1.1.................... moves to amend H.F. No. 1573 as follows:
1.2Page 1, after line 4, insert:

1.5Page 2, after line 17, insert:


1.8    Section 1. Minnesota Statutes 2010, section 524.2-1103, is amended to read:
1.9524.2-1103 SCOPE.
1.10Sections 524.2-1101 to 524.2-1116 apply to disclaimers of any interest in or power
1.11over property, whenever created. Except as provided in section 524.2-1116, sections
1.12524.2-1101 to 524.2-1116 are the exclusive means by which a disclaimer may be made
1.13under Minnesota law regardless of whether it is qualified under section 2518 of the
1.14Internal Revenue Code of 1986 in effect on January 1, 2010 as defined in section 291.005,
1.15subdivision 1, clause 3.

1.16    Sec. 2. Minnesota Statutes 2010, section 524.2-1104, is amended to read:
1.17524.2-1104 TAX-QUALIFIED DISCLAIMER.
1.18Notwithstanding any other provision of this chapter, other than section 524.2-1106,
1.19if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated
1.20pursuant to the provisions of section 2518 of the Internal Revenue Code of 1986, as in
1.21effect on January 1, 2010 defined in section 291.005, subdivision 1, clause 3, as never
1.22having been transferred to the disclaimant, then the disclaimer or transfer is effective as a
1.23disclaimer under sections 524.2-1101 to 524.2-1116.

2.1    Sec. 3. Minnesota Statutes 2010, section 524.2-1106, is amended to read:
2.2524.2-1106 WHEN DISCLAIMER IS BARRED OR LIMITED.
2.3(a) A disclaimer is barred by a written waiver of the right to disclaim.
2.4(b) A disclaimer of an interest in property is barred if any of the following events
2.5occur before the disclaimer becomes effective:
2.6(1) the disclaimant accepts the portion of the interest sought to be disclaimed;
2.7(2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the
2.8portion of the interest sought to be disclaimed or contracts to do so;
2.9(3) the portion of the interest sought to be disclaimed is sold pursuant to a judicial
2.10sale; or
2.11(4) the disclaimant is insolvent when the disclaimer becomes irrevocable.
2.12(c) Acceptance of a distribution from a trust shall constitute acceptance of only
2.13that portion of the beneficial interest in that trust that has been distributed, and shall not
2.14constitute acceptance or bar disclaimer of that portion of the beneficial interest in the trust
2.15that has not yet been distributed.
2.16(c) (d) A disclaimer, in whole or in part, of the future exercise of a power held in a
2.17fiduciary capacity is not barred by its previous exercise.
2.18(d) (e) A disclaimer, in whole or in part, of the future exercise of a power not held in
2.19a fiduciary capacity is not barred by its previous exercise unless the power is exercisable
2.20in favor of the disclaimant.
2.21(e) (f) A disclaimer of an interest in, or a power over, property which is barred by
2.22this section is ineffective.

2.23    Sec. 4. Minnesota Statutes 2010, section 524.2-1107, is amended to read:
2.24524.2-1107 POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN
2.25IRREVOCABLE.
2.26(a) A person may disclaim, in whole or in part, any interest in or power over
2.27property, including a power of appointment. A person may disclaim the interest or power
2.28even if its creator imposed a spendthrift provision or similar restriction on transfer or a
2.29restriction or limitation on the right to disclaim.
2.30(b) With court approval, a fiduciary may disclaim, in whole or in part, any interest in
2.31or power over property, including a power of appointment when acting in a representative
2.32capacity. Without court approval, a fiduciary may disclaim, in whole or in part, any interest
2.33in or power over property, including a power of appointment, if and to the extent that the
2.34instrument creating the fiduciary relationship explicitly grants the fiduciary the right to
2.35disclaim. With court approval, a custodial parent may disclaim on behalf of a minor child
3.1for whom no conservator has been appointed, in whole or in part, any interest in or power
3.2over property, including a power of appointment, which the minor child is to receive.
3.3(c) To be effective, a disclaimer must be in writing, declare the writing as a
3.4disclaimer, describe the interest or power disclaimed, and be signed by the person or
3.5fiduciary making the disclaimer and acknowledged in the manner provided for deeds of
3.6real estate to be recorded in this state. In addition, for a disclaimer to be effective, an
3.7original of the disclaimer must be delivered or filed in the manner provided in section
3.8524.2-1114 .
3.9(d) A partial disclaimer may be expressed as a fraction, percentage, monetary
3.10amount, specific property, term of years, portion of a beneficial interest in or right to
3.11distributions from a trust, limitation of a power, or any other interest or estate in the
3.12property.
3.13(e) A disclaimer becomes irrevocable when the disclaimer is delivered or filed
3.14pursuant to section 524.2-1114 or it becomes effective as provided in sections 524.2-1108
3.15to 524.2-1113, whichever occurs later.
3.16(f) A disclaimer made under sections 524.2-1101 to 524.2-1116 is not a transfer,
3.17assignment, or release.

3.18    Sec. 5. Minnesota Statutes 2010, section 524.2-1114, is amended to read:
3.19524.2-1114 DELIVERY OR FILING.
3.20(a) Subject to paragraphs (b) to (l), delivery of a disclaimer may be effective
3.21by personal delivery, first-class mail, or any other method that results in its receipt.
3.22A disclaimer sent by first-class mail is deemed to have been delivered on the date it is
3.23postmarked. Delivery by any other method is effective upon receipt by the person to
3.24whom the disclaimer is to be delivered under this section.
3.25(b) In the case of a disclaimer of an interest created under the law of intestate
3.26succession or an interest created by will, other than an interest in a testamentary trust:
3.27(1) the disclaimer must be delivered to the personal representative of the decedent's
3.28estate; or
3.29(2) if no personal representative is serving when the disclaimer is sought to be
3.30delivered, the disclaimer must be filed with the clerk of the court in any county where
3.31venue of administration would be proper.
3.32(c) In the case of a disclaimer of an interest in a testamentary trust:
3.33(1) the disclaimer must be delivered to the trustee serving when the disclaimer is
3.34delivered or, if no trustee is then serving, to the personal representative of the decedent's
3.35estate; or
4.1(2) if no personal representative is serving when the disclaimer is sought to be
4.2delivered, the disclaimer must be filed with the clerk of the court in any county where
4.3venue of administration of the decedent's estate would be proper.
4.4(d) In the case of a disclaimer of an interest in an inter vivos trust:
4.5(1) the disclaimer must be delivered to the trustee serving when the disclaimer is
4.6delivered;
4.7(2) if no trustee is then serving, it must be filed with the clerk of the court in any
4.8county where the filing of a notice of trust would be proper; or
4.9(3) if the disclaimer is made before the time the instrument creating the trust becomes
4.10irrevocable, the disclaimer must be delivered to the person with the power to revoke the
4.11revocable trust or the transferor of the interest or to such person's legal representative.
4.12(e) In the case of a disclaimer of an interest created by a beneficiary designation made
4.13before the time the designation becomes irrevocable, the disclaimer must be delivered to
4.14the person making the beneficiary designation or to such person's legal representative.
4.15(f) In the case of a disclaimer of an interest created by a beneficiary designation
4.16made after the time the designation becomes irrevocable, the disclaimer must be delivered
4.17to the person obligated to distribute the interest.
4.18(g) In the case of a disclaimer by a surviving holder of jointly held property, the
4.19disclaimer must be delivered to the person to whom the disclaimed interest passes or, if
4.20such person cannot reasonably be located by the disclaimant, the disclaimer must be
4.21delivered as provided in paragraph (b).
4.22(h) In the case of a disclaimer by an object, or taker in default of exercise, of a
4.23power of appointment at any time after the power was created, the disclaimer must be
4.24delivered to:
4.25(1) the holder of the power; or
4.26(2) the fiduciary acting under the instrument that created the power or, if no fiduciary
4.27is serving when the disclaimer is sought to be delivered, filed with a court having authority
4.28to appoint the fiduciary.
4.29(i) In the case of a disclaimer by an appointee of a nonfiduciary power of
4.30appointment, the disclaimer must be delivered to:
4.31(1) the holder of the power or the personal representative of the holder's estate; or
4.32(2) the fiduciary under the instrument that created the power or, if no fiduciary is
4.33serving when the disclaimer is sought to be delivered, filed with a court having authority
4.34to appoint the fiduciary.
5.1(j) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the
5.2disclaimer must be delivered as provided in paragraph (b), (c), or (d) as if the power
5.3disclaimed were an interest in property.
5.4(k) In the case of a disclaimer of a power exercisable by an agent, other than a power
5.5exercisable by a fiduciary over a trust or estate, the disclaimer must be delivered to the
5.6principal or the principal's representative.
5.7(l) Notwithstanding paragraph (a), delivery of a disclaimer of an interest in or
5.8relating to real estate shall be presumed upon the recording of the disclaimer in the office
5.9of the clerk of the court county recorder or registrar of titles of the county or counties
5.10where the real estate is located.
5.11(m) A fiduciary or other person having custody of the disclaimed interest is not
5.12liable for any otherwise proper distribution or other disposition made without actual
5.13notice of the disclaimer or, if the disclaimer is barred under section 524.2-1106, for any
5.14otherwise proper distribution or other disposition made in reliance on the disclaimer, if
5.15the distribution or disposition is made without actual knowledge of the facts constituting
5.16the bar of the right to disclaim.

5.17    Sec. 6. Minnesota Statutes 2010, section 524.2-1115, is amended to read:
5.18524.2-1115 RECORDING OF DISCLAIMER RELATING TO REAL ESTATE.
5.19(a) A disclaimer of an interest in or relating to real estate does not provide
5.20constructive notice to all persons unless the disclaimer contains a legal description of the
5.21real estate to which the disclaimer relates and unless the disclaimer is filed for recording
5.22recorded in the office of the county recorder or registrar of titles in the county or counties
5.23where the real estate is located.
5.24(b) An effective disclaimer meeting the requirements of paragraph (a) constitutes
5.25constructive notice to all persons from the time of filing recording. Failure to record the
5.26disclaimer does not affect its validity as between the disclaimant and persons to whom the
5.27property interest or power passes by reason of the disclaimer.

5.28    Sec. 7. Minnesota Statutes 2010, section 524.2-1116, is amended to read:
5.29524.2-1116 APPLICATION TO EXISTING RELATIONSHIPS.
5.30Except as otherwise provided in section 524.2-1106, an Sections 524.2-1101 to
5.31524.2-1116 apply to disclaimers of any interest in or power over property existing on
5.32January 1, 2010, as to which the time for delivering or filing a disclaimer under laws
5.33superseded by sections 524.2-1101 to 524.2-1116 has not expired, may be disclaimed
5.34after January 1, 2010 whenever created.


6.3    Section 1. Minnesota Statutes 2010, section 524.5-502, is amended to read:
6.4524.5-502 COMPENSATION AND EXPENSES.
6.5(a) The court may authorize a proceeding under this article to proceed in forma
6.6pauperis, as provided in chapter 563.
6.7(b) In proceedings under this article, a lawyer or health professional rendering
6.8necessary services with regard to the appointment of a guardian or conservator, the
6.9administration of the ward's or protected person's estate or personal affairs, or the
6.10restoration of that person's capacity or termination of the protective proceeding shall be
6.11entitled to compensation from the ward's or protected person's estate or from the county
6.12having jurisdiction over the proceedings if the ward or protected person is indigent. When
6.13the court determines that other necessary services have been provided for the benefit of the
6.14ward or protected person by a lawyer or health professional, the court may order fees to be
6.15paid from the estate of the ward or protected person or from the county having jurisdiction
6.16over the proceedings if the ward or protected person is indigent. If, however, the court
6.17determines that a petitioner, guardian, or conservator has not acted in good faith, the court
6.18shall order some or all of the fees or costs incurred in the proceedings to be borne by the
6.19petitioner, guardian, or conservator not acting in good faith. In determining compensation
6.20for a guardian or conservator of an indigent person, the court shall consider a fee schedule
6.21recommended by the Board of County Commissioners. The fee schedule may also include
6.22a maximum compensation based on the living arrangements of the ward or protected
6.23person. If these services are provided by a public or private agency, the county may
6.24contract on a fee-for-service basis with that agency.
6.25(c) When the court determines that a guardian or conservator has rendered necessary
6.26services or has incurred necessary expenses for the benefit of the ward or protected person,
6.27the court may order reimbursement or compensation to be paid from the estate of the
6.28ward or protected person or from the county having jurisdiction over the guardianship
6.29or protective proceeding if the ward or protected person is indigent. The court may not
6.30deny an award of fees solely because the ward or protected person is a recipient of
6.31medical assistance. In determining compensation for a guardian or conservator of an
6.32indigent person, the court shall consider a fee schedule recommended by the Board of
6.33County Commissioners. The fee schedule may also include a maximum compensation
6.34based on the living arrangements of the ward or protected person. If these services are
6.35provided by a public or private agency, the county may contract on a fee-for-service
6.36basis with that agency.
7.1(d) The court shall order reimbursement or compensation if the guardian or
7.2conservator requests payment and the guardian or conservator was nominated by the court
7.3or by the county adult protection unit because no suitable relative or other person was
7.4available to provide guardianship or protective proceeding services necessary to prevent
7.5maltreatment of a vulnerable adult, as defined in section 626.5572, subdivision 15. In
7.6determining compensation for a guardian or conservator of an indigent person, the court
7.7shall consider a fee schedule recommended by the Board of County Commissioners. The
7.8fee schedule may also include a maximum compensation based on the living arrangements
7.9of the ward or protected person. If these services are provided by a public or private
7.10agency, the county may contract on a fee-for-service basis with that agency.
7.11(e) When a county employee serves as a guardian or conservator as part of
7.12employment duties, the court shall order compensation if the guardian or conservator
7.13performs necessary services that are not compensated by the county. The court may order
7.14reimbursement to the county from the ward's or protected person's estate for compensation
7.15paid by the county for services rendered by a guardian or conservator who is a county
7.16employee but only if the county shows that after a diligent effort it was unable to arrange
7.17for an independent guardian or conservator.


