commissioner approves. The advance written approval of the commissioner, who has sole
discretionary authority to grant or withhold such approval, is required for sources of borrowing
other than financial institutions or federal home loan banks. A subsequent reduction of total assets
shall not affect in any way outstanding obligations for borrowed money. All borrowing under
this subdivision may be secured by property of the association, and may be evidenced by notes,
bonds, debentures, commercial paper, bankers' acceptances, or other obligations or securities,
(except capital stock and capital certificates).
    Subd. 6.[Repealed, 1988 c 666 s 75]
    Subd. 6a. Loans and contracts. To make, sell, purchase, invest in, and participate or
otherwise deal in loans and conditional sale contracts and other forms of indebtedness and leases,
and to take any manner of security for the loans and contracts.
    Subd. 6b. Business property. To acquire or own real property or interests in real property
the directors consider necessary or convenient for the conduct of the business of the association,
which for the purposes of sections 51A.01 to 51A.57 includes the ownership of stock of a wholly
owned subsidiary corporation having as its exclusive activity the ownership and management
of this property or interests. The amount so invested must not exceed the sum equal to five
percent of net assets of the association, provided that the commissioner may authorize a greater
amount to be so invested.
    Subd. 7. Insurance of accounts. To obtain and maintain insurance of its savings accounts
by the Federal Savings and Loan Insurance Corporation or any other federal agency established
for the purpose of insuring savings accounts in associations.
    Subd. 8. Federal home loan bank membership. To qualify as and become a member of
a federal home loan bank.
    Subd. 9. Employees. To appoint and remove officers, agents, and employees as its business
shall require and to provide them suitable compensation; to provide for life, health, and casualty
insurance for officers and employees, and to adopt and operate reasonable bonus plans and
retirement benefits for such officers and employees; and to provide for indemnification of its
officers, employees, and directors as prescribed or permitted in sections 51A.01 to 51A.57
whether by insurance or otherwise.
    Subd. 10. Facilitating organizations. To become a member of, deal with, or make
reasonable payments or contributions to any organization to the extent such organization assists in
furthering or facilitating the association's purposes, powers, or community responsibilities, and to
comply with any reasonable conditions of eligibility.
    Subd. 11. Safe deposit boxes. To maintain and let safes, boxes, or other receptacles for the
safekeeping of personal property upon such terms and conditions as may be agreed upon, other
statutory provisions withstanding.
    Subd. 12. Money orders. To sell money orders, travel checks, and similar instruments, or as
agent for any organization empowered to sell such instruments through agents within this state.
    Subd. 13. Fiscal agent. If and when an association is a member of a federal home loan
bank, to act as fiscal agent of the United States, and, when so designated by the Secretary of the
Treasury, to perform, under such regulations as the secretary may prescribe, all such reasonable
duties as fiscal agent of the United States as the secretary may require; and to act as agent for any
instrumentality of the United States and as agent of this state or any instrumentality thereof.
    Subd. 14. Servicing. To service loans and investments for others.
    Subd. 15. Savings, loans, investments. To acquire deposits and pay earnings thereon, and
to lend and commit to lend, extend credit, and invest its funds as provided in sections 51A.01
to 51A.57.
    Subd. 16.[Repealed, 1982 c 473 s 30]
    Subd. 16a.[Repealed, 1982 c 473 s 30]
    Subd. 17. Agency. To act as agent or holder of an escrow for others in any transaction
incidental to the operation of its business.
    Subd. 18. Treasury tax and loan accounts of the United States. To accept and maintain
treasury tax and loan accounts of the United States and to pledge collateral to secure the treasury
tax or loan accounts, in accordance with the regulations of the Department of the Treasury of the
United States.
    Subd. 19.[Repealed, 1988 c 666 s 75]
    Subd. 20. Capital certificates. To issue and sell, directly or through underwriters, capital
certificates which shall represent nonwithdrawable capital contributions, and constitute part of the
reserves and net worth of the association. The certificates shall have no voting rights, shall be
subordinate to all savings accounts, debt obligations, and claims of creditors of the association
and shall constitute a claim in liquidation against any reserves, surplus, and other net worth
accounts remaining after the payment in full of all savings accounts, debt obligations, and claims
of creditors. The capital certificates shall be entitled to the payment of earnings prior to the
allocation of any income to surplus or other net worth accounts of the association and may be
issued with a fixed rate of earnings or with a prior claim to distribution of a specified percentage
of any net income remaining after required allocations to reserves, or a combination thereof.
Losses shall be charged against capital certificates only after reserves, surplus, and other net
worth accounts have been exhausted.
    Subd. 21. Dividends on capital stock. To declare and pay dividends on capital stock in cash
or property out of the unreserved and unrestricted earned surplus of the association, or its own
shares from time to time except when the association has failed within the preceding 12 months
to make any minimum allocation to surplus or reserve accounts required by section 51A.20 or
to maintain any minimum required level, and except when the association is in an impaired
condition or when the payment thereof would cause the association to be in an impaired condition.
    Subd. 22. Limited trusteeship. To act and receive compensation as trustee of a trust created
or organized in the United States and forming a part of a stock bonus, pension, or profit-sharing
plan that qualifies or is qualified for specific tax treatment under section 401 of the Internal
Revenue Code of 1986, as amended through December 31, 1987, and to act as trustee or custodian
of an individual retirement account within the meaning of section 408 of that code if the funds of
the trust or account are invested only in savings accounts of the association or in obligations or
securities issued by the association. All funds held in a fiduciary capacity by the association under
the authority of this subdivision may be commingled and consolidated for appropriate purposes of
investment if records reflecting each separate beneficial interest are maintained by the fiduciary
unless the responsibility is lawfully assumed by another appropriate party.
    Subd. 23. Automated teller machines. To own or use automated teller machines and
establish electronic financial terminals and transmission facilities as provided in sections 47.61
to 47.74.
    Subd. 24. Payroll savings. To contract with an employer with respect to the following:
(1) Soliciting, collecting, and receiving savings by payroll deduction. These savings are to
be credited to a designated account of an employee who may voluntarily participate in a payroll
deduction plan.
(2) Direct deposit of wages or salary paid by the employer to an employee's account in a
financial depository institution. Deposits may be made by electronic or other medium. Direct
deposits may be made if the employee authorizes the deposits in writing and designates the
association or other financial depository institution as the recipient of these deposits.
    Subd. 25. Drafts. To issue drafts and similar instruments drawn on the association to aid in
effecting withdrawals and for other purposes of the association.
    Subd. 26. Deposits. To raise funds in the form of (1) savings accounts; (2) time deposit
accounts; (3) NOW accounts; (4) demand deposit accounts; and (5) treasury tax and loan accounts.
    Subd. 27. Trust powers. Upon application and approval by the commissioner, to act as
trustee, executor, administrator, personal representative, conservator, custodian, guardian, or in
any other fiduciary capacity in which state banks, trust companies, or other corporations are
permitted to act, and to receive reasonable compensation therefore.
    Subd. 28. Service charges. To 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. Service charges are a matter of contract between
the association and the depositor, and any such contract is fully enforceable according to its
stated terms.
History: 1969 c 490 s 21; 1971 c 136 s 1; 1978 c 747 s 2; 1978 c 748 s 1; 1980 c 512 s 3;
1980 c 522 s 2; 1981 c 276 s 24-26; 1Sp1981 c 1 art 9 s 3; 1986 c 444; 1988 c 666 s 26-41; 1995
c 171 s 64; 1996 c 414 art 1 s 44; 1997 c 157 s 67; 1998 c 260 s 1; 2005 c 69 art 3 s 10