Credit unions authorized to obtain insurance from a credit union share insurance provider, credit union share guaranty corporations regulated, and conforming changes made.

A bill for an act

relating to financial institutions; authorizing credit unions to obtain insurance from

a credit union share insurance provider; regulating credit union share guaranty

corporations; making conforming changes; amending Minnesota Statutes 2024,

sections 11A.24, subdivision 4; 17.59, subdivision 4; 46A.01, subdivision 10;

52.001, by adding a subdivision; 52.04, subdivision 1; 52.063, subdivision 3;

52.09, subdivision 2; 52.24, subdivisions 1, 2, by adding a subdivision; 53B.28,

subdivision 10; 53B.29; 53B.38; 53B.62, subdivisions 1, 2; 60A.091; 67A.231;

79A.22, subdivision 7; 80A.41; 80A.45; 82.77, subdivision 1; 118A.04, subdivision

5; 123B.14, subdivision 3; 142F.20, subdivision 2; 149A.97, subdivisions 3a, 5;

325K.01, subdivision 12; 354B.25, subdivision 2; 356.001, subdivision 3; 356.645;

356A.06, subdivisions 6, 7, 8a; 366.01, subdivision 4; 385.07; 424B.22, subdivision

9; 427.06; 524.3-715.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 11A.24, subdivision 4, is amended to read:

Subd. 4.

Other obligations.

(a) The state board is authorized to invest funds in:

(1) bankers acceptances and deposit notes if issued by a United States bank that is rated

in the highest four quality categories by a nationally recognized rating agency;

(2) certificates of deposit if issued by a United States bank or savings institution that is

rated in the top four quality categories by a nationally recognized rating agency or whose

certificates of deposit are fully insured by federal agencies, or certificates of deposits issued

by a credit union in an amount within the limit of the insurance coverage provided by the

National Credit Union Administration
new text begin
or an approved credit union share guaranty corporation
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;

(3) commercial paper if issued by a United States corporation or its Canadian subsidiary

and if rated in the highest two quality categories by a nationally recognized rating agency;

(4) mortgage securities and asset-backed securities if rated in the top four quality

categories by a nationally recognized rating agency;

(5) repurchase agreements and reverse repurchase agreements if collateralized with

letters of credit or securities authorized in this section;

(6) guaranteed investment contracts if issued by an insurance company or a bank that

is rated in the top four quality categories by a nationally recognized rating agency or

alternative guaranteed investment contracts if the underlying assets comply with the

requirements of this section;

(7) savings accounts if fully insured by a federal agency; and

(8) guaranty fund certificates, surplus notes, or debentures if issued by a domestic mutual

insurance company.

(b) Sections
16A.58
,
16C.03, subdivision 4
, and
16C.05
do not apply to certificates of

deposit and collateralization agreements executed by the state board under paragraph (a),

clause (2).

(c) In addition to investments authorized by paragraph (a), clause (4), the state board is

authorized to purchase from the Minnesota Housing Finance Agency all or any part of a

pool of residential mortgages, not in default, that has previously been financed by the

issuance of bonds or notes of the agency. The state board may also enter into a commitment

with the agency, at the time of any issue of bonds or notes, to purchase at a specified future

date, not exceeding 12 years from the date of the issue, the amount of mortgage loans then

outstanding and not in default that have been made or purchased from the proceeds of the

bonds or notes. The state board may charge reasonable fees for any such commitment and

may agree to purchase the mortgage loans at a price sufficient to produce a yield to the state

board comparable, in its judgment, to the yield available on similar mortgage loans at the

date of the bonds or notes. The state board may also enter into agreements with the agency

for the investment of any portion of the funds of the agency. The agreement must cover the

period of the investment, withdrawal privileges, and any guaranteed rate of return.

Sec. 2.

Minnesota Statutes 2024, section 17.59, subdivision 4, is amended to read:

Subd. 4.

Deposit and use of checkoff fees.

Checkoff fees collected pursuant to sections

17.51
to
17.69
shall be deposited in a federally insured depository institution
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or an institution

insured by an approved credit union share guaranty corporation
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and shall be disbursed by

the officers and employees approved by the council for the necessary expenses incurred in

the administration of sections
17.51
to
17.69
. Checkoff fees collected shall be used

exclusively for the purpose collected and not to support or oppose a political party or a

candidate for nomination or election to a public office.

Sec. 3.

Minnesota Statutes 2024, section 46A.01, subdivision 10, is amended to read:

Subd. 10.

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Federally
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Insured depository financial institution.

"
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Federally
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Insured

depository financial institution" means a bank, credit union, savings and loan association,

trust company, savings association, savings bank, industrial bank, or industrial loan company

organized under the laws of the United States or any state of the United States, when the

bank, credit union, savings and loan association, trust company, savings association, savings

bank, industrial bank, or industrial loan company has federally insured deposits
new text begin
or deposits

insured by an approved credit union share guaranty corporation
new text end
.

Sec. 4.

Minnesota Statutes 2024, section 52.001, is amended by adding a subdivision to

read:

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Subd. 1a.

new text end

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Approved credit union share guaranty corporation.

new text end

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"Approved credit union

share guaranty corporation" means a corporation that insures share accounts in compliance

with section 52.24, subdivision 1a, and has been approved by the commissioner.

new text end

Sec. 5.

Minnesota Statutes 2024, section 52.04, subdivision 1, is amended to read:

Subdivision 1.

Generally.

A credit union has the following powers:

(1) to offer its members and other credit unions various classes of shares, share

certificates, deposits, or deposit certificates;

(2) to receive the savings of its members either as payment on shares or as deposits,

including the right to conduct Christmas clubs, vacation clubs, and other thrift organizations

within its membership. Trust funds received by a real estate broker or the broker's

salespersons in trust may be deposited in a credit union;

(3) to make loans to members for provident or productive purposes as provided in section

52.16
;

(4) to make loans to a cooperative society or other organization having membership in

the credit union;

(5) to deposit in state and national banks and trust companies authorized to receive

deposits;

(6) to invest in any investment legal for savings banks or for trust funds in the state and,

notwithstanding clause (3), to invest in and make loans of unsecured days funds (federal

funds or similar unsecured loans) to financial institutions insured by an agency of the federal

government and a member of the Federal Reserve System or required to maintain reserves

at the Federal Reserve;

(7) to borrow money as hereinafter indicated;

(8) to adopt and use a common seal and alter the same at pleasure;

(9) to make payments on shares of and deposit with any other credit union chartered by

this or any other state or operating under the provisions of the Federal Credit Union Act, in

amounts not exceeding in the aggregate 25 percent of its unimpaired assets.
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However,

payments on shares of and deposit with credit unions chartered by other states are restricted

to credit unions insured by the National Credit Union Administration.
deleted text end
The restrictions

imposed by this clause do not apply to share accounts and deposit accounts of the Minnesota

corporate credit union in United States central credit union or to share accounts and deposit

accounts of credit unions in the Minnesota corporate credit union;

(10) to contract with any licensed insurance company or society to insure the lives of

members to the extent of their share accounts, in whole or in part, and to pay all or a portion

of the premium therefor;

(11) to indemnify each director, officer, or committee member, or former director, officer,

or committee member against all expenses, including attorney's fees but excluding amounts

paid pursuant to a judgment or settlement agreement, reasonably incurred in connection

with or arising out of any action, suit, or proceeding to which that person is a party by reason

of being or having been a director, officer, or committee member of the credit union, except

with respect to matters as to which that person is finally adjudged in the action, suit, or

proceeding to be liable for negligence or misconduct in the performance of duties. The

indemnification is not exclusive of any other rights to which that person may be entitled

under any bylaw, agreement, vote of members, or otherwise;

(12) upon written authorization from a member, retained at the credit union, to make

payments to third parties by withdrawals from the member's share or deposit accounts or

through proceeds of loans made to such member, or by permitting the credit union to make

those payments from the member's funds prior to deposit; to permit draft withdrawals from

member accounts, but a credit union proposing to permit draft withdrawals shall notify the

commissioner of commerce, in the form prescribed, of its intent not less than 90 days prior

to authorizing draft withdrawals. The board of directors of a credit union may restrict one

class of shares to the extent that it may not be redeemed, withdrawn, or transferred except

upon termination of membership in the credit union;

(13) to inform its members as to the availability of various group purchasing plans which

are related to the promotion of thrift or the borrowing of money for provident and productive

purposes by means of informational materials placed in the credit union's office, through

its publications, or by direct mailings to members by the credit union;

(14) to facilitate its members' voluntary purchase of types of insurance incidental to

promotion of thrift or the borrowing of money for provident and productive purposes

including, but not limited to the following types of group or individual insurance: Fire, theft,

automobile, life and temporary disability; to be the policyholder of a group insurance plan

or a subgroup under a master policy plan and to disseminate information to its members

concerning the insurance provided thereunder; to remit premiums to an insurer or the holder

of a master policy on behalf of a credit union member, if the credit union obtains written

authorization from the member for remittance by share or deposit withdrawals or through

proceeds of loans made by the members, or by permitting the credit union to make the

payments from the member's funds prior to deposit; and to accept from the insurer

reimbursement for expenses incurred or in the case of credit life, accident and health, and

involuntary unemployment insurance within the meaning of chapter
62B
commissions for

the handling of the insurance. The amount reimbursed or the commissions received may

constitute the general income of the credit union. The directors, officers, committee members

and employees of a credit union shall not profit on any insurance sale facilitated through

the credit unions;

(15) to contract with another credit union to furnish services which either could otherwise

perform. Contracted services under this clause are subject to regulation and examination

by the commissioner of commerce like other services;

(16) in furtherance of the twofold purpose of promoting thrift among its members and

creating a source of credit for them at legitimate rates of interest for provident purposes,

and not in limitation of the specific powers hereinbefore conferred, to have all the powers

enumerated, authorized, and permitted by this chapter, and such other rights, privileges and

powers incidental to, or necessary for, the accomplishment of the objectives and purposes

of the credit union;

(17) to rent safe deposit boxes to its members if the credit union obtains adequate

insurance or bonding coverage for losses which might result from the rental of safe deposit

boxes;

(18) notwithstanding the provisions of section
52.05
, to accept deposits of public funds

in an amount secured by insurance or other means pursuant to chapter
118A
or section
9.031

or other applicable law and to receive deposits of trust funds provided that either the provider

or the beneficial owner of the funds is a member of the credit union accepting the deposit;

(19) to accept and maintain treasury tax and loan accounts of the United States and to

pledge collateral to secure the treasury tax or loan accounts, in accordance with the

regulations of the Department of Treasury of the United States;

(20) to accept deposits pursuant to section
149A.97, subdivision 5
, notwithstanding the

provisions of section
52.05
, if the deposits represent funding of prepaid funeral plans of

members;

(21) to sell, in whole or in part, real estate secured loans provided that:

(i) the loan is secured by a first lien;

(ii) the board of directors approves the sale;

(iii) if the sale is partial, the agreement to sell a partial interest shall, at a minimum:

(A) identify the loan or loans covered by the agreement;

(B) provide for the collection, processing, remittance of payments of principal and

interest, taxes and insurance premiums and other charges or escrows, if any;

(C) define the responsibilities of each party in the event the loan becomes subject to

collection, loss or foreclosure;

(D) provide that in the event of loss, each owner shall share in the loss in proportion to

its interest in the loan or loans;

(E) provide for the distribution of payments of principal to each owner proportionate to

its interest in the loan or loans;

(F) provide for loan status reports;

(G) state the terms and conditions under which the agreement may be terminated or

modified; and

(iv) the sale is without recourse or repurchase unless the agreement:

(A) requires repurchase of a loan because of any breach of warranty or misrepresentation;

(B) allows the seller to repurchase at its discretion; or

(C) allows substitution of one loan for another;

(22) in addition to the sale of loans secured by a first lien on real estate, to sell, pledge,

discount, or otherwise dispose of, in whole or in part, to any source, a loan or group of loans,

other than a self-replenishing line of credit; provided, that within a calendar year beginning

January 1 the total dollar value of loans sold, other than loans secured by real estate or

insured by a state or federal agency, shall not exceed 25 percent of the dollar amount of all

loans and participating interests in loans held by the credit union at the beginning of the

calendar year, unless otherwise authorized in writing by the commissioner;

(23) to designate the par value of the shares of the credit union by board resolution;

(24) to exercise by resolution the powers set forth in United States Code, title 12, section

1757. Before exercising each power, the board must submit a plan to the commissioner of

commerce detailing implementation of the power to be used;

(25) to offer self-directed individual retirement accounts and Keogh accounts and act

as custodian and trustee of these accounts if:

(i) all contributions of funds are initially made to a deposit, share or share certificate

account in the credit union;

(ii) any subsequent transfer of funds to other assets is solely at the direction of the member

and the credit union exercises no investment discretion and provides no investment advice

with respect to plan assets;
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and
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(iii) the member is clearly notified
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, as applicable,
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of the fact that National Credit Union

Share Insurance Fund coverage is limited to funds held in deposit, share or share certificate

accounts of National Credit Union Share Insurance Fund-insured credit unions;
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and
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(iv) the member is clearly notified, as applicable, of the fact that approved credit union

share guaranty corporation coverage is limited to funds held in deposit, share or share

certificate accounts of the approved credit union share guaranty corporation-insured credit

unions;

new text end

(26) to impose reasonable charges for the services it provides to its members;

(27) to impose financing charges and reasonable late charges in the event of default on

loans, and recover reasonable costs and expenses, including, but not limited to, actual

collection costs and attorneys' fees incurred both before and after judgment, incurred in the

collection of sums due, if provided for in the note or agreement signed by the borrower;

(28) to acquire, lease, hold, assign, pledge, sell, or otherwise dispose of interests in a

loan or groups of loans other than a self-replenishing line of credit; and

(29) to conduct savings promotion raffles in the manner and subject to the requirements

set forth in section
609.761, subdivision 6
.