7.20    Section 1. [576.21] DEFINITIONS.
7.21(a) The definitions in this section apply throughout this chapter unless the context
7.22requires otherwise.
7.23(b) "Court" means the district court in which the receivership is pending unless
7.24the context requires otherwise.
7.25(c) "Entity" means a person other than a natural person.
7.26(d) "Executory contract" means a contract, including a lease, where the obligations
7.27of both the respondent and the other party to the contract are unperformed to the extent
7.28that the failure of either party to complete performance of its obligations would constitute
7.29a material breach of the contract, thereby excusing the other party's performance of its
7.30obligations under the contract.
7.31(e) "Foreign receiver" means a receiver appointed in any foreign jurisdiction.
7.32(f) "Foreign jurisdiction" means any state or federal jurisdiction other than that of
7.33this state.
7.34(g) "General receiver" means the receiver appointed in a general receivership.
8.1(h) "General receivership" means a receivership over all or substantially all of
8.2the nonexempt property of a respondent for the purpose of liquidation and distribution
8.3to creditors and other parties in interest, including, without limitation, a receivership
8.4resulting from the appointment of a receiver pursuant to section 302A.753, 308A.945,
8.5308B.935, 317A.753, or 322B.836.
8.6(i) "Lien" means a charge against or interest in property to secure payment of a debt
8.7or the performance of an obligation, including any mortgage or security interest.
8.8(j) "Limited receiver" means the receiver appointed in a limited receivership.
8.9(k) "Limited receivership" means a receivership other than a general receivership.
8.10(l) "Party" means a person who is a party within the meaning of the Minnesota Rules
8.11of Civil Procedure in the action in which a receiver is appointed.
8.12(m) "Party in interest" includes the respondent, any equity security holder in the
8.13respondent, any person with an ownership interest in or lien on receivership property, and,
8.14in a general receivership, any creditor of the respondent.
8.15(n) "Person" has the meaning given it in section 645.44 and shall include limited
8.16liability companies, limited liability partnerships, and other entities recognized under
8.17the laws of this state.
8.18(o) "Property" means all of respondent's right, title, and interest, both legal and
8.19equitable, in real and personal property, regardless of the manner by which any of the
8.20same were or are acquired. Property includes, but is not limited to, any proceeds, products,
8.21offspring, rents, or profits of or from the property. Property does not include: (1) any power
8.22that the respondent may exercise solely for the benefit of another person, or (2) property
8.23impressed with a trust except to the extent that the respondent has a residual interest.
8.24(p) "Receiver" means a person appointed by the court as the court's agent, and
8.25subject to the court's direction, to take possession of, manage, and, if authorized by this
8.26chapter or order of the court, dispose of receivership property.
8.27(q) "Receivership" means the case in which the receiver is appointed, and, as the
8.28context requires, the proceeding in which the receiver takes possession of, manages,
8.29or disposes of the respondent's property.
8.30(r) "Receivership property" means (1) in the case of a general receivership, all
8.31or substantially all of the nonexempt property of the respondent, or (2) in the case of a
8.32limited receivership, that property of the respondent identified in the order appointing
8.33the receiver, or in any subsequent order.
8.34(s) "Respondent" means the person over whose property the receiver is appointed.
9.1(t) "State agent" and "state agency" means any office, department, division, bureau,
9.2board, commission, or other agency of the state of Minnesota or of any subdivision thereof,
9.3or any individual acting in an official capacity on behalf of any state agent or state agency.
9.4(u) "Time of appointment" means the date and time specified in the first order
9.5of appointment of a receiver or, if the date and time are not specified in the order of
9.6appointment, the date and time that the court ruled on the motion for the appointment of
9.7a receiver. Time of appointment does not mean any subsequent date or time, including
9.8the execution of a written order, the filing or docketing of a written order, or the posting
9.9of a bond.
9.10(v) "Utility" means a person providing any service regulated by the Public Utilities
9.11Commission.

9.12    Sec. 2. [576.22] APPLICABILITY OF CHAPTER AND OF COMMON LAW.
9.13(a) This chapter applies to receiverships provided for in section 576.25, subdivisions
9.142 to 6, and to receiverships:
9.15(1) pursuant to section 193.147, in connection with a mortgage on an armory;
9.16(2) pursuant to section 223.17, subdivision 8, paragraph (b), in connection with
9.17a defaulting grain buyer;
9.18(3) pursuant to section 232.22, subdivision 7, paragraph (c), in connection with a
9.19defaulting public grain warehouse;
9.20(4) pursuant to section 296A.22, in connection with nonpayment of tax;
9.21(5) pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or 322B.836,
9.22in an action relating to the dissolution of an entity and relating to, in like cases, property
9.23within the state of foreign entities;
9.24(6) pursuant to section 321.0703, in connection with the rights of a creditor of a
9.25partner or transferee;
9.26(7) pursuant to section 322.22, in connection with the rights of creditors of limited
9.27partners;
9.28(8) pursuant to section 323A.0504, in connection with a partner's transferable
9.29interest;
9.30(9) pursuant to section 453.55, in connection with bonds and notes;
9.31(10) pursuant to section 453A.05, in connection with bonds and notes;
9.32(11) pursuant to section 513.47, in connection with a proceeding for relief with
9.33respect to a transfer fraudulent as to a creditor or creditors;
9.34(12) pursuant to section 514.06, in connection with the severance of a building
9.35and resale;
10.1(13) pursuant to section 515.23, in connection with an action by a unit owners'
10.2association to foreclose a lien for nonpayment of delinquent assessments against
10.3condominium units;
10.4(14) pursuant to section 518A.71, in connection with the failure to pay, or to provide
10.5security for, maintenance or support payments;
10.6(15) pursuant to section 559.17, in connection with assignments of rents; however,
10.7any receiver appointed under section 559.17 shall be a limited receiver, and the court shall
10.8apply the provisions of this chapter to the extent not inconsistent with section 559.17;
10.9(16) pursuant to section 571.84, in connection with a garnishee in possession of
10.10property subject to a garnishment proceeding;
10.11(17) pursuant to section 575.05, in connection with property applied to judgment;
10.12(18) pursuant to section 575.06, in connection with adverse claimants;
10.13(19) pursuant to sections 582.05 to 582.10, in connection with mortgage
10.14foreclosures; however, any receiver appointed under sections 582.05 to 585.10 shall be a
10.15limited receiver, and the court shall apply the provisions of this chapter to the extent not
10.16inconsistent with sections 582.05 to 582.10;
10.17(20) pursuant to section 609.904, in connection with criminal penalties; or
10.18(21) pursuant to section 609.907, in connection with preservation of property
10.19subject to forfeiture.
10.20(b) This chapter does not apply to any receivership in which the receiver is a state
10.21agency or in which the receiver is appointed, controlled, or regulated by a state agency
10.22unless otherwise provided by law.
10.23(c) In receiverships not specifically referenced in paragraph (a) or (b), the court, in
10.24its discretion, may apply provisions of this chapter to the extent not inconsistent with
10.25the statutes establishing the receiverships.
10.26(d) Unless explicitly displaced by this chapter, the provisions of other statutory law
10.27and the principles of common law remain in full force and effect and supplement the
10.28provisions of this chapter.

10.29    Sec. 3. [576.23] POWERS OF THE COURT.
10.30The court has the exclusive authority to direct the receiver and the authority over
10.31all receivership property wherever located including, without limitation, authority
10.32to determine all controversies relating to the collection, preservation, improvement,
10.33disposition, and distribution of receivership property, and all matters otherwise arising
10.34in or relating to the receivership, the receivership property, the exercise of the receiver's
10.35powers, or the performance of the receiver's duties.

11.1    Sec. 4. [576.24] TYPES OF RECEIVERSHIPS.
11.2A receivership may be either a limited receivership or a general receivership.
11.3Any receivership which is based upon the enforcement of an assignment of rents or
11.4leases, or the foreclosure of a mortgage lien, judgment lien, mechanic's lien, or other lien
11.5pursuant to which the respondent or any holder of a lien would have a statutory right of
11.6redemption, shall be a limited receivership. If the order appointing the receiver does
11.7not specify whether the receivership is a limited receivership or a general receivership,
11.8the receivership shall be a limited receivership unless and until the court by later order
11.9designates the receivership as a general receivership, notwithstanding that pursuant to
11.10section 576.25, subdivision 8, a receiver may have control over all the property of the
11.11respondent. At any time, the court may order a general receivership to be converted to a
11.12limited receivership and a limited receivership to be converted to a general receivership.

11.13    Sec. 5. [576.25] APPOINTMENT OF RECEIVERS; RECEIVERSHIP NOT A
11.14TRUST.
11.15    Subdivision 1. No necessity of separate action. A receiver may be appointed under
11.16this chapter whether or not the motion for appointment of a receiver is combined with, or
11.17is ancillary to, an action seeking a money judgment.
11.18    Subd. 2. Before judgment. Except where judgment for failure to answer may be
11.19had without application to the court, a limited receiver may be appointed before judgment
11.20to protect any party to an action who demonstrates an apparent right to property that is the
11.21subject of the action and is in the possession of an adverse party, and that the property or
11.22its rents and profits are in danger of loss or material impairment.
11.23    Subd. 3. In a judgment or after judgment. A limited or general receiver may be
11.24appointed in a judgment or after judgment to carry the judgment into effect, to preserve
11.25property pending an appeal, or when an execution has been returned unsatisfied and the
11.26judgment debtor refuses to apply the property in satisfaction of the judgment.
11.27    Subd. 4. Entities. In addition to those situations specifically provided for in statute,
11.28a limited or general receiver may be appointed when a corporation or other entity is
11.29dissolved, insolvent, in imminent danger of insolvency, or has forfeited its corporate rights
11.30and in like cases of the property within the state of foreign corporations and other entities.
11.31    Subd. 5. Appointment of receiver of mortgaged property. (a) A limited
11.32receiver shall be appointed at any time after the commencement of mortgage foreclosure
11.33proceedings under chapter 580 or 581 and before the end of the period for redemption, if
11.34the mortgage being foreclosed:
12.1 (1) secures an original principal amount of $100,000 or more or is a lien upon
12.2residential real estate containing more than four dwelling units; and
12.3(2) is not a lien upon property that was entirely homesteaded, residential real
12.4estate containing four or fewer dwelling units where at least one unit is homesteaded;
12.5or agricultural property.
12.6The foreclosing mortgagee or the purchaser at foreclosure sale may at any time bring an
12.7action in the district court of the county in which the mortgaged property or any part
12.8thereof is located for the appointment of a receiver; provided, however, if the foreclosure
12.9is by action under chapter 581, a separate action need not be filed.
12.10(b) The court shall appoint a receiver upon a showing that the mortgagor has
12.11breached a covenant contained in the mortgage relating to any of the following:
12.12(1) application of tenant security deposits as required by section 504B.178;
12.13(2) payment when due of prior or current real estate taxes or special assessments
12.14with respect to the mortgaged property or the periodic escrow for the payment of the
12.15taxes or special assessments;
12.16(3) payment when due of premiums for insurance of the type required by the
12.17mortgage or the periodic escrow for the payment of the premiums; or
12.18(4) keeping of the covenants required of a landlord or licensor pursuant to section
12.19504B.161, subdivision 1.
12.20(c) The receiver shall be or shall retain an experienced property manager.
12.21(d) The receiver shall collect the rents, profits, and all other income of any kind.
12.22The receiver, after providing for payment of its reasonable fees and expenses, shall, to
12.23the extent possible and in the order determined by the receiver to preserve the value of
12.24the mortgaged property:
12.25(1) manage the mortgaged property so as to prevent waste;
12.26(2) execute contracts and leases within the period of the receivership, or beyond the
12.27period of the receivership if approved by the court;
12.28(3) pay the expenses listed in paragraph (b), clauses (1) to (3);
12.29(4) pay all expenses for normal maintenance of the mortgaged property; and
12.30(5) perform the terms of any assignment of rents that complies with section 559.17,
12.31subdivision 2.
12.32(e) The purchaser at a foreclosure sale shall have the right, at any time and without
12.33limitation as provided in section 582.03, to advance money to the receiver to pay any or
12.34all of the expenses that the receiver should otherwise pay if cash were available from
12.35the mortgaged property. Sums so advanced, with interest, shall be a part of the sum
12.36required to be paid to redeem from the sale. The sums shall be proved by the affidavit of
13.1the purchaser, an agent, or attorney, stating the expenses and describing the mortgaged
13.2property. The affidavit shall be furnished to the sheriff in the manner of expenses claimed
13.3under section 582.03.
13.4(f) Any sums collected that remain in the possession of the receiver at the
13.5termination of the receivership shall, in the event the termination of the receivership is
13.6due to the reinstatement of the mortgage debt or redemption of the mortgaged property by
13.7the mortgagor, be paid to the mortgagor; and in the event termination of the receivership
13.8occurs at the end of the period of redemption without redemption by the mortgagor
13.9or any other party entitled to redeem, interest accrued upon the sale price pursuant to
13.10section 580.23 or 581.10 shall be paid to the purchaser at the foreclosure sale. Any net
13.11sum remaining shall be paid to the mortgagor, except if the receiver was enforcing an
13.12assignment of rents that complies with section 559.17, subdivision 2, in which case any
13.13net sum remaining shall be paid pursuant to the terms of the assignment.
13.14(g) This subdivision applies to all mortgages executed on or after August 1, 1977,
13.15and to amendments or modifications thereto, and to amendments or modifications made on
13.16or after August 1, 1977, to mortgages executed before August 1, 1977, if the amendment
13.17or modification is duly recorded and is for the principle purpose of curing a default.
13.18    Subd. 6. Other cases. A receiver may be appointed in other cases as are provided
13.19by law, or in accord with existing practice, except as otherwise prescribed.
13.20    Subd. 7. Motion for appointment of receiver. The court may appoint a receiver
13.21upon a motion with notice to the respondent, to all other parties in the action, and to
13.22parties in interest and other persons as the court may require. Notice shall also be given
13.23to any judgment creditor who is seeking the appointment of a receiver in any other
13.24action. A motion to appoint a general receiver shall be treated as a dispositive motion.
13.25The court may appoint a receiver ex parte or on shortened notice on a temporary basis
13.26if it is clearly shown that an emergency exists requiring the immediate appointment of
13.27a receiver. In that event, the court shall set a hearing as soon as practicable and at the
13.28subsequent hearing, the burdens of proof shall be as would be applicable to a motion made
13.29on notice that is not expedited.
13.30    Subd. 8. Description of receivership property. The order appointing the receiver
13.31or subsequent order shall describe the receivership property with particularity appropriate
13.32to the circumstances. If the order does not so describe the receivership property, until
13.33further order of the court, the receiver shall have control over all of the respondent's
13.34nonexempt property.
13.35    Subd. 9. Receivership not a trust. The order appointing the receiver does not
13.36create a trust.

