1.1.................... moves to amend H.F. No. 1023 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. [5B.11] LEGAL PROCEEDINGS; PROTECTIVE ORDER.
1.6If a program participant is involved in a legal proceeding as a party or witness, the
1.7court or other tribunal may issue a protective order to prevent disclosure of information
1.8that could reasonably lead to the discovery of the program participant's location.

1.9    Sec. 2. Minnesota Statutes 2010, section 169.79, subdivision 6, is amended to read:
1.10    Subd. 6. Other motor vehicles. If the motor vehicle is any kind of motor vehicle
1.11other than those provided for in subdivisions 2 to 4, one plate two plates must be displayed
1.12on. One plate must be displayed at the front and one on the rear of the vehicle and one
1.13at the back. The two plates must either be mounted on the front and rear bumpers of
1.14the vehicle or on the front and back of the vehicle exterior in places designed to hold a
1.15license plate.

1.16    Sec. 3. Minnesota Statutes 2010, section 169.797, subdivision 4, is amended to read:
1.17    Subd. 4. Penalty. (a) A person who violates this section is guilty of a misdemeanor.
1.18A person is guilty of a gross misdemeanor who violates this section within ten years
1.19of the first of two prior convictions under this section, section 169.791, or a statute or
1.20ordinance in conformity with one of those sections. The operator of a vehicle who violates
1.21subdivision 3 and who causes or contributes to causing a vehicle accident that results in
1.22the death of any person or in substantial bodily harm to any person, as defined in section
1.23609.02, subdivision 7a , is guilty of a gross misdemeanor. The same prosecuting authority
1.24who is responsible for prosecuting misdemeanor violations of this section is responsible
2.1for prosecuting gross misdemeanor violations of this section. In addition to any sentence
2.2of imprisonment that the court may impose on a person convicted of violating this section,
2.3the court shall impose a fine of not less than $200 nor more than the maximum amount
2.4authorized by law. The court may allow community service in lieu of any fine imposed if
2.5the defendant is indigent.
2.6(b) A driver who is the owner of the vehicle may, no later than the date and time
2.7specified in the citation for the driver's first court appearance, produce proof of insurance
2.8stating that security had been provided for the vehicle that was being operated at the time
2.9of demand to the court administrator. The required proof of insurance may be sent by mail
2.10by the driver as long as it is received no later than the date and time specified in the
2.11citation for the driver's first court appearance. If a citation is issued, no person shall be
2.12convicted of violating this section if the court administrator receives the required proof of
2.13insurance no later than the date and time specified in the citation for the driver's first court
2.14appearance. If the charge is made other than by citation, no person shall be convicted of
2.15violating this section if the person presents the required proof of insurance at the person's
2.16first court appearance after the charge is made.
2.17(c) If the driver is not the owner of the vehicle, the driver shall, no later than the
2.18date and time specified in the citation for the driver's first court appearance, provide the
2.19district court administrator with proof of insurance or the name and address of the owner.
2.20Upon receipt of the name and address of the owner, the district court administrator shall
2.21communicate the information to the law enforcement agency.
2.22(d) If the driver is not the owner of the vehicle, the officer may send or provide a
2.23notice to the owner of the vehicle requiring the owner to produce proof of insurance for
2.24the vehicle that was being operated at the time of the demand. Notice by mail is presumed
2.25to be received five days after mailing and shall be sent to the owner's current address or the
2.26address listed on the owner's driver's license. Within ten days after receipt of the notice,
2.27the owner shall produce the required proof of insurance to the place stated in the notice
2.28received by the owner. The required proof of insurance may be sent by mail by the owner
2.29as long as it is received within ten days. Any owner who fails to produce proof of insurance
2.30within ten days of an officer's request under this subdivision is guilty of a misdemeanor.
2.31The peace officer may mail the citation to the owner's current address or address stated
2.32on the owner's driver's license. It is an affirmative defense to a charge against the owner
2.33that the driver used the owner's vehicle without consent, if insurance would not have been
2.34required in the absence of the unauthorized use by the driver. It is not a defense that a
2.35person failed to notify the Department of Public Safety of a change of name or address as
2.36required under section 171.11. The citation may be sent after the ten-day period.
3.1(b) (e) The court may impose consecutive sentences for offenses arising out of a
3.2single course of conduct as permitted in section 609.035, subdivision 2.
3.3(c) (f) In addition to the criminal penalty, the driver's license of an operator convicted
3.4under this section shall be revoked for not more than 12 months. If the operator is also an
3.5owner of the vehicle, the registration of the vehicle shall also be revoked for not more
3.6than 12 months. Before reinstatement of a driver's license or registration, the operator
3.7shall file with the commissioner of public safety the written certificate of an insurance
3.8carrier authorized to do business in this state stating that security has been provided by the
3.9operator as required by section 65B.48.
3.10(d) (g) The commissioner shall include a notice of the penalties contained in this
3.11section on all forms for registration of vehicles required to maintain a plan of reparation
3.12security.

3.13    Sec. 4. Minnesota Statutes 2010, section 260B.163, subdivision 1, is amended to read:
3.14    Subdivision 1. General. (a) Except for hearings arising under section 260B.425,
3.15hearings on any matter shall be without a jury and may be conducted in an informal
3.16manner, except that a child who is prosecuted as an extended jurisdiction juvenile has the
3.17right to a jury trial on the issue of guilt. The rules of evidence promulgated pursuant
3.18to section 480.0591 and the law of evidence shall apply in adjudicatory proceedings
3.19involving a child alleged to be delinquent, an extended jurisdiction juvenile, or a juvenile
3.20petty offender, and hearings conducted pursuant to section 260B.125 except to the extent
3.21that the rules themselves provide that they do not apply.
3.22(b) When a continuance or adjournment is ordered in any proceeding, the court may
3.23make any interim orders as it deems in the best interests of the minor in accordance with
3.24the provisions of sections 260B.001 to 260B.421.
3.25(c) Except as otherwise provided in this paragraph, the court shall exclude the
3.26general public from hearings under this chapter and shall admit only those persons who, in
3.27the discretion of the court, have a direct interest in the case or in the work of the court. The
3.28court shall permit the victim of a child's delinquent act to attend any related delinquency
3.29proceeding, except that the court may exclude the victim:
3.30(1) as a witness under the Rules of Criminal Procedure; and
3.31(2) from portions of a certification hearing to discuss psychological material or other
3.32evidence that would not be accessible to the public.
3.33The court shall open the hearings to the public in delinquency certification or extended
3.34jurisdiction juvenile proceedings where the child is alleged to have committed an offense
3.35or has been proven to have committed an offense that would be a felony if committed
4.1by an adult and the child was at least 16 years of age at the time of the offense, except
4.2that the court may exclude the public from portions of a certification hearing to discuss
4.3psychological material or other evidence that would not be accessible to the public in
4.4an adult proceeding. The court shall open the hearings to the public in delinquency
4.5proceedings where the child is alleged to have committed an offense or has been proven
4.6to have committed an offense that would be a felony if committed by an adult and the
4.7child was at least 16 years of age at the time of the offense, if the court determines that,
4.8due to the violent or serious nature of the alleged offense, the benefit to public safety of
4.9holding an open hearing outweighs the potential consequences for the child due to the
4.10resulting public record.
4.11(d) In all delinquency cases a person named in the charging clause of the petition
4.12as a person directly damaged in person or property shall be entitled, upon request, to be
4.13notified by the court administrator in writing, at the named person's last known address, of
4.14(1) the date of the certification or adjudicatory hearings, and (2) the disposition of the case.

4.15    Sec. 5. Minnesota Statutes 2010, section 260C.331, subdivision 3, is amended to read:
4.16    Subd. 3. Court expenses. The following expenses are a charge upon the county
4.17in which proceedings are held upon certification of the judge of juvenile court or upon
4.18such other authorization provided by law:
4.19(1) the fees and mileage of witnesses, and the expenses and mileage of officers
4.20serving notices and subpoenas ordered by the court, as prescribed by law;
4.21(2) the expense of transporting a child to a place designated by a child-placing agency
4.22for the care of the child if the court transfers legal custody to a child-placing agency;
4.23(3) the expense of transporting a minor to a place designated by the court;
4.24(4) reasonable compensation for an attorney appointed by the court to serve as
4.25counsel.
4.26The State Guardian Ad Litem Board shall pay for guardian ad litem expenses
4.27and reasonable compensation for an attorney to serve as counsel for a guardian ad
4.28litem, if necessary. In no event may the court order that guardian ad litem expenses or
4.29compensation for an attorney serving as counsel for a guardian ad litem be charged to
4.30a county.

4.31    Sec. 6. Minnesota Statutes 2010, section 279.37, subdivision 8, is amended to read:
4.32    Subd. 8. Fees. The party or parties making such confession of judgment shall pay
4.33the county auditor a fee as set by the county board to defray the costs of processing the
4.34confession of judgment and making the annual billings required. Fees as set by the county
5.1board shall be paid to the court administrator of the court for entry of judgment and for
5.2the entry of each full or partial release thereof. The fees paid to the court administrator
5.3under this section are in lieu of the fees provided for in section 357.021. Fees collected
5.4under this section and shall be processed by the county and credited to the general revenue
5.5fund of the county.

5.6    Sec. 7. Minnesota Statutes 2010, section 357.021, subdivision 6, is amended to read:
5.7    Subd. 6. Surcharges on criminal and traffic offenders. (a) Except as provided
5.8in this paragraph, the court shall impose and the court administrator shall collect a $75
5.9surcharge on every person convicted of any felony, gross misdemeanor, misdemeanor, or
5.10petty misdemeanor offense, other than a violation of a law or ordinance relating to vehicle
5.11parking, for which there shall be a $12 surcharge. When a defendant is convicted of more
5.12than one offense in a case, the surcharge shall be imposed only once in that case. In the
5.13Second Judicial District, the court shall impose, and the court administrator shall collect,
5.14an additional $1 surcharge on every person convicted of any felony, gross misdemeanor,
5.15misdemeanor, or petty misdemeanor offense, including a violation of a law or ordinance
5.16relating to vehicle parking, if the Ramsey County Board of Commissioners authorizes the
5.17$1 surcharge. The surcharge shall be imposed whether or not the person is sentenced to
5.18imprisonment or the sentence is stayed. The surcharge shall not be imposed when a person
5.19is convicted of a petty misdemeanor for which no fine is imposed.
5.20    (b) If the court fails to impose a surcharge as required by this subdivision, the court
5.21administrator shall show the imposition of the surcharge, collect the surcharge, and
5.22correct the record.
5.23    (c) The court may not waive payment of the surcharge required under this
5.24subdivision. Upon a showing of indigency or undue hardship upon the convicted person
5.25or the convicted person's immediate family, the sentencing court may authorize payment
5.26of the surcharge in installments.
5.27    (d) The court administrator or other entity collecting a surcharge shall forward it to
5.28the commissioner of management and budget.
5.29    (e) If the convicted person is sentenced to imprisonment and has not paid the
5.30surcharge before the term of imprisonment begins, the chief executive officer of the
5.31correctional facility in which the convicted person is incarcerated shall collect the
5.32surcharge from any earnings the inmate accrues from work performed in the facility
5.33or while on conditional release. The chief executive officer shall forward the amount
5.34collected to the court administrator or other entity collecting the surcharge imposed by
5.35the court.
6.1(f) A person who successfully completes a diversion or similar program enters
6.2a diversion program, continuance without prosecution, continuance for dismissal, or
6.3stay of adjudication for a violation of chapter 169 must pay the surcharge described in
6.4this subdivision. A surcharge imposed under this paragraph shall be imposed only once
6.5per case.
6.6(g) The surcharge does not apply to administrative citations issued pursuant to
6.7section 169.999.

6.8    Sec. 8. Minnesota Statutes 2010, section 359.061, subdivision 1, is amended to read:
6.9    Subdivision 1. Resident notaries. The commission of every notary commissioned
6.10under section 359.01, together with: (1) a signature that matches the first, middle, and
6.11last name as listed on the notary's commission and shown on the notarial stamp, and (2) a
6.12sample signature in the style in which the notary will actually execute notarial acts, shall
6.13be recorded in the office of the court administrator of the district court local registrar of
6.14the notary's county of residence or in the county department to which duties relating to
6.15notaries public have been assigned under section 485.27, in a record kept for that purpose.

6.16    Sec. 9. Minnesota Statutes 2010, section 359.061, subdivision 2, is amended to read:
6.17    Subd. 2. Nonresident notaries. The commission of a nonresident notary must
6.18be recorded in the Minnesota county the notary designates pursuant to section 359.01,
6.19subdivision 2, clause (3), in the office of the court administrator of the district court of that
6.20county or in the county department to which duties relating to notaries public have been
6.21assigned under section 485.27.

6.22    Sec. 10. Minnesota Statutes 2010, section 514.69, is amended to read:
6.23514.69 FILE WITH COURT ADMINISTRATOR OF THE DISTRICT
6.24COURT COUNTY.
6.25    Subdivision 1. Perfection of hospital's lien. In order to perfect such lien, the
6.26operator of such hospital, before, or within ten days after, such person shall have been
6.27discharged therefrom, shall file in the office of the court administrator of the district court
6.28county office assigned this duty by the county board pursuant to section 485.27 of the
6.29county in which such hospital shall be located a verified statement in writing setting forth
6.30the name and address of such patient, as it shall appear on the records of such hospital,
6.31the name and location of such hospital and the name and address of the operator thereof,
6.32the dates of admission to and discharge of such patient therefrom, the amount claimed
6.33to be due for such hospital care, and, to the best of claimant's knowledge, the names and
7.1addresses of all persons, firms, or corporations claimed by such injured person, or the
7.2legal representatives of such person, to be liable for damages arising from such injuries;
7.3such claimant shall also, within one day after the filing of such claim or lien, mail a copy
7.4thereof, by certified mail, to each person, firm, or corporation so claimed to be liable for
7.5such damages to the address so given in such statement. The filing of such claim or
7.6lien shall be notice thereof to all persons, firms, or corporations liable for such damages
7.7whether or not they are named in such claim or lien.
7.8    Subd. 2. Perfection of public assistance lien. In the case of public assistance liens
7.9filed under section 256.015 or 256B.042, the state agency may perfect its lien by filing its
7.10verified statement in the office of the court administrator county office assigned this duty
7.11by the county board pursuant to section 485.27 in the county of financial responsibility for
7.12the public assistance paid. The court administrator county office shall record the lien in
7.13the same manner as provided in section 514.70.

7.14    Sec. 11. Minnesota Statutes 2010, section 514.70, is amended to read:
7.15514.70 COURT ADMINISTRATOR COUNTY TO PROVIDE RECORD.
7.16The court administrator county office assigned this duty by the county board
7.17pursuant to section 485.27 shall endorse thereon the date and hour of filing and, at the
7.18expense of the county, shall provide a hospital lien book with proper index in which the
7.19court administrator county office shall enter the date and hour of such filing, the names
7.20and addresses of such hospital, the operators thereof and of such patient, the amount
7.21claimed and the names and addresses of those claimed to be liable for damages. The
7.22court administrator county office shall be paid $5 as a fee for such filing and $5 as a fee
7.23for filing each lien satisfaction.

7.24    Sec. 12. Minnesota Statutes 2010, section 518.552, is amended by adding a subdivision
7.25to read:
7.26    Subd. 6. Maintenance calculated after child support. The amount of the
7.27maintenance award, if any, must be determined after the court determines the amount of
7.28child support to be paid.
7.29EFFECTIVE DATE.This section is effective for all dissolution actions filed on
7.30or after January 1, 2012.

7.31    Sec. 13. Minnesota Statutes 2010, section 518A.29, is amended to read:
7.32518A.29 CALCULATION OF GROSS INCOME.
8.1    (a) Subject to the exclusions and deductions in this section, gross income includes
8.2any form of periodic payment to an individual, including, but not limited to, salaries,
8.3wages, commissions, self-employment income under section 518A.30, workers'
8.4compensation, unemployment benefits, annuity payments, military and naval retirement,
8.5pension and disability payments, court ordered spousal maintenance received under
8.6a previous order or the current proceeding from a person other than a parent of the
8.7joint child, Social Security or veterans benefits provided for a joint child under section
8.8518A.31 , and potential income under section 518A.32. Salaries, wages, commissions,
8.9or other compensation paid by third parties shall be based upon gross income before
8.10participation in an employer-sponsored benefit plan that allows an employee to pay for a
8.11benefit or expense using pretax dollars, such as flexible spending plans and health savings
8.12accounts. No deductions shall be allowed for contributions to pensions, 401-K, IRA, or
8.13other retirement benefits.
8.14    (b) Gross income does not include compensation received by a party for employment
8.15in excess of a 40-hour work week, provided that:
8.16    (1) child support is ordered in an amount at least equal to the guideline amount
8.17based on gross income not excluded under this clause; and
8.18    (2) the party demonstrates, and the court finds, that:
8.19    (i) the excess employment began after the filing of the petition for dissolution or
8.20legal separation or a petition related to custody, parenting time, or support;
8.21    (ii) the excess employment reflects an increase in the work schedule or hours worked
8.22over that of the two years immediately preceding the filing of the petition;
8.23    (iii) the excess employment is voluntary and not a condition of employment;
8.24    (iv) the excess employment is in the nature of additional, part-time or overtime
8.25employment compensable by the hour or fraction of an hour; and
8.26    (v) the party's compensation structure has not been changed for the purpose of
8.27affecting a support or maintenance obligation.
8.28    (c) Expense reimbursements or in-kind payments received by a parent in the course
8.29of employment, self-employment, or operation of a business shall be counted as income
8.30if they reduce personal living expenses.
8.31    (d) Gross income may be calculated on either an annual or monthly basis. Weekly
8.32income shall be translated to monthly income by multiplying the weekly income by 4.33.
8.33    (e) Gross income does not include a child support payment received by a party. It
8.34is a rebuttable presumption that adoption assistance payments, guardianship assistance
8.35payments, and foster care subsidies are not gross income.
9.1    (f) Gross income does not include the income of the obligor's spouse and the
9.2obligee's spouse.
9.3(g) Child support or spousal maintenance payments ordered by a court for a nonjoint
9.4child or former spouse or ordered payable to the other party as part of the current
9.5proceeding person other than a parent of the joint child are deducted from other periodic
9.6payments received by a party for purposes of determining gross income.
9.7(h) Gross income does not include public assistance benefits received under section
9.8256.741 or other forms of public assistance based on need.
9.9EFFECTIVE DATE.This section is effective for all dissolution actions filed on
9.10or after January 1, 2012.