Sec. 6.

Minnesota Statutes 2024, section 52.063, subdivision 3, is amended to read:

Subd. 3.

Appointment of National Credit Union Administration Board as

receiver.

Upon a request by the commissioner of commerce, the court may appoint the

National Credit Union Administration Board, created by section 3 of the Federal Credit

Union Act, as amended,
new text begin
or a share insurance provider approved by the commissioner
new text end
as

receiver of a credit union, without bond, when the deposits of the credit union are to any

extent insured by the National Credit Union Administration Board
new text begin
or approved share

insurance provider
new text end
, and the credit union has had its operations suspended or has executed

a consent cease and desist order with the commissioner in lieu of a suspension under section

52.062
. Notwithstanding any other provisions of law, the commissioner of commerce may,

in the event of the suspension or consent cease and desist order, tender to the National Credit

Union Administration Board
new text begin
or approved share insurance provider
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the proposed appointment

as receiver of the credit union. If the National Credit Union Administration Board
new text begin
or approved

share insurance provider
new text end
accepts the proposed appointment and the court appoints the

National Credit Union Administration Board
new text begin
or approved share insurance provider
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as receiver

upon a request by the commissioner, the National Credit Union Administration Board
new text begin
or

approved shared insurance provider
new text end
shall have and possess all the powers and privileges

provided by the laws of this state and section 207 of the Federal Credit Union Act, as

amended, with respect to a receiver of a credit union, the board of directors of the credit

union, and its members.

Sec. 7.

Minnesota Statutes 2024, section 52.09, subdivision 2, is amended to read:

Subd. 2.

Particular duties.

The directors shall manage the affairs of the credit union

and shall:

(1) act on applications for membership. This power may be delegated to a membership

chair who serves at the pleasure of the board of directors and is subject to its rules. An

application must contain a certification signed by the membership chair or a member of the

board showing the basis of membership;

(2) determine interest rates on loans and on deposits. The interest period on deposits

may be on a daily, monthly, quarterly, semiannual, or annual basis, and may be paid on all

deposits whether or not the deposits have been withdrawn during the interest period. Interest

may be computed on a daily basis;

(3) fix the amount of the surety bond required of all officers and employees handling

money;

(4) declare dividends and transmit to the members recommended amendments to the

bylaws;

(5) fill vacancies in the board and in the credit committee until successors are chosen

and qualify at the next annual meeting;

(6) limit the number of shares and deposits which may be owned by a member, not to

exceed ten percent of the outstanding shares and deposits, or $2,000, whichever is larger,

and the maximum individual loan which can be made with and without security, including

liability indirectly as a comaker, guarantor, or endorser to ten percent of outstanding shares

and deposits. The ten percent share and deposit limitation is not applicable to the Minnesota

corporate credit union, or to credit unions insured by the National Credit Union

Administration
new text begin
or an approved credit union share guaranty corporation
new text end
;

(7) have charge of investments including loans to members. If a credit committee is

established pursuant to section
52.08
or clause (13), then the credit committee shall have

charge of loans to members;

(8) fix the salaries of the treasurer and other employees, which must be on a fixed monthly

or annual basis, in dollars (not percentage);

(9) designate the depository institution in which the funds of the credit union will be

deposited;

(10) authorize the officers of the credit union to borrow money from any source, as

provided in section
52.15
;

(11) with the permission of the commissioner of commerce, suspend any member of the

credit committee or supervisory committee if it deems this action necessary to the proper

conduct of the credit union, and call the members together to act on the suspension within

a reasonable time after the suspension. The members at the meeting may, by majority vote

of those present, sustain the suspension and remove the committee members permanently

or may reinstate the committee members;

(12) provide financial assistance to the supervisory committee in carrying out its audit

responsibilities;

(13) if the bylaws so provide and no credit committee has been elected pursuant to

section
52.08
, appoint a credit manager or a credit committee of not less than three members;

and

(14) to establish different classes of shares.

Sec. 8.

Minnesota Statutes 2024, section 52.24, subdivision 1, is amended to read:

Subdivision 1.

Insurance accounts.

Every credit union under the supervision of the

commissioner of commerce shall at all times maintain in effect insurance of member share

and deposit accounts under the provisions of title II of the National Credit Union Act
new text begin
or

through a credit union share guaranty corporation that is approved by the commissioner
new text end
. A

credit union
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which
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new text begin
that
new text end
fails to meet this requirement for insurance of its share and deposit

accounts shall either dissolve or merge with another credit union
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which
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that
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is insured under

title II of the National Credit Union Act
new text begin
or through a credit union share guaranty corporation

that is approved by the commissioner
new text end
.

Sec. 9.

Minnesota Statutes 2024, section 52.24, is amended by adding a subdivision to

read:

new text begin

Subd. 1a.

new text end

new text begin

Credit union share guaranty corporation; accounts insured.

new text end

new text begin

(a) A credit

union share account of an individual member or a nonmember of a participating credit union

must be guaranteed in an amount established from time to time by the credit union share

guaranty corporation. The primary guaranteed amount must be at least the amount of the

credit union share account but must not exceed $250,000 or the primary guaranteed amount

insured by the National Credit Union Administration, whichever is greater.

new text end

new text begin

(b) The commissioner may examine a credit union share guaranty corporation that insures

the member accounts of a credit union that is subject to this section. The commissioner may

assess the credit union share guaranty corporation examined for reasonable costs incurred

to conduct an examination under this section. Money received from an assessment under

this paragraph must be deposited in the financial institutions account in the special revenue

fund.

new text end

new text begin

(c) A credit union is prohibited from voluntarily terminating the credit union's insurance

with the National Credit Union Administration Share Insurance Program or a credit union

share guaranty corporation without receiving approval from the commissioner.

new text end

Sec. 10.

Minnesota Statutes 2024, section 52.24, subdivision 2, is amended to read:

Subd. 2.

Certificate of approval.

No credit union shall be granted a certificate of

approval by the commissioner of commerce unless the credit union has obtained a

commitment for insurance of its member share and deposit accounts under the provisions

of title II of the National Credit Union Act
new text begin
or from an approved credit union share guaranty

corporation
new text end
.

Sec. 11.

Minnesota Statutes 2024, section 53B.28, subdivision 10, is amended to read:

Subd. 10.

deleted text begin
Federally
deleted text end
Insured depository financial institution.

"
deleted text begin
Federally
deleted text end
Insured

depository financial institution" means a bank, credit union, savings and loan association,

trust company, savings association, savings bank, industrial bank, or industrial loan company

organized under the laws of the United States or any state of the United States, when the

bank, credit union, savings and loan association, trust company, savings association, savings

bank, industrial bank, or industrial loan company has federally insured deposits
new text begin
or deposits

insured by an approved credit union share guaranty corporation
new text end
.

Sec. 12.

Minnesota Statutes 2024, section 53B.29, is amended to read:

53B.29 EXEMPTIONS.

This chapter does not apply to:

(1) an operator of a payment system, to the extent the operator of a payment system

provides processing, clearing, or settlement services between or among persons exempted

by this section or licensees in connection with wire transfers, credit card transactions, debit

card transactions, stored-value transactions, automated clearing house transfers, or similar

funds transfers;

(2) a person appointed as an agent of a payee to collect and process a payment from a

payor to the payee for goods or services, other than money transmission itself, provided to

the payor by the payee, provided that:

(i) there exists a written agreement between the payee and the agent directing the agent

to collect and process payments from payors on the payee's behalf;

(ii) the payee holds the agent out to the public as accepting payments for goods or services

on the payee's behalf; and

(iii) payment for the goods and services is treated as received by the payee upon receipt

by the agent so that the payor's obligation is extinguished and there is no risk of loss to the

payor if the agent fails to remit the funds to the payee;

(3) a person that acts as an intermediary by processing payments between an entity that

has directly incurred an outstanding money transmission obligation to a sender, and the

sender's designated recipient, provided that the entity:

(i) is properly licensed or exempt from licensing requirements under this chapter;

(ii) provides a receipt, electronic record, or other written confirmation to the sender

identifying the entity as the provider of money transmission in the transaction; and

(iii) bears sole responsibility to satisfy the outstanding money transmission obligation

to the sender, including the obligation to make the sender whole in connection with any

failure to transmit the funds to the sender's designated recipient;

(4) the United States; a department, agency, or instrumentality of the United States; or

an agent of the United States;

(5) money transmission by the United States Postal Service or by an agent of the United

States Postal Service;

(6) a state; county; city; any other governmental agency, governmental subdivision, or

instrumentality of a state; or the state's agent;

(7)
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a federally
deleted text end
new text begin
an
new text end
insured depository financial institution; bank holding company; office

of an international banking corporation; foreign bank that establishes a federal branch

pursuant to the International Bank Act, United States Code, title 12, section 3102, as amended

or recodified from time to time; corporation organized pursuant to the Bank Service

Corporation Act, United States Code, title 12, sections 1861 to 1867, as amended or

recodified from time to time; or corporation organized under the Edge Act, United States

Code, title 12, sections 611 to 633, as amended or recodified from time to time;

(8) electronic funds transfer of governmental benefits for a federal, state, county, or

governmental agency by a contractor on behalf of the United States or a department, agency,

or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or

instrumentality thereof;

(9) a board of trade designated as a contract market under the federal Commodity

Exchange Act, United States Code, title 7, sections 1 to 25, as amended or recodified from

time to time; or a person that in the ordinary course of business provides clearance and

settlement services for a board of trade to the extent of its operation as or for a board;

(10) a registered futures commission merchant under the federal commodities laws, to

the extent of the registered futures commission merchant's operation as a merchant;

(11) a person registered as a securities broker-dealer under federal or state securities

laws, to the extent of the person's operation as a securities broker-dealer;

(12) an individual employed by a licensee, authorized delegate, or any person exempted

from the licensing requirements under this chapter when acting within the scope of

employment and under the supervision of the licensee, authorized delegate, or exempted

person as an employee and not as an independent contractor;

(13) a person expressly appointed as a third-party service provider to or agent of an

entity exempt under clause (7), solely to the extent that:

(i) the service provider or agent is engaging in money transmission on behalf of and

pursuant to a written agreement with the exempt entity that sets forth the specific functions

that the service provider or agent is to perform; and

(ii) the exempt entity assumes all risk of loss and all legal responsibility for satisfying

the outstanding money transmission obligations owed to purchasers and holders of the

outstanding money transmission obligations upon receipt of the purchaser's or holder's

money or monetary value by the service provider or agent;

(14) a payroll processing services provider; or

(15) a person exempt by regulation or order if the commissioner finds that (i) the

exemption is in the public interest, and (ii) the regulation of the person is not necessary for

the purposes of this chapter.

Sec. 13.

Minnesota Statutes 2024, section 53B.38, is amended to read:

53B.38 APPLICATION FOR LICENSE.