14.1    Sec. 6. [576.26] ELIGIBILITY OF RECEIVER.
14.2    Subdivision 1. Who may serve as receiver. Unless otherwise prohibited by law or
14.3prior order, any person, whether or not a resident of this state, may serve as a receiver,
14.4provided that the court, in its order appointing the receiver, makes written conclusions
14.5based in the record that the person proposed as receiver:
14.6(1) is qualified to serve as receiver and as an officer of the court; and
14.7(2) is independent as to the parties and the underlying dispute.
14.8    Subd. 2. Considerations regarding qualifications. (a) In determining whether a
14.9proposed receiver is qualified to serve as receiver and as an officer of the court, the court
14.10shall consider any relevant information, including, but not limited to, whether:
14.11(1) the proposed receiver has knowledge and experience sufficient to perform the
14.12duties of receiver;
14.13(2) the proposed receiver has the financial ability to post the bond required by
14.14section 576.07;
14.15(3) the proposed receiver or any insider of the proposed receiver has been previously
14.16disqualified from serving as receiver and the reasons for disqualification;
14.17(4) the proposed receiver or any insider of the proposed receiver has been convicted
14.18of a felony or other crime involving moral turpitude; and
14.19(5) the proposed receiver or any insider of the proposed receiver has been found
14.20liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar misconduct.
14.21(b) For the purposes of this subdivision, "insider" includes:
14.22(1) if the proposed receiver is a corporation, an officer or director of the corporation,
14.23or a person in control of the proposed receiver; and
14.24(2) if the proposed receiver is a partnership, a general or limited partner of the
14.25partnership, or a person in control of the proposed receiver.
14.26    Subd. 3. Considerations regarding independence. (a) In determining whether a
14.27proposed receiver is independent as to the parties and the underlying dispute, the court
14.28shall consider any relevant information, including, but not limited to:
14.29(1) the nature and extent of any relationship that the proposed receiver has to the
14.30parties and the property proposed as receivership property including, without limitation,
14.31whether the proposed receiver is a party to the action, a family member of a party to
14.32the action, or an officer, director, member, employee, or owner of or controls a party
14.33to the action;
14.34(2) whether the proposed receiver has any interest materially adverse to the interests
14.35of any of the parties to the action;
15.1(3) whether the proposed receiver has any material financial or pecuniary interest,
15.2other than receiver compensation allowed by court order, in the outcome of the underlying
15.3dispute, including any proposed contingent or success fee compensation arrangement; and
15.4(4) whether the proposed receiver is a debtor, secured or unsecured creditor, lienor
15.5of, or holder of any equity interest in, any of the parties to the action of the receivership
15.6property.
15.7(b) In evaluating all information, the court may exercise its discretion and need not
15.8consider any single item of information to be determinative of independence. Without
15.9limiting the generality of the preceding sentence, the proposed receiver shall not be
15.10disqualified solely because the proposed receiver was appointed receiver in other unrelated
15.11matters involving any of the parties to the matter in which the appointment is sought, or
15.12the proposed receiver has been engaged by any of the parties to the action in matters
15.13unrelated to the underlying action.
15.14    Subd. 4. Information provided to court. The proposed receiver, the parties, and
15.15prospective parties in interest may provide any information relevant to the qualifications,
15.16independence, and the selection of the receiver.

15.17    Sec. 7. [576.27] BOND.
15.18After appointment, a receiver shall give a bond in the sum, nature, and with the
15.19conditions that the court shall order in its discretion consistent with section 574.11. Unless
15.20otherwise ordered by the court, the receiver's bond shall be conditioned on the receiver's
15.21faithful discharge of its duties in accordance with the orders of the court and the laws of
15.22this state. The receiver shall execute a bond with a surety authorized to write bonds in
15.23the state.

15.24    Sec. 8. [576.28] IMMUNITY; DISCOVERY FROM RECEIVER.
15.25(a) The receiver shall be entitled to all defenses and immunities provided at common
15.26law for acts or omissions within the scope of the receiver's appointment.
15.27(b) No person other than a successor receiver duly appointed by the court shall have
15.28a right of action against a receiver to recover receivership property or the value thereof.
15.29(c) A party or party in interest may conduct discovery of the receiver concerning any
15.30mater relating to the receiver's administration of the receivership property after obtaining
15.31an order authorizing the discovery.

15.32    Sec. 9. [576.29] POWERS AND DUTIES OF RECEIVERS; GENERALLY.
16.1    Subdivision 1. Powers. (a) A receiver, whether general or limited, shall have the
16.2following powers in addition to those specifically conferred by this chapter or otherwise
16.3by statute, rule, or order of the court:
16.4(1) the power to collect, control, manage, conserve, and protect receivership
16.5property;
16.6(2) the power to incur and pay expenses incidental to the receiver's exercise of the
16.7powers or otherwise in the performance of the receiver's duties;
16.8(3) the power to assert rights, claims, causes of action, or defenses that relate to
16.9receivership property; and
16.10(4) the power to seek and obtain instruction from the court with respect to any
16.11matter relating to the receivership property, the exercise of the receiver's powers, or the
16.12performance of the receiver's duties.
16.13(b) In addition to the powers provided in paragraph (a), a general receiver shall
16.14have the power:
16.15(1) to (i) assert any rights, claims, causes of action, or defenses of the respondent to
16.16the extent any rights, claims, causes of action, or defenses are receivership property; (ii)
16.17maintain in the receiver's name or in the name of the respondent any action to enforce
16.18any right, claim, cause of action, or defense; and (iii) intervene in actions in which the
16.19respondent is a party for the purpose of exercising the powers under this clause or
16.20requesting transfer of venue of the action to the court;
16.21(2) to pursue any claim or remedy that may be asserted by a creditor of the
16.22respondent under sections 513.41 to 513.51;
16.23(3) to compel any person, including the respondent, and any party, by subpoena
16.24pursuant to Rule 45 of the Minnesota Rules of Civil Procedure, to give testimony or to
16.25produce and permit inspection and copying of designated books, documents, electronically
16.26stored information, or tangible things with respect to receivership property or any other
16.27matter that may affect the administration of the receivership;
16.28(4) to operate any business constituting receivership property in the ordinary course
16.29of the business, including the use, sale, or lease of property of the business or otherwise
16.30constituting receivership property, and the incurring and payment of expenses of the
16.31business or other receivership property;
16.32(5) if authorized by an order of the court following notice and a hearing, to use,
16.33improve, sell, or lease receivership property other than in the ordinary course of business;
16.34and
17.1(6) if appointed pursuant to section 302A.753, 308A.945, 308B.935, 317A.753, or
17.2322B.836, to exercise all of the powers and authority provided by the section or order of
17.3the court.
17.4    Subd. 2. Duties. A receiver, whether general or limited, shall have the duties
17.5specifically conferred by this chapter or otherwise by statute, rule, or order of the court.
17.6    Subd. 3. Modification of powers and duties. Except as otherwise provided in this
17.7chapter, the court may modify the powers and duties of a receiver provided by this section.

17.8    Sec. 10. [576.30] RECEIVER AS LIEN CREDITOR; REAL ESTATE
17.9RECORDING; SUBSEQUENT SALES OF REAL ESTATE.
17.10    Subdivision 1. Receiver as lien creditor. As of the time of appointment, the
17.11receiver shall have the powers and priority as if it were a creditor that obtained a judicial
17.12lien at the time of appointment pursuant to sections 548.09 and 550.10 on all of the
17.13receivership property, subject to satisfying the recording requirements as to real property
17.14described in subdivision 2.
17.15    Subd. 2. Real estate recording. If any interest in real estate is included in the
17.16receivership property, a notice of lis pendens shall be recorded as soon as practicable with
17.17the county recorder or registrar of titles, as appropriate, of the county in which the real
17.18property is located. The priority of the receiver as lien creditor against real property shall
17.19be from the time of recording of the notice of lis pendens, except as to persons with actual
17.20or implied knowledge of the appointment under section 507.34.
17.21    Subd. 3. Subsequent sales of real estate. The notice of lis pendens, a court order
17.22authorizing the receiver to sell real property certified by the court administrator, and
17.23a deed executed by the receiver recorded with the county recorder or registrar of titles,
17.24as appropriate, of the county in which the real property is located, and upon execution
17.25of the deed by the receiver shall be prima facie evidence of the authority of the receiver
17.26to sell and convey the real property described in the deed. The court may also require a
17.27motion for an order for sale of the real property or a motion for an order confirming
17.28sale of the real property.

17.29    Sec. 11. [576.31] DUTIES OF RESPONDENT.
17.30The respondent shall:
17.31(1) assist and cooperate fully with the receiver in the administration of the
17.32receivership and the receivership property and the discharge of the receiver's duties, and
17.33comply with all orders of the court;
18.1(2) immediately upon the receiver's appointment, deliver to the receiver all of the
18.2receivership property in the respondent's possession, custody, or control, including, but not
18.3limited to, all books and records, electronic data, passwords, access codes, statements of
18.4accounts, deeds, titles or other evidence of ownership, financial statements, and all other
18.5papers and documents related to the receivership property;
18.6(3) supply to the receiver information as requested relating to the administration
18.7of the receivership and the receivership property, including information necessary to
18.8complete any reports or other documents that the receiver may be required to file; and
18.9(4) remain responsible for the filing of all tax returns, including those returns
18.10applicable to periods which include those in which the receivership is in effect.

18.11    Sec. 12. [576.32] EMPLOYMENT AND COMPENSATION OF
18.12PROFESSIONALS.
18.13    Subdivision 1. Employment. (a) To represent or assist the receiver in carrying
18.14out the receiver's duties, the receiver may employ attorneys, accountants, appraisers,
18.15auctioneers, and other professionals that do not hold or represent an interest adverse
18.16to the receivership.
18.17(b) This section does not require prior court approval for the retention of
18.18professionals. However, any professional to be retained shall provide the receiver with a
18.19disclosure of any potential conflicts of interest, and the professional or the receiver shall
18.20file with the court a notice of the retention and of the proposed compensation. Any party
18.21in interest may bring a motion for disapproval of any retention within 21 days after the
18.22filing of the notice of retention.
18.23(c) A person is not disqualified for employment under this section solely because
18.24of the person's employment by, representation of, or other relationship with the receiver,
18.25respondent, a creditor, or other party in interest if the court determines that the employment
18.26is appropriate.
18.27    Subd. 2. Compensation. (a) The receiver and any professional retained by the
18.28receiver shall be paid by the receiver from the receivership property in the same manner
18.29as other expenses of administration and without separate orders, but subject to the
18.30procedures, safeguards, and reporting that the court may order.
18.31(b) Except to the extent fees and expenses have been approved by the court, or as
18.32to parties in interest who are deemed to have waived the right to object, any interim
18.33payments of fees and expenses to the receiver are subject to approval in connection with
18.34the receiver's final report pursuant to section 576.38.

19.1    Sec. 13. [576.33] SCHEDULES OF PROPERTY AND CLAIMS.
19.2(a) The court may order the respondent or a general receiver to file under oath to
19.3the best of its actual knowledge:
19.4(1) a schedule of all receivership property and exempt property of the respondent,
19.5describing, as of the time of appointment: (i) the location of the property and, if real
19.6property, a legal description thereof; (ii) a description of all liens to which the property is
19.7subject; and (iii) an estimated value of the property; and
19.8(2) a schedule of all creditors and taxing authorities and regulatory authorities which
19.9supervise the respondent, their mailing addresses, the amount and nature of their claims,
19.10whether the claims are secured by liens of any kind, and whether the claims are disputed.
19.11(b) The court may order inventories and appraisals if appropriate to the receivership.

19.12    Sec. 14. [576.34] NOTICE.
19.13In a general receivership, unless the court orders otherwise, the receiver shall give
19.14notice of the receivership to all creditors and other parties in interest actually known
19.15to the receiver by mail or other means of transmission within 21 days after the time of
19.16appointment. The notice of the receivership shall include the time of appointment and the
19.17names and addresses of the respondent, the receiver, and the receiver's attorney, if any.

