Sec. 2.

Minnesota Statutes 2004, section 272.44, is amended to read:

272.44 TAXES PAID BY LIEN HOLDERS ARE deleted text begin AN ADDITIONALdeleted text end new text begin ADDED
TOnew text end LIEN.

Any person who has a lien, by mortgage or otherwise, upon any land upon which the
taxes have not been paidnew text begin when they came duenew text end , may pay such taxes before or after the same
become delinquent, and the interest, penalty, and costs, if any, thereon; and the money so
paid shall be deleted text begin an additionaldeleted text end new text begin added to thenew text end lien on such land; and, with the interest thereon
at the rate specified in the mortgage deleted text begin ordeleted text end new text begin ,new text end other instrument, new text begin or by law, new text end shall be collectible
with, as a part of, and in the same manner as the amount secured by the original lien. No
interest shall accrue on the taxes so paid by such deleted text begin mortgageedeleted text end new text begin lienholdernew text end prior to June first
of the year in which such taxes become due and payable.

Sec. 3.

Minnesota Statutes 2004, section 272.45, is amended to read:

272.45 TAXES PAID BY TENANTnew text begin , OCCUPANT,new text end OR OTHER PERSON
BECOME LIEN, UPON NOTICE FILED WITH COUNTY RECORDERnew text begin OR
REGISTRAR OF TITLESnew text end .

When any new text begin past due or delinquent new text end tax on land is paid by deleted text begin or collected fromdeleted text end any
occupantdeleted text begin ordeleted text end new text begin ,new text end tenant, or deleted text begin any otherdeleted text end personnew text begin with an interest in the land other than a lien, or a
person acting on that person's behalfnew text end , which, by agreement or otherwise, ought to have
been paid by the owner, lessor, or other party in interest, such occupant, tenant, or deleted text begin otherdeleted text end
person may recover by action the amount which such owner, lessor, or party in interest
ought to have paid, with interest thereon at the rate of 12 percent per annum, or may retain
the same from any rent due or accruing from the person to such owner or lessor for land on
which such tax is so paid. deleted text begin Any suchdeleted text end new text begin Anew text end person making deleted text begin suchdeleted text end new text begin anew text end payment new text begin under this section
new text end may file with the county recorder new text begin or registrar of titles new text end of the proper county a notice stating
the amount and date of such payment, and deleted text begin whether paid as occupant, tenant, or otherwisedeleted text end new text begin
stating the interest claimed in the landnew text end , with a description of the land against which the
taxes were charged; and the same shall thereupon be a lien upon such land in favor of the
person paying the same until the same is paid. The county recorder shall record such
notice in the deleted text begin book of miscellaneous recordsdeleted text end new text begin indices maintained by the county recordernew text end .
new text begin The registrar of titles shall record the notice on the certificate of title for the land. new text end Upon
the payment of any such lien, the person filing such notice shall satisfy the same of record.

Sec. 6.

Minnesota Statutes 2004, section 514.10, is amended to read:

514.10 FORECLOSURE OF LIENS.

Such liens may be enforced by action in the district court of the county in which
the improved premises or some part thereof are situated, or, if claimed under section
514.04, of any county through or into which the railway or other line extends, which
action shall be begun and conducted in the same manner as actions for the foreclosure of
mortgages upon real estate, except as herein otherwise provided, but the owner or any
person or party having an interest in or lien upon the property against which a lien has
been filed under the provisions of this chapter may bring an action to remove the lien in
the nature of an action to determine adverse claims and subject to all the provisions of law
regarding actions to determine adverse claims.

When an action has been brought, either by the lien claimant to enforce the lien or by
the owner, person or party having an interest in or a lien upon the property against which a
lien claim has been filed to determine adverse claims, as provided herein, application may
be made at any time after such action has been commenced by any of the persons or parties
above mentioned to have the property affected by any such lien, released from the lien by
giving ten days' notice, or such other and shorter notice as the court may order and direct,
to the lien claimant, or the lien claimant's attorney, of intention to apply to the district
court for the release of such lien and of the time and place of hearing. Upon a hearing
upon an application the court shall fix a sum of money new text begin or an amount of a bond from a
surety listed on the United States Department of Treasury Circular 570 made payable upon
the entry of judgment as provided in this section new text end to be deposited by the applicant with the
court administrator of the district court, which sum shall not be less than the aggregate
amount of, (1) the amount claimed in the lien statement, (2) $18 for every $100 or fraction
thereof, to cover interest, (3) the probable disbursements in an action to enforce the claim
for which the lien statement was filed, (4) an amount not less than double the amount of
attorneys' fees allowed upon the foreclosure under section 582.01, to cover any allowance
the court may make upon the trial for costs and attorneys' fees in the action or upon
appeal. Upon making a deposit in the amount so fixed in the order of court, an order shall
be made by the court releasing the premises described in the statement thereof from the
effect of such lien. The lien claimant shall have the same right of lien against such money
new text begin or bond new text end deposit as against the property released. The order releasing the lien may be filed
in the office of the county recorder or registrar of titles, if registered land, of the county in
which the lien statement is recorded or filed, and thereupon the premises affected shall be
released therefrom. The court shall by the same order discharge any notice of lis pendens
filed in any action in which such lien may be asserted if it appears that all mechanics' liens
filed or recorded against the property covered by the lis pendens have been released.