(a) An applicant for a license must apply in a form and in a medium as prescribed by

the commissioner. The application must state or contain, as applicable:

(1) the legal name and residential and business addresses of the applicant and any

fictitious or trade name used by the applicant in conducting business;

(2) a list of any criminal convictions of the applicant and any material litigation in which

the applicant has been involved in the ten-year period next preceding the submission of the

application;

(3) a description of any money transmission previously provided by the applicant and

the money transmission that the applicant seeks to provide in this state;

(4) a list of the applicant's proposed authorized delegates and the locations in this state

where the applicant and the applicant's authorized delegates propose to engage in money

transmission;

(5) a list of other states in which the applicant is licensed to engage in money transmission

and any license revocations, suspensions, or other disciplinary action taken against the

applicant in another state;

(6) information concerning any bankruptcy or receivership proceedings affecting the

licensee or a person in control of a licensee;

(7) a sample form of contract for authorized delegates, if applicable;

(8) a sample form of payment instrument or stored value, as applicable;

(9) the name and address of any
deleted text begin
federally
deleted text end
insured depository financial institution through

which the applicant plans to conduct money transmission; and

(10) any other information the commissioner or NMLS reasonably requires with respect

to the applicant.

(b) If an applicant is a corporation, limited liability company, partnership, or other legal

entity, the applicant must also provide:

(1) the date of the applicant's incorporation or formation and state or country of

incorporation or formation;

(2) if applicable, a certificate of good standing from the state or country in which the

applicant is incorporated or formed;

(3) a brief description of the structure or organization of the applicant, including any

parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly

traded;

(4) the legal name, any fictitious or trade name, all business and residential addresses,

and the employment, as applicable, in the ten-year period next preceding the submission of

the application of each key individual and person in control of the applicant;

(5) a list of any criminal convictions and material litigation in which a person in control

of the applicant that is not an individual has been involved in the ten-year period preceding

the submission of the application;

(6) a copy of audited financial statements of the applicant for the most recent fiscal year

and for the two-year period next preceding the submission of the application or, if the

commissioner deems acceptable, certified unaudited financial statements for the most recent

fiscal year or other period acceptable to the commissioner;

(7) a certified copy of unaudited financial statements of the applicant for the most recent

fiscal quarter;

(8) if the applicant is a publicly traded corporation, a copy of the most recent report filed

with the United States Securities and Exchange Commission under section 13 of the federal

Securities Exchange Act of 1934, United States Code, title 15, section 78m, as amended or

recodified from time to time;

(9) if the applicant is a wholly owned subsidiary of:

(i) a corporation publicly traded in the United States, a copy of audited financial

statements for the parent corporation for the most recent fiscal year or a copy of the parent

corporation's most recent report filed under section 13 of the Securities Exchange Act of

1934, United States Code, title 15, section 78m, as amended or recodified from time to time;

or

(ii) a corporation publicly traded outside the United States, a copy of similar

documentation filed with the regulator of the parent corporation's domicile outside the

United States;

(10) the name and address of the applicant's registered agent in this state; and

(11) any other information the commissioner reasonably requires with respect to the

applicant.

(c) A nonrefundable application fee of $4,000 must accompany an application for a

license under this section.

(d) The commissioner may: (1) waive one or more requirements of paragraphs (a) and

(b); or (2) permit an applicant to submit other information in lieu of the required information.

Sec. 14.

Minnesota Statutes 2024, section 53B.62, subdivision 1, is amended to read:

Subdivision 1.

Certain investments permissible.

The following investments are

permissible under section
53B.61
:

(1) cash, including demand deposits, savings deposits, and funds in accounts held for

the benefit of the licensee's customers in a federally insured depository financial institution;

and cash equivalents, including ACH items in transit to the licensee and ACH items or

international wires in transit to a payee, cash in transit via armored car, cash in smart safes,

cash in licensee-owned locations, debit card or credit card funded transmission receivables

owed by any bank, or money market mutual funds rated AAA or the equivalent from any

eligible rating service;

(2) certificates of deposit or senior debt obligations of
new text begin
: (i)
new text end
an insured depository

institution, as defined in section 3 of the Federal Deposit Insurance Act, United States Code,

title 12, section 1813, as amended or recodified from time to time, or as defined under the

federal Credit Union Act, United States Code, title 12, section 1781, as amended or recodified

from time to time
new text begin
; or (ii) a credit union insured through an approved credit union share

guaranty corporation
new text end
;

(3) an obligation of the United States or a commission, agency, or instrumentality thereof;

an obligation that is guaranteed fully as to principal and interest by the United States; or an

obligation of a state or a governmental subdivision, agency, or instrumentality thereof;

(4) the full drawable amount of an irrevocable standby letter of credit, for which the

stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw

a sight draft under the letter of credit and present the sight draft to obtain funds up to the

letter of credit amount within seven days of presentation of the items required by subdivision

2, paragraph (c); and

(5) one hundred percent of the surety bond or deposit provided for under section
53B.60

that exceeds the average daily money transmission liability in Minnesota.

Sec. 15.

Minnesota Statutes 2024, section 53B.62, subdivision 2, is amended to read:

Subd. 2.

Letter of credit; requirements.

(a) A letter of credit under subdivision 1,

clause (4), must:

(1) be issued by
deleted text begin
a federally
deleted text end
new text begin
an
new text end
insured depository financial institution, a foreign bank

that is authorized under federal law to maintain a federal agency or federal branch office in

a state or states, or a foreign bank that is authorized under state law to maintain a branch in

a state that: (i) bears an eligible rating or whose parent company bears an eligible rating;

and (ii) is regulated, supervised, and examined by United States federal or state authorities

having regulatory authority over banks, credit unions, and trust companies;

(2) be irrevocable, unconditional, and indicate that it is not subject to any condition or

qualifications outside of the letter of credit;

(3) not contain reference to any other agreements, documents, or entities, or otherwise

provide for any security interest in the licensee; and

(4) contain an issue date and expiration date, and expressly provide for automatic

extension without a written amendment, for an additional period of one year from the present

or each future expiration date, unless the issuer of the letter of credit notifies the

commissioner in writing by certified or registered mail or courier mail or other receipted

means, at least 60 days before any expiration date, that the irrevocable letter of credit will

not be extended.

(b) In the event of any notice of expiration or nonextension of a letter of credit issued

under paragraph (a), clause (4), the licensee must demonstrate to the satisfaction of the

commissioner, 15 days before the letter or credit's expiration, that the licensee maintains

and will maintain permissible investments in accordance with section
53B.61
, paragraph

(a), upon the expiration of the letter of credit. If the licensee is not able to do so, the

commissioner may draw on the letter of credit in an amount up to the amount necessary to

meet the licensee's requirements to maintain permissible investments in accordance with

section
53B.61
, paragraph (a). Any draw under this paragraph must be offset against the

licensee's outstanding money transmission obligations. The drawn funds must be held in

trust by the commissioner or the commissioner's designated agent, to the extent authorized

by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding

money transmission obligations.

(c) The letter of credit must provide that the issuer of the letter of credit must honor, at

sight, a presentation made by the beneficiary to the issuer of the following documents on

or before the expiration date of the letter of credit:

(1) the original letter of credit, including any amendments; and

(2) a written statement from the beneficiary stating that any of the following events have

occurred:

(i) the filing of a petition by or against the licensee under the United States Bankruptcy

Code, United States Code, title 11, sections 101 to 110, as amended or recodified from time

to time, for bankruptcy or reorganization;

(ii) the filing of a petition by or against the licensee for receivership, or the

commencement of any other judicial or administrative proceeding for the licensee's

dissolution or reorganization;

(iii) the seizure of assets of a licensee by a commissioner of any other state pursuant to

an emergency order issued in accordance with applicable law, on the basis of an action,

violation, or condition that has caused or is likely to cause the insolvency of the licensee;

or

(iv) the beneficiary has received notice of expiration or nonextension of a letter of credit

and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee

will maintain permissible investments in accordance with section
53B.61
, paragraph (a),

upon the expiration or nonextension of the letter of credit.

(d) The commissioner may designate an agent to serve on the commissioner's behalf as

beneficiary to a letter of credit, provided the agent and letter of credit meet requirements

the commissioner establishes. The commissioner's agent may serve as agent for multiple

licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable

amount for the purposes of subdivision 1, clause (4), and this subdivision are assigned to

the commissioner.

(e) The commissioner is authorized to participate in multistate processes designed to

facilitate the issuance and administration of letters of credit, including but not limited to

services provided by the NMLS and State Regulatory Registry, LLC.

Sec. 16.

Minnesota Statutes 2024, section 60A.091, is amended to read:

60A.091 DEFINITION; QUALIFIED UNITED STATES FINANCIAL

INSTITUTION.

For purposes of sections
60A.092
and
60A.093
, "qualified United States financial

institution" means an institution that:

(1) is organized or, in the case of a United States office of a foreign banking organization,

licensed, under the laws of the United States or any state;

(2) is regulated, supervised, and examined by federal or state authorities having regulatory

authority over banks and trust companies; and

(3) is a member of the Federal Deposit Insurance Corporation
deleted text begin
,
deleted text end
or the National Credit

Union Administration
new text begin
, or is insured by an approved credit union share guaranty corporation
new text end
.

Sec. 17.

Minnesota Statutes 2024, section 67A.231, is amended to read:

67A.231 DEPOSIT OF FUNDS; INVESTMENT; LIMITATIONS.

The directors of any township mutual insurance company may authorize the treasurer

to invest any of its funds and accumulations in:

(a) Bonds, notes, mortgages, or other obligations guaranteed by the full faith and credit

of the United States of America and those for which the credit of the United States is pledged

to pay principal, interest or dividends, including United States agency and instrumentality

bonds, debentures, or obligations;

(b) Bonds, notes, evidence of indebtedness, or other public authority obligations

guaranteed by this state;

(c) Bonds, notes, evidence of the indebtedness or other obligations guaranteed by the

full faith and credit of any county, municipality, school district, or other duly authorized

political subdivision of this state;

(d) Bonds or other interest bearing obligations, payable from revenues, provided that

the bonds or other interest bearing obligations are at the time of purchase rated among the

highest four quality categories used by a nationally recognized rating agency for rating the

quality of similar bonds or other interest bearing obligations, and are not rated lower by any

other such agency; or obligations of a United States agency or instrumentality that have

been rated in one of the two highest categories established by the Securities Valuation Office

of the National Association of Insurance Commissioners. A company may not invest more

than 20 percent of its admitted assets in the obligations of any one corporation. This is not

applicable to bonds or other interest bearing obligations in default as to principal;

(e) Investments in the obligations stated in paragraphs (a), (b), (c), and (d), may be made

either directly or in the form of securities of, or other interests in, an investment company

registered under the federal Investment Company Act of 1940. Investment company shares

authorized pursuant to this subdivision shall not exceed 20 percent of the company's surplus.

These obligations must be carried at the lower of cost or market on the annual statement

filed with the commissioner and adjusted to market on an annual basis;

(f) Loans upon improved and unencumbered real property in this state worth at least

twice the amount loaned thereon, not including buildings, unless insured by property

insurance policies payable to and held by the security holder;

(g) Real estate, including land, buildings and fixtures, located in this state and used

primarily as home office space for the insurance company;

(h) Demand or time deposits or savings accounts in
deleted text begin
federally
deleted text end
insured depositories located

in any state to the extent that the deposit or investment is insured by the Federal Deposit

Insurance Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union Administration
new text begin
, or an approved credit

union share guaranty corporation
new text end
. An additional deposit not to exceed 50 percent of the

township mutual insurance company's policyholder surplus may be located in these

depositories if covered by private deposit insurance written by an insurer licensed by the

Department of Commerce;

(i) Guarantee fund certificates of a mutual insurer which reinsures the business of the

township mutual insurance company. The commissioner may by rule limit the amount of

guarantee fund certificates which the township mutual insurance company may purchase

and this limit may be a function of the size of the township mutual insurance company;

(j) Up to $1,500 in stock of an insurer which issues directors and officers liability

insurance to township mutual insurance company directors and officers;

(k) Up to $10,000 in shares of stock of the National Association of Mutual Insurance

Companies bank, subject to the commissioner's approval; and

(l) Overnight repurchase agreements with the depository that handles the company's

primary accounts under paragraph (h). The repurchase agreements must be collateralized

by securities that the company is otherwise authorized to invest in under this section. The

securities must have an aggregate market value of at least 105 percent of the total amount

invested under the repurchase agreement.

Sec. 18.

Minnesota Statutes 2024, section 79A.22, subdivision 7, is amended to read:

Subd. 7.

Investments.

(a) Any securities purchased by the common claims fund shall

be in such denominations and with dates of maturity to ensure securities may be redeemable

at sufficient time and in sufficient amounts to meet the fund's current and long-term liabilities.