19.18    Sec. 15. [576.35] NOTICES, MOTIONS, AND ORDERS.
19.19    Subdivision 1. Notice of appearance. Any party in interest may make an
19.20appearance in a receivership by filing a written notice of appearance, including the name,
19.21mailing address, fax number, e-mail address, if any, and telephone number of the party in
19.22interest and its attorney, if any, and by serving a copy on the receiver and the receiver's
19.23attorney, if any. It is not necessary for a party in interest to be joined as a party to be heard
19.24in the receivership. A proof of claim does not constitute a written notice of appearance.
19.25    Subd. 2. Master service list. From time to time the receiver shall file an updated
19.26master service list consisting of the names, mailing addresses, and, where available, fax
19.27numbers and e-mail addresses of the respondent, the receiver, all persons joined as parties
19.28in the receivership, all persons known by the receiver to have asserted any ownership
19.29or lien in receivership property, all persons who have filed a notice of appearance in
19.30accordance with this section, and their attorneys, if any.
19.31    Subd. 3. Motions. Except as otherwise provided in this chapter, an order shall be
19.32sought by a motion brought in compliance with the Minnesota Rules of Civil Procedure
19.33and the General Rules of Practice for the District Courts.
20.1    Subd. 4. Persons served. Except as otherwise provided in this chapter, a motion
20.2shall be served as provided in the Minnesota Rules of Civil Procedure, unless the court
20.3orders otherwise, on all persons on the master service list, all persons who have asserted
20.4an ownership interest or lien in receivership property that is the subject of the motion,
20.5all persons who are identified in the motion as directly affected by the relief requested,
20.6and other persons as the court may direct.
20.7    Subd. 5. Service on state agency. Any request for relief against a state agency shall
20.8be served as provided in the Minnesota Rules of Civil Procedure, unless the court orders
20.9otherwise, on the specific state agency and on the Office of the Attorney General.
20.10    Subd. 6. Order without hearing. Where a provision in this chapter, an order issued
20.11in the receivership, or a court rule requires an objection or other response to a motion or
20.12application within a specific time, and no objection or other response is interposed, the
20.13court may grant the relief requested without a hearing.
20.14    Subd. 7. Order upon application. Where a provision of this chapter permits, as to
20.15administrative matters, or where it otherwise appears that no party in interest would be
20.16materially prejudiced, the court may issue an order ex parte or based on an application
20.17without a motion, notice, or hearing.
20.18    Subd. 8. Persons bound by orders of the court. Except as to persons entitled to be
20.19served pursuant to subdivision 4 and who were not served, an order of the court binds
20.20parties in interest and all persons who file notices of appearance, submit proofs of claim,
20.21receive written notice of the receivership, receive notice of any motion in the receivership,
20.22or who have actual knowledge of the receivership whether they are joined as parties or
20.23received notice of the specific motion or order.

20.24    Sec. 16. [576.36] RECORDS; INTERIM REPORTS.
20.25    Subdivision 1. Preparation and retention of records. The receiver shall prepare
20.26and retain appropriate business records, including records of all cash receipts and
20.27disbursements and of all receipts and distributions or other dispositions of receivership
20.28property. After due consideration of issues of confidentiality, the records may be provided
20.29by the receiver to parties in interest or shall be provided as ordered by the court.
20.30    Subd. 2. Interim reports. (a) The court may order the receiver to prepare and
20.31file interim reports addressing:
20.32(1) the activities of the receiver since the last report;
20.33(2) cash receipts and disbursements, including payments made to professionals
20.34retained by the receiver;
20.35(3) receipts and dispositions of receivership property; and
21.1(4) other matters.
21.2(b) The order may provide for the delivery of the receiver's interim reports to persons
21.3on the master service list and to other persons and may provide a procedure for objection
21.4to the interim reports, and may also provide that the failure to object constitutes a waiver
21.5of objection to matters addressed in the interim reports.

21.6    Sec. 17. [576.37] REMOVAL OF RECEIVERS.
21.7    Subdivision 1. Removal of receiver. The court may remove the receiver if: (1) the
21.8receiver fails to execute and file the bond required by section 576.27; (2) the receiver
21.9resigns, refuses, or fails to serve for any reason; or (3) for other good cause.
21.10    Subd. 2. Successor receiver. Upon removal of the receiver, if the court determines
21.11that further administration of the receivership is required, the court shall appoint a
21.12successor receiver. Upon executing and filing a bond under section 576.27, the successor
21.13receiver shall immediately succeed the receiver so removed and shall assume the duties of
21.14receiver.
21.15    Subd. 3. Report and discharge of removed receiver. Within 14 days after
21.16removal, the receiver so removed shall file with the court and serve a report pursuant to
21.17section 576.38, subdivision 3, for matters up to the date of the removal. Upon approval
21.18of the report, the court may enter an order pursuant to section 576.38 discharging the
21.19removed receiver.

21.20    Sec. 18. [576.38] TERMINATION OF RECEIVERSHIPS; FINAL REPORT.
21.21    Subdivision 1. Termination of receivership. The court may discharge a receiver
21.22and terminate the receivership. If the court determines that the appointment of the receiver
21.23was procured in bad faith, the court may assess against the person who procured the
21.24receiver's appointment:
21.25(1) all of the receiver's fees and expenses and other costs of the receivership; and
21.26(2) any other sanctions the court deems appropriate.
21.27    Subd. 2. Request for discharge. Upon distribution or disposition of all receivership
21.28property, or the completion of the receiver's duties, the receiver shall file a final report and
21.29shall request that the court approve the final report and discharge the receiver.
21.30    Subd. 3. Contents of final report. The final report, which may incorporate by
21.31reference interim reports, shall include, in addition to any matters required by the court in
21.32the case:
21.33(1) a description of the activities of the receiver in the conduct of the receivership;
22.1(2) a schedule of all receivership property at the commencement of the receivership
22.2and any receivership property added thereafter;
22.3(3) a list of expenditures, including all payments to professionals retained by the
22.4receiver;
22.5(4) a list of any unpaid expenses incurred during the receivership;
22.6(5) a list of all dispositions of receivership property;
22.7(6) a list of all distributions made or proposed to be made; and
22.8(7) if not done separately, a motion or application for approval of the payment of
22.9fees and expenses of the receiver.
22.10    Subd. 4. Notice of final report. The receiver shall give notice of the filing of the
22.11final report and request for discharge to all persons who have filed notices of appearance.
22.12If there is no objection within 21 days, the court may enter an order approving the final
22.13report and discharging the receiver without the necessity of a hearing.
22.14    Subd. 5. Effect of discharge. A discharge removes all authority of the receiver,
22.15excuses the receiver from further performance of any duties, and discharges any lis
22.16pendens recorded by the receiver.

22.17    Sec. 19. [576.39] ACTIONS BY OR AGAINST RECEIVER OR RELATING TO
22.18RECEIVERSHIP PROPERTY.
22.19    Subdivision 1. Actions by or against receiver. The receiver may sue in the
22.20receiver's capacity and, subject to other sections of this chapter and all immunities
22.21provided at common law, may be sued in that capacity.
22.22    Subd. 2. Venue. Unless applicable law requires otherwise or the court orders
22.23otherwise, an action by or against the receiver or relating to the receivership or
22.24receivership property shall be commenced in the court and assigned to the judge before
22.25whom the receivership is pending.
22.26    Subd. 3. Joinder. Subject to section 576.42, a limited or general receiver may be
22.27joined or substituted as a party in any action or other proceeding that relates to receivership
22.28property that was pending at the time of appointment. Subject to other sections of this
22.29chapter, a general receiver may be joined or substituted as a party in any action or other
22.30proceeding that was pending at the time of appointment in which the respondent is a party.
22.31Pending actions may be transferred to the court upon the receiver's motion for change of
22.32venue made in the court in which the action is pending.
22.33    Subd. 4. Effect of judgments. A judgment entered subsequent to the time of
22.34appointment against a receiver or the respondent shall not constitute a lien on receivership
22.35property, nor shall any execution issue thereon. Upon submission of a certified copy of the
23.1judgment in accordance with section 576.49, the amount of the judgment shall be treated
23.2as an allowed claim in a general receivership. A judgment against a limited receiver shall
23.3have the same effect as a judgment against the respondent, except that the judgment shall
23.4be enforceable against receivership property only to the extent ordered by the court.

23.5    Sec. 20. [576.40] TURNOVER OF PROPERTY.
23.6    Subdivision 1. Demand by receiver. Except as expressly provided in this section,
23.7and unless otherwise ordered by the court, upon demand by a receiver, any person shall
23.8turn over any receivership property that is within the possession or control of that person.
23.9Unless ordered by the court, a person in possession of receivership property pursuant
23.10to a valid lien perfected prior to the time of appointment is not required to turn over
23.11receivership property.
23.12    Subd. 2. Motion by receiver. A receiver may seek to compel turnover of
23.13receivership property by motion in the receivership. If there exists a bona fide dispute
23.14with respect to the existence or nature of the receiver's or the respondent's interest in the
23.15property, turnover shall be sought by means of an action under section 576.39. In the
23.16absence of a bona fide dispute with respect to the receiver's or the respondent's right to
23.17possession of receivership property, the failure to relinquish possession and control to the
23.18receiver may be punishable as contempt of the court.

23.19    Sec. 21. [576.41] ANCILLARY RECEIVERSHIPS.
23.20    Subdivision 1. Ancillary receiverships in foreign jurisdictions. A receiver
23.21appointed by a court of this state may, without first seeking approval of the court, apply
23.22in any foreign jurisdiction for appointment as receiver with respect to any receivership
23.23property which is located within the foreign jurisdiction.
23.24    Subd. 2. Ancillary receiverships in the courts of this state. (a) A foreign receiver
23.25may obtain appointment by a court of this state as a receiver in an ancillary receivership
23.26with respect to any property located in or subject to the jurisdiction of the court if (1)
23.27the foreign receiver would be eligible to serve as receiver under section 576.26, and
23.28(2) the appointment is in furtherance of the foreign receiver's possession, control, or
23.29disposition of property subject to the foreign receivership and in accordance with orders of
23.30the foreign jurisdiction.
23.31(b) The courts of this state may enter any order necessary to effectuate orders entered
23.32by the foreign jurisdiction's receivership proceeding. Unless the court orders otherwise,
23.33a receiver appointed in an ancillary receivership in this state shall have the powers and
24.1duties of a limited receiver as set forth in this chapter and shall otherwise comply with the
24.2provisions of this chapter applicable to limited receivers.

24.3    Sec. 22. [576.42] STAYS.
24.4    Subdivision 1. Control of property. All receivership property is under the control
24.5and supervision of the court appointing the receiver.
24.6    Subd. 2. Stay by court order. In addition to any stay provided in this section,
24.7the court may order a stay or stays to protect receivership property and to facilitate the
24.8administration of the receivership.
24.9    Subd. 3. Stay in all receiverships. Except as otherwise ordered by the court, the
24.10entry of an order appointing a receiver shall operate as a stay, applicable to all persons, of:
24.11(1) any act to obtain possession of receivership property, or to interfere with or
24.12exercise control over receivership property, other than the commencement or continuation
24.13of a judicial, administrative, or other action or proceeding, including the issuance or use of
24.14process, to enforce any lien having priority over the rights of the receiver in receivership
24.15property; and
24.16(2) any act to create or perfect any lien against receivership property, except by
24.17exercise of a right of setoff, to the extent that the lien secures a claim that arose before
24.18the time of appointment.
24.19    Subd. 4. Limited additional stay in general receiverships. (a) Except as otherwise
24.20ordered by the court, in addition to the stay provided in subdivision 3, the entry of an order
24.21appointing a general receiver shall operate as a stay, applicable to all persons, of:
24.22(1) the commencement or continuation of a judicial, administrative, or other action
24.23or proceeding, including the issuance or use of process, against the respondent or the
24.24receiver that was or could have been commenced before the time of appointment, or to
24.25recover a claim against the respondent that arose before the time of appointment;
24.26(2) the commencement or continuation of a judicial, administrative, or other action
24.27or proceeding, including the issuance or use of process, to enforce any lien having priority
24.28over the rights of the receiver in receivership property.
24.29(b) As to the acts specified in this subdivision, the stay shall expire 30 days after
24.30the time of appointment unless, before the expiration of the 30-day period, the receiver
24.31or other party in interest files a motion seeking an order of the court extending the stay
24.32and before the expiration of an additional 30 days following the 30-day period, the court
24.33orders the stay extended.
24.34    Subd. 5. Modification of stay. The court may modify any stay provided in this
24.35section upon the motion of any party in interest affected by the stay.
25.1    Subd. 6. Inapplicability of stay. The entry of an order appointing a receiver does
25.2not operate as a stay of:
25.3(1) the commencement or continuation of a criminal proceeding against the
25.4respondent;
25.5(2) the commencement or continuation of an action or proceeding by a governmental
25.6unit to enforce its police or regulatory power;
25.7(3) the enforcement of a judgment, other than a money judgment, obtained in an
25.8action or proceeding by a governmental unit to enforce its police or regulatory power, or
25.9with respect to any licensure of the respondent;
25.10(4) the establishment by a governmental unit of any tax liability and any appeal
25.11thereof;
25.12(5) the commencement or continuation of an action or proceeding to establish
25.13paternity; to establish or modify an order for alimony, maintenance, or support; or to
25.14collect alimony, maintenance, or support under any order of a court;
25.15(6) the exercise of a right of setoff;
25.16(7) any act to maintain or continue the perfection of a lien on, or otherwise preserve
25.17or protect rights in, receivership property, but only to the extent that the act was necessary
25.18to preserve or protect the lien or other rights as they existed as of the time of the
25.19appointment. If the act would require seizure of receivership property or commencement
25.20of an action prohibited by a stay, the continued perfection shall instead be accomplished
25.21by filing a notice in the court before which the receivership is pending and by serving the
25.22notice upon the receiver and receiver's attorney, if any, within the time fixed by law for
25.23seizure or commencement of the action;
25.24(8) the commencement of a bankruptcy case under federal bankruptcy laws; or
25.25(9) any other exception as provided in United States Code, title 11, section 326(b),
25.26as to the automatic stay in federal bankruptcy cases to the extent not inconsistent with any
25.27provision in this section.