9.11    Sec. 14. Minnesota Statutes 2010, section 518B.01, subdivision 8, is amended to read:
9.12    Subd. 8. Service; alternate service; publication; notice. (a) The petition and any
9.13order issued under this section other than orders for dismissal shall be served on the
9.14respondent personally. Orders for dismissal may be served personally or by United States
9.15mail. In lieu of personal service of an order for protection, a law enforcement officer may
9.16serve a person with a short form notification as provided in subdivision 8a.
9.17(b) When service is made out of this state and in the United States, it may be proved
9.18by the affidavit of the person making the service. When service is made outside the United
9.19States, it may be proved by the affidavit of the person making the service, taken before
9.20and certified by any United States minister, charge d'affaires, commissioner, consul, or
9.21commercial agent, or other consular or diplomatic officer of the United States appointed to
9.22reside in the other country, including all deputies or other representatives of the officer
9.23authorized to perform their duties; or before an office authorized to administer an oath
9.24with the certificate of an officer of a court of record of the country in which the affidavit is
9.25taken as to the identity and authority of the officer taking the affidavit.
9.26(c) If personal service cannot be made, the court may order service of the petition
9.27and any order issued under this section by alternate means, or by publication, which
9.28publication must be made as in other actions. The application for alternate service must
9.29include the last known location of the respondent; the petitioner's most recent contacts
9.30with the respondent; the last known location of the respondent's employment; the names
9.31and locations of the respondent's parents, siblings, children, and other close relatives;
9.32the names and locations of other persons who are likely to know the respondent's
9.33whereabouts; and a description of efforts to locate those persons.
9.34The court shall consider the length of time the respondent's location has been
9.35unknown, the likelihood that the respondent's location will become known, the nature
10.1of the relief sought, and the nature of efforts made to locate the respondent. The court
10.2shall order service by first class mail, forwarding address requested, to any addresses
10.3where there is a reasonable possibility that mail or information will be forwarded or
10.4communicated to the respondent.
10.5The court may also order publication, within or without the state, but only if it might
10.6reasonably succeed in notifying the respondent of the proceeding. Service shall be deemed
10.7complete 14 days after mailing or 14 days after court-ordered publication.
10.8(d) A petition and any order issued under this section, including the short form
10.9notification, must include a notice to the respondent that if an order for protection is issued
10.10to protect the petitioner or a child of the parties, upon request of the petitioner in any
10.11parenting time proceeding, the court shall consider the order for protection in making a
10.12decision regarding parenting time.

10.13    Sec. 15. Minnesota Statutes 2010, section 525.091, subdivision 1, is amended to read:
10.14    Subdivision 1. Original documents. (a) The court administrator of any county upon
10.15order of the judge exercising probate jurisdiction may destroy all the original documents
10.16in any probate proceeding of record in the office after the file in such proceeding has
10.17been closed provided the original or a Minnesota state archives commission approved
10.18photographic, photostatic, microphotographic, microfilmed, digitally imaged, electronic,
10.19or similarly reproduced copy of the original of the following enumerated documents in the
10.20proceeding are on file in the office. After the file in the proceeding has been closed only
10.21the following enumerated documents need to be retained:
10.22Enumerated original documents:
10.23(a) (1) in estates, the jurisdictional petition and proof of publication of the notice
10.24of hearing thereof; will and certificate of probate; letters; inventory and appraisal; orders
10.25directing and confirming sale, mortgage, lease, or for conveyance of real estate; order
10.26setting apart statutory selection; receipts for federal estate taxes and state estate taxes;
10.27orders of distribution and general protection; decrees of distribution; federal estate tax
10.28closing letter, consent to discharge by commissioner of revenue and order discharging
10.29representative; and any amendment of the listed documents. When an estate is deemed
10.30closed as provided in clause (d) paragraph (b), the enumerated documents shall include
10.31all claims of creditors.;
10.32(b) (2) in guardianships or conservatorships, the jurisdictional petition and order
10.33for hearing thereof with proof of service; letters; orders directing and confirming sale,
10.34mortgage, lease or for conveyance of real estate; order for restoration to capacity and order
10.35discharging guardian; and any amendment of the listed documents.; and
11.1(c) (3) in mental, inebriety, and indigent matters, the jurisdictional petition; report of
11.2examination; warrant of commitment; notice of discharge from institution, or notice of
11.3death and order for restoration to capacity; and any amendment of the listed documents.
11.4(d) (b) Except for the enumerated documents described in this subdivision, the
11.5court administrator may destroy all other original documents in any probate proceeding
11.6without retaining any reproduction of the document. For the purpose of this subdivision,
11.7a proceeding is deemed closed if no document has been filed in the proceeding for a
11.8period of 15 years, except in the cases of wills filed for safekeeping and those containing
11.9wills of decedents not adjudicated upon.

11.10    Sec. 16. Minnesota Statutes 2010, section 525.091, subdivision 3, is amended to read:
11.11    Subd. 3. Effect of copies. A photographic, photostatic, microphotographic,
11.12microfilmed, digitally imaged, electronic, or similarly reproduced record is of the same
11.13force and effect as the original and may be used as the original document or book of
11.14record in all proceedings.

11.15    Sec. 17. Minnesota Statutes 2010, section 563.01, subdivision 3, is amended to read:
11.16    Subd. 3. Authorization of forma pauperis. (a) Any court of the state of Minnesota
11.17or any political subdivision thereof may authorize the commencement or defense of any
11.18civil action, or appeal therein, without prepayment of fees, costs and security for costs by
11.19a natural person who makes affidavit stating (a) the nature of the action, defense or appeal,
11.20(b) a belief that affiant is entitled to redress, and (c) that affiant is financially unable to
11.21pay the fees, costs and security for costs.
11.22(b) Upon a finding by the court that the action is not of a frivolous nature, the court
11.23shall allow the person to proceed in forma pauperis if the affidavit is substantially in the
11.24language required by this subdivision and is not found by the court to be untrue. Persons
11.25meeting the requirements of this subdivision include, but are not limited to, a person who
11.26is receiving public assistance, who is represented by an attorney on behalf of a civil legal
11.27services program or a volunteer attorney program based on indigency, or who has an
11.28annual income not greater than 125 percent of the poverty line established under United
11.29States Code, title 42, section 9902(2), except as otherwise provided by section 563.02.
11.30(c) If, at or following commencement of the action, the party is or becomes able
11.31to pay a portion of the fees, costs, and security for costs, the court may order any of
11.32the following:
11.33(1) payment of a fee of not less than $75;
11.34(2) partial payment of fees, costs, and security for costs; or
12.1(3) reimbursement of all or a portion of fees, costs, and security for costs paid in
12.2monthly payments as directed by the court.
12.3The court administrator shall transmit any fees or payments to the commissioner of
12.4management and budget for deposit in the state treasury and credit them to the general
12.5fund.
12.6EFFECTIVE DATE.This section is effective July 1, 2011.


12.9    Section 1. Minnesota Statutes 2010, section 524.2-712, is amended to read:
12.10524.2-712 DECEDENTS DYING AFTER DECEMBER 31, 2009, AND
12.11BEFORE JANUARY 1, 2011; FORMULA CLAUSES TO BE CONSTRUED TO
12.12REFER TO FEDERAL ESTATE TAX AND FEDERAL GENERATION-SKIPPING
12.13TRANSFER TAX LAWS.
12.14(a) A governing instrument, including a will or trust agreement, of a decedent who
12.15dies after December 31, 2009, and before January 1, 2011, that contains a formula or
12.16provision referring to the "unified credit," "estate tax exemption," "applicable exemption
12.17amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
12.18transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
12.19deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
12.20any section of the Internal Revenue Code relating to the federal estate tax or federal
12.21generation-skipping transfer tax, or that measures a share of an estate or trust by reference
12.22to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
12.23the federal estate tax and federal generation-skipping transfer tax laws as they applied with
12.24respect to the estates of decedents dying on December 31, 2009. This paragraph does not
12.25apply to a governing instrument, including a will or trust agreement, that manifests an
12.26intent that a contrary rule will apply if the decedent dies on a date on which there is no
12.27then-applicable federal estate or federal generation-skipping transfer tax.
12.28(b) If the federal estate or federal generation-skipping transfer tax becomes effective
12.29before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) is deemed
12.30to refer to the first date on which this tax becomes legally effective, instead of January 1,
12.312011.
12.32(c) (b) The personal representative, trustee, or any interested person under the
12.33governing instrument, including a will or trust agreement, may bring a proceeding
12.34to determine whether the decedent intended that a formula or provision described in
12.35paragraph (a) be construed with respect to the law as it existed after December 31, 2009.
13.1This proceeding must be commenced by December 31, 2011., and the court may consider
13.2extrinsic evidence that contradicts the plain meaning of the will, trust, or other governing
13.3instrument. The court may modify a provision of a will, trust, or other governing
13.4instrument that refers to the federal estate tax or generation-skipping transfer tax laws as
13.5described in paragraph (a) to conform the terms to the decedent's intention, or achieve
13.6the decedent's tax objectives in a manner that is not contrary to the decedent's probable
13.7intention. The court may provide that its decision, including any decision to modify
13.8a provision of a will, trust, or other governing instrument, is effective as of the date of
13.9the decedent's death.


13.12    Section 1. Minnesota Statutes 2010, section 524.2-1103, is amended to read:
13.13524.2-1103 SCOPE.
13.14Sections 524.2-1101 to 524.2-1116 apply to disclaimers of any interest in or power
13.15over property, whenever created. Except as provided in section 524.2-1116, sections
13.16524.2-1101 to 524.2-1116 are the exclusive means by which a disclaimer may be made
13.17under Minnesota law regardless of whether it is qualified under section 2518 of the
13.18Internal Revenue Code of 1986 in effect on January 1, 2010 as defined in section 291.005,
13.19subdivision 1, clause 3.

13.20    Sec. 2. Minnesota Statutes 2010, section 524.2-1104, is amended to read:
13.21524.2-1104 TAX-QUALIFIED DISCLAIMER.
13.22Notwithstanding any other provision of this chapter, other than section 524.2-1106,
13.23if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated
13.24pursuant to the provisions of section 2518 of the Internal Revenue Code of 1986, as in
13.25effect on January 1, 2010 defined in section 291.005, subdivision 1, clause 3, as never
13.26having been transferred to the disclaimant, then the disclaimer or transfer is effective as a
13.27disclaimer under sections 524.2-1101 to 524.2-1116.

13.28    Sec. 3. Minnesota Statutes 2010, section 524.2-1106, is amended to read:
13.29524.2-1106 WHEN DISCLAIMER IS BARRED OR LIMITED.
13.30(a) A disclaimer is barred by a written waiver of the right to disclaim.
13.31(b) A disclaimer of an interest in property is barred if any of the following events
13.32occur before the disclaimer becomes effective:
13.33(1) the disclaimant accepts the portion of the interest sought to be disclaimed;
14.1(2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the
14.2portion of the interest sought to be disclaimed or contracts to do so;
14.3(3) the portion of the interest sought to be disclaimed is sold pursuant to a judicial
14.4sale; or
14.5(4) the disclaimant is insolvent when the disclaimer becomes irrevocable.
14.6(c) Acceptance of a distribution from a trust shall constitute acceptance of only
14.7that portion of the beneficial interest in that trust that has been distributed, and shall not
14.8constitute acceptance or bar disclaimer of that portion of the beneficial interest in the trust
14.9that has not yet been distributed.
14.10(c) (d) A disclaimer, in whole or in part, of the future exercise of a power held in a
14.11fiduciary capacity is not barred by its previous exercise.
14.12(d) (e) A disclaimer, in whole or in part, of the future exercise of a power not held in
14.13a fiduciary capacity is not barred by its previous exercise unless the power is exercisable
14.14in favor of the disclaimant.
14.15(e) (f) A disclaimer of an interest in, or a power over, property which is barred by
14.16this section is ineffective.

14.17    Sec. 4. Minnesota Statutes 2010, section 524.2-1107, is amended to read:
14.18524.2-1107 POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN
14.19IRREVOCABLE.
14.20(a) A person may disclaim, in whole or in part, any interest in or power over
14.21property, including a power of appointment. A person may disclaim the interest or power
14.22even if its creator imposed a spendthrift provision or similar restriction on transfer or a
14.23restriction or limitation on the right to disclaim.
14.24(b) With court approval, a fiduciary may disclaim, in whole or in part, any interest in
14.25or power over property, including a power of appointment when acting in a representative
14.26capacity. Without court approval, a fiduciary may disclaim, in whole or in part, any interest
14.27in or power over property, including a power of appointment, if and to the extent that the
14.28instrument creating the fiduciary relationship explicitly grants the fiduciary the right to
14.29disclaim. With court approval, a custodial parent may disclaim on behalf of a minor child
14.30for whom no conservator has been appointed, in whole or in part, any interest in or power
14.31over property, including a power of appointment, which the minor child is to receive.
14.32(c) To be effective, a disclaimer must be in writing, declare the writing as a
14.33disclaimer, describe the interest or power disclaimed, and be signed by the person or
14.34fiduciary making the disclaimer and acknowledged in the manner provided for deeds of
14.35real estate to be recorded in this state. In addition, for a disclaimer to be effective, an
15.1original of the disclaimer must be delivered or filed in the manner provided in section
15.2524.2-1114 .
15.3(d) A partial disclaimer may be expressed as a fraction, percentage, monetary
15.4amount, specific property, term of years, portion of a beneficial interest in or right to
15.5distributions from a trust, limitation of a power, or any other interest or estate in the
15.6property.
15.7(e) A disclaimer becomes irrevocable when the disclaimer is delivered or filed
15.8pursuant to section 524.2-1114 or it becomes effective as provided in sections 524.2-1108
15.9to 524.2-1113, whichever occurs later.
15.10(f) A disclaimer made under sections 524.2-1101 to 524.2-1116 is not a transfer,
15.11assignment, or release.