(b) Cash assets of the self-insurers' fund may be invested as provided in section
60A.11

for a casualty insurance company, provided that investment in real estate of or indebtedness

from a member company or affiliates is prohibited. In addition, investment in the following

is allowed:

(1) savings accounts or certificates of deposit in a duly chartered commercial bank

located within the state of Minnesota and insured through the Federal Deposit Insurance

Corporation;

(2) share accounts or savings certificates in a duly chartered savings association or

savings bank located within the state of Minnesota and insured through the Federal Deposit

Insurance Corporation;

(3) direct obligations of the United States Treasury, such as notes, bonds, or bills;

(4) a bond or security issued by the state of Minnesota and backed by the full faith and

credit of the state;

(5) a credit union where the employees of the self-insurer are members
new text begin
,
new text end
if the credit

union is located in Minnesota and insured through the National Credit Union Administration
new text begin

or an approved credit union share guaranty corporation
new text end
; or

(6) real estate, common stock, preferred stock, or corporate bonds listed on the New

York, American Stock Exchange or NASDAQ Stock Market, so long as these investments

are not issued by any member company or affiliate and the total in all other allowable

categories make up at least 75 percent of the total required in the common claims fund.

Sec. 19.

Minnesota Statutes 2024, section 80A.41, is amended to read:

80A.41 SECTION 102; DEFINITIONS.

In this chapter, unless the context otherwise requires:

(1) "Accredited investor" means an accredited investor as the term is defined in Rule

501(a) of Regulation D adopted pursuant to the Securities Act of 1933.

(2) "Administrator" means the commissioner of commerce.

(3) "Agent" means an individual, other than a broker-dealer, who represents a

broker-dealer in effecting or attempting to effect purchases or sales of securities or represents

an issuer in effecting or attempting to effect purchases or sales of the issuer's securities. But

a partner, officer, or director of a broker-dealer or issuer, or an individual having a similar

status or performing similar functions is an agent only if the individual otherwise comes

within the term. The term does not include an individual excluded by rule adopted or order

issued under this chapter.

(4) "Bank" means:

(A) a banking institution organized under the laws of the United States;

(B) a member bank of the Federal Reserve System;

(C) any other banking institution, whether incorporated or not, doing business under the

laws of a state or of the United States, a substantial portion of the business of which consists

of receiving deposits or exercising fiduciary powers similar to those permitted to be exercised

by national banks under the authority of the Comptroller of the Currency pursuant to Section

1 of Public Law 87-722 (12 U.S.C. Section 92a), and which is supervised and examined by

a state or federal agency having supervision over banks, and which is not operated for the

purpose of evading this chapter; and

(D) a receiver, conservator, or other liquidating agent of any institution or firm included

in subparagraph (A), (B), or (C).

(5) "Broker-dealer" means a person engaged in the business of effecting transactions in

securities for the account of others or for the person's own account. The term does not

include:

(A) an agent;

(B) an issuer;

(C) a depository institution; provided such activities are conducted in accordance with

such rules as may be adopted by the administrator;

(D) an international banking institution; or

(E) a person excluded by rule adopted or order issued under this chapter.

(6) "Depository institution" means:

(A) a bank; or

(B) a savings institution, trust company, credit union, or similar institution that is

organized or chartered under the laws of a state or of the United States, authorized to receive

deposits, and supervised and examined by an official or agency of a state or the United

States if its deposits or share accounts are insured to the maximum amount authorized by

statute by the Federal Deposit Insurance Corporation, the National Credit Union Share

Insurance Fund,
new text begin
an approved credit union share guaranty corporation,
new text end
or a successor

authorized by federal law. The term does not include:

(i) an insurance company or other organization primarily engaged in the business of

insurance;

(ii) a Morris Plan bank; or

(iii) an industrial loan company that is not an "insured depository institution" as defined

in section 3(c)(2) of the Federal Deposit Insurance Act, United States Code, title 12, section

1813(c)(2), or any successor federal statute.

(7) "Federal covered investment adviser" means a person registered under the Investment

Advisers Act of 1940.

(8) "Federal covered security" means a security that is, or upon completion of a

transaction will be, a covered security under Section 18(b) of the Securities Act of 1933

(15 U.S.C. Section 77r(b)) or rules or regulations adopted pursuant to that provision.

(9) "Filing" means the receipt under this chapter of a record by the administrator or a

designee of the administrator.

(10) "Fraud," "deceit," and "defraud" are not limited to common law deceit.

(11) "Guaranteed" means guaranteed as to payment of all principal and all interest.

(12) "Institutional investor" means any of the following, whether acting for itself or for

others in a fiduciary capacity:

(A) a depository institution or international banking institution;

(B) an insurance company;

(C) a separate account of an insurance company;

(D) an investment company as defined in the Investment Company Act of 1940;

(E) a broker-dealer registered under the Securities Exchange Act of 1934;

(F) an employee pension, profit-sharing, or benefit plan if the plan has total assets in

excess of $10,000,000 or its investment decisions are made by a named fiduciary, as defined

in the Employee Retirement Income Security Act of 1974, that is a broker-dealer registered

under the Securities Exchange Act of 1934, an investment adviser registered or exempt

from registration under the Investment Advisers Act of 1940, an investment adviser registered

under this chapter, a depository institution, or an insurance company;

(G) a plan established and maintained by a state, a political subdivision of a state, or an

agency or instrumentality of a state or a political subdivision of a state for the benefit of its

employees, if the plan has total assets in excess of $10,000,000 or its investment decisions

are made by a duly designated public official or by a named fiduciary, as defined in the

Employee Retirement Income Security Act of 1974, that is a broker-dealer registered under

the Securities Exchange Act of 1934, an investment adviser registered or exempt from

registration under the Investment Advisers Act of 1940, an investment adviser registered

under this chapter, a depository institution, or an insurance company;

(H) a trust, if it has total assets in excess of $10,000,000, its trustee is a depository

institution, and its participants are exclusively plans of the types identified in subparagraph

(F) or (G), regardless of the size of their assets, except a trust that includes as participants

self-directed individual retirement accounts or similar self-directed plans;

(I) an organization described in Section 501(c)(3) of the Internal Revenue Code (26

U.S.C. Section 501(c)(3)), corporation, Massachusetts trust or similar business trust, limited

liability company, or partnership, not formed for the specific purpose of acquiring the

securities offered, with total assets in excess of $10,000,000;

(J) a small business investment company licensed by the Small Business Administration

under Section 301(c) of the Small Business Investment Act of 1958 (15 U.S.C. Section

681(c)) with total assets in excess of $10,000,000;

(K) a private business development company as defined in Section 202(a)(22) of the

Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(22)) with total assets in excess

of $10,000,000;

(L) a federal covered investment adviser acting for its own account;

(M) a "qualified institutional buyer" as defined in Rule 144A(a)(1), other than Rule

144A(a)(1)(i)(H), adopted under the Securities Act of 1933 (17 C.F.R. 230.144A);

(N) a "major U.S. institutional investor" as defined in Rule 15a-6(b)(4)(i) adopted under

the Securities Exchange Act of 1934 (17 C.F.R. 240.15a-6);

(O) any other person, other than an individual or a private fund, of institutional character

with total assets in excess of $10,000,000 not organized for the specific purpose of evading

this chapter; or

(P) any other person specified by rule adopted or order issued under this chapter.

(13) "Insurance company" means a company organized as an insurance company whose

primary business is writing insurance or reinsuring risks underwritten by insurance companies

and which is subject to supervision by the insurance commissioner or a similar official or

agency of a state.

(14) "Insured" means insured as to payment of all principal and all interest.

(15) "International banking institution" means an international financial institution of

which the United States is a member and whose securities are exempt from registration

under the Securities Act of 1933.

(16) "Investment adviser" means a person that, for compensation, engages in the business

of advising others, either directly or through publications or writings, as to the value of

securities or the advisability of investing in, purchasing, or selling securities or that, for

compensation and as a part of a regular business, issues or promulgates analyses or reports

concerning securities. The term includes a financial planner or other person that, as an

integral component of other financially related services, provides investment advice to

others for compensation as part of a business or that holds itself out as providing investment

advice to others for compensation. The term does not include:

(A) an investment adviser representative;

(B) a lawyer, accountant, engineer, or teacher whose performance of investment advice

is solely incidental to the practice of the person's profession;

(C) a broker-dealer or its agents whose performance of investment advice is solely

incidental to the conduct of business as a broker-dealer and that does not receive special

compensation for the investment advice;

(D) a publisher of a bona fide newspaper, news magazine, or business or financial

publication of general and regular circulation;

(E) a federal covered investment adviser;

(F) a bank or savings institution;

(G) any other person that is excluded by the Investment Advisers Act of 1940 from the

definition of investment adviser; or

(H) any other person excluded by rule adopted or order issued under this chapter.

(17) "Investment adviser representative" means an individual employed by or associated

with an investment adviser or federal covered investment adviser and who makes any

recommendations or otherwise gives investment advice regarding securities, manages

accounts or portfolios of clients, determines which recommendation or advice regarding

securities should be given, provides investment advice or holds herself or himself out as

providing investment advice, receives compensation to solicit, offer, or negotiate for the

sale of or for selling investment advice, or supervises employees who perform any of the

foregoing. The term does not include an individual who:

(A) performs only clerical or ministerial acts;

(B) is an agent whose performance of investment advice is solely incidental to the

individual acting as an agent and who does not receive special compensation for investment

advisory services;

(C) is employed by or associated with a federal covered investment adviser, unless the

individual has a "place of business" in this state as that term is defined by rule adopted under

Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a) and is

(i) an "investment adviser representative" as that term is defined by rule adopted under

Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or

(ii) not a "supervised person" as that term is defined in Section 202(a)(25) of the

Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(25)); or

(D) is excluded by rule adopted or order issued under this chapter.

(18) "Issuer" means a person that issues or proposes to issue a security, subject to the

following:

(A) The issuer of a voting trust certificate, collateral trust certificate, certificate of deposit

for a security, or share in an investment company without a board of directors or individuals

performing similar functions is the person performing the acts and assuming the duties of

depositor or manager pursuant to the trust or other agreement or instrument under which

the security is issued.

(B) The issuer of an equipment trust certificate or similar security serving the same

purpose is the person by which the property is or will be used or to which the property or

equipment is or will be leased or conditionally sold or that is otherwise contractually

responsible for assuring payment of the certificate.

(C) The issuer of a fractional undivided interest in an oil, gas, or other mineral lease or

in payments out of production under a lease, right, or royalty is the owner of an interest in

the lease or in payments out of production under a lease, right, or royalty, whether whole

or fractional, that creates fractional interests for the purpose of sale.

(19) "Nonissuer transaction" or "nonissuer distribution" means a transaction or distribution

not directly or indirectly for the benefit of the issuer.

(20) "Offer to purchase" includes an attempt or offer to obtain, or solicitation of an offer

to sell, a security or interest in a security for value. The term does not include a tender offer

that is subject to Section 14(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section

78n(d)).

(21) "Person" means an individual; corporation; business trust; estate; trust; partnership;

limited liability company; association; joint venture; government; governmental subdivision,

agency, or instrumentality; public corporation; or any other legal or commercial entity.

(22) "Place of business" of a broker-dealer, an investment adviser, or a federal covered

investment adviser means:

(A) an office at which the broker-dealer, investment adviser, or federal covered investment

adviser regularly provides brokerage or investment advice or solicits, meets with, or otherwise

communicates with customers or clients; or

(B) any other location that is held out to the general public as a location at which the

broker-dealer, investment adviser, or federal covered investment adviser provides brokerage

or investment advice or solicits, meets with, or otherwise communicates with customers or

clients.

(23) "Predecessor Act" means Minnesota Statutes 2002, sections 80A.01 to 80A.31.

(24) "Price amendment" means the amendment to a registration statement filed under

the Securities Act of 1933 or, if an amendment is not filed, the prospectus or prospectus

supplement filed under the Securities Act of 1933 that includes a statement of the offering

price, underwriting and selling discounts or commissions, amount of proceeds, conversion

rates, call prices, and other matters dependent upon the offering price.

(25) "Principal place of business" of a broker-dealer or an investment adviser means the

executive office of the broker-dealer or investment adviser from which the officers, partners,

or managers of the broker-dealer or investment adviser direct, control, and coordinate the

activities of the broker-dealer or investment adviser.