25.28    Sec. 23. [576.43] UTILITY SERVICE.
25.29A utility providing service to receivership property may not alter, refuse, or
25.30discontinue service to the receivership property without first giving the receiver 21 days'
25.31written notice of any default and any intention to alter, refuse, or discontinue service to
25.32receivership property. The court may prohibit the alteration, refusal, or discontinuance
25.33of utility service if the receiver furnishes adequate assurance of payment for service to
25.34be provided after the time of appointment.

26.1    Sec. 24. [576.44] RECEIVERSHIP FINANCING.
26.2(a) Without necessity of a court order, the receiver may obtain unsecured credit and
26.3incur unsecured debt on behalf of the receivership, and the amounts shall be allowable as
26.4expenses of the receivership under section 576.51, subdivision 1, clause (2).
26.5(b) Without necessity of a court order, the receiver may obtain secured financing
26.6on behalf of the receivership from any secured party under a financing facility existing
26.7at the time of the appointment.
26.8(c) The court may authorize the receiver to obtain credit or incur indebtedness,
26.9and the court may authorize the receiver to mortgage, pledge, hypothecate, or otherwise
26.10encumber receivership property as security for repayment of any indebtedness.

26.11    Sec. 25. [576.45] EXECUTORY CONTRACTS.
26.12    Subdivision 1. Performance by receiver. Unless a court orders otherwise, a
26.13receiver succeeds to all of the rights and duties of the respondent under any executory
26.14contract. The court may condition the continued performance by the receiver on terms
26.15that are appropriate under the circumstances. Performance of an executory contract shall
26.16create a claim against the receivership to the extent of the value of the performance
26.17received by the receivership after the time of appointment. The claim shall not constitute a
26.18personal obligation of the receiver.
26.19    Subd. 2. Assignment and delegation by receiver. For good cause, the court may
26.20authorize a receiver to assign and delegate an executory contract to a third party under
26.21the same circumstances and under the same conditions as the respondent was permitted
26.22to do so pursuant to the terms of the executory contract and applicable law immediately
26.23before the time of appointment.
26.24    Subd. 3. Termination by receiver. For good cause, the court may authorize
26.25the receiver to terminate an executory contract. The receiver's right to possess or use
26.26property pursuant to the executory contract shall terminate at the termination of the
26.27executory contract. Except as to the claim against the receivership under subdivision 1,
26.28the termination shall create a claim equal to the damages, if any, for a breach of contract as
26.29if the breach of contract had occurred immediately before the time of appointment. Any
26.30claim arising under this section for termination of an executory contract shall be presented
26.31or filed in the same manner as other claims in the receivership no later than the later of:
26.32(1) the time set for filing of claims in the receivership; or (2) 28 days after the notice by
26.33the receiver of the termination of the executory contract.

27.1    Sec. 26. [576.46] SALES FREE AND CLEAR OF LIEN IN GENERAL
27.2RECEIVERSHIPS.
27.3    Subdivision 1. Sales free and clear of liens. (a) The court may order that a general
27.4receiver's sale of receivership property is free and clear of all liens, except any lien for
27.5unpaid real estate taxes or assessments and liens arising under federal law, and may be free
27.6of the rights of redemption of the respondent if the rights of redemption are receivership
27.7property and the rights of redemption of the holders of any liens, regardless of whether the
27.8sale will generate proceeds sufficient to fully satisfy all liens on the property, unless either:
27.9(1) the property is (i) real property classified as agricultural land under section
27.10273.13, subdivision 23, or the property is a homestead under section 510.01; and (ii)
27.11each of the owners of the property has not consented to the sale following the time
27.12of appointment; or
27.13(2) any owner of the property or holder of a lien on the property serves and files
27.14a timely objection, and the court determines that the amount likely to be realized from
27.15the sale by the objecting person is less than the objecting person would realize within a
27.16reasonable time in the absence of this sale.
27.17(b) The receiver shall have the burden of proof to establish that the amount likely to
27.18be realized by the objecting person from the sale is equal to or more than the objecting
27.19person would realize within a reasonable time in the absence of the sale.
27.20(c) Upon any sale free and clear of liens authorized by this section, all liens
27.21encumbering the property conveyed shall transfer and attach to the proceeds of the
27.22sale, net of reasonable expenses approved by the court incurred in the disposition of
27.23the property, in the same order, priority, and validity as the liens had with respect to the
27.24property immediately before the sale. The court may authorize the receiver to satisfy,
27.25in whole or in part, any ownership interest or lien out of the proceeds of the sale if the
27.26ownership interest or lien of any party in interest would not thereby be impaired.
27.27    Subd. 2. Co-owned property. If any receivership property includes an interest as a
27.28co-owner of property, the receiver shall have the rights and powers afforded by applicable
27.29state or federal law of the respondent, including but not limited to any rights of partition,
27.30but may not sell the property free and clear of the co-owner's interest in the property.
27.31    Subd. 3. Right to credit bid. A creditor with a claim secured by a valid and
27.32perfected lien against the property to be sold may bid on the property at a sale and may
27.33offset against the purchase price part or all of the amount secured by its lien, provided that
27.34the creditor tenders cash sufficient to satisfy in full the reasonable expenses, approved
27.35by the court, incurred in the disposition of the property and all liens payable out of the
27.36proceeds of sale having priority over the lien of that creditor.
28.1    Subd. 4. Effect of appeal. The reversal or modification on appeal of an
28.2authorization to sell property under this section does not affect the validity of a sale to a
28.3person that purchased the property in good faith, whether or not the person knew of the
28.4pendency of the appeal, unless the authorization and sale is stayed pending the appeal.

28.5    Sec. 27. [576.47] ABANDONMENT OF PROPERTY.
28.6The court may authorize the receiver to abandon any receivership property that is
28.7burdensome or is not of material value to the receivership. Property that is abandoned is
28.8no longer receivership property.

28.9    Sec. 28. [576.48] LIENS AGAINST AFTER-ACQUIRED PROPERTY.
28.10Except as otherwise provided for by statute, property that becomes receivership
28.11property after the time of appointment is subject to a lien to the same extent as it would
28.12have been in the absence of the receivership.

28.13    Sec. 29. [576.49] CLAIMS PROCESS.
28.14    Subdivision 1. Recommendation of receiver. In a general receivership, and in a
28.15limited receivership if the circumstances require, the receiver shall submit to the court a
28.16recommendation concerning a claims process appropriate to the particular receivership.
28.17    Subd. 2. Order establishing process. In a general receivership and, if the court
28.18orders, in a limited receivership, the court shall establish the claims process to be followed
28.19in the receivership addressing whether proofs of claim must be submitted, the form of
28.20any proofs of claim, the place where the proofs of claim must be submitted, the deadline
28.21or deadlines for submitting the proofs of claim, and other matters bearing on the claims
28.22process.
28.23    Subd. 3. Alternative procedures. The court may authorize proofs of claim to be
28.24filed with the receiver rather than the court. The court may authorize the receiver to treat
28.25claims as allowed claims based on the amounts established in the books and records of the
28.26respondent or the schedule of claims filed pursuant to section 576.33, without necessity of
28.27formal proofs of claim.

28.28    Sec. 30. [576.50] OBJECTION TO AND ALLOWANCE OF CLAIMS.
28.29    Subdivision 1. Objections and allowance. The receiver or any party in interest may
28.30file a motion objecting to a claim and stating the grounds for the objection. The court may
28.31order that a copy of the objection be served on the persons on the master mailing list at
28.32least 30 days prior to the hearing. Claims allowed by court order, and claims properly
29.1submitted and not disallowed by the court shall be allowed claims and shall be entitled to
29.2share in distributions of receivership property in accordance with the priorities provided
29.3by this chapter or otherwise by law.
29.4    Subd. 2. Examination of claims. If the claims process does not require proofs of
29.5claim to be filed with the court, at any time after expiration of the claim-filing period and
29.6upon 14 days' written notice to the receiver, any party in interest shall have the right to
29.7examine:
29.8(1) all claims filed with the receiver; and
29.9(2) all books and records in the receiver's possession that provided the receiver the
29.10basis for concluding that creditors identified therein are entitled to participate in any
29.11distributions of receivership property without having to file claims.
29.12    Subd. 3. Estimation of claims. For the purpose of allowance of claims, the court
29.13may estimate:
29.14(1) any contingent or unliquidated claim, the fixing or liquidation of which would
29.15unduly delay the administration of the receivership; or
29.16(2) any right to payment arising from a right to an equitable remedy.

29.17    Sec. 31. [576.51] PRIORITY OF CLAIMS.
29.18    Subdivision 1. Priorities. Allowed claims shall receive distribution under this
29.19chapter in the following order of priority and, except as set forth in clause (1), on a pro
29.20rata basis:
29.21(1) claims secured by liens on receivership property, which liens are valid and
29.22perfected before the time of appointment, to the extent of the proceeds from the disposition
29.23of the collateral in accordance with their respective priorities under otherwise applicable
29.24law, subject first to reimbursing the receiver for the reasonable and necessary expenses
29.25of preserving, protecting, or disposing of the collateral, including allowed fees and
29.26reimbursement of reasonable expenses of the receiver and professionals;
29.27(2) actual, necessary costs and expenses incurred during the receivership, other than
29.28those expenses allowable under clause (1), including allowed fees and reimbursement of
29.29reasonable expenses of the receiver and professionals employed by the receiver under
29.30section 576.32;
29.31(3) claims for wages, salaries, or commissions, including vacation, severance, and
29.32sick leave pay, or contributions to an employee benefit plan, earned by the claimant within
29.33the 90 days before the time of appointment or the cessation of the respondent's business,
29.34whichever occurs first, but only to the extent of the dollar amount in effect in United
29.35States Code, title 11, section 507(4);
30.1(4) allowed unsecured claims, to the extent of the dollar amount in effect in United
30.2States Code, title 11, section 507(7) for each individual, arising from the deposit with the
30.3respondent, before the time of appointment of the receiver, of money in connection with
30.4the purchase, lease, or rental of property or the purchase of services for personal, family,
30.5or household use by individuals that were not delivered or provided;
30.6(5) claims for arrears in amounts owing pursuant to a support order as defined in
30.7section 518A.26, subdivision 3;
30.8(6) unsecured claims of governmental units for taxes that accrued before the time
30.9of appointment of the receiver;
30.10(7) all other unsecured claims due as of the time of appointment, including the
30.11balance due the holders of secured claims to the extent not satisfied under clause (1); and
30.12(8) interest pursuant to section 576.52.
30.13    Subd. 2. Payments to respondent. If all of the amounts payable under subdivision
30.141 have been paid in full, any remaining receivership property shall be returned to the
30.15respondent.

30.16    Sec. 32. [576.52] INTEREST ON UNSECURED CLAIMS.
30.17To the extent that funds are available to pay holders of allowed unsecured claims in
30.18full or the amounts due as of the time of appointment, each holder shall also be entitled
30.19to receive interest, calculated from the time of appointment, at the rate set forth in the
30.20agreement evidencing the claim, or if no rate is provided, at the judgment rate that would
30.21be payable as of the time of appointment; provided however, that no holder shall be entitled
30.22to interest on that portion, if any, of its unsecured claim that is itself interest calculated
30.23from the time of appointment. If there are not sufficient funds in the receivership to pay in
30.24full the interest owed to all the holders, then the interest shall be paid pro rata.

30.25    Sec. 33. [576.53] DISTRIBUTIONS.
30.26    Subdivision 1. Proposed distributions. Before any interim or final distribution is
30.27made, the receiver shall file a distribution schedule listing the proposed distributions.
30.28The distribution schedule may be filed at any time during the case or may be included
30.29in the final report.
30.30    Subd. 2. Notice. The receiver shall give notice of the filing of the distribution
30.31schedule to all persons on the master mailing list or that have filed proofs of claim. If there
30.32is no objection within 21 days after the notice, the court may enter an order authorizing
30.33the receiver to make the distributions described in the distribution schedule without the
30.34necessity of a hearing.
31.1    Subd. 3. Other distributions. In the order appointing the receiver or in subsequent
31.2orders, the court may authorize distribution of receivership property to persons with
31.3ownership interests or liens.


31.6    Section 1. [577.11] DEFINITIONS.
31.7(a) The definitions in this section and in section 576.21 apply throughout this chapter
31.8unless the context requires otherwise.
31.9(b) "Assignee" means the person to whom the assignment property is assigned.
31.10(c) "Assignment property" means the property assigned pursuant to the provisions
31.11of this chapter.
31.12(d) "Assignor" means the person who assigns the assignment property.
31.13(e) "Time of assignment" means the date and time endorsed by the court
31.14administrator pursuant to section 577.14.

31.15    Sec. 2. [577.12] REQUISITES.
31.16A person may execute a written assignment of property to one or more assignees for
31.17the benefit of creditors in conformity with the provisions of this chapter. Every assignment
31.18for the benefit of creditors subject to this chapter made by an assignor of the whole or any
31.19part of the assignor's property, real or personal, for the benefit of creditors, shall be: (1) to
31.20a resident of the state eligible to be a receiver under section 576.26, in writing, subscribed
31.21and acknowledged by the assignor, and (2) filed by the assignor or the assignee with the
31.22court administrator of the district court of the county in which the assignor, or one of the
31.23assignors if there is more than one, resides, or in which the principal place of business of
31.24an assignor engaged in business is located. The district court shall have supervision over
31.25the assignment property and of all proceedings under this chapter.