15.12    Sec. 5. Minnesota Statutes 2010, section 524.2-1114, is amended to read:
15.13524.2-1114 DELIVERY OR FILING.
15.14(a) Subject to paragraphs (b) to (l), delivery of a disclaimer may be effective
15.15by personal delivery, first-class mail, or any other method that results in its receipt.
15.16A disclaimer sent by first-class mail is deemed to have been delivered on the date it is
15.17postmarked. Delivery by any other method is effective upon receipt by the person to
15.18whom the disclaimer is to be delivered under this section.
15.19(b) In the case of a disclaimer of an interest created under the law of intestate
15.20succession or an interest created by will, other than an interest in a testamentary trust:
15.21(1) the disclaimer must be delivered to the personal representative of the decedent's
15.22estate; or
15.23(2) if no personal representative is serving when the disclaimer is sought to be
15.24delivered, the disclaimer must be filed with the clerk of the court in any county where
15.25venue of administration would be proper.
15.26(c) In the case of a disclaimer of an interest in a testamentary trust:
15.27(1) the disclaimer must be delivered to the trustee serving when the disclaimer is
15.28delivered or, if no trustee is then serving, to the personal representative of the decedent's
15.29estate; or
15.30(2) if no personal representative is serving when the disclaimer is sought to be
15.31delivered, the disclaimer must be filed with the clerk of the court in any county where
15.32venue of administration of the decedent's estate would be proper.
15.33(d) In the case of a disclaimer of an interest in an inter vivos trust:
15.34(1) the disclaimer must be delivered to the trustee serving when the disclaimer is
15.35delivered;
16.1(2) if no trustee is then serving, it must be filed with the clerk of the court in any
16.2county where the filing of a notice of trust would be proper; or
16.3(3) if the disclaimer is made before the time the instrument creating the trust becomes
16.4irrevocable, the disclaimer must be delivered to the person with the power to revoke the
16.5revocable trust or the transferor of the interest or to such person's legal representative.
16.6(e) In the case of a disclaimer of an interest created by a beneficiary designation made
16.7before the time the designation becomes irrevocable, the disclaimer must be delivered to
16.8the person making the beneficiary designation or to such person's legal representative.
16.9(f) In the case of a disclaimer of an interest created by a beneficiary designation
16.10made after the time the designation becomes irrevocable, the disclaimer must be delivered
16.11to the person obligated to distribute the interest.
16.12(g) In the case of a disclaimer by a surviving holder of jointly held property, the
16.13disclaimer must be delivered to the person to whom the disclaimed interest passes or, if
16.14such person cannot reasonably be located by the disclaimant, the disclaimer must be
16.15delivered as provided in paragraph (b).
16.16(h) In the case of a disclaimer by an object, or taker in default of exercise, of a
16.17power of appointment at any time after the power was created, the disclaimer must be
16.18delivered to:
16.19(1) the holder of the power; or
16.20(2) the fiduciary acting under the instrument that created the power or, if no fiduciary
16.21is serving when the disclaimer is sought to be delivered, filed with a court having authority
16.22to appoint the fiduciary.
16.23(i) In the case of a disclaimer by an appointee of a nonfiduciary power of
16.24appointment, the disclaimer must be delivered to:
16.25(1) the holder of the power or the personal representative of the holder's estate; or
16.26(2) the fiduciary under the instrument that created the power or, if no fiduciary is
16.27serving when the disclaimer is sought to be delivered, filed with a court having authority
16.28to appoint the fiduciary.
16.29(j) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the
16.30disclaimer must be delivered as provided in paragraph (b), (c), or (d) as if the power
16.31disclaimed were an interest in property.
16.32(k) In the case of a disclaimer of a power exercisable by an agent, other than a power
16.33exercisable by a fiduciary over a trust or estate, the disclaimer must be delivered to the
16.34principal or the principal's representative.
16.35(l) Notwithstanding paragraph (a), delivery of a disclaimer of an interest in or
16.36relating to real estate shall be presumed upon the recording of the disclaimer in the office
17.1of the clerk of the court county recorder or registrar of titles of the county or counties
17.2where the real estate is located.
17.3(m) A fiduciary or other person having custody of the disclaimed interest is not
17.4liable for any otherwise proper distribution or other disposition made without actual
17.5notice of the disclaimer or, if the disclaimer is barred under section 524.2-1106, for any
17.6otherwise proper distribution or other disposition made in reliance on the disclaimer, if
17.7the distribution or disposition is made without actual knowledge of the facts constituting
17.8the bar of the right to disclaim.

17.9    Sec. 6. Minnesota Statutes 2010, section 524.2-1115, is amended to read:
17.10524.2-1115 RECORDING OF DISCLAIMER RELATING TO REAL ESTATE.
17.11(a) A disclaimer of an interest in or relating to real estate does not provide
17.12constructive notice to all persons unless the disclaimer contains a legal description of the
17.13real estate to which the disclaimer relates and unless the disclaimer is filed for recording
17.14recorded in the office of the county recorder or registrar of titles in the county or counties
17.15where the real estate is located.
17.16(b) An effective disclaimer meeting the requirements of paragraph (a) constitutes
17.17constructive notice to all persons from the time of filing recording. Failure to record the
17.18disclaimer does not affect its validity as between the disclaimant and persons to whom the
17.19property interest or power passes by reason of the disclaimer.

17.20    Sec. 7. Minnesota Statutes 2010, section 524.2-1116, is amended to read:
17.21524.2-1116 APPLICATION TO EXISTING RELATIONSHIPS.
17.22Except as otherwise provided in section 524.2-1106, an Sections 524.2-1101 to
17.23524.2-1116 apply to disclaimers of any interest in or power over property existing on
17.24January 1, 2010, as to which the time for delivering or filing a disclaimer under laws
17.25superseded by sections 524.2-1101 to 524.2-1116 has not expired, may be disclaimed
17.26after January 1, 2010 whenever created.


17.29    Section 1. Minnesota Statutes 2010, section 524.5-502, is amended to read:
17.30524.5-502 COMPENSATION AND EXPENSES.
17.31(a) The court may authorize a proceeding under this article to proceed in forma
17.32pauperis, as provided in chapter 563.
18.1(b) In proceedings under this article, a lawyer or health professional rendering
18.2necessary services with regard to the appointment of a guardian or conservator, the
18.3administration of the ward's or protected person's estate or personal affairs, or the
18.4restoration of that person's capacity or termination of the protective proceeding shall be
18.5entitled to compensation from the ward's or protected person's estate or from the county
18.6having jurisdiction over the proceedings if the ward or protected person is indigent. When
18.7the court determines that other necessary services have been provided for the benefit of the
18.8ward or protected person by a lawyer or health professional, the court may order fees to be
18.9paid from the estate of the ward or protected person or from the county having jurisdiction
18.10over the proceedings if the ward or protected person is indigent. If, however, the court
18.11determines that a petitioner, guardian, or conservator has not acted in good faith, the court
18.12shall order some or all of the fees or costs incurred in the proceedings to be borne by the
18.13petitioner, guardian, or conservator not acting in good faith. In determining compensation
18.14for a guardian or conservator of an indigent person, the court shall consider a fee schedule
18.15recommended by the Board of County Commissioners. The fee schedule may also include
18.16a maximum compensation based on the living arrangements of the ward or protected
18.17person. If these services are provided by a public or private agency, the county may
18.18contract on a fee-for-service basis with that agency.
18.19(c) When the court determines that a guardian or conservator has rendered necessary
18.20services or has incurred necessary expenses for the benefit of the ward or protected person,
18.21the court may order reimbursement or compensation to be paid from the estate of the
18.22ward or protected person or from the county having jurisdiction over the guardianship
18.23or protective proceeding if the ward or protected person is indigent. The court may not
18.24deny an award of fees solely because the ward or protected person is a recipient of
18.25medical assistance. In determining compensation for a guardian or conservator of an
18.26indigent person, the court shall consider a fee schedule recommended by the Board of
18.27County Commissioners. The fee schedule may also include a maximum compensation
18.28based on the living arrangements of the ward or protected person. If these services are
18.29provided by a public or private agency, the county may contract on a fee-for-service
18.30basis with that agency.
18.31(d) The court shall order reimbursement or compensation if the guardian or
18.32conservator requests payment and the guardian or conservator was nominated by the court
18.33or by the county adult protection unit because no suitable relative or other person was
18.34available to provide guardianship or protective proceeding services necessary to prevent
18.35maltreatment of a vulnerable adult, as defined in section 626.5572, subdivision 15. In
18.36determining compensation for a guardian or conservator of an indigent person, the court
19.1shall consider a fee schedule recommended by the Board of County Commissioners. The
19.2fee schedule may also include a maximum compensation based on the living arrangements
19.3of the ward or protected person. If these services are provided by a public or private
19.4agency, the county may contract on a fee-for-service basis with that agency.
19.5(e) When a county employee serves as a guardian or conservator as part of
19.6employment duties, the court shall order compensation if the guardian or conservator
19.7performs necessary services that are not compensated by the county. The court may order
19.8reimbursement to the county from the ward's or protected person's estate for compensation
19.9paid by the county for services rendered by a guardian or conservator who is a county
19.10employee but only if the county shows that after a diligent effort it was unable to arrange
19.11for an independent guardian or conservator.


19.14    Section 1. [576.21] DEFINITIONS.
19.15(a) The definitions in this section apply throughout this chapter unless the context
19.16requires otherwise.
19.17(b) "Court" means the district court in which the receivership is pending unless
19.18the context requires otherwise.
19.19(c) "Entity" means a person other than a natural person.
19.20(d) "Executory contract" means a contract, including a lease, where the obligations
19.21of both the respondent and the other party to the contract are unperformed to the extent
19.22that the failure of either party to complete performance of its obligations would constitute
19.23a material breach of the contract, thereby excusing the other party's performance of its
19.24obligations under the contract.
19.25(e) "Foreign receiver" means a receiver appointed in any foreign jurisdiction.
19.26(f) "Foreign jurisdiction" means any state or federal jurisdiction other than that of
19.27this state.
19.28(g) "General receiver" means the receiver appointed in a general receivership.
19.29(h) "General receivership" means a receivership over all or substantially all of
19.30the nonexempt property of a respondent for the purpose of liquidation and distribution
19.31to creditors and other parties in interest, including, without limitation, a receivership
19.32resulting from the appointment of a receiver pursuant to section 302A.753, 308A.945,
19.33308B.935, 317A.753, or 322B.836.
19.34(i) "Lien" means a charge against or interest in property to secure payment of a debt
19.35or the performance of an obligation, including any mortgage or security interest.
20.1(j) "Limited receiver" means the receiver appointed in a limited receivership.
20.2(k) "Limited receivership" means a receivership other than a general receivership.
20.3(l) "Party" means a person who is a party within the meaning of the Minnesota Rules
20.4of Civil Procedure in the action in which a receiver is appointed.
20.5(m) "Party in interest" includes the respondent, any equity security holder in the
20.6respondent, any person with an ownership interest in or lien on receivership property, and,
20.7in a general receivership, any creditor of the respondent.
20.8(n) "Person" has the meaning given it in section 645.44 and shall include limited
20.9liability companies, limited liability partnerships, and other entities recognized under
20.10the laws of this state.
20.11(o) "Property" means all of respondent's right, title, and interest, both legal and
20.12equitable, in real and personal property, regardless of the manner by which any of the
20.13same were or are acquired. Property includes, but is not limited to, any proceeds, products,
20.14offspring, rents, or profits of or from the property. Property does not include: (1) any power
20.15that the respondent may exercise solely for the benefit of another person, or (2) property
20.16impressed with a trust except to the extent that the respondent has a residual interest.
20.17(p) "Receiver" means a person appointed by the court as the court's agent, and
20.18subject to the court's direction, to take possession of, manage, and, if authorized by this
20.19chapter or order of the court, dispose of receivership property.
20.20(q) "Receivership" means the case in which the receiver is appointed, and, as the
20.21context requires, the proceeding in which the receiver takes possession of, manages,
20.22or disposes of the respondent's property.
20.23(r) "Receivership property" means (1) in the case of a general receivership, all
20.24or substantially all of the nonexempt property of the respondent, or (2) in the case of a
20.25limited receivership, that property of the respondent identified in the order appointing
20.26the receiver, or in any subsequent order.
20.27(s) "Respondent" means the person over whose property the receiver is appointed.
20.28(t) "State agent" and "state agency" means any office, department, division, bureau,
20.29board, commission, or other agency of the state of Minnesota or of any subdivision thereof,
20.30or any individual acting in an official capacity on behalf of any state agent or state agency.
20.31(u) "Time of appointment" means the date and time specified in the first order
20.32of appointment of a receiver or, if the date and time are not specified in the order of
20.33appointment, the date and time that the court ruled on the motion for the appointment of
20.34a receiver. Time of appointment does not mean any subsequent date or time, including
20.35the execution of a written order, the filing or docketing of a written order, or the posting
20.36of a bond.
21.1(v) "Utility" means a person providing any service regulated by the Public Utilities
21.2Commission.

21.3    Sec. 2. [576.22] APPLICABILITY OF CHAPTER AND OF COMMON LAW.
21.4(a) This chapter applies to receiverships provided for in section 576.25, subdivisions
21.52 to 6, and to receiverships:
21.6(1) pursuant to section 193.147, in connection with a mortgage on an armory;
21.7(2) pursuant to section 223.17, subdivision 8, paragraph (b), in connection with
21.8a defaulting grain buyer;
21.9(3) pursuant to section 232.22, subdivision 7, paragraph (c), in connection with a
21.10defaulting public grain warehouse;
21.11(4) pursuant to section 296A.22, in connection with nonpayment of tax;
21.12(5) pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or 322B.836,
21.13in an action relating to the dissolution of an entity and relating to, in like cases, property
21.14within the state of foreign entities;
21.15(6) pursuant to section 321.0703, in connection with the rights of a creditor of a
21.16partner or transferee;
21.17(7) pursuant to section 322.22, in connection with the rights of creditors of limited
21.18partners;
21.19(8) pursuant to section 323A.0504, in connection with a partner's transferable
21.20interest;
21.21(9) pursuant to section 453.55, in connection with bonds and notes;
21.22(10) pursuant to section 453A.05, in connection with bonds and notes;
21.23(11) pursuant to section 513.47, in connection with a proceeding for relief with
21.24respect to a transfer fraudulent as to a creditor or creditors;
21.25(12) pursuant to section 514.06, in connection with the severance of a building
21.26and resale;
21.27(13) pursuant to section 515.23, in connection with an action by a unit owners'
21.28association to foreclose a lien for nonpayment of delinquent assessments against
21.29condominium units;
21.30(14) pursuant to section 518A.71, in connection with the failure to pay, or to provide
21.31security for, maintenance or support payments;
21.32(15) pursuant to section 559.17, in connection with assignments of rents; however,
21.33any receiver appointed under section 559.17 shall be a limited receiver, and the court shall
21.34apply the provisions of this chapter to the extent not inconsistent with section 559.17;
22.1(16) pursuant to section 571.84, in connection with a garnishee in possession of
22.2property subject to a garnishment proceeding;
22.3(17) pursuant to section 575.05, in connection with property applied to judgment;
22.4(18) pursuant to section 575.06, in connection with adverse claimants;
22.5(19) pursuant to sections 582.05 to 582.10, in connection with mortgage
22.6foreclosures; however, any receiver appointed under sections 582.05 to 585.10 shall be a
22.7limited receiver, and the court shall apply the provisions of this chapter to the extent not
22.8inconsistent with sections 582.05 to 582.10;
22.9(20) pursuant to section 609.904, in connection with criminal penalties; or
22.10(21) pursuant to section 609.907, in connection with preservation of property
22.11subject to forfeiture.
22.12(b) This chapter does not apply to any receivership in which the receiver is a state
22.13agency or in which the receiver is appointed, controlled, or regulated by a state agency
22.14unless otherwise provided by law.
22.15(c) In receiverships not specifically referenced in paragraph (a) or (b), the court, in
22.16its discretion, may apply provisions of this chapter to the extent not inconsistent with
22.17the statutes establishing the receiverships.
22.18(d) Unless explicitly displaced by this chapter, the provisions of other statutory law
22.19and the principles of common law remain in full force and effect and supplement the
22.20provisions of this chapter.

22.21    Sec. 3. [576.23] POWERS OF THE COURT.
22.22The court has the exclusive authority to direct the receiver and the authority over
22.23all receivership property wherever located including, without limitation, authority
22.24to determine all controversies relating to the collection, preservation, improvement,
22.25disposition, and distribution of receivership property, and all matters otherwise arising
22.26in or relating to the receivership, the receivership property, the exercise of the receiver's
22.27powers, or the performance of the receiver's duties.

22.28    Sec. 4. [576.24] TYPES OF RECEIVERSHIPS.
22.29A receivership may be either a limited receivership or a general receivership.
22.30Any receivership which is based upon the enforcement of an assignment of rents or
22.31leases, or the foreclosure of a mortgage lien, judgment lien, mechanic's lien, or other lien
22.32pursuant to which the respondent or any holder of a lien would have a statutory right of
22.33redemption, shall be a limited receivership. If the order appointing the receiver does
22.34not specify whether the receivership is a limited receivership or a general receivership,
23.1the receivership shall be a limited receivership unless and until the court by later order
23.2designates the receivership as a general receivership, notwithstanding that pursuant to
23.3section 576.25, subdivision 8, a receiver may have control over all the property of the
23.4respondent. At any time, the court may order a general receivership to be converted to a
23.5limited receivership and a limited receivership to be converted to a general receivership.