(26) Only for purposes of calculating the number of purchasers under section
80A.46,

clauses (1) and (14), "purchaser" does not include:

(A) any relative, spouse, or relative of the spouse of a purchaser who has the same

principal residence as the purchaser;

(B) any trust or estate in which a purchaser and any of the persons related to him as

specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii) collectively have more than 50

percent of the beneficial interest (excluding contingent interests);

(C) any corporation or other organization of which a purchaser and any of the persons

related to the purchaser as specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii)

collectively are beneficial owners of more than 50 percent of the equity securities (excluding

directors' qualifying shares) or equity interests; and

(D) any accredited investor.

A corporation, partnership, or other entity must be counted as one purchaser. If, however,

that entity is organized for the specific purpose of acquiring the securities offered and is

not an accredited investor, then each beneficial owner of equity securities or equity interests

in the entity shall count as a separate purchaser for all provisions of Regulation D, except

to the extent provided in Regulation D, Rule 501(e)(1).

A noncontributory employee benefit plan within the meaning of Title I of the Employee

Retirement Income Security Act of 1974 shall be counted as one purchaser where the trustee

makes all investment decisions for the plan.

(27) "Record," except in the phrases "of record," "official record," and "public record,"

means information that is inscribed on a tangible medium or that is stored in an electronic

or other medium and is retrievable in perceivable form.

(28) "Sale" includes every contract of sale, contract to sell, or disposition of, a security

or interest in a security for value, and "offer to sell" includes every attempt or offer to dispose

of, or solicitation of an offer to purchase, a security or interest in a security for value.

(A) A security given or delivered with, or as a bonus on account of, any purchase of

securities or any other thing is considered to constitute part of the subject of the purchase

and to have been offered and sold for value.

(B) A gift of assessable stock is considered to involve an offer and sale.

(C) A sale or offer of a warrant or right to purchase or subscribe to another security of

the same or another issuer and a sale or offer of a security that gives the holder a present or

future right or privilege to convert the security into another security of the same or another

issuer, are each considered to include an offer of the other security.

(29) "Securities and Exchange Commission" means the United States Securities and

Exchange Commission.

(30) "Security" means a note; stock; treasury stock; security future; bond; debenture;

evidence of indebtedness; certificate of interest or participation in a profit-sharing agreement;

collateral trust certificate; preorganization certificate or subscription; transferable share;

investment contract; voting trust certificate; certificate of deposit for a security; fractional

undivided interest in oil, gas, or other mineral rights; put, call, straddle, option, or privilege

on a security, certificate of deposit, or group or index of securities, including an interest

therein or based on the value thereof; put, call, straddle, option, or privilege entered into on

a national securities exchange relating to foreign currency; or, in general, an interest or

instrument commonly known as a "security"; or a certificate of interest or participation in,

temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe

to or purchase, any of the foregoing. The term:

(A) includes both a certificated and an uncertificated security;

(B) does not include an insurance or endowment policy or annuity contract under which

an insurance company promises to pay a fixed or variable sum of money either in a lump

sum or periodically for life or other specified period;

(C) does not include an interest in a contributory or noncontributory pension or welfare

plan subject to the Employee Retirement Income Security Act of 1974;

(D) includes as an "investment contract," among other contracts, an interest in a limited

partnership and a limited liability company and an investment in a viatical settlement or

similar agreement; and

(E) does not include any equity interest of a closely held corporation or other entity with

not more than 35 holders of the equity interest of such entity offered or sold pursuant to a

transaction in which 100 percent of the equity interest of such entity is sold as a means to

effect the sale of the business of the entity if the transaction has been negotiated on behalf

of all purchasers and if all purchasers have access to inside information regarding the entity

before consummating the transaction.

(31) "Self-regulatory organization" means a national securities exchange registered under

the Securities Exchange Act of 1934, a national securities association of broker-dealers

registered under the Securities Exchange Act of 1934, a clearing agency registered under

the Securities Exchange Act of 1934, or the Municipal Securities Rulemaking Board

established under the Securities Exchange Act of 1934.

(32) "Sign" means, with present intent to authenticate or adopt a record:

(A) to execute or adopt a tangible symbol; or

(B) to attach or logically associate with the record an electronic symbol, sound, or

process.

(33) "State" means a state of the United States, the District of Columbia, Puerto Rico,

the United States Virgin Islands, or any territory or insular possession subject to the

jurisdiction of the United States.

(34) "Associated with" with respect to a person means any partner, officer, director,

manager, or employee of such person or any person occupying a similar status or performing

similar functions or any person directly or indirectly controlling, controlled by, or in common

control with, such person, but does not include a person whose primary duties are ministerial

or clerical. "Employee" includes an independent contractor who performs advisory functions

on behalf of an investment adviser.

(35) "Private fund" means an issuer that would be an investment company as defined in

Section 3 of the Investment Company Act of 1940 but for section 3(c)(1) or 3(c)(7) of that

act.

(36) "Private fund adviser" means an investment adviser whose only advisory clients

are one or more qualifying private funds.

(37) "Qualifying private fund" means a private fund that meets the definition of a

qualifying private fund in SEC Rule 203(m)-1, Code of Federal Regulations, title 17, section

275.203(m)-1.

(38) "3(c)(1) fund" means a qualifying private fund that is eligible for the exclusion

from the definition of an investment company under section 3(c)(1) of the Investment

Company Act of 1940, United States Code, title 15, section 80a-3(c)(1).

(39) "Venture capital fund" means a private fund that meets the definition of a venture

capital fund in SEC Rule 203(1)-1, Code of Federal Regulations, title 17, section

275.203(1)-1.

(40) "Funding portal" means any person acting as a funding portal as defined in section

3(a)(80) of the Securities Exchange Act of 1934, United States Code, title 15, section

78c(a)(80), and any rule adopted or order issued thereunder.

Sec. 20.

Minnesota Statutes 2024, section 80A.45, is amended to read:

80A.45 SECTION 201; EXEMPT SECURITIES.

The following securities are exempt from the requirements of sections 80A.49 through

80A.54 and 80A.71:

(1) a security, including a revenue obligation or a separate security as defined in Rule

131 (17 C.F.R. 230.131) adopted under the Securities Act of 1933, issued, insured, or

guaranteed by the United States; by a state; by a political subdivision of a state; by a public

authority, agency, or instrumentality of one or more states; by a political subdivision of one

or more states or by a person controlled or supervised by and acting as an instrumentality

of the United States under authority granted by Congress; or a certificate of deposit for any

of the foregoing;

(2) a security issued, insured, or guaranteed by a foreign government with which the

United States maintains diplomatic relations, or any of its political subdivisions, if the

security is recognized as a valid obligation by the issuer, insurer, or guarantor;

(3) a security issued by and representing or that will represent an interest in or a direct

obligation of, or be guaranteed by:

(A) an international banking institution;

(B) a banking institution organized under the laws of the United States; a member bank

of the Federal Reserve System; or a depository institution a substantial portion of the business

of which consists or will consist of receiving deposits or share accounts that are insured to

the maximum amount authorized by statute by the Federal Deposit Insurance Corporation,

the National Credit Union Share Insurance Fund,
new text begin
an approved credit union share guaranty

corporation,
new text end
or a successor authorized by federal law or exercising fiduciary powers that

are similar to those permitted for national banks under the authority of the Comptroller of

Currency pursuant to Section 1 of Public Law 87-722 (12 U.S.C. Section 92a); or

(C) any other depository institution, unless by rule or order the administrator proceeds

under section 80A.48;

(4) a security issued by and representing an interest in, or a debt of, or insured or

guaranteed by, an insurance company authorized to do business in this state;

(5) a security issued or guaranteed by a railroad, other common carrier, public utility,

or public utility holding company that is:

(A) regulated in respect to its rates and charges by the United States or a state;

(B) regulated in respect to the issuance or guarantee of the security by the United States,

a state, Canada, or a Canadian province or territory; or

(C) a public utility holding company registered under the Public Utility Holding Company

Act of 1935 or a subsidiary of such a registered holding company within the meaning of

that act;

(6) a federal covered security specified in Section 18(b)(1) of the Securities Act of 1933

(15 U.S.C. Section 77r(b)(1)) or by rule adopted under that provision or a security listed or

approved for listing on another securities market specified by rule under this chapter; a put

or a call option contract; a warrant; a subscription right on or with respect to such securities;

or an option or similar derivative security on a security or an index of securities or foreign

currencies issued by a clearing agency registered under the Securities Exchange Act of 1934

and listed or designated for trading on a national securities exchange, a facility of a national

securities exchange, or a facility of a national securities association registered under the

Securities Exchange Act of 1934 or an offer or sale, of the underlying security in connection

with the offer, sale, or exercise of an option or other security that was exempt when the

option or other security was written or issued; or an option or a derivative security designated

by the Securities and Exchange Commission under Section 9(b) of the Securities Exchange

Act of 1934 (15 U.S.C. Section 78i(b));

(7) a security issued by a person organized and operated exclusively for religious,

educational, benevolent, fraternal, charitable, social, athletic, or reformatory purposes, or

as a chamber of commerce, and not for pecuniary profit, no part of the net earnings of which

inures to the benefit of a private stockholder or other person, or a security of a company

that is excluded from the definition of an investment company under Section 3(c)(10)(B)

of the Investment Company Act of 1940 (15 U.S.C. Section 80a-3(c)(10)(B)); except that

with respect to the offer or sale, an issuer of such a note, bond, debenture, or other evidence

of indebtedness is required to file a notice specifying the material terms of the proposed

offer or sale and copies of any proposed sales and advertising literature to be used together

with the fee required by section 80A.65 and provided that this exemption shall be effective

if the administrator does not disallow the exemption in writing within 15 days following

the date of the notice filing.

Sec. 21.

Minnesota Statutes 2024, section 82.77, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the terms in this subdivision

have the meanings given them.

(b) "Closing agent" has the meaning given in section
82.55, subdivision 4
.

(c) "Collected funds" means funds deposited, finally settled, and credited to the closing

agent's escrow account.

(d) "
deleted text begin
Federally
deleted text end
Insured financial institution" means an institution in which monetary

deposits are insured by the Federal Deposit Insurance Corporation
deleted text begin
or
deleted text end
new text begin
, the
new text end
National Credit

Union Administration
new text begin
, or an approved credit union share guaranty corporation
new text end
.

(e) "Lender" means a person who makes residential mortgage loans including a person

who engages in table funding. "Lender" does not include any organization described in

section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended, if the

organization is exempt from tax under section 501(a) of the Internal Revenue Code of 1986,

as amended. "Lender" does not include a state or any political subdivision of a state.

(f) "Qualified loan funds" means funds in one of the following forms:

(1) lawful money of the United States;

(2) wired funds when unconditionally held by the closing agent;

(3) cashier's checks, certified checks, bank money orders, or teller's checks issued by a

federally insured financial institution and unconditionally held by the closing agent; and

(4) United States treasury checks, Federal Reserve Bank checks, federal home loan bank

checks, and state of Minnesota warrants.

(g) "Table funding" means a closing or settlement at which a mortgage loan is funded

by a lender by a contemporaneous advance of mortgage loan funds and an assignment of

the mortgage loan to the lender advancing the funds.

Sec. 22.

Minnesota Statutes 2024, section 118A.04, subdivision 5, is amended to read:

Subd. 5.

Time deposits.

Funds may be invested in time deposits that are fully insured

by the Federal Deposit Insurance Corporation, the National Credit Union Administration,
new text begin

an approved credit union share guaranty corporation,
new text end
or bankers acceptances of United

States banks.

Sec. 23.

Minnesota Statutes 2024, section 123B.14, subdivision 3, is amended to read:

Subd. 3.

Official depository.

(a) The treasurer shall deposit the funds of the district in

the official depository.

(b) In addition to the authority for deposit of district money pursuant to paragraph (a)

or other provisions of this chapter, the treasurer may deposit district money in the official

depository in accordance with the following conditions:

(1) The official depository is authorized by the treasurer to (i) arrange for the redeposit

of the money into deposit accounts in one or more banks, savings and loan associations, or

credit unions that are located in the United States, and (ii) serve as custodian for the district

with respect to the money redeposited into such accounts.

(2) The full amount of the redeposited district funds, plus accrued interest, if any, must

be insured by the Federal Deposit Insurance Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union

Share Insurance Fund
new text begin
, or an approved credit union share guaranty corporation
new text end
. Any entity

serving as subcustodian for the official depository shall have had at least five years of general

custodial experience.

Sec. 24.