31.26    Sec. 3. [577.13] FORM OF ASSIGNMENT.
31.27An assignment for the benefit of creditors under this chapter shall be signed by the
31.28assignor and duly acknowledged in the same manner as conveyances of real property
31.29before a notary public of the state, shall include an acceptance of the assignment by the
31.30assignee, and shall be in substantially the following form:
32.1    THIS ASSIGNMENT is made this .... day of .............., .........., by and between
32.2............, with a principal place of business at .......... (hereinafter "assignor"), and ............,
32.3whose address is ........... (hereinafter "assignee").
32.4    WHEREAS, the assignor has been engaged in the business of
32.5............................................
32.6    WHEREAS, the assignor is indebted to creditors and is unable to pay debts as they
32.7become due, and is desirous of providing for the payment of debts, so far as it is possible
32.8by an assignment of property for that purpose.
32.9    NOW, THEREFORE, the assignor, in consideration of the assignee's acceptance
32.10of this assignment, and for other good and valuable consideration, hereby assigns to
32.11the assignee, and the assignee's successors and assigns, the assignor's property, except
32.12the property as is exempt by law from levy and sale under an execution (and then only
32.13to the extent of the exemption), including but not limited to all real property, fixtures,
32.14goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, general
32.15intangibles, bank deposits, cash, promissory notes, cash value and proceeds of insurance
32.16policies, claims, and demands belonging to the assignor, wherever the property may be
32.17located (hereinafter collectively the "assignment property"), which property is set forth
32.18on Schedule A attached hereto.
32.19    A list of the creditors of the assignor is set forth in Schedule B annexed hereto.
32.20    By making this assignment, the assignor consents to the appointment of the assignee
32.21as a general receiver with respect to the assignment property in accordance with Minnesota
32.22Statutes, chapters 576 and 577.
32.23    The assignee shall take possession of and administer the assignment property
32.24and shall liquidate the assignment property with reasonable dispatch, collect all claims
32.25and demands hereby assigned as and to the extent they may be collectible, and pay
32.26and discharge all reasonable expenses, costs, and disbursements in connection with the
32.27execution and administration of this assignment from the proceeds of the liquidations and
32.28collections in accordance with Minnesota Statutes, chapters 576 and 577.
32.29    The assignee shall then pay and discharge in full, to the extent that funds are available
32.30from the assignment property after payment of expenses, costs, and disbursements, all of
32.31the debts and liabilities now due from the assignor, including interest on the debts and
32.32liabilities in full, in accordance with Minnesota Statutes, chapters 576 and 577.
32.33    In the event that all debts and liabilities are paid in full, the remainder of the
32.34assignment property shall be returned to the assignor.
32.35    To accomplish the purposes of this assignment, the assignor hereby irrevocably
32.36appoints the assignee as the assignor's true and lawful attorney-in-fact, with full power
33.1and authority to do all acts and things which may be necessary to execute and fulfill the
33.2assignment hereby created, to the same extent as the acts and things might be done by
33.3the assignor in the absence of this assignment, including, but not limited to, the power
33.4to demand and recover from all persons all assignment property; to sue for the recovery
33.5of assignment property; to execute, acknowledge, and deliver all necessary deeds,
33.6instruments, and conveyances, and to grant and convey any or all of the real or personal
33.7property of the assignment property pursuant thereto; and to appoint one or more attorneys
33.8to assist the assignee in carrying out the assignee's duties hereunder.
33.9    The assignor hereby authorizes the assignee to sign the name of the assignor to any
33.10check, draft, promissory note, or other instrument in writing which is payable to the order
33.11of the assignor, or to sign the name of the assignor to any instrument in writing, whenever
33.12it shall be necessary to do so, to carry out the purposes of this assignment.
33.13    The assignor declares, under penalty of perjury under the laws of the state of
33.14Minnesota, that the attached schedules of the property or the assignor and creditors are
33.15true and complete to the best of the assignor's knowledge.
33.16    The assignee hereby accepts the assignment property and agrees faithfully and
33.17without delay to carry out the assignee's duties under the foregoing assignment.

33.18 33.19	............................................. Assignor	............................................... Assignee
33.20	Dated: ...................................	Dated: ................................

33.21    Sec. 4. [577.14] DUTY OF COURT ADMINISTRATOR.
33.22The court administrator shall endorse the day, hour, and minute of the filing of the
33.23assignment. The assignment shall be entered in the court administrator's register, and all
33.24papers filed and orders made in the matter of the assignment shall be noted therein as in
33.25the case of a civil action.

33.26    Sec. 5. [577.15] ASSIGNEE AS LIEN CREDITOR; REAL ESTATE
33.27RECORDING.
33.28    Subdivision 1. Assignee as lien creditor. As of the filing of the assignment, the
33.29assignee shall have the powers and priority of a creditor that obtained a judicial lien at
33.30the time of assignment pursuant to sections 548.09 and 550.10 on all of the assignment
33.31property subject to satisfying the recording requirements as to real property described in
33.32subdivision 2.
33.33    Subd. 2. Real estate recording. If any interest in real estate is included in the
33.34assignment property, the assignment shall be effective as a deed, and a notice of a lis
34.1pendens shall be recorded as soon as practicable with the county recorder or registrar of
34.2titles, as appropriate, of the county in which the real property is located. The priority of
34.3the assignee as lien creditor against real property shall be from the time of recording of
34.4the notice of lis pendens, except as to persons with actual or implied knowledge of the
34.5assignment under section 507.34. The assignment executed by the assignor and certified
34.6by the court administrator and a deed executed by the assignee shall be recorded with the
34.7county recorder or registrar of titles, as appropriate, of the county in which the real property
34.8is located, and upon execution of the deed by the assignee shall be prima facie evidence of
34.9the authority of the assignee to convey the real property described in the assignment.

34.10    Sec. 6. [577.16] NOTICE.
34.11The assignee shall give notice of the assignment to all creditors and other parties
34.12in interest actually known to the assignee by mail or other means of transmission within
34.1321 days after the time of assignment. The notice of the assignment shall include the
34.14time of assignment and the names and addresses of the assignor, the assignee, and the
34.15assignee's attorney, if any.

34.16    Sec. 7. [577.17] REMOVAL OF ASSIGNEE.
34.17The court may remove the assignee and appoint another assignee by application of
34.18the standards and procedures under section 576.37. The order of removal and appointment
34.19shall transfer all of the assignment property to the new assignee, and with respect to real
34.20property may be recorded in the same manner as the initial assignment.

34.21    Sec. 8. [577.18] APPLICATION OF CHAPTER GOVERNING
34.22RECEIVERSHIPS.
34.23Except as otherwise provided in this chapter, an assignee shall be treated as a
34.24general receiver, the assignment property shall be treated as receivership property, and all
34.25proceedings following the filing of the assignment shall be governed by sections 576.21
34.26to 576.53.

34.27    Sec. 9. REPEALER.
34.28Minnesota Statutes 2010, sections 577.01; 577.02; 577.03; 577.04; 577.05; 577.06;
34.29577.08; 577.09; and 577.10, are repealed.


35.3    Section 1. Minnesota Statutes 2010, section 302A.753, subdivision 2, is amended to
35.4read:
35.5    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever
35.6notice the court directs to be given to all parties to the proceedings and to any other parties
35.7in interest designated by the court, the court may appoint a receiver to collect the corporate
35.8assets, including all amounts owing to the corporation by subscribers on account of any
35.9unpaid portion of the consideration for the issuance of shares. In addition to the powers set
35.10forth in chapter 576, a receiver has authority, subject to the order of the court, to continue
35.11the business of the corporation and to sell, lease, transfer, or otherwise dispose of all or
35.12any of the property and assets of the corporation either at public or private sale.

35.13    Sec. 2. Minnesota Statutes 2010, section 302A.753, subdivision 3, is amended to read:
35.14    Subd. 3. Discharge of obligations. The assets of the corporation or the proceeds
35.15resulting from a sale, lease, transfer, or other disposition shall be applied in the following
35.16order of priority to the payment and discharge or:
35.17(a) the costs and expenses of the proceedings, including attorneys' fees and
35.18disbursements;
35.19(b) debts, taxes and assessments due the United States, the state of Minnesota and
35.20their subdivisions, and other states and their subdivisions, in that order;
35.21(c) claims duly proved and allowed to employees under the provisions of the
35.22Workers' Compensation Act; provided, that claims under this clause shall not be allowed if
35.23the corporation carried workers' compensation insurance, as provided by law, at the time
35.24the injury was sustained;
35.25(d) claims, including the value of all compensation paid in any medium other than
35.26money, duly proved and allowed to employees for services performed within three months
35.27preceding the appointment of the receiver, if any; and
35.28(e) other claims duly proved and allowed set forth in section 576.51.

35.29    Sec. 3. Minnesota Statutes 2010, section 302A.755, is amended to read:
35.30302A.755 QUALIFICATIONS OF RECEIVERS; POWERS.
35.31    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic
35.32corporation or a foreign corporation authorized to transact business in this state. Any
35.33person qualified under section 576.26 may be appointed as receiver. A receiver shall
36.1give bond as directed by the court with the sureties required by the court required by
36.2section 576.27.
36.3    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
36.4of the corporation. The court appointing the receiver has exclusive jurisdiction of over
36.5the corporation and its property, the receiver, and all receivership property pursuant to
36.6section 576.23.

36.7    Sec. 4. Minnesota Statutes 2010, section 302A.759, subdivision 1, is amended to read:
36.8    Subdivision 1. Manner and form. In proceedings referred to in section 302A.751 to
36.9dissolve a corporation, the court may require all creditors and claimants of the corporation
36.10to file their claims under oath with the court administrator or with the receiver in a form
36.11prescribed by the court pursuant to section 576.49. The receiver or any party in interest
36.12may object to any claim pursuant to section 576.50.

36.13    Sec. 5. Minnesota Statutes 2010, section 302A.761, is amended to read:
36.14302A.761 DISCONTINUANCE OF DISSOLUTION PROCEEDINGS.
36.15The involuntary or supervised voluntary dissolution of a corporation shall be
36.16discontinued at any time during the dissolution proceedings when it is established that
36.17cause for dissolution no longer exists. When this is established, the court shall dismiss the
36.18proceedings and direct the receiver, if any, to redeliver to the corporation all its remaining
36.19property and assets and to file a final report pursuant to section 576.38, subdivision 3.

36.20    Sec. 6. Minnesota Statutes 2010, section 308A.945, subdivision 2, is amended to read:
36.21    Subd. 2. Action after hearing. After a hearing is completed, on notice the court
36.22directs to be given to parties to the proceedings and to other parties in interest designated
36.23by the court, the court may appoint a receiver to collect the cooperative's assets, including
36.24amounts owing to the cooperative by subscribers on account of an unpaid portion of the
36.25consideration for the issuance of shares. In addition to the powers set forth in chapter 576,
36.26a receiver has authority, subject to the order of the court, to continue the business of the
36.27cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of
36.28the cooperative either at public or private sale.

36.29    Sec. 7. Minnesota Statutes 2010, section 308A.945, subdivision 3, is amended to read:
36.30    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds
36.31resulting from a sale, lease, transfer, or other disposition shall be applied in the following
36.32order of priority or:
37.1(1) the costs and expenses of the proceedings, including attorneys' fees and
37.2disbursements;
37.3(2) debts, taxes and assessments due the United States, the state of Minnesota and
37.4their subdivisions, and other states and their subdivisions, in that order;
37.5(3) claims duly proved and allowed to employees under the provisions of the
37.6Workers' Compensation Act except that claims under this clause may not be allowed
37.7if the cooperative has carried workers' compensation insurance, as provided by law, at
37.8the time the injury was sustained;
37.9(4) claims, including the value of all compensation paid in a medium other than
37.10money, proved and allowed to employees for services performed within three months
37.11preceding the appointment of the receiver, if any; and
37.12(5) other claims proved and allowed set forth in section 576.51.

37.13    Sec. 8. Minnesota Statutes 2010, section 308A.951, is amended to read:
37.14308A.951 RECEIVER QUALIFICATIONS AND POWERS.
37.15    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic
37.16corporation or a foreign corporation authorized to transact business in this state. Any
37.17person qualified under section 576.26 may be appointed as a receiver. A receiver must
37.18give a bond as directed by the court with the sureties required by the court required by
37.19section 576.27.
37.20    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
37.21of the cooperative. The court appointing the receiver has exclusive jurisdiction of over
37.22the cooperative and its property, the receiver, and all receivership property pursuant to
37.23section 576.23.

37.24    Sec. 9. Minnesota Statutes 2010, section 308A.961, subdivision 1, is amended to read:
37.25    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the
37.26court may require all creditors and claimants of the cooperative to file their claims under
37.27oath with the court administrator or with the receiver in a form prescribed by the court
37.28pursuant to section 576.49. The receiver or any party in interest may object to any claims
37.29pursuant to section 576.50.

37.30    Sec. 10. Minnesota Statutes 2010, section 308A.965, is amended to read:
37.31308A.965 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION
37.32PROCEEDINGS.
38.1The involuntary or supervised voluntary dissolution of a cooperative may be
38.2discontinued at any time during the dissolution proceedings if it is established that cause
38.3for dissolution does not exist. The court shall dismiss the proceedings and direct the
38.4receiver, if any, to redeliver to the cooperative its remaining property and assets and to file
38.5a final report pursuant to section 576.38, subdivision 3.