23.6    Sec. 5. [576.25] APPOINTMENT OF RECEIVERS; RECEIVERSHIP NOT A
23.7TRUST.
23.8    Subdivision 1. No necessity of separate action. A receiver may be appointed under
23.9this chapter whether or not the motion for appointment of a receiver is combined with, or
23.10is ancillary to, an action seeking a money judgment.
23.11    Subd. 2. Before judgment. Except where judgment for failure to answer may be
23.12had without application to the court, a limited receiver may be appointed before judgment
23.13to protect any party to an action who demonstrates an apparent right to property that is the
23.14subject of the action and is in the possession of an adverse party, and that the property or
23.15its rents and profits are in danger of loss or material impairment.
23.16    Subd. 3. In a judgment or after judgment. A limited or general receiver may be
23.17appointed in a judgment or after judgment to carry the judgment into effect, to preserve
23.18property pending an appeal, or when an execution has been returned unsatisfied and the
23.19judgment debtor refuses to apply the property in satisfaction of the judgment.
23.20    Subd. 4. Entities. In addition to those situations specifically provided for in statute,
23.21a limited or general receiver may be appointed when a corporation or other entity is
23.22dissolved, insolvent, in imminent danger of insolvency, or has forfeited its corporate rights
23.23and in like cases of the property within the state of foreign corporations and other entities.
23.24    Subd. 5. Appointment of receiver of mortgaged property. (a) A limited
23.25receiver shall be appointed at any time after the commencement of mortgage foreclosure
23.26proceedings under chapter 580 or 581 and before the end of the period for redemption, if
23.27the mortgage being foreclosed:
23.28 (1) secures an original principal amount of $100,000 or more or is a lien upon
23.29residential real estate containing more than four dwelling units; and
23.30(2) is not a lien upon property that was entirely homesteaded, residential real
23.31estate containing four or fewer dwelling units where at least one unit is homesteaded;
23.32or agricultural property.
23.33The foreclosing mortgagee or the purchaser at foreclosure sale may at any time bring an
23.34action in the district court of the county in which the mortgaged property or any part
24.1thereof is located for the appointment of a receiver; provided, however, if the foreclosure
24.2is by action under chapter 581, a separate action need not be filed.
24.3(b) The court shall appoint a receiver upon a showing that the mortgagor has
24.4breached a covenant contained in the mortgage relating to any of the following:
24.5(1) application of tenant security deposits as required by section 504B.178;
24.6(2) payment when due of prior or current real estate taxes or special assessments
24.7with respect to the mortgaged property or the periodic escrow for the payment of the
24.8taxes or special assessments;
24.9(3) payment when due of premiums for insurance of the type required by the
24.10mortgage or the periodic escrow for the payment of the premiums; or
24.11(4) keeping of the covenants required of a landlord or licensor pursuant to section
24.12504B.161, subdivision 1.
24.13(c) The receiver shall be or shall retain an experienced property manager.
24.14(d) The receiver shall collect the rents, profits, and all other income of any kind.
24.15The receiver, after providing for payment of its reasonable fees and expenses, shall, to
24.16the extent possible and in the order determined by the receiver to preserve the value of
24.17the mortgaged property:
24.18(1) manage the mortgaged property so as to prevent waste;
24.19(2) execute contracts and leases within the period of the receivership, or beyond the
24.20period of the receivership if approved by the court;
24.21(3) pay the expenses listed in paragraph (b), clauses (1) to (3);
24.22(4) pay all expenses for normal maintenance of the mortgaged property; and
24.23(5) perform the terms of any assignment of rents that complies with section 559.17,
24.24subdivision 2.
24.25(e) The purchaser at a foreclosure sale shall have the right, at any time and without
24.26limitation as provided in section 582.03, to advance money to the receiver to pay any or
24.27all of the expenses that the receiver should otherwise pay if cash were available from
24.28the mortgaged property. Sums so advanced, with interest, shall be a part of the sum
24.29required to be paid to redeem from the sale. The sums shall be proved by the affidavit of
24.30the purchaser, an agent, or attorney, stating the expenses and describing the mortgaged
24.31property. The affidavit shall be furnished to the sheriff in the manner of expenses claimed
24.32under section 582.03.
24.33(f) Any sums collected that remain in the possession of the receiver at the
24.34termination of the receivership shall, in the event the termination of the receivership is
24.35due to the reinstatement of the mortgage debt or redemption of the mortgaged property by
24.36the mortgagor, be paid to the mortgagor; and in the event termination of the receivership
25.1occurs at the end of the period of redemption without redemption by the mortgagor
25.2or any other party entitled to redeem, interest accrued upon the sale price pursuant to
25.3section 580.23 or 581.10 shall be paid to the purchaser at the foreclosure sale. Any net
25.4sum remaining shall be paid to the mortgagor, except if the receiver was enforcing an
25.5assignment of rents that complies with section 559.17, subdivision 2, in which case any
25.6net sum remaining shall be paid pursuant to the terms of the assignment.
25.7(g) This subdivision applies to all mortgages executed on or after August 1, 1977,
25.8and to amendments or modifications thereto, and to amendments or modifications made on
25.9or after August 1, 1977, to mortgages executed before August 1, 1977, if the amendment
25.10or modification is duly recorded and is for the principle purpose of curing a default.
25.11    Subd. 6. Other cases. A receiver may be appointed in other cases as are provided
25.12by law, or in accord with existing practice, except as otherwise prescribed.
25.13    Subd. 7. Motion for appointment of receiver. The court may appoint a receiver
25.14upon a motion with notice to the respondent, to all other parties in the action, and to
25.15parties in interest and other persons as the court may require. Notice shall also be given
25.16to any judgment creditor who is seeking the appointment of a receiver in any other
25.17action. A motion to appoint a general receiver shall be treated as a dispositive motion.
25.18The court may appoint a receiver ex parte or on shortened notice on a temporary basis
25.19if it is clearly shown that an emergency exists requiring the immediate appointment of
25.20a receiver. In that event, the court shall set a hearing as soon as practicable and at the
25.21subsequent hearing, the burdens of proof shall be as would be applicable to a motion made
25.22on notice that is not expedited.
25.23    Subd. 8. Description of receivership property. The order appointing the receiver
25.24or subsequent order shall describe the receivership property with particularity appropriate
25.25to the circumstances. If the order does not so describe the receivership property, until
25.26further order of the court, the receiver shall have control over all of the respondent's
25.27nonexempt property.
25.28    Subd. 9. Receivership not a trust. The order appointing the receiver does not
25.29create a trust.

25.30    Sec. 6. [576.26] ELIGIBILITY OF RECEIVER.
25.31    Subdivision 1. Who may serve as receiver. Unless otherwise prohibited by law or
25.32prior order, any person, whether or not a resident of this state, may serve as a receiver,
25.33provided that the court, in its order appointing the receiver, makes written conclusions
25.34based in the record that the person proposed as receiver:
25.35(1) is qualified to serve as receiver and as an officer of the court; and
26.1(2) is independent as to the parties and the underlying dispute.
26.2    Subd. 2. Considerations regarding qualifications. (a) In determining whether a
26.3proposed receiver is qualified to serve as receiver and as an officer of the court, the court
26.4shall consider any relevant information, including, but not limited to, whether:
26.5(1) the proposed receiver has knowledge and experience sufficient to perform the
26.6duties of receiver;
26.7(2) the proposed receiver has the financial ability to post the bond required by
26.8section 576.07;
26.9(3) the proposed receiver or any insider of the proposed receiver has been previously
26.10disqualified from serving as receiver and the reasons for disqualification;
26.11(4) the proposed receiver or any insider of the proposed receiver has been convicted
26.12of a felony or other crime involving moral turpitude; and
26.13(5) the proposed receiver or any insider of the proposed receiver has been found
26.14liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar misconduct.
26.15(b) For the purposes of this subdivision, "insider" includes:
26.16(1) if the proposed receiver is a corporation, an officer or director of the corporation,
26.17or a person in control of the proposed receiver; and
26.18(2) if the proposed receiver is a partnership, a general or limited partner of the
26.19partnership, or a person in control of the proposed receiver.
26.20    Subd. 3. Considerations regarding independence. (a) In determining whether a
26.21proposed receiver is independent as to the parties and the underlying dispute, the court
26.22shall consider any relevant information, including, but not limited to:
26.23(1) the nature and extent of any relationship that the proposed receiver has to the
26.24parties and the property proposed as receivership property including, without limitation,
26.25whether the proposed receiver is a party to the action, a family member of a party to
26.26the action, or an officer, director, member, employee, or owner of or controls a party
26.27to the action;
26.28(2) whether the proposed receiver has any interest materially adverse to the interests
26.29of any of the parties to the action;
26.30(3) whether the proposed receiver has any material financial or pecuniary interest,
26.31other than receiver compensation allowed by court order, in the outcome of the underlying
26.32dispute, including any proposed contingent or success fee compensation arrangement; and
26.33(4) whether the proposed receiver is a debtor, secured or unsecured creditor, lienor
26.34of, or holder of any equity interest in, any of the parties to the action of the receivership
26.35property.
27.1(b) In evaluating all information, the court may exercise its discretion and need not
27.2consider any single item of information to be determinative of independence. Without
27.3limiting the generality of the preceding sentence, the proposed receiver shall not be
27.4disqualified solely because the proposed receiver was appointed receiver in other unrelated
27.5matters involving any of the parties to the matter in which the appointment is sought, or
27.6the proposed receiver has been engaged by any of the parties to the action in matters
27.7unrelated to the underlying action.
27.8    Subd. 4. Information provided to court. The proposed receiver, the parties, and
27.9prospective parties in interest may provide any information relevant to the qualifications,
27.10independence, and the selection of the receiver.

27.11    Sec. 7. [576.27] BOND.
27.12After appointment, a receiver shall give a bond in the sum, nature, and with the
27.13conditions that the court shall order in its discretion consistent with section 574.11. Unless
27.14otherwise ordered by the court, the receiver's bond shall be conditioned on the receiver's
27.15faithful discharge of its duties in accordance with the orders of the court and the laws of
27.16this state. The receiver shall execute a bond with a surety authorized to write bonds in
27.17the state.

27.18    Sec. 8. [576.28] IMMUNITY; DISCOVERY FROM RECEIVER.
27.19(a) The receiver shall be entitled to all defenses and immunities provided at common
27.20law for acts or omissions within the scope of the receiver's appointment.
27.21(b) No person other than a successor receiver duly appointed by the court shall have
27.22a right of action against a receiver to recover receivership property or the value thereof.
27.23(c) A party or party in interest may conduct discovery of the receiver concerning any
27.24mater relating to the receiver's administration of the receivership property after obtaining
27.25an order authorizing the discovery.

27.26    Sec. 9. [576.29] POWERS AND DUTIES OF RECEIVERS; GENERALLY.
27.27    Subdivision 1. Powers. (a) A receiver, whether general or limited, shall have the
27.28following powers in addition to those specifically conferred by this chapter or otherwise
27.29by statute, rule, or order of the court:
27.30(1) the power to collect, control, manage, conserve, and protect receivership
27.31property;
27.32(2) the power to incur and pay expenses incidental to the receiver's exercise of the
27.33powers or otherwise in the performance of the receiver's duties;
28.1(3) the power to assert rights, claims, causes of action, or defenses that relate to
28.2receivership property; and
28.3(4) the power to seek and obtain instruction from the court with respect to any
28.4matter relating to the receivership property, the exercise of the receiver's powers, or the
28.5performance of the receiver's duties.
28.6(b) In addition to the powers provided in paragraph (a), a general receiver shall
28.7have the power:
28.8(1) to (i) assert any rights, claims, causes of action, or defenses of the respondent to
28.9the extent any rights, claims, causes of action, or defenses are receivership property; (ii)
28.10maintain in the receiver's name or in the name of the respondent any action to enforce
28.11any right, claim, cause of action, or defense; and (iii) intervene in actions in which the
28.12respondent is a party for the purpose of exercising the powers under this clause or
28.13requesting transfer of venue of the action to the court;
28.14(2) to pursue any claim or remedy that may be asserted by a creditor of the
28.15respondent under sections 513.41 to 513.51;
28.16(3) to compel any person, including the respondent, and any party, by subpoena
28.17pursuant to Rule 45 of the Minnesota Rules of Civil Procedure, to give testimony or to
28.18produce and permit inspection and copying of designated books, documents, electronically
28.19stored information, or tangible things with respect to receivership property or any other
28.20matter that may affect the administration of the receivership;
28.21(4) to operate any business constituting receivership property in the ordinary course
28.22of the business, including the use, sale, or lease of property of the business or otherwise
28.23constituting receivership property, and the incurring and payment of expenses of the
28.24business or other receivership property;
28.25(5) if authorized by an order of the court following notice and a hearing, to use,
28.26improve, sell, or lease receivership property other than in the ordinary course of business;
28.27and
28.28(6) if appointed pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or
28.29322B.836, to exercise all of the powers and authority provided by the section or order of
28.30the court.
28.31    Subd. 2. Duties. A receiver, whether general or limited, shall have the duties
28.32specifically conferred by this chapter or otherwise by statute, rule, or order of the court.
28.33    Subd. 3. Modification of powers and duties. Except as otherwise provided in this
28.34chapter, the court may modify the powers and duties of a receiver provided by this section.

29.1    Sec. 10. [576.30] RECEIVER AS LIEN CREDITOR; REAL ESTATE
29.2RECORDING; SUBSEQUENT SALES OF REAL ESTATE.
29.3    Subdivision 1. Receiver as lien creditor. As of the time of appointment, the
29.4receiver shall have the powers and priority as if it were a creditor that obtained a judicial
29.5lien at the time of appointment pursuant to sections 548.09 and 550.10 on all of the
29.6receivership property, subject to satisfying the recording requirements as to real property
29.7described in subdivision 2.
29.8    Subd. 2. Real estate recording. If any interest in real estate is included in the
29.9receivership property, a notice of lis pendens shall be recorded as soon as practicable with
29.10the county recorder or registrar of titles, as appropriate, of the county in which the real
29.11property is located. The priority of the receiver as lien creditor against real property shall
29.12be from the time of recording of the notice of lis pendens, except as to persons with actual
29.13or implied knowledge of the appointment under section 507.34.
29.14    Subd. 3. Subsequent sales of real estate. The notice of lis pendens, a court order
29.15authorizing the receiver to sell real property certified by the court administrator, and
29.16a deed executed by the receiver recorded with the county recorder or registrar of titles,
29.17as appropriate, of the county in which the real property is located, and upon execution
29.18of the deed by the receiver shall be prima facie evidence of the authority of the receiver
29.19to sell and convey the real property described in the deed. The court may also require a
29.20motion for an order for sale of the real property or a motion for an order confirming
29.21sale of the real property.

29.22    Sec. 11. [576.31] DUTIES OF RESPONDENT.
29.23The respondent shall:
29.24(1) assist and cooperate fully with the receiver in the administration of the
29.25receivership and the receivership property and the discharge of the receiver's duties, and
29.26comply with all orders of the court;
29.27(2) immediately upon the receiver's appointment, deliver to the receiver all of the
29.28receivership property in the respondent's possession, custody, or control, including, but not
29.29limited to, all books and records, electronic data, passwords, access codes, statements of
29.30accounts, deeds, titles or other evidence of ownership, financial statements, and all other
29.31papers and documents related to the receivership property;
29.32(3) supply to the receiver information as requested relating to the administration
29.33of the receivership and the receivership property, including information necessary to
29.34complete any reports or other documents that the receiver may be required to file; and
30.1(4) remain responsible for the filing of all tax returns, including those returns
30.2applicable to periods which include those in which the receivership is in effect.

30.3    Sec. 12. [576.32] EMPLOYMENT AND COMPENSATION OF
30.4PROFESSIONALS.
30.5    Subdivision 1. Employment. (a) To represent or assist the receiver in carrying
30.6out the receiver's duties, the receiver may employ attorneys, accountants, appraisers,
30.7auctioneers, and other professionals that do not hold or represent an interest adverse
30.8to the receivership.
30.9(b) This section does not require prior court approval for the retention of
30.10professionals. However, any professional to be retained shall provide the receiver with a
30.11disclosure of any potential conflicts of interest, and the professional or the receiver shall
30.12file with the court a notice of the retention and of the proposed compensation. Any party
30.13in interest may bring a motion for disapproval of any retention within 21 days after the
30.14filing of the notice of retention.
30.15(c) A person is not disqualified for employment under this section solely because
30.16of the person's employment by, representation of, or other relationship with the receiver,
30.17respondent, a creditor, or other party in interest if the court determines that the employment
30.18is appropriate.
30.19    Subd. 2. Compensation. (a) The receiver and any professional retained by the
30.20receiver shall be paid by the receiver from the receivership property in the same manner
30.21as other expenses of administration and without separate orders, but subject to the
30.22procedures, safeguards, and reporting that the court may order.
30.23(b) Except to the extent fees and expenses have been approved by the court, or as
30.24to parties in interest who are deemed to have waived the right to object, any interim
30.25payments of fees and expenses to the receiver are subject to approval in connection with
30.26the receiver's final report pursuant to section 576.38.

30.27    Sec. 13. [576.33] SCHEDULES OF PROPERTY AND CLAIMS.
30.28(a) The court may order the respondent or a general receiver to file under oath to
30.29the best of its actual knowledge:
30.30(1) a schedule of all receivership property and exempt property of the respondent,
30.31describing, as of the time of appointment: (i) the location of the property and, if real
30.32property, a legal description thereof; (ii) a description of all liens to which the property is
30.33subject; and (iii) an estimated value of the property; and
31.1(2) a schedule of all creditors and taxing authorities and regulatory authorities which
31.2supervise the respondent, their mailing addresses, the amount and nature of their claims,
31.3whether the claims are secured by liens of any kind, and whether the claims are disputed.
31.4(b) The court may order inventories and appraisals if appropriate to the receivership.

31.5    Sec. 14. [576.34] NOTICE.
31.6In a general receivership, unless the court orders otherwise, the receiver shall give
31.7notice of the receivership to all creditors and other parties in interest actually known
31.8to the receiver by mail or other means of transmission within 21 days after the time of
31.9appointment. The notice of the receivership shall include the time of appointment and the
31.10names and addresses of the respondent, the receiver, and the receiver's attorney, if any.