After the release of the property affected, the judgment ordered in any action either
to enforce such lien or determine adverse claims and remove such lien, in the event that
the lien is established, shall provide that it be paid, and it shall be paid without further
proceedings out of the deposit made as provided herein. The judgment of the district
court establishing a lien, unless a written notice of intention to appeal therefrom is served
on the court administrator of the district court within 30 days from the entry of such
judgment, shall be authority to such court administrator to pay the amount specified in
such judgment to the persons entitled thereto, or their attorney of record in the actionnew text begin from
the amount of money on deposit or to allow the claimant to collect on the bond that has
been depositednew text end . The balance of deleted text begin depositsdeleted text end new text begin the deposit of money or bondnew text end , if any, shall be
returned to the depositor. If the lien was not a valid and enforceable one, the judgment
shall direct the return of the whole deposit to the depositor unless the claimant obtains
judgment against such depositor personally and in such case the judgment shall be paid
as hereinbefore specified.

Sec. 7.

Minnesota Statutes 2005 Supplement, section 515B.1-102, is amended to read:

515B.1-102 APPLICABILITY.

(a) Except as provided in this section, this chapter, and not chapters 515 and 515A,
applies to all common interest communities created within this state on and after June
1, 1994.

(b) The applicability of this chapter to common interest communities created prior to
June 1, 1994, shall be as follows:

(1) This chapter shall apply to condominiums created under chapter 515A with
respect to events and circumstances occurring on and after June 1, 1994; provided (i) that
this chapter shall not invalidate the declarations, bylaws or condominium plats of those
condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and
obligations of a declarant of a condominium created under chapter 515A, and the rights
and claims of unit owners against that declarant.

(2) The following sections in this chapter apply to condominiums created under
chapter 515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and
Taxation); 515B.1-106 (Applicability of Local Ordinances, Regulations, and Building
Codes); 515B.1-107 (Eminent Domain); 515B.1-108 (Supplemental General Principles
of Law Applicable); 515B.1-109 (Construction Against Implicit Repeal); 515B.1-112
(Unconscionable Agreement or Term of Contract); 515B.1-113 (Obligation of Good
Faith); 515B.1-114 (Remedies to be Liberally Administered); 515B.1-115 (Notice);
515B.1-116 (Recording); 515B.2-103 (Construction and Validity of Declaration and
Bylaws); 515B.2-104 (Description of Units); 515B.2-108(d) (Allocation of Interests);
515B.2-109(c) (Common Elements and Limited Common Elements); 515B.2-112
(Subdivision or Conversion of Units); 515B.2-113 (Alteration of Units); 515B.2-114
(Relocation of Boundaries Between Adjoining Units); 515B.2-115 (Minor Variations
in Boundaries); 515B.2-118 (Amendment of Declaration); 515B.2-119 (Termination
of Common Interest Community); 515B.3-102 (Powers of Unit Owners' Association);
515B.3-103(a), (b), and (g) (Board; Directors and Officers; Period of Declarant Control);
515B.3-107 (Upkeep of Common Interest Community); 515B.3-108 (Meetings);
515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract
Liability); 515B.3-112 (Conveyance or Encumbrance of Common Elements); 515B.3-113
(Insurance); 515B.3-114 (Reserves; Surplus Funds); 515B.3-115(c), (e), (f), (g), (h), and
(i) (Assessments for Common Expenses); 515B.3-116 (Lien for Assessments); 515B.3-117
(Other Liens); 515B.3-118 (Association Records); 515B.3-119 (Association as Trustee);
515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108
(Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action; Attorney's Fees).
Section 515B.1-103 (Definitions) shall apply to the extent necessary in construing any of
the sections referenced in this section. Sections 515B.1-105, 515B.1-106, 515B.1-107,
515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110,
515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107,
515B.4-108, and 515B.4-116 apply only with respect to events and circumstances
occurring on and after June 1, 1994. All other sections referenced in this section apply
only with respect to events and circumstances occurring after July 31, 1999. A section
referenced in this section does not invalidate the declarations, bylaws or condominium
plats of condominiums created before August 1, 1999. But all sections referenced in this
section prevail over the declarations, bylaws, CIC plats, rules and regulations under them,
of condominiums created before August 1, 1999, except to the extent that this chapter
defers to the declarations, bylaws, CIC plats, or rules and regulations issued under them.