38.6    Sec. 11. Minnesota Statutes 2010, section 308B.935, subdivision 2, is amended to read:
38.7    Subd. 2. Action after hearing. After a hearing is completed, upon notice to parties
38.8to the proceedings and to other parties in interest designated by the court, the court may
38.9appoint a receiver to collect the cooperative's assets, including amounts owing to the
38.10cooperative by subscribers on account of an unpaid portion of the consideration for the
38.11issuance of shares. In addition to the powers set forth in chapter 576, a receiver has
38.12authority, subject to the order of the court, to continue the business of the cooperative and
38.13to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative
38.14either at public or private sale.

38.15    Sec. 12. Minnesota Statutes 2010, section 308B.935, subdivision 3, is amended to read:
38.16    Subd. 3. Discharge of obligations. The assets of the cooperative or the proceeds
38.17resulting from a sale, lease, transfer, or other disposition shall be applied in the following
38.18order of priority:
38.19(1) the costs and expense of the proceedings, including attorney fees and
38.20disbursements;
38.21(2) debts, taxes, and assessments due the United States, this state, and other states
38.22in that order;
38.23(3) claims duly proved and allowed to employees under the provisions of the
38.24Workers' Compensation Act except that claims under this clause may not be allowed if
38.25the cooperative carried workers' compensation insurance, as provided by law, at the time
38.26the injury was sustained;
38.27(4) claims, including the value of all compensation paid in a medium other than
38.28money, proved and allowed to employees for services performed within three months
38.29preceding the appointment of the receiver, if any; and
38.30(5) other claims proved and allowed set forth in section 576.51.

38.31    Sec. 13. Minnesota Statutes 2010, section 308B.941, is amended to read:
38.32308B.941 RECEIVER QUALIFICATIONS AND POWERS.
39.1    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic
39.2business entity or a foreign business entity authorized to transact business in this state.
39.3Any person qualified under section 576.26 may be appointed as a receiver. A receiver
39.4shall give a bond as directed by the court with the sureties required by the court required
39.5by section 576.27.
39.6    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver
39.7of the cooperative. The court appointing the receiver has exclusive jurisdiction of over
39.8the cooperative and its property, the receiver, and all receivership property pursuant to
39.9section 576.23.

39.10    Sec. 14. Minnesota Statutes 2010, section 308B.951, subdivision 1, is amended to read:
39.11    Subdivision 1. Filing under oath. In proceedings to dissolve a cooperative, the
39.12court may require all creditors and claimants of the cooperative to file their claims under
39.13oath with the court administrator or with the receiver in a form prescribed by the court
39.14pursuant to section 576.49. The receiver or any party in interest may object to any claim
39.15pursuant to section 576.50.

39.16    Sec. 15. Minnesota Statutes 2010, section 308B.955, is amended to read:
39.17308B.955 DISCONTINUANCE OF COURT-SUPERVISED DISSOLUTION
39.18PROCEEDINGS.
39.19The involuntary or supervised voluntary dissolution of a cooperative may be
39.20discontinued at any time during the dissolution proceedings if it is established that cause
39.21for dissolution does not exist. The court shall dismiss the proceedings and direct the
39.22receiver, if any, to redeliver to the cooperative its remaining property and assets and to file
39.23a final report pursuant to section 576.38, subdivision 3.

39.24    Sec. 16. Minnesota Statutes 2010, section 316.11, is amended to read:
39.25316.11 RECEIVER, APPOINTMENT, DUTIES.
39.26In any action or proceeding to dissolve a corporation, the court, at any time before
39.27judgment, or within three years after judgment, of dissolution, may appoint a receiver to
39.28take charge of its estate and effects and to collect the debts and property due and belonging
39.29to it, with, in addition to the powers set forth in chapter 576, power to prosecute and
39.30defend actions in its name or otherwise, to appoint agents, and do all other acts necessary
39.31to the final settlement of the unfinished business of the corporation which it might do if in
39.32being. The power of such receiver shall continue so long as the court deems necessary
39.33for such purposes. The receiver shall pay all debts due from the corporation, if the funds
40.1in hand are sufficient therefor; and, if not, shall distribute the same ratably among the
40.2creditors who prove their debts, in the manner directed by the court; and, if there be any
40.3balance after the payment of the debts, the receiver shall distribute and pay the same to
40.4and among those who are justly entitled thereto, as having been stockholders or members.
40.5Every receiver appointed under the provisions of this section shall give bond in such
40.6amount as the court shall require, with sureties approved by it the assets of the corporation
40.7or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied
40.8in the order of priority set forth in section 576.51. After payment of the expenses of
40.9the receivership and claims of creditors duly proved, the remaining assets, if any, shall
40.10be distributed to the shareholders in accordance with section 302A.551, subdivision 4.
40.11Every receiver appointed under the provisions of this section shall give bond as required
40.12by section 576.27 in such amount as the court shall require, with sureties approved by it.

40.13    Sec. 17. Minnesota Statutes 2010, section 317A.255, subdivision 1, is amended to read:
40.14    Subdivision 1. Conflict; procedure when conflict arises. (a) A contract or other
40.15transaction between a corporation and: (1) its director or a member of the family of its
40.16director; (2) a director of a related organization, or a member of the family of a director
40.17of a related organization; or (3) an organization in or of which the corporation's director,
40.18or a member of the family of its director, is a director, officer, or legal representative or
40.19has a material financial interest; is not void or voidable because the director or the other
40.20individual or organization are parties or because the director is present at the meeting of
40.21the members or the board or a committee at which the contract or transaction is authorized,
40.22approved, or ratified, if a requirement of paragraph (b) is satisfied.
40.23(b) A contract or transaction described in paragraph (a) is not void or voidable if:
40.24(1) the contract or transaction was, and the person asserting the validity of the
40.25contract or transaction has the burden of establishing that the contract or transaction was,
40.26fair and reasonable as to the corporation when it was authorized, approved, or ratified;
40.27(2) the material facts as to the contract or transaction and as to the director's interest
40.28are fully disclosed or known to the members and the contract or transaction is approved
40.29in good faith by two-thirds of the members entitled to vote, not counting any vote that
40.30the interested director might otherwise have, or the unanimous affirmative vote of all
40.31members, whether or not entitled to vote;
40.32(3) the material facts as to the contract or transaction and as to the director's interest
40.33are fully disclosed or known to the board or a committee, and the board or committee
40.34authorizes, approves, or ratifies the contract or transaction in good faith by a majority of
40.35the directors or committee members currently holding office, provided that the interested
41.1director or directors may not vote and are not considered present for purposes of a quorum.
41.2If, as a result, the number of remaining directors is not sufficient to reach a quorum,
41.3a quorum for the purpose of considering the contract or transaction is the number of
41.4remaining directors or committee members, not counting any vote that the interested
41.5director might otherwise have, and not counting the director in determining the presence
41.6of a quorum; or
41.7(4) the contract or transaction is a merger or consolidation described in section
41.8317A.601 .

41.9    Sec. 18. Minnesota Statutes 2010, section 317A.753, subdivision 3, is amended to read:
41.10    Subd. 3. Action after hearing. After a full hearing has been held, upon whatever
41.11notice the court directs to be given to the parties to the proceedings and to other parties in
41.12interest designated by the court, the court may appoint a receiver to collect the corporate
41.13assets. In addition to the powers set forth in chapter 576, a receiver has authority, subject to
41.14the order of the court, to continue the business of the corporation and to sell, lease, transfer,
41.15or otherwise dispose of all or any of the assets of the corporation at a public or private sale.

41.16    Sec. 19. Minnesota Statutes 2010, section 317A.753, subdivision 4, is amended to read:
41.17    Subd. 4. Discharge of obligations. The assets of the corporation or the proceeds
41.18resulting from a sale, lease, transfer, or other disposition must be applied in the following
41.19order of priority to the payment and discharge of:
41.20(1) the costs and expenses of the dissolution proceedings, including attorneys fees
41.21and disbursements;
41.22(2) debts, taxes, and assessments due the United States, the state of Minnesota and
41.23their subdivisions, and other states and their subdivisions, in that order;
41.24(3) claims duly proved and allowed to employees under the Workers' Compensation
41.25Act, provided that claims under this clause are not allowed if the corporation carried
41.26workers' compensation insurance, as provided by law, at the time the injury was sustained;
41.27(4) claims, including the value of compensation paid in a medium other than money,
41.28duly proved and allowed to employees for services performed within three months
41.29preceding the appointment of the receiver, if any; and
41.30(5) other claims duly proved and allowed set forth in section 576.51.

41.31    Sec. 20. Minnesota Statutes 2010, section 317A.755, is amended to read:
41.32317A.755 QUALIFICATIONS OF RECEIVERS; POWERS.
42.1    Subdivision 1. Qualifications. A receiver must be a natural person or a domestic
42.2corporation or a foreign corporation authorized to transact business in this state. Any
42.3person qualified under section 576.26 may be appointed as a receiver. A receiver shall
42.4give bond as directed by the court with the sureties required by the court required by
42.5section 576.27.
42.6    Subd. 2. Powers. A receiver may sue and defend in courts all actions as receiver
42.7of the corporation. The court appointing the receiver has exclusive jurisdiction of over
42.8the corporation and its property, the receiver, and all receivership property pursuant to
42.9section 576.23.

42.10    Sec. 21. Minnesota Statutes 2010, section 317A.759, subdivision 1, is amended to read:
42.11    Subdivision 1. Filing may be required. In a proceeding under section 317A.751 to
42.12dissolve a corporation, the court may require creditors and claimants of the corporation
42.13to file their claims under oath with the court administrator or with the receiver in a form
42.14prescribed by the court pursuant to section 576.49. The receiver or any party in interest
42.15may object to any claim pursuant to section 576.50.

42.16    Sec. 22. Minnesota Statutes 2010, section 322B.836, subdivision 2, is amended to read:
42.17    Subd. 2. Action after hearing. After a full hearing has been held, upon whatever
42.18notice the court directs to be given to all parties to the proceedings and to any other parties
42.19in interest designated by the court, the court may appoint a receiver to collect the limited
42.20liability company assets, including all amounts owing to the limited liability company
42.21by persons who have made contribution agreements and by persons who have made
42.22contributions by means of enforceable promises of future performance. In addition to the
42.23powers set forth in chapter 576, a receiver has authority, subject to the order of the court,
42.24to continue the business of the limited liability company and to sell, lease, transfer, or
42.25otherwise dispose of all or any of the property and assets of the limited liability company
42.26either at public or private sale.

42.27    Sec. 23. Minnesota Statutes 2010, section 322B.836, subdivision 3, is amended to read:
42.28    Subd. 3. Discharge of obligations upon liquidation. If the court determines that
42.29the limited liability company is to be dissolved with winding up to be accomplished by
42.30liquidation, then the assets of the limited liability company or the proceeds resulting
42.31from a sale, lease, transfer, or other disposition must be applied in the following order of
42.32priority to the payment and discharge or:
43.1(1) the costs and expenses of the proceedings, including attorneys' fees and
43.2disbursements;
43.3(2) debts, taxes, and assessments due the United States, the state of Minnesota and
43.4their subdivisions, and other states and their subdivisions, in that order;
43.5(3) claims duly proved and allowed to employees under the provisions of chapter
43.6176; provided, that claims under this clause shall not be allowed if the limited liability
43.7company carried workers' compensation insurance, as provided by law, at the time the
43.8injury was sustained;
43.9(4) claims, including the value of all compensation paid in any medium other than
43.10money, duly proved and allowed to employees for services performed within three months
43.11preceding the appointment of the receiver, if any; and
43.12(5) other claims duly proved and allowed set forth in section 576.51.

43.13    Sec. 24. Minnesota Statutes 2010, section 322B.84, is amended to read:
43.14322B.84 QUALIFICATIONS OF RECEIVERS AND POWERS.
43.15    Subdivision 1. Qualifications. A receiver shall be a natural person or a domestic or
43.16foreign organization authorized to transact business in this state. Any person qualified
43.17under section 576.26 may be appointed as a receiver. A receiver shall give bond as
43.18directed by the court with the sureties required by the court required by section 576.27.
43.19    Subd. 2. Powers. A receiver may sue and defend in all courts actions as receiver of
43.20the limited liability company. The court appointing the receiver has exclusive jurisdiction
43.21of over the limited liability company and its property, the receiver, and all receivership
43.22property pursuant to section 576.23.

43.23    Sec. 25. Minnesota Statutes 2010, section 462A.05, subdivision 32, is amended to read:
43.24    Subd. 32. Appointment of receivers. The agency may obtain the appointment of
43.25receivers or assignments of rents and profits under sections 559.17 and 576.01 576.25,
43.26subdivision 5, except that the limitation relating to the minimum amounts of the original
43.27principal balances of mortgages contained in sections 576.01, subdivision 2 576.25,
43.28subdivision 5, paragraph (a), clause (i), and 559.17, subdivision 2, clause (2), shall
43.29be inapplicable to it.

43.30    Sec. 26. Minnesota Statutes 2010, section 469.012, subdivision 2i, is amended to read:
43.31    Subd. 2i. Receivers, assignment of rent as security. An authority may secure a
43.32mortgage or loan for a rental housing project by obtaining the appointment of receivers or
43.33assignments of rents and profits under sections 559.17 and 576.01 576.25, subdivision
44.15, except that the limitation relating to the minimum amounts of the original principal
44.2balances of mortgages specified in sections 559.17, subdivision 2, clause (2); and 576.01,
44.3subdivision 2 576.25, subdivision 5, paragraph (a), clause (1), does not apply.