31.11    Sec. 15. [576.35] NOTICES, MOTIONS, AND ORDERS.
31.12    Subdivision 1. Notice of appearance. Any party in interest may make an
31.13appearance in a receivership by filing a written notice of appearance, including the name,
31.14mailing address, fax number, e-mail address, if any, and telephone number of the party in
31.15interest and its attorney, if any, and by serving a copy on the receiver and the receiver's
31.16attorney, if any. It is not necessary for a party in interest to be joined as a party to be heard
31.17in the receivership. A proof of claim does not constitute a written notice of appearance.
31.18    Subd. 2. Master service list. From time to time the receiver shall file an updated
31.19master service list consisting of the names, mailing addresses, and, where available, fax
31.20numbers and e-mail addresses of the respondent, the receiver, all persons joined as parties
31.21in the receivership, all persons known by the receiver to have asserted any ownership
31.22or lien in receivership property, all persons who have filed a notice of appearance in
31.23accordance with this section, and their attorneys, if any.
31.24    Subd. 3. Motions. Except as otherwise provided in this chapter, an order shall be
31.25sought by a motion brought in compliance with the Minnesota Rules of Civil Procedure
31.26and the General Rules of Practice for the District Courts.
31.27    Subd. 4. Persons served. Except as otherwise provided in this chapter, a motion
31.28shall be served as provided in the Minnesota Rules of Civil Procedure, unless the court
31.29orders otherwise, on all persons on the master service list, all persons who have asserted
31.30an ownership interest or lien in receivership property that is the subject of the motion,
31.31all persons who are identified in the motion as directly affected by the relief requested,
31.32and other persons as the court may direct.
32.1    Subd. 5. Service on state agency. Any request for relief against a state agency shall
32.2be served as provided in the Minnesota Rules of Civil Procedure, unless the court orders
32.3otherwise, on the specific state agency and on the Office of the Attorney General.
32.4    Subd. 6. Order without hearing. Where a provision in this chapter, an order issued
32.5in the receivership, or a court rule requires an objection or other response to a motion or
32.6application within a specific time, and no objection or other response is interposed, the
32.7court may grant the relief requested without a hearing.
32.8    Subd. 7. Order upon application. Where a provision of this chapter permits, as to
32.9administrative matters, or where it otherwise appears that no party in interest would be
32.10materially prejudiced, the court may issue an order ex parte or based on an application
32.11without a motion, notice, or hearing.
32.12    Subd. 8. Persons bound by orders of the court. Except as to persons entitled to be
32.13served pursuant to subdivision 4 and who were not served, an order of the court binds
32.14parties in interest and all persons who file notices of appearance, submit proofs of claim,
32.15receive written notice of the receivership, receive notice of any motion in the receivership,
32.16or who have actual knowledge of the receivership whether they are joined as parties or
32.17received notice of the specific motion or order.

32.18    Sec. 16. [576.36] RECORDS; INTERIM REPORTS.
32.19    Subdivision 1. Preparation and retention of records. The receiver shall prepare
32.20and retain appropriate business records, including records of all cash receipts and
32.21disbursements and of all receipts and distributions or other dispositions of receivership
32.22property. After due consideration of issues of confidentiality, the records may be provided
32.23by the receiver to parties in interest or shall be provided as ordered by the court.
32.24    Subd. 2. Interim reports. (a) The court may order the receiver to prepare and
32.25file interim reports addressing:
32.26(1) the activities of the receiver since the last report;
32.27(2) cash receipts and disbursements, including payments made to professionals
32.28retained by the receiver;
32.29(3) receipts and dispositions of receivership property; and
32.30(4) other matters.
32.31(b) The order may provide for the delivery of the receiver's interim reports to persons
32.32on the master service list and to other persons and may provide a procedure for objection
32.33to the interim reports, and may also provide that the failure to object constitutes a waiver
32.34of objection to matters addressed in the interim reports.

33.1    Sec. 17. [576.37] REMOVAL OF RECEIVERS.
33.2    Subdivision 1. Removal of receiver. The court may remove the receiver if: (1) the
33.3receiver fails to execute and file the bond required by section 576.27; (2) the receiver
33.4resigns, refuses, or fails to serve for any reason; or (3) for other good cause.
33.5    Subd. 2. Successor receiver. Upon removal of the receiver, if the court determines
33.6that further administration of the receivership is required, the court shall appoint a
33.7successor receiver. Upon executing and filing a bond under section 576.27, the successor
33.8receiver shall immediately succeed the receiver so removed and shall assume the duties of
33.9receiver.
33.10    Subd. 3. Report and discharge of removed receiver. Within 14 days after
33.11removal, the receiver so removed shall file with the court and serve a report pursuant to
33.12section 576.38, subdivision 3, for matters up to the date of the removal. Upon approval
33.13of the report, the court may enter an order pursuant to section 576.38 discharging the
33.14removed receiver.

33.15    Sec. 18. [576.38] TERMINATION OF RECEIVERSHIPS; FINAL REPORT.
33.16    Subdivision 1. Termination of receivership. The court may discharge a receiver
33.17and terminate the receivership. If the court determines that the appointment of the receiver
33.18was procured in bad faith, the court may assess against the person who procured the
33.19receiver's appointment:
33.20(1) all of the receiver's fees and expenses and other costs of the receivership; and
33.21(2) any other sanctions the court deems appropriate.
33.22    Subd. 2. Request for discharge. Upon distribution or disposition of all receivership
33.23property, or the completion of the receiver's duties, the receiver shall file a final report and
33.24shall request that the court approve the final report and discharge the receiver.
33.25    Subd. 3. Contents of final report. The final report, which may incorporate by
33.26reference interim reports, shall include, in addition to any matters required by the court in
33.27the case:
33.28(1) a description of the activities of the receiver in the conduct of the receivership;
33.29(2) a schedule of all receivership property at the commencement of the receivership
33.30and any receivership property added thereafter;
33.31(3) a list of expenditures, including all payments to professionals retained by the
33.32receiver;
33.33(4) a list of any unpaid expenses incurred during the receivership;
33.34(5) a list of all dispositions of receivership property;
33.35(6) a list of all distributions made or proposed to be made; and
34.1(7) if not done separately, a motion or application for approval of the payment of
34.2fees and expenses of the receiver.
34.3    Subd. 4. Notice of final report. The receiver shall give notice of the filing of the
34.4final report and request for discharge to all persons who have filed notices of appearance.
34.5If there is no objection within 21 days, the court may enter an order approving the final
34.6report and discharging the receiver without the necessity of a hearing.
34.7    Subd. 5. Effect of discharge. A discharge removes all authority of the receiver,
34.8excuses the receiver from further performance of any duties, and discharges any lis
34.9pendens recorded by the receiver.

34.10    Sec. 19. [576.39] ACTIONS BY OR AGAINST RECEIVER OR RELATING TO
34.11RECEIVERSHIP PROPERTY.
34.12    Subdivision 1. Actions by or against receiver. The receiver may sue in the
34.13receiver's capacity and, subject to other sections of this chapter and all immunities
34.14provided at common law, may be sued in that capacity.
34.15    Subd. 2. Venue. Unless applicable law requires otherwise or the court orders
34.16otherwise, an action by or against the receiver or relating to the receivership or
34.17receivership property shall be commenced in the court and assigned to the judge before
34.18whom the receivership is pending.
34.19    Subd. 3. Joinder. Subject to section 576.42, a limited or general receiver may be
34.20joined or substituted as a party in any action or other proceeding that relates to receivership
34.21property that was pending at the time of appointment. Subject to other sections of this
34.22chapter, a general receiver may be joined or substituted as a party in any action or other
34.23proceeding that was pending at the time of appointment in which the respondent is a party.
34.24Pending actions may be transferred to the court upon the receiver's motion for change of
34.25venue made in the court in which the action is pending.
34.26    Subd. 4. Effect of judgments. A judgment entered subsequent to the time of
34.27appointment against a receiver or the respondent shall not constitute a lien on receivership
34.28property, nor shall any execution issue thereon. Upon submission of a certified copy of the
34.29judgment in accordance with section 576.49, the amount of the judgment shall be treated
34.30as an allowed claim in a general receivership. A judgment against a limited receiver shall
34.31have the same effect as a judgment against the respondent, except that the judgment shall
34.32be enforceable against receivership property only to the extent ordered by the court.

34.33    Sec. 20. [576.40] TURNOVER OF PROPERTY.
35.1    Subdivision 1. Demand by receiver. Except as expressly provided in this section,
35.2and unless otherwise ordered by the court, upon demand by a receiver, any person shall
35.3turn over any receivership property that is within the possession or control of that person.
35.4Unless ordered by the court, a person in possession of receivership property pursuant
35.5to a valid lien perfected prior to the time of appointment is not required to turn over
35.6receivership property.
35.7    Subd. 2. Motion by receiver. A receiver may seek to compel turnover of
35.8receivership property by motion in the receivership. If there exists a bona fide dispute
35.9with respect to the existence or nature of the receiver's or the respondent's interest in the
35.10property, turnover shall be sought by means of an action under section 576.39. In the
35.11absence of a bona fide dispute with respect to the receiver's or the respondent's right to
35.12possession of receivership property, the failure to relinquish possession and control to the
35.13receiver may be punishable as contempt of the court.

35.14    Sec. 21. [576.41] ANCILLARY RECEIVERSHIPS.
35.15    Subdivision 1. Ancillary receiverships in foreign jurisdictions. A receiver
35.16appointed by a court of this state may, without first seeking approval of the court, apply
35.17in any foreign jurisdiction for appointment as receiver with respect to any receivership
35.18property which is located within the foreign jurisdiction.
35.19    Subd. 2. Ancillary receiverships in the courts of this state. (a) A foreign receiver
35.20may obtain appointment by a court of this state as a receiver in an ancillary receivership
35.21with respect to any property located in or subject to the jurisdiction of the court if (1)
35.22the foreign receiver would be eligible to serve as receiver under section 576.26, and
35.23(2) the appointment is in furtherance of the foreign receiver's possession, control, or
35.24disposition of property subject to the foreign receivership and in accordance with orders of
35.25the foreign jurisdiction.
35.26(b) The courts of this state may enter any order necessary to effectuate orders entered
35.27by the foreign jurisdiction's receivership proceeding. Unless the court orders otherwise,
35.28a receiver appointed in an ancillary receivership in this state shall have the powers and
35.29duties of a limited receiver as set forth in this chapter and shall otherwise comply with the
35.30provisions of this chapter applicable to limited receivers.

35.31    Sec. 22. [576.42] STAYS.
35.32    Subdivision 1. Control of property. All receivership property is under the control
35.33and supervision of the court appointing the receiver.
36.1    Subd. 2. Stay by court order. In addition to any stay provided in this section,
36.2the court may order a stay or stays to protect receivership property and to facilitate the
36.3administration of the receivership.
36.4    Subd. 3. Stay in all receiverships. Except as otherwise ordered by the court, the
36.5entry of an order appointing a receiver shall operate as a stay, applicable to all persons, of:
36.6(1) any act to obtain possession of receivership property, or to interfere with or
36.7exercise control over receivership property, other than the commencement or continuation
36.8of a judicial, administrative, or other action or proceeding, including the issuance or use of
36.9process, to enforce any lien having priority over the rights of the receiver in receivership
36.10property; and
36.11(2) any act to create or perfect any lien against receivership property, except by
36.12exercise of a right of setoff, to the extent that the lien secures a claim that arose before
36.13the time of appointment.
36.14    Subd. 4. Limited additional stay in general receiverships. (a) Except as otherwise
36.15ordered by the court, in addition to the stay provided in subdivision 3, the entry of an order
36.16appointing a general receiver shall operate as a stay, applicable to all persons, of:
36.17(1) the commencement or continuation of a judicial, administrative, or other action
36.18or proceeding, including the issuance or use of process, against the respondent or the
36.19receiver that was or could have been commenced before the time of appointment, or to
36.20recover a claim against the respondent that arose before the time of appointment;
36.21(2) the commencement or continuation of a judicial, administrative, or other action
36.22or proceeding, including the issuance or use of process, to enforce any lien having priority
36.23over the rights of the receiver in receivership property.
36.24(b) As to the acts specified in this subdivision, the stay shall expire 30 days after
36.25the time of appointment unless, before the expiration of the 30-day period, the receiver
36.26or other party in interest files a motion seeking an order of the court extending the stay
36.27and before the expiration of an additional 30 days following the 30-day period, the court
36.28orders the stay extended.
36.29    Subd. 5. Modification of stay. The court may modify any stay provided in this
36.30section upon the motion of any party in interest affected by the stay.
36.31    Subd. 6. Inapplicability of stay. The entry of an order appointing a receiver does
36.32not operate as a stay of:
36.33(1) the commencement or continuation of a criminal proceeding against the
36.34respondent;
36.35(2) the commencement or continuation of an action or proceeding by a governmental
36.36unit to enforce its police or regulatory power;
37.1(3) the enforcement of a judgment, other than a money judgment, obtained in an
37.2action or proceeding by a governmental unit to enforce its police or regulatory power, or
37.3with respect to any licensure of the respondent;
37.4(4) the establishment by a governmental unit of any tax liability and any appeal
37.5thereof;
37.6(5) the commencement or continuation of an action or proceeding to establish
37.7paternity; to establish or modify an order for alimony, maintenance, or support; or to
37.8collect alimony, maintenance, or support under any order of a court;
37.9(6) the exercise of a right of setoff;
37.10(7) any act to maintain or continue the perfection of a lien on, or otherwise preserve
37.11or protect rights in, receivership property, but only to the extent that the act was necessary
37.12to preserve or protect the lien or other rights as they existed as of the time of the
37.13appointment. If the act would require seizure of receivership property or commencement
37.14of an action prohibited by a stay, the continued perfection shall instead be accomplished
37.15by filing a notice in the court before which the receivership is pending and by serving the
37.16notice upon the receiver and receiver's attorney, if any, within the time fixed by law for
37.17seizure or commencement of the action;
37.18(8) the commencement of a bankruptcy case under federal bankruptcy laws; or
37.19(9) any other exception as provided in United States Code, title 11, section 326(b),
37.20as to the automatic stay in federal bankruptcy cases to the extent not inconsistent with any
37.21provision in this section.

37.22    Sec. 23. [576.43] UTILITY SERVICE.
37.23A utility providing service to receivership property may not alter, refuse, or
37.24discontinue service to the receivership property without first giving the receiver 21 days'
37.25written notice of any default and any intention to alter, refuse, or discontinue service to
37.26receivership property. The court may prohibit the alteration, refusal, or discontinuance
37.27of utility service if the receiver furnishes adequate assurance of payment for service to
37.28be provided after the time of appointment.

37.29    Sec. 24. [576.44] RECEIVERSHIP FINANCING.
37.30(a) Without necessity of a court order, the receiver may obtain unsecured credit and
37.31incur unsecured debt on behalf of the receivership, and the amounts shall be allowable as
37.32expenses of the receivership under section 576.51, subdivision 1, clause (2).
38.1(b) Without necessity of a court order, the receiver may obtain secured financing
38.2on behalf of the receivership from any secured party under a financing facility existing
38.3at the time of the appointment.
38.4(c) The court may authorize the receiver to obtain credit or incur indebtedness,
38.5and the court may authorize the receiver to mortgage, pledge, hypothecate, or otherwise
38.6encumber receivership property as security for repayment of any indebtedness.

38.7    Sec. 25. [576.45] EXECUTORY CONTRACTS.
38.8    Subdivision 1. Performance by receiver. Unless a court orders otherwise, a
38.9receiver succeeds to all of the rights and duties of the respondent under any executory
38.10contract. The court may condition the continued performance by the receiver on terms
38.11that are appropriate under the circumstances. Performance of an executory contract shall
38.12create a claim against the receivership to the extent of the value of the performance
38.13received by the receivership after the time of appointment. The claim shall not constitute a
38.14personal obligation of the receiver.
38.15    Subd. 2. Assignment and delegation by receiver. For good cause, the court may
38.16authorize a receiver to assign and delegate an executory contract to a third party under
38.17the same circumstances and under the same conditions as the respondent was permitted
38.18to do so pursuant to the terms of the executory contract and applicable law immediately
38.19before the time of appointment.
38.20    Subd. 3. Termination by receiver. For good cause, the court may authorize
38.21the receiver to terminate an executory contract. The receiver's right to possess or use
38.22property pursuant to the executory contract shall terminate at the termination of the
38.23executory contract. Except as to the claim against the receivership under subdivision 1,
38.24the termination shall create a claim equal to the damages, if any, for a breach of contract as
38.25if the breach of contract had occurred immediately before the time of appointment. Any
38.26claim arising under this section for termination of an executory contract shall be presented
38.27or filed in the same manner as other claims in the receivership no later than the later of:
38.28(1) the time set for filing of claims in the receivership; or (2) 28 days after the notice by
38.29the receiver of the termination of the executory contract.