(3) This chapter shall not apply to cooperatives and planned communities created
prior to June 1, 1994; except by election pursuant to subsection (d), and except that
sections 515B.1-116, subsections (a), (c), (d), (e), (f), and (h), 515B.4-107, and
515B.4-108, apply to all planned communities and cooperatives regardless of when they
are created, unless they are exempt under subsection (e).

(c) This chapter shall not invalidate any amendment to the declaration, bylaws
or condominium plat of any condominium created under chapter 515 or 515A if the
amendment was recorded before June 1, 1994. Any amendment recorded on or after June
1, 1994, shall be adopted in conformity with the procedures and requirements specified by
those instruments and by this chapter. If the amendment grants to any person any rights,
powers or privileges permitted by this chapter, all correlative obligations, liabilities and
restrictions contained in this chapter shall also apply to that person.

(d) Any condominium created under chapter 515, any planned community or
cooperative which would be exempt from this chapter under subsection (e), or any planned
community or cooperative created prior to June 1, 1994, may elect to be subject to this
chapter, as follows:

(1) The election shall be accomplished by recording a declaration or amended
declaration, and a new or amended CIC plat where required, and by approving bylaws or
amended bylaws, which conform to the requirements of this chapter, and which, in the
case of amendments, are adopted in conformity with the procedures and requirements
specified by the existing declaration and bylaws of the common interest community,
and by any applicable statutes.

(2) In a condominium, the preexisting condominium plat shall be the CIC plat and
an amended CIC plat shall be required only if the amended declaration or bylaws contain
provisions inconsistent with the preexisting condominium plat. The condominium's CIC
number shall be the apartment ownership number or condominium number originally
assigned to it by the recording officer. In a cooperative in which the unit owners' interests
are characterized as real estate, a CIC plat shall be required. In a planned community, the
preexisting plat recorded pursuant to chapter 505, 508, or 508A, or the part of the plat
upon which the common interest community is located, shall be the CIC plat.

(3) The amendment shall comply with section 515B.2-118(a)(3).

(4) Except as permitted by paragraph (3), no declarant, affiliate of declarant,
association, master association nor unit owner may acquire, increase, waive, reduce or
revoke any previously existing warranty rights or causes of action that one of said persons
has against any other of said persons by reason of exercising the right of election under
this subsection.

(5) A common interest community which elects to be subject to this chapter may, as
a part of the election process, change its form of ownership by complying with section
515B.2-123.

(e) Except as otherwise provided in this subsection, this chapter shall not apply,
except by election pursuant to subsection (d), to the following:

(1) a planned community which consists of two units, which utilizes a common
interest community plat complying with section 515B.2-110(d)(1) and (2), which is not
subject to any rights to subdivide or convert units or to add additional real estate, and
which is not subject to a master association;

(2) a common interest community where the units consist solely of separate parcels
of real estate designed or utilized for detached single family dwellings or agricultural
purposes, and where the association or a master association has no obligation to maintain
any building containing a dwelling or any agricultural building;

(3) a cooperative where, at the time of creation of the cooperative, the unit owners'
interests in the dwellings as described in the declaration consist solely of proprietary
leases having an unexpired term of fewer than 20 years, including renewal options;

(4) planned communities utilizing a common interest community plat complying
with section 515B.2-110(d)(1) and (2) and cooperatives, which are limited by the
declaration to nonresidential use; or

(5) real estate subject only to an instrument or instruments filed primarily for the
purpose of creating or modifying rights with respect to access, utilities, parking, ditches,
drainage, or irrigation.

new text begin (f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that
is subject to a master declaration and is not subject to or is exempt from this chapter.
new text end

deleted text begin (f)deleted text end new text begin (g)new text end Section 515B.1-106 shall apply to all common interest communities.

Sec. 8.

Minnesota Statutes 2005 Supplement, section 515B.1-106, is amended to read:

515B.1-106 APPLICABILITY OF LOCAL REQUIREMENTS.

(a) Except as provided in subsections (b) and (c), a zoning, subdivision, building
code, or other real estate use law, ordinance, charter provision, or regulation may not
directly or indirectly prohibit the common interest community form of ownership or
impose any requirement upon a common interest community, upon the creation or
disposition of a common interest community or upon any part of the common interest
community conversion process which it would not impose upon a physically similar
development under a different form of ownership. Otherwise, no provision of this chapter
invalidates or modifies any provision of any zoning, subdivision, building code, or other
real estate use law, ordinance, charter provision, or regulation.