44.4    Sec. 27. Minnesota Statutes 2010, section 540.14, is amended to read:
44.5540.14 ACTIONS AGAINST RECEIVERS; TRIAL; JUDGMENT, HOW
44.6SATISFIED.
44.7Except as limited in chapters 576 and 577, any receiver, assignee, or other person
44.8appointed by a court to hold or manage property under its direction, may be sued on
44.9account of any acts or transactions in carrying on the business connected with such
44.10property without prior leave of court.
44.11Such action may be brought in any county in which it could have been brought
44.12against the person or corporation represented by such receiver or other person, shall be
44.13tried in the same manner and subject to the same rules of procedure, and any judgment
44.14recovered therein against such receiver or other person shall be paid by the receiver or
44.15other person as a part of the expenses of managing such property.

44.16    Sec. 28. Minnesota Statutes 2010, section 559.17, subdivision 2, is amended to read:
44.17    Subd. 2. Assignment; conditions. A mortgagor may assign, as additional security
44.18for the debt secured by the mortgage, the rents and profits from the mortgaged real
44.19property, if the mortgage:
44.20(1) was executed, modified or amended subsequent to August 1, 1977;
44.21(2) secured an original principal amount of $100,000 or more or is a lien upon
44.22residential real estate containing more than four dwelling units; and
44.23(3) is not a lien upon property which was:
44.24(i) entirely homesteaded as agricultural property; or
44.25(ii) residential real estate containing four or fewer dwelling units where at least
44.26one of the units is homesteaded. The assignment may be enforced, but only against the
44.27nonhomestead portion of the mortgaged property, as follows:
44.28(a) if, by the terms of an assignment, a receiver is to be appointed upon the
44.29occurrence of some specified event, and a showing is made that the event has occurred,
44.30the court shall, without regard to waste, adequacy of the security, or solvency of the
44.31mortgagor, appoint a receiver who shall, with respect to the excess cash remaining after
44.32application as provided in section 576.01, subdivision 2 576.25, subdivision 5, apply it as
44.33prescribed by the assignment. If the assignment so provides, the receiver shall apply the
44.34excess cash in the manner set out herein from the date of appointment through the entire
45.1redemption period from any foreclosure sale. Subject to the terms of the assignment, the
45.2receiver shall have the powers and duties as set forth in section 576.01, subdivision 2
45.3576.25, subdivision 5; or
45.4(b) if no provision is made for the appointment of a receiver in the assignment or
45.5if by the terms of the assignment a receiver may be appointed, the assignment shall be
45.6binding upon the assignor unless or until a receiver is appointed without regard to waste,
45.7adequacy of the security or solvency of the mortgagor, but only in the event of default in
45.8the terms and conditions of the mortgage, and only in the event the assignment requires
45.9the holder thereof to first apply the rents and profits received as provided in section
45.10576.01, subdivision 2 576.25, subdivision 5, in which case the same shall operate against
45.11and be binding upon the occupiers of the premises from the date of recording by the
45.12holder of the assignment in the office of the county recorder or the office of the registrar of
45.13titles for the county in which the property is located of a notice of default in the terms
45.14and conditions of the mortgage and service of a copy of the notice upon the occupiers of
45.15the premises. The holder of the assignment shall apply the rents and profits received in
45.16accordance with the terms of the assignment, and, if the assignment so provides, for
45.17the entire redemption period from any foreclosure sale. A holder of an assignment who
45.18enforces it in accordance with this clause shall not be deemed to be a mortgagee in
45.19possession with attendant liability.
45.20Nothing contained herein shall prohibit the right to reinstate the mortgage
45.21debt granted pursuant to section 580.30, nor the right to redeem granted pursuant to
45.22sections 580.23 and 581.10, and any excess cash, as that term is used herein, collected
45.23by the receiver under clause (a), or any rents and profits taken by the holder of the
45.24assignment under clause (b), shall be credited to the amount required to be paid to effect
45.25a reinstatement or redemption.

45.26    Sec. 29. Minnesota Statutes 2010, section 576.04, is amended to read:
45.27576.04 ABSENTEES; POSSESSION, MANAGEMENT, AND DISPOSITION
45.28OF PROPERTY.
45.29If a person entitled to or having an interest in property within or without the
45.30jurisdiction of the state has disappeared or absconded from the place within or without the
45.31state where last known to be, and has no agent in the state, and it is not known where the
45.32person is, or if such person, having a spouse or minor child or children dependent to any
45.33extent upon the person for support, has thus disappeared, or absconded without making
45.34sufficient provision for such support, and it is not known where the person is, or, if it is
45.35known that the person is without the state, any one who would under the law of the state
46.1be entitled to administer upon the estate of such absentee if deceased, or if no one is
46.2known to be so entitled, some person deemed suitable by the court, or such spouse, or
46.3some one in such spouse's or minors' behalf, may file a petition, under oath, in the court for
46.4the county where any such property is situated or found, stating the name, age, occupation,
46.5and last known residence or address of such absentee, the date and circumstances of the
46.6disappearance or absconding, and the names and residences of other persons, whether
46.7members of such absentee's family or otherwise, of whom inquiry may be made, whether
46.8or not such absentee is a citizen of the United States, and if not, of what country the
46.9absentee is a citizen or native, and containing a schedule of the property, real and personal,
46.10so far as known, and its location within or without the state, and a schedule of contractual
46.11or property rights contingent upon the absentee's death, and praying that real and personal
46.12property may be taken possession of and a receiver thereof appointed under this chapter
46.13576. No proceedings shall be commenced under the provisions of sections 576.04 to
46.14576.16 this chapter, except upon good cause shown until at least three months after the
46.15date on which it is alleged in such petition that such person so disappeared or absconded.

46.16    Sec. 30. Minnesota Statutes 2010, section 576.06, is amended to read:
46.17576.06 NOTICE OF SEIZURE; APPOINTMENT OF RECEIVER;
46.18DISPOSITION OF PROPERTY.
46.19Upon the return of such warrant, the court may issue a notice reciting the substance
46.20of the petition, warrant, and officer's return, which shall be addressed to such absentee and
46.21to all persons who claim an interest in such property, and to all whom it may concern,
46.22citing them to appear at a time and place named and show cause why a receiver of the
46.23property named in the officer's schedule should not be appointed and the property held and
46.24disposed of under sections 576.04 to 576.16 this chapter.

46.25    Sec. 31. Minnesota Statutes 2010, section 576.08, is amended to read:
46.26576.08 HEARING BY COURT; DISMISSAL OF PROCEEDING;
46.27APPOINTMENT AND BOND OF RECEIVER.
46.28The absentee, or any person who claims an interest in any of the property, may
46.29appear and show cause why the prayer of the petition should not be granted. The court
46.30may, after hearing, dismiss the petition and order the property in possession of the officer
46.31to be returned to the person entitled thereto, or it may appoint a receiver of the property
46.32which is in the possession of the officer and named in the schedule. If a receiver is
46.33appointed, the court shall find and record the date of the disappearance or absconding
46.34of the absentee; and the receiver shall give a bond to the state in the sum and with the
47.1conditions the court orders, to be approved by the court pursuant to section 576.27. In the
47.2appointment of the receiver the court shall give preference to the spouse of the absentee, if
47.3the spouse is competent and suitable eligible to serve as receiver under section 576.26.

47.4    Sec. 32. Minnesota Statutes 2010, section 576.09, is amended to read:
47.5576.09 POSSESSION TRANSFER OF PROPERTY BY TO RECEIVER.
47.6After the approval of the receiver gives its bond the court may order the sheriff or a
47.7deputy to transfer and deliver to such receiver the possession of the property under the
47.8warrant, and the receiver shall file in the office of the court administrator a schedule
47.9of the property received.

47.10    Sec. 33. Minnesota Statutes 2010, section 576.11, is amended to read:
47.11576.11 WHERE NO CORPOREAL PROPERTY; RECEIVER; BOND.
47.12If the absentee has left no corporeal property within or without the state, but there
47.13are debts and obligations due or owing to the absentee from persons within or without
47.14the state, a petition may be filed, as provided in section 576.04 578.02, stating the nature
47.15and amount of such debts and obligations, so far as known, and praying that a receiver
47.16thereof may be appointed. The court may thereupon issue a notice, as above provided,
47.17without issuing a warrant, and may, upon the return of the notice and after a hearing,
47.18dismiss the petition or appoint a receiver and authorize and direct the receiver to demand
47.19and collect the debts and obligations specified in the petition. The receiver shall give
47.20bond, as provided in section 576.08 576.27, and hold the proceeds of such debts and
47.21obligations and all property received, and distribute the same as provided in sections
47.22576.12 to 576.16 chapter 576. The receiver may be further authorized and directed as
47.23provided in section 576.10 578.08.

47.24    Sec. 34. Minnesota Statutes 2010, section 576.121, is amended to read:
47.25576.121 ADVANCE LIFE INSURANCE PAYMENTS TO ABSENTEE'S
47.26BENEFICIARY.
47.27If the beneficiary under an insurance policy on the life of an absentee is the
47.28absentee's spouse, child, or other person dependent upon the absentee for support and
47.29advance payments under the policy are necessary to support and maintain the beneficiary,
47.30the beneficiary shall be entitled to advance payments as the court determines under section
47.31576.122 578.12. "Beneficiary" under this section includes an heir at law of the person
47.32whose life is insured if the policy is payable to the insured's estate.

48.1    Sec. 35. Minnesota Statutes 2010, section 576.123, is amended to read:
48.2576.123 REAPPEARANCE OF ABSENTEE.
48.3    Subdivision 1. Insurance payments; reduction. If an absentee is declared dead
48.4after advance insurance payments have been made pursuant to section 576.122 578.12,
48.5the amount payable under the policy shall be reduced by the total amount of payments
48.6made under section 576.122 578.12.
48.7    Subd. 2. Reimbursement of insurer. If an absentee is found to be living after
48.8advance insurance payments have been made to a beneficiary pursuant to section 576.122
48.9578.12, the absentee and beneficiary shall reimburse the insurer the amount of the
48.10payments made.
48.11If the insurer is unable to obtain full reimbursement, the amount payable under the
48.12policy shall be reduced to the extent necessary to allow full reimbursement. Failure of the
48.13absentee and beneficiary to reimburse the insurer upon demand for payment sent by the
48.14insurer by certified mail to the last known address of the absentee and beneficiary shall be
48.15sufficient to show the insurer's inability to obtain reimbursement.

48.16    Sec. 36. Minnesota Statutes 2010, section 576.144, is amended to read:
48.17576.144 DISSOLUTION OF MARRIAGE.
48.18If the court finds the absentee dead in accordance with section 576.142 578.17, the
48.19absentee's marriage is dissolved. The court shall enter the conclusion of law dissolving the
48.20marriage on the order which establishes the death of the absentee as a matter of law.

48.21    Sec. 37. Minnesota Statutes 2010, section 576.15, is amended to read:
48.22576.15 COMPENSATION OF RECEIVER; TITLE OF ABSENTEE LOST
48.23AFTER FOUR YEARS.
48.24The receiver shall be allowed such compensation and disbursements as the court
48.25orders, to be paid out of the property or proceeds provided in chapter 576. If, within
48.26four years after the date of the disappearance or absconding, as found and recorded by
48.27the court, the absentee appears, and has not been declared dead under section 576.142
48.28578.17, or an administrator, executor, assignee in insolvency, or trustee in bankruptcy of
48.29the absentee is appointed, the receiver shall account for, deliver, and pay over to the
48.30absentee the remainder of the property. If the absentee does not appear and claim the
48.31property within four years, all the absentee's right, title, and interest in the property, real
48.32or personal, or the proceeds thereof, shall cease, and no action shall be brought by the
48.33absentee on account thereof.
49.1If the absentee is declared dead pursuant to section 576.142 578.17 and appears
49.2before the expiration of four years, the absentee shall have no right, title and interest in the
49.3property, real or personal, or the proceeds thereof.

49.4    Sec. 38. Minnesota Statutes 2010, section 576.16, is amended to read:
49.5576.16 PROPERTY DISTRIBUTION; TIME LIMITATION.
49.6If the receiver is not appointed within three years after the date found by the court
49.7under section 576.08 578.06, the time limited for accounting for, or fixed for distributing,
49.8the property or its proceeds, or for barring actions relative thereto, shall be one year after
49.9the date of the appointment of the receiver instead of the four years provided in sections
49.10576.14 578.15 and 576.15 578.20.
49.11The provisions of sections 576.04 to 576.16 this chapter shall not be construed as
49.12exclusive, but as providing additional and cumulative remedies.

49.13    Sec. 39. REVISOR'S INSTRUCTION.
49.14The Revisor of Statutes shall renumber each section of Minnesota Statutes listed
49.15in Column A with the number in Column B. The Revisor shall correct any incorrect
49.16cross-references resulting from this renumbering.

49.17	Column A	Column B
49.18	576.011	578.01
49.19	576.04	578.02
49.20	576.05	578.03
49.21	576.06	578.04
49.22	576.07	578.05
49.23	576.08	578.06
49.24	576.09	578.07
49.25	576.10	578.08
49.26	576.11	578.09
49.27	576.12	578.10
49.28	571.121	578.11
49.29	576.122	578.12
49.30	576.123	578.13
49.31	576.13	578.14
49.32	576.14	578.15
49.33	576.141	578.16
49.34	576.142	578.17
49.35	576.143	578.18
49.36	576.144	578.19
50.1	576.15	578.20
50.2	576.16	578.21

50.3    Sec. 40. REPEALER.
50.4Minnesota Statutes 2010, sections 302A.759, subdivision 2; 308A.961, subdivision
50.52; 308B.951, subdivisions 2 and 3; 317A.759, subdivision 2; and 576.01, are repealed."
50.6Renumber the sections in sequence and correct the internal references
50.7Amend the title accordingly