38.30    Sec. 26. [576.46] SALES FREE AND CLEAR OF LIEN IN GENERAL
38.31RECEIVERSHIPS.
38.32    Subdivision 1. Sales free and clear of liens. (a) The court may order that a general
38.33receiver's sale of receivership property is free and clear of all liens, except any lien for
38.34unpaid real estate taxes or assessments and liens arising under federal law, and may be free
39.1of the rights of redemption of the respondent if the rights of redemption are receivership
39.2property and the rights of redemption of the holders of any liens, regardless of whether the
39.3sale will generate proceeds sufficient to fully satisfy all liens on the property, unless either:
39.4(1) the property is (i) real property classified as agricultural land under section
39.5273.13, subdivision 23, or the property is a homestead under section 510.01; and (ii)
39.6each of the owners of the property has not consented to the sale following the time
39.7of appointment; or
39.8(2) any owner of the property or holder of a lien on the property serves and files
39.9a timely objection, and the court determines that the amount likely to be realized from
39.10the sale by the objecting person is less than the objecting person would realize within a
39.11reasonable time in the absence of this sale.
39.12(b) The receiver shall have the burden of proof to establish that the amount likely to
39.13be realized by the objecting person from the sale is equal to or more than the objecting
39.14person would realize within a reasonable time in the absence of the sale.
39.15(c) Upon any sale free and clear of liens authorized by this section, all liens
39.16encumbering the property conveyed shall transfer and attach to the proceeds of the
39.17sale, net of reasonable expenses approved by the court incurred in the disposition of
39.18the property, in the same order, priority, and validity as the liens had with respect to the
39.19property immediately before the sale. The court may authorize the receiver to satisfy,
39.20in whole or in part, any ownership interest or lien out of the proceeds of the sale if the
39.21ownership interest or lien of any party in interest would not thereby be impaired.
39.22    Subd. 2. Co-owned property. If any receivership property includes an interest as a
39.23co-owner of property, the receiver shall have the rights and powers afforded by applicable
39.24state or federal law of the respondent, including but not limited to any rights of partition,
39.25but may not sell the property free and clear of the co-owner's interest in the property.
39.26    Subd. 3. Right to credit bid. A creditor with a claim secured by a valid and
39.27perfected lien against the property to be sold may bid on the property at a sale and may
39.28offset against the purchase price part or all of the amount secured by its lien, provided that
39.29the creditor tenders cash sufficient to satisfy in full the reasonable expenses, approved
39.30by the court, incurred in the disposition of the property and all liens payable out of the
39.31proceeds of sale having priority over the lien of that creditor.
39.32    Subd. 4. Effect of appeal. The reversal or modification on appeal of an
39.33authorization to sell property under this section does not affect the validity of a sale to a
39.34person that purchased the property in good faith, whether or not the person knew of the
39.35pendency of the appeal, unless the authorization and sale is stayed pending the appeal.

40.1    Sec. 27. [576.47] ABANDONMENT OF PROPERTY.
40.2The court may authorize the receiver to abandon any receivership property that is
40.3burdensome or is not of material value to the receivership. Property that is abandoned is
40.4no longer receivership property.

40.5    Sec. 28. [576.48] LIENS AGAINST AFTER-ACQUIRED PROPERTY.
40.6Except as otherwise provided for by statute, property that becomes receivership
40.7property after the time of appointment is subject to a lien to the same extent as it would
40.8have been in the absence of the receivership.

40.9    Sec. 29. [576.49] CLAIMS PROCESS.
40.10    Subdivision 1. Recommendation of receiver. In a general receivership, and in a
40.11limited receivership if the circumstances require, the receiver shall submit to the court a
40.12recommendation concerning a claims process appropriate to the particular receivership.
40.13    Subd. 2. Order establishing process. In a general receivership and, if the court
40.14orders, in a limited receivership, the court shall establish the claims process to be followed
40.15in the receivership addressing whether proofs of claim must be submitted, the form of
40.16any proofs of claim, the place where the proofs of claim must be submitted, the deadline
40.17or deadlines for submitting the proofs of claim, and other matters bearing on the claims
40.18process.
40.19    Subd. 3. Alternative procedures. The court may authorize proofs of claim to be
40.20filed with the receiver rather than the court. The court may authorize the receiver to treat
40.21claims as allowed claims based on the amounts established in the books and records of the
40.22respondent or the schedule of claims filed pursuant to section 576.33, without necessity of
40.23formal proofs of claim.

40.24    Sec. 30. [576.50] OBJECTION TO AND ALLOWANCE OF CLAIMS.
40.25    Subdivision 1. Objections and allowance. The receiver or any party in interest may
40.26file a motion objecting to a claim and stating the grounds for the objection. The court may
40.27order that a copy of the objection be served on the persons on the master mailing list at
40.28least 30 days prior to the hearing. Claims allowed by court order, and claims properly
40.29submitted and not disallowed by the court shall be allowed claims and shall be entitled to
40.30share in distributions of receivership property in accordance with the priorities provided
40.31by this chapter or otherwise by law.
40.32    Subd. 2. Examination of claims. If the claims process does not require proofs of
40.33claim to be filed with the court, at any time after expiration of the claim-filing period and
41.1upon 14 days' written notice to the receiver, any party in interest shall have the right to
41.2examine:
41.3(1) all claims filed with the receiver; and
41.4(2) all books and records in the receiver's possession that provided the receiver the
41.5basis for concluding that creditors identified therein are entitled to participate in any
41.6distributions of receivership property without having to file claims.
41.7    Subd. 3. Estimation of claims. For the purpose of allowance of claims, the court
41.8may estimate:
41.9(1) any contingent or unliquidated claim, the fixing or liquidation of which would
41.10unduly delay the administration of the receivership; or
41.11(2) any right to payment arising from a right to an equitable remedy.

41.12    Sec. 31. [576.51] PRIORITY OF CLAIMS.
41.13    Subdivision 1. Priorities. Allowed claims shall receive distribution under this
41.14chapter in the following order of priority and, except as set forth in clause (1), on a pro
41.15rata basis:
41.16(1) claims secured by liens on receivership property, which liens are valid and
41.17perfected before the time of appointment, to the extent of the proceeds from the disposition
41.18of the collateral in accordance with their respective priorities under otherwise applicable
41.19law, subject first to reimbursing the receiver for the reasonable and necessary expenses
41.20of preserving, protecting, or disposing of the collateral, including allowed fees and
41.21reimbursement of reasonable expenses of the receiver and professionals;
41.22(2) actual, necessary costs and expenses incurred during the receivership, other than
41.23those expenses allowable under clause (1), including allowed fees and reimbursement of
41.24reasonable expenses of the receiver and professionals employed by the receiver under
41.25section 576.32;
41.26(3) claims for wages, salaries, or commissions, including vacation, severance, and
41.27sick leave pay, or contributions to an employee benefit plan, earned by the claimant within
41.28the 90 days before the time of appointment or the cessation of the respondent's business,
41.29whichever occurs first, but only to the extent of the dollar amount in effect in United
41.30States Code, title 11, section 507(4);
41.31(4) allowed unsecured claims, to the extent of the dollar amount in effect in United
41.32States Code, title 11, section 507(7) for each individual, arising from the deposit with the
41.33respondent, before the time of appointment of the receiver, of money in connection with
41.34the purchase, lease, or rental of property or the purchase of services for personal, family,
41.35or household use by individuals that were not delivered or provided;
42.1(5) claims for arrears in amounts owing pursuant to a support order as defined in
42.2section 518A.26, subdivision 3;
42.3(6) unsecured claims of governmental units for taxes that accrued before the time
42.4of appointment of the receiver;
42.5(7) all other unsecured claims due as of the time of appointment, including the
42.6balance due the holders of secured claims to the extent not satisfied under clause (1); and
42.7(8) interest pursuant to section 576.52.
42.8    Subd. 2. Payments to respondent. If all of the amounts payable under subdivision
42.91 have been paid in full, any remaining receivership property shall be returned to the
42.10respondent.

42.11    Sec. 32. [576.52] INTEREST ON UNSECURED CLAIMS.
42.12To the extent that funds are available to pay holders of allowed unsecured claims in
42.13full or the amounts due as of the time of appointment, each holder shall also be entitled
42.14to receive interest, calculated from the time of appointment, at the rate set forth in the
42.15agreement evidencing the claim, or if no rate is provided, at the judgment rate that would
42.16be payable as of the time of appointment; provided however, that no holder shall be entitled
42.17to interest on that portion, if any, of its unsecured claim that is itself interest calculated
42.18from the time of appointment. If there are not sufficient funds in the receivership to pay in
42.19full the interest owed to all the holders, then the interest shall be paid pro rata.

42.20    Sec. 33. [576.53] DISTRIBUTIONS.
42.21    Subdivision 1. Proposed distributions. Before any interim or final distribution is
42.22made, the receiver shall file a distribution schedule listing the proposed distributions.
42.23The distribution schedule may be filed at any time during the case or may be included
42.24in the final report.
42.25    Subd. 2. Notice. The receiver shall give notice of the filing of the distribution
42.26schedule to all persons on the master mailing list or that have filed proofs of claim. If there
42.27is no objection within 21 days after the notice, the court may enter an order authorizing
42.28the receiver to make the distributions described in the distribution schedule without the
42.29necessity of a hearing.
42.30    Subd. 3. Other distributions. In the order appointing the receiver or in subsequent
42.31orders, the court may authorize distribution of receivership property to persons with
42.32ownership interests or liens.


43.3    Section 1. [577.11] DEFINITIONS.
43.4(a) The definitions in this section and in section 576.21 apply throughout this chapter
43.5unless the context requires otherwise.
43.6(b) "Assignee" means the person to whom the assignment property is assigned.
43.7(c) "Assignment property" means the property assigned pursuant to the provisions
43.8of this chapter.
43.9(d) "Assignor" means the person who assigns the assignment property.
43.10(e) "Time of assignment" means the date and time endorsed by the court
43.11administrator pursuant to section 577.14.

43.12    Sec. 2. [577.12] REQUISITES.
43.13A person may execute a written assignment of property to one or more assignees for
43.14the benefit of creditors in conformity with the provisions of this chapter. Every assignment
43.15for the benefit of creditors subject to this chapter made by an assignor of the whole or any
43.16part of the assignor's property, real or personal, for the benefit of creditors, shall be: (1) to
43.17a resident of the state eligible to be a receiver under section 576.26, in writing, subscribed
43.18and acknowledged by the assignor, and (2) filed by the assignor or the assignee with the
43.19court administrator of the district court of the county in which the assignor, or one of the
43.20assignors if there is more than one, resides, or in which the principal place of business of
43.21an assignor engaged in business is located. The district court shall have supervision over
43.22the assignment property and of all proceedings under this chapter.

43.23    Sec. 3. [577.13] FORM OF ASSIGNMENT.
43.24An assignment for the benefit of creditors under this chapter shall be signed by the
43.25assignor and duly acknowledged in the same manner as conveyances of real property
43.26before a notary public of the state, shall include an acceptance of the assignment by the
43.27assignee, and shall be in substantially the following form:
43.29    THIS ASSIGNMENT is made this .... day of .............., .........., by and between
43.30............, with a principal place of business at .......... (hereinafter "assignor"), and ............,
43.31whose address is ........... (hereinafter "assignee").
43.32    WHEREAS, the assignor has been engaged in the business of
43.33............................................
44.1    WHEREAS, the assignor is indebted to creditors and is unable to pay debts as they
44.2become due, and is desirous of providing for the payment of debts, so far as it is possible
44.3by an assignment of property for that purpose.
44.4    NOW, THEREFORE, the assignor, in consideration of the assignee's acceptance
44.5of this assignment, and for other good and valuable consideration, hereby assigns to
44.6the assignee, and the assignee's successors and assigns, the assignor's property, except
44.7the property as is exempt by law from levy and sale under an execution (and then only
44.8to the extent of the exemption), including but not limited to all real property, fixtures,
44.9goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general
44.10intangibles, bank deposits, cash, promissory notes, cash value and proceeds of insurance
44.11policies, claims, and demands belonging to the assignor, wherever the property may be
44.12located (hereinafter collectively the "assignment property"), which property is set forth
44.13on Schedule A attached hereto.
44.14    A list of the creditors of the assignor is set forth in Schedule B annexed hereto.
44.15    By making this assignment, the assignor consents to the appointment of the assignee
44.16as a general receiver with respect to the assignment property in accordance with Minnesota
44.17Statutes, chapters 576 and 577.
44.18    The assignee shall take possession of and administer the assignment property
44.19and shall liquidate the assignment property with reasonable dispatch, collect all claims
44.20and demands hereby assigned as and to the extent they may be collectible, and pay
44.21and discharge all reasonable expenses, costs, and disbursements in connection with the
44.22execution and administration of this assignment from the proceeds of the liquidations and
44.23collections in accordance with Minnesota Statutes, chapters 576 and 577.
44.24    The assignee shall then pay and discharge in full, to the extent that funds are available
44.25from the assignment property after payment of expenses, costs, and disbursements, all of
44.26the debts and liabilities now due from the assignor, including interest on the debts and
44.27liabilities in full, in accordance with Minnesota Statutes, chapters 576 and 577.
44.28    In the event that all debts and liabilities are paid in full, the remainder of the
44.29assignment property shall be returned to the assignor.
44.30    To accomplish the purposes of this assignment, the assignor hereby irrevocably
44.31appoints the assignee as the assignor's true and lawful attorney-in-fact, with full power
44.32and authority to do all acts and things which may be necessary to execute and fulfill the
44.33assignment hereby created, to the same extent as the acts and things might be done by
44.34the assignor in the absence of this assignment, including, but not limited to, the power
44.35to demand and recover from all persons all assignment property; to sue for the recovery
44.36of assignment property; to execute, acknowledge, and deliver all necessary deeds,
45.1instruments, and conveyances, and to grant and convey any or all of the real or personal
45.2property of the assignment property pursuant thereto; and to appoint one or more attorneys
45.3to assist the assignee in carrying out the assignee's duties hereunder.
45.4    The assignor hereby authorizes the assignee to sign the name of the assignor to any
45.5check, draft, promissory note, or other instrument in writing which is payable to the order
45.6of the assignor, or to sign the name of the assignor to any instrument in writing, whenever
45.7it shall be necessary to do so, to carry out the purposes of this assignment.
45.8    The assignor declares, under penalty of perjury under the laws of the state of
45.9Minnesota, that the attached schedules of the property or the assignor and creditors are
45.10true and complete to the best of the assignor's knowledge.
45.11    The assignee hereby accepts the assignment property and agrees faithfully and
45.12without delay to carry out the assignee's duties under the foregoing assignment.

45.13 45.14	............................................. Assignor	............................................... Assignee
45.15	Dated: ...................................	Dated: ................................

45.16    Sec. 4. [577.14] DUTY OF COURT ADMINISTRATOR.
45.17The court administrator shall endorse the day, hour, and minute of the filing of the
45.18assignment. The assignment shall be entered in the court administrator's register, and all
45.19papers filed and orders made in the matter of the assignment shall be noted therein as in
45.20the case of a civil action.

45.21    Sec. 5. [577.15] ASSIGNEE AS LIEN CREDITOR; REAL ESTATE
45.22RECORDING.
45.23    Subdivision 1. Assignee as lien creditor. As of the filing of the assignment, the
45.24assignee shall have the powers and priority of a creditor that obtained a judicial lien at
45.25the time of assignment pursuant to sections 548.09 and 550.10 on all of the assignment
45.26property subject to satisfying the recording requirements as to real property described in
45.27subdivision 2.
45.28    Subd. 2. Real estate recording. If any interest in real estate is included in the
45.29assignment property, the assignment shall be effective as a deed, and a notice of a lis
45.30pendens shall be recorded as soon as practicable with the county recorder or registrar of
45.31titles, as appropriate, of the county in which the real property is located. The priority of
45.32the assignee as lien creditor against real property shall be from the time of recording of
45.33the notice of lis pendens, except as to persons with actual or implied knowledge of the
45.34assignment under section 507.34. The assignment executed by the assignor and certified
46.1by the court administrator and a deed executed by the assignee shall be recorded with the
46.2county recorder or registrar of titles, as appropriate, of the county in which the real property
46.3is located, and upon execution of the deed by the assignee shall be prima facie evidence of
46.4the authority of the assignee to convey the real property described in the assignment.

46.5    Sec. 6. [577.16] NOTICE.
46.6The assignee shall give notice of the assignment to all creditors and other parties
46.7in interest actually known to the assignee by mail or other means of transmission within
46.821 days after the time of assignment. The notice of the assignment shall include the
46.9time of assignment and the names and addresses of the assignor, the assignee, and the
46.10assignee's attorney, if any.

46.11    Sec. 7. [577.17] REMOVAL OF ASSIGNEE.
46.12The court may remove the assignee and appoint another assignee by application of
46.13the standards and procedures under section 576.37. The order of removal and appointment
46.14shall transfer all of the assignment property to the new assignee, and with respect to real
46.15property may be recorded in the same manner as the initial assignment.

46.16    Sec. 8. [577.18] APPLICATION OF CHAPTER GOVERNING
46.17RECEIVERSHIPS.
46.18Except as otherwise provided in this chapter, an assignee shall be treated as a
46.19general receiver, the assignment property shall be treated as receivership property, and all
46.20proceedings following the filing of the assignment shall be governed by sections 576.21
46.21to 576.53.

46.22    Sec. 9. REPEALER.
46.23Minnesota Statutes 2010, sections 577.01; 577.02; 577.03; 577.04; 577.05; 577.06;
46.24577.08; 577.09; and 577.10, are repealed.


46.27    Section 1. Minnesota Statutes 2010, section 302A.753, subdivision 2, is amended to
46.28read:
46.29    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever
46.30notice the court directs to be given to all parties to the proceedings and to any other parties
46.31in interest designated by the court, the court may appoint a receiver to collect the corporate
47.1assets, including all amounts owing to the corporation by subscribers on account of any
47.2unpaid portion of the consideration for the issuance of shares. In addition to the powers set
47.3forth in chapter 576, a receiver has authority, subject to the order of the court, to continue
47.4the business of the corporation and to sell, lease, transfer, or otherwise dispose of all or
47.5any of the property and assets of the corporation either at public or private sale.