(b) Subsection (a) shall not apply to any ordinance, rule, regulation, charter provision
or contract provision relating to the financing of housing construction, rehabilitation, or
purchases provided by or through a housing finance program established and operated
pursuant to state or federal law by a state or local agency or local unit of government.

(c) A statutory or home rule charter city, pursuant to an ordinance or charter
provision establishing standards to be applied uniformly within its jurisdiction, may
prohibit or impose reasonable conditions upon the conversion of buildings occupied
wholly or partially for residential use to the common interest community form of
ownership only if there exists within the city a significant shortage of suitable rental
dwellings available to low and moderate income individuals or families or to establish or
maintain the city's eligibility for any federal or state program providing direct or indirect
financial assistance for housing to the city. Prior to the adoption of an ordinance pursuant
to the authority granted in this subsection, the city shall conduct a public hearing. Any
ordinance or charter provision adopted pursuant to this subsection shall not apply to
any existing or proposed conversion common interest community (i) for which a bona
fide loan commitment for a consideration has been issued by a lender and is in effect on
the date of adoption of the ordinance or charter provision, or (ii) for which a notice of
conversion or intent to convert required by section 515B.4-111, containing a termination
of tenancy, has been given to at least 75 percent of the tenants and subtenants in possession
prior to the date of adoption of the ordinance or charter provision.

(d) For purposes of providing marketable title, a statement in the declaration that
the common interest community is not subject to an ordinance or that any conditions
required under an ordinance have been complied with shall be prima facie evidence that
the common interest community was not created in violation of the ordinance.

(e) A violation of an ordinance or charter provision adopted pursuant to the
provisions of subsection (b) or (c) shall not affect the validity of a common interest
community. This subsection shall not be construed to in any way limit the power of
a city to enforce the provisions of an ordinance or charter provision adopted pursuant
to subsection (b) or (c).

(f) Any ordinance or charter provision enacted hereundernew text begin that prohibits the
conversion of buildings to the common interest community form of ownershipnew text end shall not be
effective for a period exceeding 18 months.

Sec. 9.

Minnesota Statutes 2005 Supplement, section 515B.2-101, is amended to read:

515B.2-101 CREATION OF COMMON INTEREST COMMUNITIES.

(a) On and after June 1, 1994, a common interest community may be created only
as follows:

(1) A condominium may be created only by recording a declaration.

(2) A cooperative may be created only by recording a declaration and by recording a
conveyance of the real estate subject to that declaration to the association.

(3) A planned community which includes common elements may be created only
by simultaneously recording a declaration and a conveyance of the common elements
subject to that declaration to the association.

(4) A planned community without common elements may be created only by
recording a declaration.

(b) Except as otherwise expressly provided in this chapter, the declaration shall
be executed by all persons whose interests in the real estate will be conveyed to unit
owners or to the association, except vendors under contracts for deed, and by every lessor
of a lease the expiration or termination of which will terminate the common interest
community. The declaration shall be recorded in every county in which any portion of
the common interest community is located. Failure of any party not required to execute a
declaration, but having a recorded interest in the common interest community, to join in
the declaration shall have no effect on the validity of the common interest community;
provided that the party is not bound by the declaration until that party acknowledges the
existence of the common interest community in a recorded instrument.

(c) In a condominium, a planned community utilizing a CIC plat complying with
section 515B.2-110(c), or a cooperativenew text begin ,new text end where the unit boundaries are delineated by
a structure, a declaration, or an amendment to a declaration adding units, shall not be
recorded unless the structural components of the structures containing the units and
the mechanical systems serving more than one unit, but not the units, are substantially
completed, as evidenced by a recorded certificate executed by a registered engineer or
architect.

(d) A project which (i) meets the definition of a "common interest community" in
section 515B.1-103(10), (ii) is created after May 31, 1994, and (iii) is not exempt under
section 515B.1-102(e), is subject to this chapter even if this or other sections of the chapter
have not been complied with, and the declarant and all unit owners are bound by all
requirements and obligations of this chapter.

(e) The association shall be incorporated pursuant to section 515B.3-101 and the
CIC plat shall be recorded as and if required by section 515B.2-110.

Sec. 10.

Minnesota Statutes 2005 Supplement, section 515B.2-110, is amended to read:

515B.2-110 COMMON INTEREST COMMUNITY PLAT (CIC PLAT).

(a) A CIC plat is required for condominiums and planned communities, and
cooperatives in which the unit owners' interests are characterized as real estate. The CIC
plat is a part of the declaration in condominiums, in planned communities utilizing a CIC
plat complying with subsection (c), and in cooperatives in which the unit owners' interests
are characterized as real estate, but need not be physically attached to the declaration.

(1) In a condominium, or a cooperative in which the unit owners' interests are
characterized as real estate, the CIC plat shall comply with subsection (c).