Minnesota Statutes 2024, section 142F.20, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Eligible educational institution" means the following:

(1) an institution of higher education described in section 101 or 102 of the Higher

Education Act of 1965; or

(2) an area vocational education school, as defined in subparagraph (C) or (D) of United

States Code, title 20, chapter 44, section 2302(3) (the Carl D. Perkins Vocational and Applied

Technology Education Act), which is located within any state, as defined in United States

Code, title 20, chapter 44, section 2302(30). This clause is applicable only to the extent

section 2302 is in effect on August 1, 2008.

(c) "Family asset account" means a savings account opened by a household participating

in the Minnesota family assets for independence initiative.

(d) "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section
142F.301
;

(2) a federal community development credit union;

(3) a women-oriented economic development agency;

(4) a federally recognized Tribal Nation; or

(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue

Code.

(e) "Financial coach" means a person who:

(1) has completed an intensive financial literacy training workshop that includes

curriculum on budgeting to increase savings, debt reduction and asset building, building a

good credit rating, and consumer protection;

(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM)

network training meetings under FAIM program supervision; and

(3) provides financial coaching to program participants under subdivision 5.

(f) "Financial institution" means a bank, bank and trust, savings bank, savings association,

or credit union, the deposits of which are insured by the Federal Deposit Insurance

Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union Administration
new text begin
, or an approved credit union share

guaranty corporation
new text end
.

(g) "Household" means all individuals who share finances and use of a dwelling unit as

primary quarters for living and eating separate from other individuals. Sharing finances

does not include situations in which a person is living in the same dwelling unit as others

without sharing any other financial arrangements.

(h) "Permissible use" means:

(1) postsecondary educational expenses at an eligible educational institution as defined

in paragraph (b), including books, supplies, and equipment required for courses of instruction;

(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including

any usual or reasonable settlement, financing, or other closing costs;

(3) business capitalization expenses for expenditures on capital, plant, equipment, working

capital, and inventory expenses of a legitimate business pursuant to a business plan approved

by the fiduciary organization;

(4) acquisition costs of a principal residence within the meaning of section 1034 of the

Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase

price applicable to the residence determined according to section 143(e)(2) and (3) of the

Internal Revenue Code of 1986;

(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization;

(6) contributions to an emergency savings account; and

(7) contributions to a Minnesota 529 savings plan.

Sec. 25.

Minnesota Statutes 2024, section 149A.97, subdivision 3a, is amended to read:

Subd. 3a.

Requirements for preneed funeral agreements.

It is unlawful for any person

residing or doing business in this state to enter a preneed funeral agreement unless the

agreement:

(1) is written in clear, understandable language and printed in a type that is easy to read

in size and style;

(2) contains a complete, itemized description of the funeral goods, funeral services,

burial site goods, or burial site services selected or purchased, including, when appropriate,

manufacturer's name, model numbers, style numbers, and description of the type of material

used in construction;

(3) discloses clearly and conspicuously whether the prices of the goods and services

selected are guaranteed;

(4) discloses that funding options for a preneed funeral agreement consist of either

prepayment to the funeral provider or the purchase of an insurance policy;

(5) discloses whether the funds received from the purchaser are required to be placed

in a trust and, if the funds are required to be placed in a trust, provides the following

information:

(i) lists the location of the trust account, including the name, address, and telephone

number of the institution where the money will be held and any identifying account numbers,

the amount of money to be trusted, and the names of the trustees; and

(ii) advises the purchaser as to the disposition of the interest from the trust and as to

responsibility for taxes owed on the interest;

(6) contains the names, addresses, and telephone numbers of the Minnesota Department

of Health as the regulatory agency for preneed trust accounts and the Minnesota Attorney

General's Office as the regulatory agency that handles consumer complaints;

(7) discloses clearly and conspicuously that any person who makes payment under a

preneed funeral agreement may cancel the agreement subject to the procedures for

cancellation specified in subdivision 6a;

(8) contains the following statement, in boldfaced type and a minimum size of ten points:

"Within 15 calendar days after receipt of any money required to be held in trust, all such

money must be deposited in a banking institution, savings association, or credit union,

organized under state or federal laws, the accounts of which are insured by an instrumentality

of the federal government
new text begin
or an approved credit union share guaranty corporation
new text end
. The

person for whose benefit the money was paid according to this agreement shall be known

as the beneficiary; the person or persons who paid the money shall be known as the purchaser;

and the funeral provider shall be known as the depositor. The money must be carried in a

separate account with the names of the depositor and the purchaser as trustees for the

beneficiary.

The preneed arrangement trust shall be considered an asset of the purchaser until the

death of the beneficiary. At the death of the beneficiary, the money in the trust shall be

considered an asset of the beneficiary's estate, to the extent that the value of the trust exceeds

the actual value for the goods and services provided at-need. This does not alter any asset

exclusion requirements that exist under federal law. The depositor as trustee must disclose

in writing the location of the trust account, including the name and address of the institution

where the money is being held and any identifying account numbers, to the beneficiary

when the money is deposited and when there are any subsequent changes to the location of

the trust account.";

(9) for agreements with revocable trusts, contains the following statement, in boldfaced

type and a minimum size of ten points:

"REVOCABLE TRUST:

The preneed arrangement trust being created by the purchaser is revocable. These trust

funds, including all principal and accrued interest, are the purchaser's assets. The purchaser

may withdraw the principal and accrued interest at any time prior to the death of the

beneficiary. At the death of the beneficiary, the funds shall be distributed in their entirety,

principal plus accrued interest, with no fees retained by the trustees as administrative fees.

The funds shall be distributed for the payment of the at-need funeral goods, funeral services,

burial site goods, or burial site services selected, with any excess funds distributed to the

beneficiary's estate. At any time before or at the time of the beneficiary's death, the purchaser

may transfer the preneed arrangements and related trust funds for use in the payment of

funeral goods, funeral services, burial site goods, or burial site services. The purchaser may

not be charged any fee in connection with the transfer of a preneed arrangement and trust

funds.";

(10) for agreements with irrevocable trusts, contains the following statement, in boldfaced

type and a minimum size of ten points:

"IRREVOCABLE TRUST:

A trust created to hold preneed arrangement funds is revocable in its entirety unless

specifically limited by the purchaser. The purchaser has chosen to create an irrevocable

trust in the amount of $ (insert the dollar amount of the purchaser's irrevocable trust). The

revocable portion of this trust fund is limited to that amount that exceeds the allowable

Supplemental Security Income asset exclusion used for determining eligibility for public

assistance at the time the trust is created. The principal and accrued interest may not be

withdrawn from the trust prior to the beneficiary's death, except to the extent that the trust

funds exceed the irrevocable trust limitation. At the time of the beneficiary's death, the funds

shall be distributed in their entirety, principal plus accrued interest, with no fees retained

by the trustees as administrative fees. The funds shall be distributed for the payment of the

at-need funeral goods, funeral services, burial site goods, or burial site services selected,

with any excess funds distributed to the beneficiary's estate. At any time prior to or at the

time of the beneficiary's death, the purchaser may transfer the preneed arrangements and

trust funds for use in the payment of funeral goods, funeral services, burial site goods, or

burial site services. The purchaser may not be charged any fee in connection with the transfer

of a preneed arrangement and trust funds.";

(11) provides that if the particular funeral goods, funeral services, burial site goods, or

burial site services specified in the agreement are unavailable at the time of delivery, the

funeral provider must furnish goods and services similar in style and at least equal in quality

to the material and workmanship of the goods or services specified and that the representative

of the beneficiary has the right to choose the goods or services to be substituted; and

(12) contains an itemization of the sale of grave lots, spaces, lawn crypts, niches, or

mausoleum crypts separate from all other goods and services selected.

Sec. 26.

Minnesota Statutes 2024, section 149A.97, subdivision 5, is amended to read:

Subd. 5.

Deposit of trust funds and disclosures.

Within 15 calendar days after receipt

of any money required to be held in trust, all of the money must be deposited in a banking

institution, savings or building and loan association, or credit union, organized under state

or federal laws, the accounts of which are insured by an instrumentality of the federal

government
new text begin
or an approved credit union share guaranty corporation
new text end
. The money must be

carried in a separate account with the name of the depositor and the purchaser as trustees

for the beneficiary. The depositor as trustee shall not have power to distribute funds, either

principal or interest, from the account until the death of the beneficiary, subject to section

149A.80
. For purposes of this section, distribute does not mean transferring the trust funds

to different investment accounts within an institution or between institutions provided that

the depositor as trustee does not have sole access to the funds in a negotiable form. This

section shall be construed to limit the depositor's access to trust funds, in a negotiable form,

prior to the death of a beneficiary. The preneed arrangements trust shall be considered an

asset of the purchaser until the death of the beneficiary, whereupon the money shall be

considered an asset of the estate of the beneficiary, to the extent that the value of the trust

exceeds the actual value for the goods and services provided at-need. The location of the

trust account, including the name and address of the institution in which the money is being

held and any identifying account numbers, must be disclosed in writing to the beneficiary

by the depositor as trustee at the time the money is deposited and when there are any

subsequent changes to the location of the trust account. The depositor shall annually report

to the beneficiary the amount of funds in the beneficiary's preneed arrangement trust account,

including principal and accrued interest. The depositor may arrange for the banking

institution, savings or building and loan association, or credit union to issue such reports.

Upon the provision of any funeral or burial site goods or services in connection with a

preneed arrangement, the depositor shall provide a statement itemizing the goods or services

provided and cost of such goods or services and describing the disposition of all funds in

the account.

Sec. 27.

Minnesota Statutes 2024, section 325K.01, subdivision 12, is amended to read:

Subd. 12.

Financial institution.

"Financial institution" means a national or state-chartered

commercial bank or trust company, savings bank, savings association, or credit union

authorized to do business in the state of Minnesota and the deposits of which are federally

insured
new text begin
or insured by an approved credit union share guaranty corporation
new text end
.

Sec. 28.

Minnesota Statutes 2024, section 354B.25, subdivision 2, is amended to read:

Subd. 2.

Investment options.

(a) The plan administrator shall arrange for the purchase

of investment products.

(b) The investment products must be purchased with contributions under section
354B.23

or with money or assets otherwise provided by law by authority of the board.

(c) Various investment accounts offered through the Minnesota supplemental investment

fund established under section
11A.17
and administered by the State Board of Investment

may be included as investment products for the individual retirement account plan. Direct

access must also be provided to lower expense and no-load mutual funds, as those terms

are defined by the federal Securities and Exchange Commission, including stock funds,

bond funds, and balanced funds. Other investment products or combination of investment

products which may be included are:

(1) savings accounts at
deleted text begin
federally insured
deleted text end
financial institutions
new text begin
insured federally or through

an approved credit union share guaranty corporation
new text end
;

(2) life insurance contracts, fixed and variable annuity contracts from companies that

are subject to regulation by the commerce commissioner;

(3) investment options from open-ended investment companies registered under the

federal Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to

80a-64;

(4) investment options from a firm that is a registered investment advisor under the

federal Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to

80b-21; and

(5) investment options of a bank as defined in United States Code, title 15, section 80b-2,

subsection (a), paragraph 2, or a bank holding company as defined in the Bank Holding

Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph

(1).

Sec. 29.

Minnesota Statutes 2024, section 356.001, subdivision 3, is amended to read:

Subd. 3.

Effect of amendments or termination.

(a) If a public plan or fund defined in

subdivision 4 is terminated or the plan or fund provisions are amended, no part of the moneys

held in the plan or fund may be used for or diverted to any purpose other than the exclusive

benefit of the members or their beneficiaries, except as provided in this subdivision.

(b) If a plan or fund is terminated, all affected members have a nonforfeitable interest

in their benefits that were accrued and funded to date. The value of the accrued benefits to

be credited to the account of each affected member must be calculated as of the date of

termination and the funding ratio of the plan or fund must be applied to the accrued benefit

of each affected member.

(c) The board of trustees of the plan or fund shall, as soon as administratively feasible

following the termination, pay each eligible member or beneficiary on behalf of a member

the amount in the member's account in a lump sum. In the case of a member whose

whereabouts is unknown, the board shall notify the member at the last known address by

certified mail with return receipt requested advising the member of the member's right to a

pending distribution. If the member cannot be located in this manner, the board shall establish

a custodial account for the member's benefit in a federally insured bank, savings association,

or credit union
new text begin
, or a credit union insured by an approved credit union share guaranty

corporation,
new text end
in which the member's account balance must be deposited. If the board receives

proof of death of a member that is satisfactory to the board, the account balance must be

paid to the beneficiary of the member.

Sec. 30.