47.6    Sec. 2. Minnesota Statutes 2010, section 302A.753, subdivision 3, is amended to read:
47.7    Subd. 3. Discharge of obligations. The assets of the corporation or the proceeds
47.8resulting from a sale, lease, transfer, or other disposition shall be applied in the following
47.9order of priority to the payment and discharge or:
47.10(a) the costs and expenses of the proceedings, including attorneys' fees and
47.11disbursements;
47.12(b) debts, taxes and assessments due the United States, the state of Minnesota and
47.13their subdivisions, and other states and their subdivisions, in that order;
47.14(c) claims duly proved and allowed to employees under the provisions of the
47.15Workers' Compensation Act; provided, that claims under this clause shall not be allowed if
47.16the corporation carried workers' compensation insurance, as provided by law, at the time
47.17the injury was sustained;
47.18(d) claims, including the value of all compensation paid in any medium other than
47.19money, duly proved and allowed to employees for services performed within three months
47.20preceding the appointment of the receiver, if any; and
47.21(e) other claims duly proved and allowed set forth in section 576.51.

47.22    Sec. 3. Minnesota Statutes 2010, section 302A.755, is amended to read:
47.23302A.755 QUALIFICATIONS OF RECEIVERS; POWERS.
47.24    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic
47.25corporation or a foreign corporation authorized to transact business in this state. Any
47.26person qualified under section 576.26 may be appointed as receiver. A receiver shall
47.27give bond as directed by the court with the sureties required by the court required by
47.28section 576.27.
47.29    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
47.30of the corporation. The court appointing the receiver has exclusive jurisdiction of over
47.31the corporation and its property, the receiver, and all receivership property pursuant to
47.32section 576.23.

47.33    Sec. 4. Minnesota Statutes 2010, section 302A.759, subdivision 1, is amended to read:
48.1    Subdivision 1. Manner and form. In proceedings referred to in section 302A.751 to
48.2dissolve a corporation, the court may require all creditors and claimants of the corporation
48.3to file their claims under oath with the court administrator or with the receiver in a form
48.4prescribed by the court pursuant to section 576.49. The receiver or any party in interest
48.5may object to any claim pursuant to section 576.50.

48.6    Sec. 5. Minnesota Statutes 2010, section 302A.761, is amended to read:
48.7302A.761 DISCONTINUANCE OF DISSOLUTION PROCEEDINGS.
48.8The involuntary or supervised voluntary dissolution of a corporation shall be
48.9discontinued at any time during the dissolution proceedings when it is established that
48.10cause for dissolution no longer exists. When this is established, the court shall dismiss the
48.11proceedings and direct the receiver, if any, to redeliver to the corporation all its remaining
48.12property and assets and to file a final report pursuant to section 576.38, subdivision 3.

48.13    Sec. 6. Minnesota Statutes 2010, section 308A.945, subdivision 2, is amended to read:
48.14    Subd. 2. Action after hearing. After a hearing is completed, on notice the court
48.15directs to be given to parties to the proceedings and to other parties in interest designated
48.16by the court, the court may appoint a receiver to collect the cooperative's assets, including
48.17amounts owing to the cooperative by subscribers on account of an unpaid portion of the
48.18consideration for the issuance of shares. In addition to the powers set forth in chapter 576,
48.19a receiver has authority, subject to the order of the court, to continue the business of the
48.20cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of
48.21the cooperative either at public or private sale.

48.22    Sec. 7. Minnesota Statutes 2010, section 308A.945, subdivision 3, is amended to read:
48.23    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds
48.24resulting from a sale, lease, transfer, or other disposition shall be applied in the following
48.25order of priority or:
48.26(1) the costs and expenses of the proceedings, including attorneys' fees and
48.27disbursements;
48.28(2) debts, taxes and assessments due the United States, the state of Minnesota and
48.29their subdivisions, and other states and their subdivisions, in that order;
48.30(3) claims duly proved and allowed to employees under the provisions of the
48.31Workers' Compensation Act except that claims under this clause may not be allowed
48.32if the cooperative has carried workers' compensation insurance, as provided by law, at
48.33the time the injury was sustained;
49.1(4) claims, including the value of all compensation paid in a medium other than
49.2money, proved and allowed to employees for services performed within three months
49.3preceding the appointment of the receiver, if any; and
49.4(5) other claims proved and allowed set forth in section 576.51.

49.5    Sec. 8. Minnesota Statutes 2010, section 308A.951, is amended to read:
49.6308A.951 RECEIVER QUALIFICATIONS AND POWERS.
49.7    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic
49.8corporation or a foreign corporation authorized to transact business in this state. Any
49.9person qualified under section 576.26 may be appointed as a receiver. A receiver must
49.10give a bond as directed by the court with the sureties required by the court required by
49.11section 576.27.
49.12    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
49.13of the cooperative. The court appointing the receiver has exclusive jurisdiction of over
49.14the cooperative and its property, the receiver, and all receivership property pursuant to
49.15section 576.23.

49.16    Sec. 9. Minnesota Statutes 2010, section 308A.961, subdivision 1, is amended to read:
49.17    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the
49.18court may require all creditors and claimants of the cooperative to file their claims under
49.19oath with the court administrator or with the receiver in a form prescribed by the court
49.20pursuant to section 576.49. The receiver or any party in interest may object to any claims
49.21pursuant to section 576.50.

49.22    Sec. 10. Minnesota Statutes 2010, section 308A.965, is amended to read:
49.23308A.965 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION
49.24PROCEEDINGS.
49.25The involuntary or supervised voluntary dissolution of a cooperative may be
49.26discontinued at any time during the dissolution proceedings if it is established that cause
49.27for dissolution does not exist. The court shall dismiss the proceedings and direct the
49.28receiver, if any, to redeliver to the cooperative its remaining property and assets and to file
49.29a final report pursuant to section 576.38, subdivision 3.

49.30    Sec. 11. Minnesota Statutes 2010, section 308B.935, subdivision 2, is amended to read:
49.31    Subd. 2. Action after hearing. After a hearing is completed, upon notice to parties
49.32to the proceedings and to other parties in interest designated by the court, the court may
50.1appoint a receiver to collect the cooperative's assets, including amounts owing to the
50.2cooperative by subscribers on account of an unpaid portion of the consideration for the
50.3issuance of shares. In addition to the powers set forth in chapter 576, a receiver has
50.4authority, subject to the order of the court, to continue the business of the cooperative and
50.5to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative
50.6either at public or private sale.

50.7    Sec. 12. Minnesota Statutes 2010, section 308B.935, subdivision 3, is amended to read:
50.8    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds
50.9resulting from a sale, lease, transfer, or other disposition shall be applied in the following
50.10order of priority:
50.11(1) the costs and expense of the proceedings, including attorney fees and
50.12disbursements;
50.13(2) debts, taxes, and assessments due the United States, this state, and other states
50.14in that order;
50.15(3) claims duly proved and allowed to employees under the provisions of the
50.16Workers' Compensation Act except that claims under this clause may not be allowed if
50.17the cooperative carried workers' compensation insurance, as provided by law, at the time
50.18the injury was sustained;
50.19(4) claims, including the value of all compensation paid in a medium other than
50.20money, proved and allowed to employees for services performed within three months
50.21preceding the appointment of the receiver, if any; and
50.22(5) other claims proved and allowed set forth in section 576.51.

50.23    Sec. 13. Minnesota Statutes 2010, section 308B.941, is amended to read:
50.24308B.941 RECEIVER QUALIFICATIONS AND POWERS.
50.25    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic
50.26business entity or a foreign business entity authorized to transact business in this state.
50.27Any person qualified under section 576.26 may be appointed as a receiver. A receiver
50.28shall give a bond as directed by the court with the sureties required by the court required
50.29by section 576.27.
50.30    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
50.31of the cooperative. The court appointing the receiver has exclusive jurisdiction of over
50.32the cooperative and its property, the receiver, and all receivership property pursuant to
50.33section 576.23.

51.1    Sec. 14. Minnesota Statutes 2010, section 308B.951, subdivision 1, is amended to read:
51.2    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the
51.3court may require all creditors and claimants of the cooperative to file their claims under
51.4oath with the court administrator or with the receiver in a form prescribed by the court
51.5pursuant to section 576.49. The receiver or any party in interest may object to any claim
51.6pursuant to section 576.50.

51.7    Sec. 15. Minnesota Statutes 2010, section 308B.955, is amended to read:
51.8308B.955 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION
51.9PROCEEDINGS.
51.10The involuntary or supervised voluntary dissolution of a cooperative may be
51.11discontinued at any time during the dissolution proceedings if it is established that cause
51.12for dissolution does not exist. The court shall dismiss the proceedings and direct the
51.13receiver, if any, to redeliver to the cooperative its remaining property and assets and to file
51.14a final report pursuant to section 576.38, subdivision 3.

51.15    Sec. 16. Minnesota Statutes 2010, section 316.11, is amended to read:
51.16316.11 RECEIVER, APPOINTMENT, DUTIES.
51.17In any action or proceeding to dissolve a corporation, the court, at any time before
51.18judgment, or within three years after judgment, of dissolution, may appoint a receiver to
51.19take charge of its estate and effects and to collect the debts and property due and belonging
51.20to it, with, in addition to the powers set forth in chapter 576, power to prosecute and
51.21defend actions in its name or otherwise, to appoint agents, and do all other acts necessary
51.22to the final settlement of the unfinished business of the corporation which it might do if in
51.23being. The power of such receiver shall continue so long as the court deems necessary
51.24for such purposes. The receiver shall pay all debts due from the corporation, if the funds
51.25in hand are sufficient therefor; and, if not, shall distribute the same ratably among the
51.26creditors who prove their debts, in the manner directed by the court; and, if there be any
51.27balance after the payment of the debts, the receiver shall distribute and pay the same to
51.28and among those who are justly entitled thereto, as having been stockholders or members.
51.29Every receiver appointed under the provisions of this section shall give bond in such
51.30amount as the court shall require, with sureties approved by it the assets of the corporation
51.31or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied
51.32in the order of priority set forth in section 576.51. After payment of the expenses of
51.33the receivership and claims of creditors duly proved, the remaining assets, if any, shall
51.34be distributed to the shareholders in accordance with section 302A.551, subdivision 4.
52.1Every receiver appointed under the provisions of this section shall give bond as required
52.2by section 576.27 in such amount as the court shall require, with sureties approved by it.

52.3    Sec. 17. Minnesota Statutes 2010, section 317A.255, subdivision 1, is amended to read:
52.4    Subdivision 1. Conflict; procedure when conflict arises. (a) A contract or other
52.5transaction between a corporation and: (1) its director or a member of the family of its
52.6director; (2) a director of a related organization, or a member of the family of a director
52.7of a related organization; or (3) an organization in or of which the corporation's director,
52.8or a member of the family of its director, is a director, officer, or legal representative or
52.9has a material financial interest; is not void or voidable because the director or the other
52.10individual or organization are parties or because the director is present at the meeting of
52.11the members or the board or a committee at which the contract or transaction is authorized,
52.12approved, or ratified, if a requirement of paragraph (b) is satisfied.
52.13(b) A contract or transaction described in paragraph (a) is not void or voidable if:
52.14(1) the contract or transaction was, and the person asserting the validity of the
52.15contract or transaction has the burden of establishing that the contract or transaction was,
52.16fair and reasonable as to the corporation when it was authorized, approved, or ratified;
52.17(2) the material facts as to the contract or transaction and as to the director's interest
52.18are fully disclosed or known to the members and the contract or transaction is approved
52.19in good faith by two-thirds of the members entitled to vote, not counting any vote that
52.20the interested director might otherwise have, or the unanimous affirmative vote of all
52.21members, whether or not entitled to vote;
52.22(3) the material facts as to the contract or transaction and as to the director's interest
52.23are fully disclosed or known to the board or a committee, and the board or committee
52.24authorizes, approves, or ratifies the contract or transaction in good faith by a majority of
52.25the directors or committee members currently holding office, provided that the interested
52.26director or directors may not vote and are not considered present for purposes of a quorum.
52.27If, as a result, the number of remaining directors is not sufficient to reach a quorum,
52.28a quorum for the purpose of considering the contract or transaction is the number of
52.29remaining directors or committee members, not counting any vote that the interested
52.30director might otherwise have, and not counting the director in determining the presence
52.31of a quorum; or
52.32(4) the contract or transaction is a merger or consolidation described in section
52.33317A.601 .

52.34    Sec. 18. Minnesota Statutes 2010, section 317A.753, subdivision 3, is amended to read:
53.1    Subd. 3. Action after hearing. After a full hearing has been held, upon whatever
53.2notice the court directs to be given to the parties to the proceedings and to other parties in
53.3interest designated by the court, the court may appoint a receiver to collect the corporate
53.4assets. In addition to the powers set forth in chapter 576, a receiver has authority, subject to
53.5the order of the court, to continue the business of the corporation and to sell, lease, transfer,
53.6or otherwise dispose of all or any of the assets of the corporation at a public or private sale.

53.7    Sec. 19. Minnesota Statutes 2010, section 317A.753, subdivision 4, is amended to read:
53.8    Subd. 4. Discharge of obligations. The assets of the corporation or the proceeds
53.9resulting from a sale, lease, transfer, or other disposition must be applied in the following
53.10order of priority to the payment and discharge of:
53.11(1) the costs and expenses of the dissolution proceedings, including attorneys fees
53.12and disbursements;
53.13(2) debts, taxes, and assessments due the United States, the state of Minnesota and
53.14their subdivisions, and other states and their subdivisions, in that order;
53.15(3) claims duly proved and allowed to employees under the Workers' Compensation
53.16Act, provided that claims under this clause are not allowed if the corporation carried
53.17workers' compensation insurance, as provided by law, at the time the injury was sustained;
53.18(4) claims, including the value of compensation paid in a medium other than money,
53.19duly proved and allowed to employees for services performed within three months
53.20preceding the appointment of the receiver, if any; and
53.21(5) other claims duly proved and allowed set forth in section 576.51.

53.22    Sec. 20. Minnesota Statutes 2010, section 317A.755, is amended to read:
53.23317A.755 QUALIFICATIONS OF RECEIVERS; POWERS.
53.24    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic
53.25corporation or a foreign corporation authorized to transact business in this state. Any
53.26person qualified under section 576.26 may be appointed as a receiver. A receiver shall
53.27give bond as directed by the court with the sureties required by the court required by
53.28section 576.27.
53.29    Subd. 2. Powers. A receiver may sue and defend in courts all actions as receiver
53.30of the corporation. The court appointing the receiver has exclusive jurisdiction of over
53.31the corporation and its property, the receiver, and all receivership property pursuant to
53.32section 576.23.

53.33    Sec. 21. Minnesota Statutes 2010, section 317A.759, subdivision 1, is amended to read:
54.1    Subdivision 1. Filing may be required. In a proceeding under section 317A.751 to
54.2dissolve a corporation, the court may require creditors and claimants of the corporation
54.3to file their claims under oath with the court administrator or with the receiver in a form
54.4prescribed by the court pursuant to section 576.49. The receiver or any party in interest
54.5may object to any claim pursuant to section 576.50.

54.6    Sec. 22. Minnesota Statutes 2010, section 322B.836, subdivision 2, is amended to read:
54.7    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever
54.8notice the court directs to be given to all parties to the proceedings and to any other parties
54.9in interest designated by the court, the court may appoint a receiver to collect the limited
54.10liability company assets, including all amounts owing to the limited liability company
54.11by persons who have made contribution agreements and by persons who have made
54.12contributions by means of enforceable promises of future performance. In addition to the
54.13powers set forth in chapter 576, a receiver has authority, subject to the order of the court,
54.14to continue the business of the limited liability company and to sell, lease, transfer, or
54.15otherwise dispose of all or any of the property and assets of the limited liability company
54.16either at public or private sale.

54.17    Sec. 23. Minnesota Statutes 2010, section 322B.836, subdivision 3, is amended to read:
54.18    Subd. 3. Discharge of obligations upon liquidation. If the court determines that
54.19the limited liability company is to be dissolved with winding up to be accomplished by
54.20liquidation, then the assets of the limited liability company or the proceeds resulting
54.21from a sale, lease, transfer, or other disposition must be applied in the following order of
54.22priority to the payment and discharge or:
54.23(1) the costs and expenses of the proceedings, including attorneys' fees and
54.24disbursements;
54.25(2) debts, taxes, and assessments due the United States, the state of Minnesota and
54.26their subdivisions, and other states and their subdivisions, in that order;
54.27(3) claims duly proved and allowed to employees under the provisions of chapter
54.28176; provided, that claims under this clause shall not be allowed if the limited liability
54.29company carried workers' compensation insurance, as provided by law, at the time the
54.30injury was sustained;
54.31(4) claims, including the value of all compensation paid in any medium other than
54.32money, duly proved and allowed to employees for services performed within three months
54.33preceding the appointment of the receiver, if any; and
54.34(5) other claims duly proved and allowed set forth in section 576.51.

55.1    Sec. 24. Minnesota Statutes 2010, section 322B.84, is amended to read:
55.2322B.84 QUALIFICATIONS OF RECEIVERS AND POWERS.
55.3    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic or
55.4foreign organization authorized to transact business in this state. Any person qualified
55.5under section 576.26 may be appointed as a receiver. A receiver shall give bond as
55.6directed by the court with the sureties required by the court required by section 576.27.
55.7    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver of
55.8the limited liability company. The court appointing the receiver has exclusive jurisdiction
55.9of over the limited liability company and its property, the receiver, and all receivership
55.10property pursuant to section 576.23.