(2) In a planned community, a CIC plat which does not comply with subsection (c)
shall consist of all or part of a subdivision plat or deleted text begin plats complying with subsections (d)(1)
and (d)(2)deleted text end new text begin registered land survey complying with subsection (d), or any combination
thereofnew text end . The CIC plat new text begin or registered land survey new text end need not contain the number of the
common interest community and may be recorded at any time before the recording of the
declaration; provided, that if the CIC plat complies with subsection (c), the number of
the common interest community shall be included and the CIC plat shall be recorded at
the time of recording of the declaration.

(3) In a cooperative in which the unit owners' interests are characterized as personal
property, a CIC plat shall not be required. In lieu of a CIC plat, the declaration or
any amendment to it creating, converting, or subdividing units in a personal property
cooperative shall include an exhibit containing a scale drawing of each building,
identifying the building, and showing the perimeter walls of each unit created or changed
by the declaration or any amendment to it, including the unit's unit identifier, and its
location within the building if the building contains more than one unit.

(b) The CIC plat, or supplemental or amended CIC plat, for condominiums, for
planned communities using a plat complying with subsection (c), and for cooperatives in
which the unit owners' interests are characterized as real estate, shall contain certifications
by a licensed professional land surveyor and licensed professional architect, as to the parts
of the CIC plat prepared by each, that (i) the CIC plat accurately depicts all information
required by this section, and (ii) the work was undertaken by, or reviewed and approved
by, the certifying land surveyor or architect. The portions of the CIC plat depicting the
dimensions of the portions of the common interest community described in subsections
(c)(8), (9), (10), and (12), may be prepared by either a land surveyor or an architect. The
other portions of the CIC plat shall be prepared only by a land surveyor. A certification of
the CIC plat or supplemental CIC plat, or an amendment to it, under this subsection by an
architect is not required if all parts of the CIC plat, supplemental CIC plat, or amendment
are prepared by a land surveyor. Certification by the land surveyor or architect does not
constitute a guaranty or warranty of the nature, suitability, or quality of construction of
any improvements located or to be located in the common interest community.

(c) A CIC plat for a condominium, or a cooperative in which the unit owners'
interests are characterized as real estate, shall show:

(1) the number of the common interest community, and the boundaries, dimensions
and a legally sufficient description of the land included therein;

(2) the dimensions and location of all existing, material structural improvements
and roadways;

(3) the intended location and dimensions of any contemplated common element
improvements to be constructed within the common interest community after the filing of
the CIC plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT";

(4) the location and dimensions of any additional real estate, labeled as such, and a
legally sufficient description of the additional real estate;

(5) the extent of any encroachments by or upon any portion of the common interest
community;

(6) the location and dimensions of all recorded easements within the land included
in the common interest community burdening any portion of the land;

(7) the distance and direction between noncontiguous parcels of real estate;

(8) the location and dimensions of limited common elements, except that with
respect to limited common elements described in section 515B.2-102, subsections (d) and
(f), only such material limited common elements as porches, balconies, decks, patios, and
garages shall be shown;

(9) the location and dimensions of the front, rear, and side boundaries of each unit
and that unit's unit identifier;

(10) the location and dimensions of the upper and lower boundaries of each unit
with reference to an established or assumed datum and that unit's unit identifier;

(11) a legally sufficient description of any real estate in which the unit owners will
own only an estate for years, labeled as "leasehold real estate";

(12) any units which may be converted by the declarant to create additional units or
common elements identified separately.

(d) A CIC plat for a planned community either shall comply with subsection (c),
or it shall:

(1) comply with chapter 505new text begin , 508, or 508A, as applicablenew text end ; and

(2) comply with the deleted text begin plattingdeleted text end new text begin applicable subdivisionnew text end requirements of any
governmental authority within whose jurisdiction the planned community is located,
subject to the limitations set forth in section 515B.1-106.

(e) If a declarant adds additional real estate, the declarant shall record a supplemental
CIC plat or plats for the real estate being added, conforming to the requirements of this
section which apply to the type of common interest community in question. If less than
all additional real estate is being added, the supplemental CIC plat for a condominium,
a planned community whose CIC plat complies with subsection (c), or a cooperative
in which the unit owners' interests are characterized as real estate, shall also show the
location and dimensions of the remaining portion.

(f) If, pursuant to section 515B.2-112, a declarant subdivides or converts any unit
into two or more units, common elements or limited common elements, or combines
two or more units, the declarant shall record an amendment to the CIC plat showing
the location and dimensions of any new units, common elements or limited common
elements thus created.

(g) A CIC plat which complies with subsection (c) is not subject to chapter 505.

Sec. 11.

Minnesota Statutes 2005 Supplement, section 515B.2-112, is amended to read:

515B.2-112 SUBDIVISION, COMBINATION, OR CONVERSION OF UNITS.