Minnesota Statutes 2024, section 356.645, is amended to read:

356.645 INVESTMENT OF DEFINED CONTRIBUTION PLANS AND

VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATIONS.

The State Board of Investment shall determine the investments to be made available to

plan participants in plans defined in sections
352.965
,
352.98
, and
383B.46
and chapters

352D
and 353D and to volunteer firefighters relief associations under chapter 424A.

Investments made available to plan participants and relief associations must include at least

one or more of the following:

(1) shares in the Minnesota supplemental investment fund established in section
11A.17
;

(2) savings accounts in
deleted text begin
federally insured
deleted text end
financial institutions
new text begin
insured federally or by

an approved credit union share guaranty corporation
new text end
;

(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts from

companies that are subject to regulation by the commissioner of commerce;

(4) investment options from open-end investment companies registered under the federal

Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;

(5) investment options from a firm that is a registered investment adviser under the

Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21;

and

(6) investment options of a bank as defined in United States Code, title 15, section 80b-2,

subsection (a), paragraph (2), or a bank holding company as defined in the Bank Holding

Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph

(1).

Sec. 31.

Minnesota Statutes 2024, section 356A.06, subdivision 6, is amended to read:

Subd. 6.

Limited list of authorized investment securities.

(a)
Authority.
This

subdivision specifies the investment authority for a limited list plan. A limited list plan is

a covered pension plan that does not:

(1) have pension fund assets with a market value in excess of $1,000,000;

(2) use the services of an investment advisor registered with the Securities and Exchange

Commission in accordance with the Investment Advisers Act of 1940, or registered as an

investment advisor in accordance with sections
80A.58
, and
80A.60
, for the investment of

at least 60 percent of its pension fund assets, calculated on market value;

(3) use the services of the State Board of Investment for the investment of at least 60

percent of its pension fund assets, calculated on market value; or

(4) use a combination of the services of an investment advisor meeting the requirements

of clause (2) and the services of the State Board of Investment for the investment of at least

75 percent of its pension fund assets, calculated on market value.

(b)
Investment agency appointment authority.
The governing board of a covered

pension plan may select and appoint investment agencies to act for or on its behalf.

(c)
Savings accounts; similar vehicles.
A limited list plan is authorized to invest in:

(1) certificates of deposit issued, to the extent of available insurance or collateralization,

by a financial institution that is a member of the Federal Deposit Insurance Corporation,

that is insured by the National Credit Union Administration
new text begin
or an approved credit union

share guaranty corporation
new text end
, or that is authorized to do business in this state and has deposited

with the chief administrative officer of the plan a sufficient amount of marketable securities

as collateral in accordance with section
118A.03
;

(2) guaranteed investment contracts, limited to those issued by insurance companies or

banks rated in the top four quality categories by a nationally recognized rating agency or

to alternative guaranteed investment contracts where the underlying assets comply with the

requirements of this paragraph; and

(3) savings accounts, limited to those fully insured by federal agencies.

(d)
Government-backed obligations.
A limited list plan is authorized to invest in

governmental obligations as further specified in this paragraph, including bonds, notes,

bills, mortgages, and other evidences of indebtedness, if the issue is backed by the full faith

and credit of the issuer or if the issue is rated among the top four quality rating categories

by a nationally recognized rating agency. The obligations in which plans are authorized to

invest under this paragraph are guaranteed or insured issues of:

(1) the United States, one of its agencies, one of its instrumentalities, or an organization

created and regulated by an act of Congress;

(2) the Dominion of Canada or one of its provinces if the principal and interest are

payable in United States dollars;

(3) a state or one of its municipalities, political subdivisions, agencies, or

instrumentalities; or

(4) any United States government-sponsored organization of which the United States is

a member if the principal and interest are payable in United States dollars.

(e)
Corporate obligations.
A limited list plan is authorized to invest in corporate

obligations, including bonds, notes, debentures, transportation equipment obligations, or

any other longer-term evidences of indebtedness issued or guaranteed by a corporation

organized under the laws of the United States or any of its states, or the Dominion of Canada

or any of its provinces if:

(1) the principal and interest are payable in United States dollars; and

(2) the obligations are rated among the top four quality categories by a nationally

recognized rating agency.

(f)
Mutual fund authority, limited list authorized assets.
Securities authorized under

paragraphs (c) to (e) may be owned directly or through shares in exchange-traded funds, or

through open-end mutual funds, or as units of commingled trusts.

(g)
Extended mutual fund authority.
Notwithstanding restrictions in other paragraphs

of this subdivision, a limited list plan is authorized to invest the assets of the special fund

in exchange-traded funds and open-end mutual funds, if their portfolio investments comply

with the type of securities authorized for investment under section
356A.06, subdivision 7
,

paragraphs (c) to (g). Investments under this paragraph must not exceed 75 percent of the

assets of the special fund, not including any money market investments through mutual or

exchange-traded funds.

(h)
Supplemental fund authority.
The governing body of a limited list plan may certify

special fund assets to the State Board of Investment for investment under section
11A.17
.

(i)
Assets mix restrictions.
A limited list plan must conform to the asset mix limitations

specified in section
356A.06, subdivision 7
.

Sec. 32.

Minnesota Statutes 2024, section 356A.06, subdivision 7, is amended to read:

Subd. 7.

Expanded list of authorized investment securities.

(a)
Authority.
A covered

pension plan not described by subdivision 6, paragraph (a), is an expanded list plan and

shall invest its assets as specified in this subdivision. The governing board of an expanded

list plan may select and appoint investment agencies to act for or on its behalf.

(b)
Securities generally; investment forms.
An expanded list plan is authorized to

purchase, sell, lend, and exchange the investment securities authorized under this subdivision,

including puts and call options and future contracts traded on a contract market regulated

by a governmental agency or by a financial institution regulated by a governmental agency.

These securities may be owned directly or through shares in exchange-traded or mutual

funds, or as units in commingled trusts, subject to any limitations specified in this subdivision.

(c)
Government obligations.
An expanded list plan is authorized to invest funds in

governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the

issue is backed by the full faith and credit of the issuer or the issue is rated among the top

four quality rating categories by a nationally recognized rating agency. The obligations in

which funds may be invested under this paragraph are guaranteed or insured issues of:

(1) the United States, one of its agencies, one of its instrumentalities, or an organization

created and regulated by an act of Congress;

(2) the Dominion of Canada or one of its provinces if the principal and interest are

payable in United States dollars;

(3) a state or one of its municipalities, political subdivisions, agencies, or

instrumentalities; and

(4) a United States government-sponsored organization of which the United States is a

member if the principal and interest are payable in United States dollars.

(d)
Investment-grade corporate obligations.
An expanded list plan is authorized to

invest funds in bonds, notes, debentures, transportation equipment obligations, or any other

longer term evidences of indebtedness issued or guaranteed by a corporation organized

under the laws of the United States or any of its states, or the Dominion of Canada or any

of its provinces if:

(1) the principal and interest are payable in United States dollars; and

(2) the obligations are rated among the top four quality categories by a nationally

recognized rating agency.

(e)
Below-investment-grade corporate obligations.
An expanded list plan is authorized

to invest in unrated corporate obligations or in corporate obligations that are not rated among

the top four quality categories by a nationally recognized rating agency if:

(1) the aggregate value of these obligations does not exceed five percent of the covered

pension plan's market value;

(2) the covered pension plan's participation is limited to 50 percent of a single offering

subject to this paragraph; and

(3) the covered pension plan's participation is limited to 25 percent of an issuer's

obligations subject to this paragraph.

(f)
Other obligations.
(1) An expanded list plan is authorized to invest funds in:

(i) bankers acceptances and deposit notes if issued by a United States bank that is rated

in the highest four quality categories by a nationally recognized rating agency;

(ii) certificates of deposit if issued by a United States bank or savings institution rated

in the highest four quality categories by a nationally recognized rating agency or whose

certificates of deposit are fully insured by federal agencies, or if issued by a credit union in

an amount within the limit of the insurance coverage provided by the National Credit Union

Administration
new text begin
or an approved credit union share guaranty corporation
new text end
;

(iii) commercial paper if issued by a United States corporation or its Canadian subsidiary

and if rated in the highest two quality categories by a nationally recognized rating agency;

(iv) mortgage securities and asset-backed securities if rated in the top four quality

categories by a nationally recognized rating agency;

(v) repurchase agreements and reverse repurchase agreements if collateralized with

letters of credit or securities authorized in this section;

(vi) guaranteed investment contracts if issued by an insurance company or a bank that

is rated in the top four quality categories by a nationally recognized rating agency or

alternative guaranteed investment contracts if the underlying assets comply with the

requirements of this subdivision;

(vii) savings accounts if fully insured by a federal agency; and

(viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic

mutual insurance company.

(2) Sections
16A.58
,
16C.03, subdivision 4
, and
16C.05
do not apply to certificates of

deposit and collateralization agreements executed by the covered pension plan under clause

(1), item (ii).

(3) In addition to investments authorized by clause (1), item (iv), an expanded list plan

is authorized to purchase from the Minnesota Housing Finance Agency all or any part of a

pool of residential mortgages, not in default, that has previously been financed by the

issuance of bonds or notes of the agency. The covered pension plan may also enter into a

commitment with the agency, at the time of any issue of bonds or notes, to purchase at a

specified future date, not exceeding 12 years from the date of the issue, the amount of

mortgage loans then outstanding and not in default that have been made or purchased from

the proceeds of the bonds or notes. The covered pension plan may charge reasonable fees

for any such commitment and may agree to purchase the mortgage loans at a price sufficient

to produce a yield to the covered pension plan comparable, in its judgment, to the yield

available on similar mortgage loans at the date of the bonds or notes. The covered pension

plan may also enter into agreements with the agency for the investment of any portion of

the funds of the agency. The agreement must cover the period of the investment, withdrawal

privileges, and any guaranteed rate of return.

(g)
Corporate stocks.
An expanded list plan is authorized to invest in stocks or

convertible issues of any corporation organized under the laws of the United States or any

of its states, any corporation organized under the laws of the Dominion of Canada or any

of its provinces, or any corporation listed on an exchange that is regulated by an agency of

the United States or of the Canadian national government.

An investment in any corporation must not exceed five percent of the total outstanding

shares of that corporation, except that an expanded list plan may hold up to 20 percent of

the shares of a real estate investment trust and up to 20 percent of the shares of a closed

mutual fund. Purchase of shares of exchange-traded or mutual funds shall be consistent

with paragraph (b).

(h)
Other investments.
(1) In addition to the investments authorized in paragraphs (b)

to (g), and subject to the provisions in clause (2), an expanded list plan is authorized to

invest funds in:

(i) equity and debt investment businesses through participation in limited partnerships,

trusts, private placements, limited liability corporations, limited liability companies, limited

liability partnerships, and corporations;

(ii) real estate ownership interests or loans secured by mortgages or deeds of trust or

shares of real estate investment trusts, through investment in limited partnerships,

bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance

company commingled accounts, including separate accounts;

(iii) resource investments through limited partnerships, trusts, private placements, limited

liability corporations, limited liability companies, limited liability partnerships, and

corporations; and

(iv) international securities.

(2) The investments authorized in clause (1) must conform to the following provisions:

(i) the aggregate value of all investments made under clause (1), items (i), (ii), and (iii),

may not exceed 35 percent of the market value of the fund for which the expanded list plan

is investing;

(ii) there must be at least four unrelated owners of the investment other than the expanded

list plan for investments made under clause (1), item (i), (ii), or (iii);

(iii) the expanded list plan's participation in an investment vehicle is limited to 20 percent

thereof for investments made under clause (1), item (i), (ii), or (iii);

(iv) the expanded list plan's participation in a limited partnership does not include a

general partnership interest or other interest involving general liability. The expanded list

plan may not engage in any activity as a limited partner which creates general liability;

(v) the aggregate value of all unrated obligations and obligations that are not rated among

the top four quality categories by a nationally recognized rating agency authorized by

paragraph (e) and clause (1), item (iv), must not exceed five percent of the covered plan's

market value; and

(vi) for volunteer firefighter relief associations, emerging market equity and international

debt investments authorized under clause (1), item (iv), must not exceed 15 percent of the

association's special fund market value.

(i)
Supplemental plan investments.
The governing body of an expanded list plan may

certify assets to the State Board of Investment for investment under section
11A.17
.

(j)
Asset mix limitations.
The aggregate value of an expanded list plan's investments

under paragraphs (g) and (h) and equity investments under paragraph (i), regardless of the

form in which these investments are held, must not exceed 85 percent of the covered plan's

market value.