55.11    Sec. 25. Minnesota Statutes 2010, section 462A.05, subdivision 32, is amended to read:
55.12    Subd. 32. Appointment of receivers. The agency may obtain the appointment of
55.13receivers or assignments of rents and profits under sections 559.17 and 576.01 576.25,
55.14subdivision 5, except that the limitation relating to the minimum amounts of the original
55.15principal balances of mortgages contained in sections 576.01, subdivision 2 576.25,
55.16subdivision 5, paragraph (a), clause (i), and 559.17, subdivision 2, clause (2), shall
55.17be inapplicable to it.

55.18    Sec. 26. Minnesota Statutes 2010, section 469.012, subdivision 2i, is amended to read:
55.19    Subd. 2i. Receivers, assignment of rent as security. An authority may secure a
55.20mortgage or loan for a rental housing project by obtaining the appointment of receivers or
55.21assignments of rents and profits under sections 559.17 and 576.01 576.25, subdivision
55.225, except that the limitation relating to the minimum amounts of the original principal
55.23balances of mortgages specified in sections 559.17, subdivision 2, clause (2); and 576.01,
55.24subdivision 2 576.25, subdivision 5, paragraph (a), clause (1), does not apply.

55.25    Sec. 27. Minnesota Statutes 2010, section 540.14, is amended to read:
55.26540.14 ACTIONS AGAINST RECEIVERS; TRIAL; JUDGMENT, HOW
55.27SATISFIED.
55.28Except as limited in chapters 576 and 577, any receiver, assignee, or other person
55.29appointed by a court to hold or manage property under its direction, may be sued on
55.30account of any acts or transactions in carrying on the business connected with such
55.31property without prior leave of court.
55.32Such action may be brought in any county in which it could have been brought
55.33against the person or corporation represented by such receiver or other person, shall be
56.1tried in the same manner and subject to the same rules of procedure, and any judgment
56.2recovered therein against such receiver or other person shall be paid by the receiver or
56.3other person as a part of the expenses of managing such property.

56.4    Sec. 28. Minnesota Statutes 2010, section 559.17, subdivision 2, is amended to read:
56.5    Subd. 2. Assignment; conditions. A mortgagor may assign, as additional security
56.6for the debt secured by the mortgage, the rents and profits from the mortgaged real
56.7property, if the mortgage:
56.8(1) was executed, modified or amended subsequent to August 1, 1977;
56.9(2) secured an original principal amount of $100,000 or more or is a lien upon
56.10residential real estate containing more than four dwelling units; and
56.11(3) is not a lien upon property which was:
56.12(i) entirely homesteaded as agricultural property; or
56.13(ii) residential real estate containing four or fewer dwelling units where at least
56.14one of the units is homesteaded. The assignment may be enforced, but only against the
56.15nonhomestead portion of the mortgaged property, as follows:
56.16(a) if, by the terms of an assignment, a receiver is to be appointed upon the
56.17occurrence of some specified event, and a showing is made that the event has occurred,
56.18the court shall, without regard to waste, adequacy of the security, or solvency of the
56.19mortgagor, appoint a receiver who shall, with respect to the excess cash remaining after
56.20application as provided in section 576.01, subdivision 2 576.25, subdivision 5, apply it as
56.21prescribed by the assignment. If the assignment so provides, the receiver shall apply the
56.22excess cash in the manner set out herein from the date of appointment through the entire
56.23redemption period from any foreclosure sale. Subject to the terms of the assignment, the
56.24receiver shall have the powers and duties as set forth in section 576.01, subdivision 2
56.25576.25, subdivision 5; or
56.26(b) if no provision is made for the appointment of a receiver in the assignment or
56.27if by the terms of the assignment a receiver may be appointed, the assignment shall be
56.28binding upon the assignor unless or until a receiver is appointed without regard to waste,
56.29adequacy of the security or solvency of the mortgagor, but only in the event of default in
56.30the terms and conditions of the mortgage, and only in the event the assignment requires
56.31the holder thereof to first apply the rents and profits received as provided in section
56.32576.01, subdivision 2 576.25, subdivision 5, in which case the same shall operate against
56.33and be binding upon the occupiers of the premises from the date of recording by the
56.34holder of the assignment in the office of the county recorder or the office of the registrar of
56.35titles for the county in which the property is located of a notice of default in the terms
57.1and conditions of the mortgage and service of a copy of the notice upon the occupiers of
57.2the premises. The holder of the assignment shall apply the rents and profits received in
57.3accordance with the terms of the assignment, and, if the assignment so provides, for
57.4the entire redemption period from any foreclosure sale. A holder of an assignment who
57.5enforces it in accordance with this clause shall not be deemed to be a mortgagee in
57.6possession with attendant liability.
57.7Nothing contained herein shall prohibit the right to reinstate the mortgage
57.8debt granted pursuant to section 580.30, nor the right to redeem granted pursuant to
57.9sections 580.23 and 581.10, and any excess cash, as that term is used herein, collected
57.10by the receiver under clause (a), or any rents and profits taken by the holder of the
57.11assignment under clause (b), shall be credited to the amount required to be paid to effect
57.12a reinstatement or redemption.

57.13    Sec. 29. Minnesota Statutes 2010, section 576.04, is amended to read:
57.14576.04 ABSENTEES; POSSESSION, MANAGEMENT, AND DISPOSITION
57.15OF PROPERTY.
57.16If a person entitled to or having an interest in property within or without the
57.17jurisdiction of the state has disappeared or absconded from the place within or without the
57.18state where last known to be, and has no agent in the state, and it is not known where the
57.19person is, or if such person, having a spouse or minor child or children dependent to any
57.20extent upon the person for support, has thus disappeared, or absconded without making
57.21sufficient provision for such support, and it is not known where the person is, or, if it is
57.22known that the person is without the state, any one who would under the law of the state
57.23be entitled to administer upon the estate of such absentee if deceased, or if no one is
57.24known to be so entitled, some person deemed suitable by the court, or such spouse, or
57.25some one in such spouse's or minors' behalf, may file a petition, under oath, in the court for
57.26the county where any such property is situated or found, stating the name, age, occupation,
57.27and last known residence or address of such absentee, the date and circumstances of the
57.28disappearance or absconding, and the names and residences of other persons, whether
57.29members of such absentee's family or otherwise, of whom inquiry may be made, whether
57.30or not such absentee is a citizen of the United States, and if not, of what country the
57.31absentee is a citizen or native, and containing a schedule of the property, real and personal,
57.32so far as known, and its location within or without the state, and a schedule of contractual
57.33or property rights contingent upon the absentee's death, and praying that real and personal
57.34property may be taken possession of and a receiver thereof appointed under this chapter
57.35576. No proceedings shall be commenced under the provisions of sections 576.04 to
58.1576.16 this chapter, except upon good cause shown until at least three months after the
58.2date on which it is alleged in such petition that such person so disappeared or absconded.

58.3    Sec. 30. Minnesota Statutes 2010, section 576.06, is amended to read:
58.4576.06 NOTICE OF SEIZURE; APPOINTMENT OF RECEIVER;
58.5DISPOSITION OF PROPERTY.
58.6Upon the return of such warrant, the court may issue a notice reciting the substance
58.7of the petition, warrant, and officer's return, which shall be addressed to such absentee and
58.8to all persons who claim an interest in such property, and to all whom it may concern,
58.9citing them to appear at a time and place named and show cause why a receiver of the
58.10property named in the officer's schedule should not be appointed and the property held and
58.11disposed of under sections 576.04 to 576.16 this chapter.

58.12    Sec. 31. Minnesota Statutes 2010, section 576.08, is amended to read:
58.13576.08 HEARING BY COURT; DISMISSAL OF PROCEEDING;
58.14APPOINTMENT AND BOND OF RECEIVER.
58.15The absentee, or any person who claims an interest in any of the property, may
58.16appear and show cause why the prayer of the petition should not be granted. The court
58.17may, after hearing, dismiss the petition and order the property in possession of the officer
58.18to be returned to the person entitled thereto, or it may appoint a receiver of the property
58.19which is in the possession of the officer and named in the schedule. If a receiver is
58.20appointed, the court shall find and record the date of the disappearance or absconding
58.21of the absentee; and the receiver shall give a bond to the state in the sum and with the
58.22conditions the court orders, to be approved by the court pursuant to section 576.27. In the
58.23appointment of the receiver the court shall give preference to the spouse of the absentee, if
58.24the spouse is competent and suitable eligible to serve as receiver under section 576.26.

58.25    Sec. 32. Minnesota Statutes 2010, section 576.09, is amended to read:
58.26576.09 POSSESSION TRANSFER OF PROPERTY BY TO RECEIVER.
58.27After the approval of the receiver gives its bond the court may order the sheriff or a
58.28deputy to transfer and deliver to such receiver the possession of the property under the
58.29warrant, and the receiver shall file in the office of the court administrator a schedule
58.30of the property received.

58.31    Sec. 33. Minnesota Statutes 2010, section 576.11, is amended to read:
59.1576.11 WHERE NO CORPOREAL PROPERTY; RECEIVER; BOND.
59.2If the absentee has left no corporeal property within or without the state, but there
59.3are debts and obligations due or owing to the absentee from persons within or without
59.4the state, a petition may be filed, as provided in section 576.04 578.02, stating the nature
59.5and amount of such debts and obligations, so far as known, and praying that a receiver
59.6thereof may be appointed. The court may thereupon issue a notice, as above provided,
59.7without issuing a warrant, and may, upon the return of the notice and after a hearing,
59.8dismiss the petition or appoint a receiver and authorize and direct the receiver to demand
59.9and collect the debts and obligations specified in the petition. The receiver shall give
59.10bond, as provided in section 576.08 576.27, and hold the proceeds of such debts and
59.11obligations and all property received, and distribute the same as provided in sections
59.12576.12 to 576.16 chapter 576. The receiver may be further authorized and directed as
59.13provided in section 576.10 578.08.

59.14    Sec. 34. Minnesota Statutes 2010, section 576.121, is amended to read:
59.15576.121 ADVANCE LIFE INSURANCE PAYMENTS TO ABSENTEE'S
59.16BENEFICIARY.
59.17If the beneficiary under an insurance policy on the life of an absentee is the
59.18absentee's spouse, child, or other person dependent upon the absentee for support and
59.19advance payments under the policy are necessary to support and maintain the beneficiary,
59.20the beneficiary shall be entitled to advance payments as the court determines under section
59.21576.122 578.12. "Beneficiary" under this section includes an heir at law of the person
59.22whose life is insured if the policy is payable to the insured's estate.

59.23    Sec. 35. Minnesota Statutes 2010, section 576.123, is amended to read:
59.24576.123 REAPPEARANCE OF ABSENTEE.
59.25    Subdivision 1. Insurance payments; reduction. If an absentee is declared dead
59.26after advance insurance payments have been made pursuant to section 576.122 578.12,
59.27the amount payable under the policy shall be reduced by the total amount of payments
59.28made under section 576.122 578.12.
59.29    Subd. 2. Reimbursement of insurer. If an absentee is found to be living after
59.30advance insurance payments have been made to a beneficiary pursuant to section 576.122
59.31578.12, the absentee and beneficiary shall reimburse the insurer the amount of the
59.32payments made.
59.33If the insurer is unable to obtain full reimbursement, the amount payable under the
59.34policy shall be reduced to the extent necessary to allow full reimbursement. Failure of the
60.1absentee and beneficiary to reimburse the insurer upon demand for payment sent by the
60.2insurer by certified mail to the last known address of the absentee and beneficiary shall be
60.3sufficient to show the insurer's inability to obtain reimbursement.

60.4    Sec. 36. Minnesota Statutes 2010, section 576.144, is amended to read:
60.5576.144 DISSOLUTION OF MARRIAGE.
60.6If the court finds the absentee dead in accordance with section 576.142 578.17, the
60.7absentee's marriage is dissolved. The court shall enter the conclusion of law dissolving the
60.8marriage on the order which establishes the death of the absentee as a matter of law.

60.9    Sec. 37. Minnesota Statutes 2010, section 576.15, is amended to read:
60.10576.15 COMPENSATION OF RECEIVER; TITLE OF ABSENTEE LOST
60.11AFTER FOUR YEARS.
60.12The receiver shall be allowed such compensation and disbursements as the court
60.13orders, to be paid out of the property or proceeds provided in chapter 576. If, within
60.14four years after the date of the disappearance or absconding, as found and recorded by
60.15the court, the absentee appears, and has not been declared dead under section 576.142
60.16578.17, or an administrator, executor, assignee in insolvency, or trustee in bankruptcy of
60.17the absentee is appointed, the receiver shall account for, deliver, and pay over to the
60.18absentee the remainder of the property. If the absentee does not appear and claim the
60.19property within four years, all the absentee's right, title, and interest in the property, real
60.20or personal, or the proceeds thereof, shall cease, and no action shall be brought by the
60.21absentee on account thereof.
60.22If the absentee is declared dead pursuant to section 576.142 578.17 and appears
60.23before the expiration of four years, the absentee shall have no right, title and interest in the
60.24property, real or personal, or the proceeds thereof.

60.25    Sec. 38. Minnesota Statutes 2010, section 576.16, is amended to read:
60.26576.16 PROPERTY DISTRIBUTION; TIME LIMITATION.
60.27If the receiver is not appointed within three years after the date found by the court
60.28under section 576.08 578.06, the time limited for accounting for, or fixed for distributing,
60.29the property or its proceeds, or for barring actions relative thereto, shall be one year after
60.30the date of the appointment of the receiver instead of the four years provided in sections
60.31576.14 578.15 and 576.15 578.20.
61.1The provisions of sections 576.04 to 576.16 this chapter shall not be construed as
61.2exclusive, but as providing additional and cumulative remedies.

61.3    Sec. 39. REVISOR'S INSTRUCTION.
61.4The Revisor of Statutes shall renumber each section of Minnesota Statutes listed
61.5in Column A with the number in Column B. The Revisor shall correct any incorrect
61.6cross-references resulting from this renumbering.

61.7	Column A	Column B
61.8	576.011	578.01
61.9	576.04	578.02
61.10	576.05	578.03
61.11	576.06	578.04
61.12	576.07	578.05
61.13	576.08	578.06
61.14	576.09	578.07
61.15	576.10	578.08
61.16	576.11	578.09
61.17	576.12	578.10
61.18	571.121	578.11
61.19	576.122	578.12
61.20	576.123	578.13
61.21	576.13	578.14
61.22	576.14	578.15
61.23	576.141	578.16
61.24	576.142	578.17
61.25	576.143	578.18
61.26	576.144	578.19
61.27	576.15	578.20
61.28	576.16	578.21

61.29    Sec. 40. REPEALER.
61.30Minnesota Statutes 2010, sections 302A.759, subdivision 2; 308A.961, subdivision
61.312; 308B.951, subdivisions 2 and 3; 317A.759, subdivision 2; and 576.01, are repealed."
61.32Delete the title and insert:
61.34relating to judiciary; modifying certain provisions relating to courts, juvenile
61.35delinquency proceedings, child support calculations, protective orders, wills
61.36and trusts, property interests, protected persons and wards, receiverships, and
61.37assignments for the benefit of creditors;amending Minnesota Statutes 2010,
61.38sections 169.79, subdivision 6; 169.797, subdivision 4; 260B.163, subdivision
61.391; 260C.331, subdivision 3; 279.37, subdivision 8; 302A.753, subdivisions 2,
61.403; 302A.755; 302A.759, subdivision 1; 302A.761; 308A.945, subdivisions 2,
61.413; 308A.951; 308A.961, subdivision 1; 308A.965; 308B.935, subdivisions 2, 3;
62.1308B.941; 308B.951, subdivision 1; 308B.955; 316.11; 317A.255, subdivision
62.21; 317A.753, subdivisions 3, 4; 317A.755; 317A.759, subdivision 1; 322B.836,
62.3subdivisions 2, 3; 322B.84; 357.021, subdivision 6; 359.061, subdivisions 1, 2;
62.4462A.05, subdivision 32; 469.012, subdivision 2i; 514.69; 514.70; 518.552, by
62.5adding a subdivision; 518A.29; 518B.01, subdivision 8; 524.2-712; 524.2-1103;
62.6524.2-1104; 524.2-1106; 524.2-1107; 524.2-1114; 524.2-1115; 524.2-1116;
62.7524.5-502; 525.091, subdivisions 1, 3; 540.14; 559.17, subdivision 2; 563.01,
62.8subdivision 3; 576.04; 576.06; 576.08; 576.09; 576.11; 576.121; 576.123;
62.9576.144; 576.15; 576.16; proposing coding for new law in Minnesota Statutes,
62.10chapters 5B; 576; 577; repealing Minnesota Statutes 2010, sections 302A.759,
62.11subdivision 2; 308A.961, subdivision 2; 308B.951, subdivisions 2, 3; 317A.759,
62.12subdivision 2; 576.01; 577.01; 577.02; 577.03; 577.04; 577.05; 577.06; 577.08;
62.13577.09; 577.10."