(a) If the declaration so provides, (i) one or more units may be subdivided into two
or more units or combined into a lesser number of units, or (ii) a unit or units owned
exclusively by a declarant may be subdivided, combined, or converted into one or more
units, limited common elements, common elements, or a combination of units, limited
common elements or common elements.

(b) If the unit or units are not owned exclusively by a declarant, the unit owners of
the units to be combined or subdivided shall cause to be prepared and submitted to the
association for approval an application for an amendment to the declaration and amended
CIC plat, for the purpose of subdividing or combining the unit or units. The application
shall contain, at a minimum, a general description of the proposed subdivision or
combination, and shall specify in detail the matters required by subsection (c)(2) and (3).
The basis for disapproval of the application by the association shall be limited to (i) health
or safety considerations, (ii) liability considerations for the association and other unit
owners, (iii) aesthetic changes to the common elements or another unit, (iv) any material
and adverse impact on the common elements or another unit, or (v) a failure to comply
with the declaration, this chapter, or governmental laws, ordinances, or regulations. The
association shall give written notice of its decision and required changes to the unit owner
or owners who made the application. The association shall establish fair and reasonable
procedures and time frames for the submission and prompt processing of the applications.new text begin
If an application under this subsection is approved, the unit owner shall cause an
amendment and amended CIC plat to be prepared based upon the approved application.
new text end

(c) deleted text begin If an application under subsection (b) is approved, the unit owner shall cause an
amendment and amended CIC plat to be prepared based upon the approved application.
The amendment shall:deleted text end new text begin An amendment under this section shall:
new text end

(1) be executed by the association and by each unit owner and any secured party
with respect to each unit to be combined or subdividednew text begin , if approved under subsection (b)new text end ;

(2) assign a unit identifier to each unit resulting from the subdivisionnew text begin , conversion,new text end or
combination;

(3) reallocate the common element interest, votes in the association, and common
expense liability, as applicable, formerly allocated to the unit or units to be combinednew text begin ,
converted,new text end or subdivided among the unit or units resulting from the subdivision or
combinationnew text begin , or among all units in the case of a conversion, as applicable,new text end on the basis of
the formula described in the declaration; and

(4) conform to the requirements of the declaration and this chapter.

(d) If the association determines that the amendment and amended CIC plat conform
to the approved application, the declaration, and this chapter, the association shall execute
the amendment and cause the amendment and the amended CIC plat to be recorded. The
association may require the unit owners executing the amendment to pay all fees and costs
for reviewing, preparing, and recording the amendment and the amended CIC plat, and
any other fees or costs incurred by the association in connection therewith.

(e) If the unit or units are owned exclusively by a declarant, the declarant shall
have the authority to unilaterally prepare and record, at its expense, an amendment
and an amended CIC plat subdividing, combining, or converting the unit or units. The
amendment shall comply with subsections (c)deleted text begin (1),deleted text end (2), (3), and (4), and shall be limited
to those provisions necessary to accomplish the subdivision, combination, or conversion
unless the consent of unit owners required to amend the declaration is obtained.

(f) The amended CIC plat shall show the resulting common elements, limited
common elements or units, as subdivided, combined, or converted.

(g) A secured party's interest and remedies shall be deemed to apply to the unit or
units that result from the subdivision or combination of the unit or units in which the
secured party held a security interest. If the secured party enforces any remedy, including
foreclosure of its lien, against any of the resulting units, all instruments and notices
relating to the foreclosure shall describe the subject property in terms of the amendment
and the amended CIC plat which created the resulting units.

Sec. 12.

Minnesota Statutes 2005 Supplement, section 515B.2-121, is amended to read:

515B.2-121 MASTER ASSOCIATIONS.

(a) A master association formed after June 1, 1994, shall be organized as a Minnesota
profit, nonprofit or cooperative corporation. A master association shall be incorporated
prior to the delegation to it of any powers under this chapter.

(b) The members of the master association shall be any combination of (i) unit
owners of one or more common interest communities, (ii) one or more associations,
(iii) one or more master associations, or (iv) owners of real estate or property owner's
associations not subject to this chapter in combination with any other category of member.
An association or its members may be members of an entity created before June 1, 1994,
which performs functions similar to those performed by a master association regardless of
whether the entity is subject to this chapter.

(c) A master association shall be governed by a board of directors. Except as
expressly prohibited by the master declaration, the master association's articles of
incorporation or bylaws, or other provisions of this chapter, the master association board
may act in all instances on behalf of the master association. The directors of a master
association shall be elected or, if a nonprofit corporation, elected or appointed, in a manner
consistent with the requirements of the statute under which the master association is
formed and of the master association's articles of incorporation and bylaws, and subject to
the following requirements:

(1) Except as set forth in subsections (2) and (3), the members of the master
association shall elect the board of directors. A majority of the directors shall be members
of the master association or members of a member of the master association, and shall be
persons other than a declarant or affiliate of a declarant. If the member is not a natural
person, it may designate a natural person to act on its behalf.