Sec. 33.

Minnesota Statutes 2024, section 356A.06, subdivision 8a, is amended to read:

Subd. 8a.

Collateralization requirement.

(a) The governing board of a covered pension

plan shall designate a national bank, an insured state bank, an insured credit union, or an

insured thrift institution as the depository for the pension plan for assets not held by the

pension plan's custodian bank.

(b) Unless collateralized as provided under paragraph (c), a covered pension plan may

not deposit in a designated depository an amount in excess of the insurance held by the

depository in the Federal Deposit Insurance Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union

Administration,
new text begin
or an approved credit union share guaranty corporation,
new text end
whichever applies.

(c) For an amount greater than the insurance under paragraph (b), the depository must

provide collateral in compliance with section
118A.03
or with any comparable successor

enactment relating to the collateralization of municipal deposits.

Sec. 34.

Minnesota Statutes 2024, section 366.01, subdivision 4, is amended to read:

Subd. 4.

Depository; terms; liability; interest.

(a) They may designate a bank as the

depository of town money for a time not extending beyond their official term, after the

execution by the bank of a sufficient bond to the town to be approved by the board and filed

in the office of the town clerk. They may then require the treasurer to deposit all or part of

the town money in that bank. The designation shall be in writing, and set forth all the terms

upon which the deposits are made. It shall be signed by the chair and clerk and filed with

the clerk. The town treasurer shall not be liable for the loss of money while deposited in

the bank. All interest on the money shall belong to the town.

(b) In addition to the authority for deposit of town money pursuant to paragraph (a) or

other provisions of this chapter, the town treasurer may deposit town money in a designated

depository in accordance with the following conditions:

(1) The designated depository is authorized by the town treasurer to (i) arrange for the

redeposit of the money into deposit accounts in one or more banks, savings and loan

associations, or credit unions that are located in the United States, and (ii) serve as custodian

for the town with respect to the money redeposited into such accounts.

(2) The full amount of the redeposited town funds, plus accrued interest, if any, must

be insured by the Federal Deposit Insurance Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union

Share Insurance Fund
new text begin
, or an approved credit union share guaranty corporation
new text end
. Any entity

serving as subcustodian for the designated depository shall have had at least five years of

general custodial experience.

Sec. 35.

Minnesota Statutes 2024, section 385.07, is amended to read:

385.07 FUNDS, WHERE DEPOSITED OR INVESTED.

(a) All county funds shall be deposited promptly and intact by the county treasurer in

the name of the county or invested as provided in section
118A.04
. Interest and profits

which accrue from such investment shall, when collected, be credited to the general revenue

fund of the county.

(b) In addition to the authority for deposit of county funds pursuant to paragraph (a),

the county treasurer may deposit county funds in a designated depository in accordance

with the following conditions:

(1) The designated depository is authorized by the county treasurer to (i) arrange for the

redeposit of the funds into deposit accounts in one or more banks, savings and loan

associations, or credit unions that are located in the United States, and (ii) serve as custodian

for the county with respect to the funds redeposited into such accounts.

(2) The full amount of the redeposited county funds, plus accrued interest, if any, must

be insured by the Federal Deposit Insurance Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union

Share Insurance Fund
new text begin
, or an approved credit union share guaranty corporation
new text end
. Any entity

serving as subcustodian for the designated depository shall have had at least five years of

general custodial experience.

Sec. 36.

Minnesota Statutes 2024, section 424B.22, subdivision 9, is amended to read:

Subd. 9.

Missing participants.

(a) For purposes of this subdivision, the terms defined

in this subdivision have the meanings given them.

(b) "Retirement benefit" means:

(1) the participant's account balance if the retirement plan is a defined contribution plan;

(2) the participant's lump-sum benefit if the retirement plan is a defined benefit plan that

pays a lump sum; or

(3) an amount equal to the present value of the participant's benefit if the retirement plan

is a defined benefit plan that pays a monthly annuity.

(c) "Individual retirement account" means an account that satisfies the requirements of

section 408(a) of the Internal Revenue Code which is established by an officer of the relief

association in the name of the participant or other benefit recipient at a
deleted text begin
federally insured
deleted text end

financial institution
new text begin
insured federally or by an approved credit union guaranty corporation
new text end
.

(d) If the board of trustees cannot locate a participant or other benefit recipient, the board

of trustees shall make a diligent effort to obtain a current address or other contact information

as follows:

(1) send a notice to the address on file for the participant or other benefit recipient using

certified mail;

(2) check with the Minnesota State Fire Department Association, the municipality, and

any other employer of the participant;

(3) check with the participant's designated beneficiary on file with the relief association;

and

(4) use one or more of the Internet search tools that are free of charge.

(e) The board of trustees shall transfer the retirement benefit to an individual retirement

account or consider the retirement benefit abandoned and deposit funds in the amount of

the retirement benefit with the commissioner of commerce under chapter 345,

notwithstanding any laws to the contrary, including section 345.381, if the board of trustees

is unable to locate the participant or other benefit recipient after taking the actions described

in paragraph (d) or the participant or other benefit recipient does not elect to receive or

rollover a retirement benefit to which the participant or other benefit recipient is entitled.

Sec. 37.

Minnesota Statutes 2024, section 427.06, is amended to read:

427.06 MONEY, HOW DEPOSITED; CHECKS, HOW DRAWN.

(a) All money of any city kept in accordance with sections
427.02
to
427.07
in any

depository designated by the council of the city shall be kept and deposited in the name of

the city and the depository shall have no authority to pay out this money except upon checks

drawn upon the depository signed by the city treasurer and countersigned by the city

comptroller or recording officer of the city.

(b) In addition to the authority for deposit of city money pursuant to paragraph (a) or

other provisions of this chapter, the city treasurer may deposit city money in a designated

depository in accordance with the following conditions:

(1) The designated depository is authorized by the city treasurer to (i) arrange for the

redeposit of the money into deposit accounts in one or more banks, savings and loan

associations, or credit unions that are located in the United States, and (ii) serve as custodian

for the city with respect to the money redeposited into such accounts.

(2) The full amount of the redeposited city funds, plus accrued interest, if any, must be

insured by the Federal Deposit Insurance Corporation
deleted text begin
or
deleted text end
new text begin
,
new text end
the National Credit Union Share

Insurance Fund
new text begin
, or an approved credit union share guaranty corporation
new text end
. Any entity serving

as subcustodian for the designated depository shall have had at least five years' experience

serving in that capacity.

Sec. 38.

Minnesota Statutes 2024, section 524.3-715, is amended to read:

524.3-715 TRANSACTIONS AUTHORIZED FOR PERSONAL

REPRESENTATIVES; EXCEPTIONS.

Except as restricted or otherwise provided by the will or by an order in a formal

proceeding and subject to the priorities stated in section
524.3-902
, a personal representative,

acting reasonably for the benefit of the interested persons, may properly:

(1) retain assets owned by the decedent pending distribution or liquidation including

those in which the representative is personally interested or which are otherwise improper

for trust investment;

(2) receive assets from fiduciaries, or other sources;

(3) perform, compromise or refuse performance of the decedent's contracts that continue

as obligations of the estate, as the personal representative may determine under the

circumstances. In performing enforceable contracts by the decedent to convey or lease land,

the personal representative, among other possible courses of action, may:

(i) execute and deliver a deed of conveyance for cash payment of all sums remaining

due or the purchaser's note for the sum remaining due secured by a mortgage or deed of

trust on the land; or

(ii) deliver a deed in escrow with directions that the proceeds, when paid in accordance

with the escrow agreement, be paid to the successors of the decedent, as designated in the

escrow agreement;

(4) satisfy written charitable pledges of the decedent irrespective of whether the pledges

constituted binding obligations of the decedent or were properly presented as claims, if in

the judgment of the personal representative the decedent would have wanted the pledges

completed under the circumstances;

(5) if funds are not needed to meet debts and expenses currently payable and are not

immediately distributable, deposit or invest liquid assets of the estate, including moneys

received from the sale of other assets, in
deleted text begin
federally insured
deleted text end
interest-bearing accounts
new text begin
insured

federally or through an approved credit union share guaranty corporation
new text end
, readily marketable

secured loan arrangements or other prudent investments which would be reasonable for use

by trustees generally;

(6) acquire or dispose of an asset, including land in this or another state, for cash or on

credit, at public or private sale; and manage, develop, improve, exchange, partition, change

the character of, or abandon an estate asset;

(7) make ordinary or extraordinary repairs or alterations in buildings or other structures,

demolish any improvements, raze existing or erect new party walls or buildings;

(8) subdivide, develop or dedicate land to public use; make or obtain the vacation of

plats and adjust boundaries; or adjust differences in valuation on exchange or partition by

giving or receiving considerations; or dedicate easements to public use without consideration;

(9) enter for any purpose into a lease as lessor or lessee, with or without option to

purchase or renew, for a term within or extending beyond the period of administration;

(10) enter into a lease or arrangement for exploration and removal of minerals or other

natural resources or enter into a pooling or unitization agreement;

(11) abandon property when, in the opinion of the personal representative, it is valueless,

or is so encumbered, or is in condition that it is of no benefit to the estate;

(12) vote stocks or other securities in person or by general or limited proxy;

(13) pay calls, assessments, and other sums chargeable or accruing against or on account

of securities, unless barred by the provisions relating to claims;

(14) hold a security in the name of a nominee or in other form without disclosure of the

interest of the estate but the personal representative is liable for any act of the nominee in

connection with the security so held;

(15) insure the assets of the estate against damage, loss and liability and the personal

representative against liability as to third persons;

(16) borrow money with or without security to be repaid from the estate assets or

otherwise; and advance money for the protection of the estate;

(17) effect a fair and reasonable compromise with any debtor or obligor, or extend,

renew or in any manner modify the terms of any obligation owing to the estate. The personal

representative on holding a mortgage, pledge or other lien upon property of another person

may, in lieu of foreclosure, accept a conveyance or transfer of encumbered assets from the

owner thereof in satisfaction of the indebtedness secured by lien;

(18) pay in compliance with section
524.3-805
, but without the presentation of a claim,

the reasonable and necessary last illness expenses of the decedent (except as provided in

section
524.3-806
(a)), reasonable funeral expenses, debts and taxes with preference under

federal or state law, and other taxes, assessments, compensation of the personal representative

and the personal representative's attorney, and all other costs and expenses of administration

although the same may be otherwise barred under section
524.3-803
;

(19) sell or exercise stock subscription or conversion rights; consent, directly or through

a committee or other agent, to the reorganization, consolidation, merger, dissolution, or

liquidation of a corporation or other business enterprise;

(20) allocate items of income or expense to either estate income or principal, as permitted

or provided by law;

(21) employ persons, including attorneys, auditors, investment advisors, or agents, even

if they are associated with the personal representative, to advise or assist the personal

representative in the performance of administrative duties; act without independent

investigation upon their recommendations; and instead of acting personally, employ one or

more agents to perform any act of administration, whether or not discretionary;

(22) prosecute or defend claims, or proceedings in any jurisdiction for the protection of

the estate and of the personal representative in the performance of duties;

(23) sell, mortgage, or lease any real or personal property of the estate or any interest

therein, including the homestead, exempt or otherwise, for cash, credit, or for part cash and

part credit, with or without security for unpaid balances, and without the consent of any

devisee or heir unless the property has been specifically devised to a devisee or heir by

decedent's will, except that the homestead of a decedent when the spouse takes any interest

therein shall not be sold, mortgaged or leased unless the written consent of the spouse has

been obtained;

(24) continue any unincorporated business or venture in which the decedent was engaged

at the time of death (i) in the same business form for a period of not more than four months

from the date of appointment of a general personal representative if continuation is a

reasonable means of preserving the value of the business including good will, (ii) in the

same business form for any additional period of time that may be approved by order of the

court in a formal proceeding to which the persons interested in the estate are parties; or (iii)

throughout the period of administration if the business is incorporated by the personal

representative and if none of the probable distributees of the business who are competent

adults object to its incorporation and retention in the estate;

(25) incorporate any business or venture in which the decedent was engaged at the time

of death;

(26) provide for exoneration of the personal representative from personal liability in any

contract entered into on behalf of the estate;

(27) satisfy and settle claims and distribute the estate as provided in this chapter;

(28) foreclose a mortgage, lien, or pledge or collect the debts secured thereby, or complete

any such proceeding commenced by the decedent;

(29) exercise all powers granted to guardians and conservators by sections
524.5-101

to
524.5-502
.