(2) The articles of incorporation or bylaws of the master association may authorize
any person, whether or not the person is a member of, or otherwise subject to, the master
association, including a declarant, to appoint or elect one director.

(3) A master association's articles of incorporation may suspend the members' right
to elect or, in the case of a nonprofit corporation, elect or appoint, the master association's
board of directors for a specified time period. During this period, the person or persons
who execute the master declaration under subsection (f)(1), or their successors or assigns,
may appoint the directors. The period during which the person or persons may appoint
the directors begins when the master declaration is recorded and terminates upon the
earliest of:

(i) the voluntary surrender of the right to appoint directors;

(ii) the date ten years after the date the master declaration is recorded;

(iii) the date, if any, in the articles of incorporation; or

(iv) the date when at least 75 percent of the units and other parcels of real estate
which are referred to in subsection (f)(1)(vii) have been conveyed to such persons for
occupancy by the persons or their tenants.

(4) The term of any director appointed under subsection (3) expires 60 days after
the right to appoint directors terminates. The master association's board of directors shall
call an annual or special meeting of the master association's members to elect or appoint
successor directors within the 60-day period.

(5) The system for the election of directors shall be fair and equitable and shall
take into account the number of members of each association any of whose powers are
delegated to the master association, the needs of the members of the master association,
the allocation of liability for master association common expenses, and the types of
common interest communities and other real estate subject to the master association.

(d) The articles of incorporation or bylaws of the master association may authorize
special classes of directors and allocations of director voting rights, as follows: (i) classes
of directors that are elected by different classes of members, to address operational,
physical, or administrative differences within the master association, or (ii) class voting
by the classes of directors on specific issues affecting only a certain class or classes of
members, units or other parcels of real estate, or to otherwise protect the legitimate
interests of such class or classes. No person may utilize such special classes or allocations
for the purpose of evading any limitation imposed on declarants by this chapter.

(e) The officers of a master association shall be elected, appointed, or designated in
a manner consistent with the statute under which the master association is formed and
consistent with the master association articles of incorporation and bylaws.

(f) The creation and authority of a master association shall be governed by the
following requirements:

(1) A master declaration shall be recorded in connection with the creation of a master
association. The master declaration shall be executed by the owners of the real estate
subjected to the master declaration. The master declaration shall contain, at a minimum:

(i) the name of the master association;

(ii) a legally sufficient description of the real estate which is subject to the master
declaration and a legally sufficient description of any other real estate which may be
subjected to the master declaration pursuant to subsection (g);

(iii) a statement as to whether the real estate subject to, and which may be subjected
to, the master declaration collectively is or collectively will be a separate common interest
community;

(iv) a description of the members of the master association;

(v) a description of the master association's powers. To the extent described in
the master declaration, a master association has the powers with respect to the master
association's members and the property subject to the master declaration that section
515B.3-102 grants to an association with respect to the association's members and the
property subject to the declaration. A master association also has the powers delegated to
it by an association pursuant to subsection (f)(2) or by a property owner's association not
subject to the chapter; provided (i) that the master declaration identifies the powers and
authorizes the delegation either expressly or by a grant of authority to the board of the
association or property owner's association and (ii) that the master association board has
not refused the delegation pursuant to subsection (f)(4). The provisions of the declarations
of the common interest communities, or the provisions of recorded instruments governing
other property subject to the master declaration, that delegate powers to the master
association shall be consistent with the provisions of the master declaration that govern
the delegation of the powers;

(vi) a description of the formulas governing the allocation of assessments and
member voting rights, including any special classes or allocations referred to in subsection
(d);

(vii) a statement of the total number of units and other parcels of real estate intended
for deleted text begin residential use by a person or the person's tenantsdeleted text end new text begin private ownership and usenew text end that are
(i) subject to the master declaration as initially recorded and (ii) intended to be created by
the addition of real estate or by the subdivision of units or other parcels of real estate; and

(viii) the requirements for amendment of the master declaration, other than an
amendment under subsection (g).

(2) The declaration of a common interest community located on property subject to
a master declaration may:

(i) delegate any of the powers described in section 515B.3-102 to the
master association; provided, that a delegation of the powers described in section
515B.3-102(a)(2) is effective only if expressly stated in the declaration; and

(ii) authorize the board to delegate any of the powers described in section
515B.3-102, except for the powers described in section 515B.3-102(a)(2), to the master
association.

(3) With respect to any other property subject to a master association, there need
not be an instrument other than the master declaration recorded against the property to
empower the master association to exercise powers with respect to the property.

(4) If a declaration or other recorded instrument authorizes the board or the board
of a property owner's association to delegate powers to a master association, the master
association board may refuse any delegation of powers that does not comply with (i)
this chapter, (ii) the declaration or other recorded instrument, or (iii) the organizational
documents of the master association.

(5) The failure of a declaration, a board or an owner of property subject to a master
association to properly delegate some or all of the powers to the master association does
not affect the authority of the master association to exercise those and other powers with
respect to other common interest communities or owners of properties that are subject
to the master association.

(g) The master declaration may authorize other real estate to be subjected to the
master declaration. The other real estate shall be subjected to the master declaration by an
amendment executed by the owner of the other real estate and any other person or persons
required by the master declaration, and recorded.

(h) Sections 515B.3-103(a), (b), and (g), 515B.3-108, 515B.3-109, 515B.3-110, and
515B.3-112 shall apply in the conduct of the affairs of a master association. But the rights
of voting, notice, and other rights enumerated in those sections apply to persons who elect
or appoint the board of a master association, whether or not those persons are otherwise
unit owners within the meaning of this chapter.

(i) If so provided in the master declaration, a master association may levy
assessments for common expenses of the master association against the property subject
to the master declaration, and have and foreclose liens securing the assessments. The
liens shall have the same priority against secured parties, shall include the same fees and
charges, and may be foreclosed in the same manner, as assessment liens under section
515B.3-116. The master association's lien shall have priority as against the lien of an
association or property owner's association subject to the master association, regardless
of when the lien arose or was perfected.

(1) Master association common expenses shall be allocated among the members of
the master association in a fair and equitable manner. If the members include associations
or property owner's associations, then the master assessments may be allocated among
and levied against the associations or property owner's associations, or allocated among
and levied against the units or other parcels of real estate owned by the members of the
association or property owner's association. If so provided in the master declaration,
master assessments levied against a member association or property owner's association
are allocated among and levied against the units or other parcels of real estate owned
by the members of the association or property owner's association. If applicable and
appropriate, the formulas and principles described in section 515B.2-108, subsections (b),
(c), (d), and (e), shall be used in making the allocations. The assessment formulas and
procedures described in the declarations of any common interest communities or any
instruments governing other real estate subject to the master association shall not conflict
with the formulas and procedures described in the master declaration.

(2) The master declaration may exempt from liability for all or a portion of master
association assessments any person authorized by subsection (c)(3) to appoint the
members of the master association board, or any other person, and exempt any unit or
other parcel of real estate owned by the person from a lien for such assessments, until a
building constituting or located within the unit or other parcel of real estate is substantially
completed. Substantial completion shall be evidenced by a certificate of occupancy in
a jurisdiction that issues that certificate.

(j) A master association shall not be used, directly or indirectly, to avoid or nullify
any warranties or other obligations for which a declarant of a common interest community
subject to the master association is responsible, or to otherwise avoid the requirements
of this chapter.

Sec. 13.

Minnesota Statutes 2005 Supplement, section 515B.3-115, is amended to read:

515B.3-115 ASSESSMENTS FOR COMMON EXPENSES.

(a) The obligation of a unit owner to pay common expense assessments shall be
as follows:

(1) If a common expense assessment has not been levied, the declarant shall pay all
operating expenses of the common interest community, and shall fund the replacement
reserve component of the common expenses as required by subsection (b).

(2) If a common expense assessment has been levied, all unit owners including the
declarant shall pay the assessments allocated to their units, subject to the following:

(i) If the declaration so provides, a declarant's liability, and the assessment lien, for
the common expense assessments, exclusive of replacement reserves, on any unit owned
by the declarant may be limited to 25 percent or more of any assessment, exclusive of
replacement reserves, until the unit or any building located in the unit is substantially
completed. Substantial completion shall be evidenced by a certificate of occupancy in
any jurisdiction that issues the certificate.

(ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i),
the declarant shall be obligated, within 60 days following the termination of the period
of deleted text begin thedeleted text end declarant control, to make up any operating deficit incurred by the association
during the period of declarant control.new text begin The existence and amount, if any, of the operating
deficit shall be determined using the accrual basis of accounting applied as of the date of
termination of the period of declarant control, regardless of the accounting methodology
previously used by the association to maintain its accounts.
new text end

(b) The replacement reserve component of the common expenses shall be funded
for each unit in accordance with the projected annual budget required by section
515B.4-102(23); provided, that the funding of replacement reserves with respect to a unit
shall commence no later than the date that the unit or any building located within the unit
boundaries is substantially completed. Substantial completion shall be evidenced by a
certificate of occupancy in any jurisdiction that issues the certificate.

(c) After an assessment has been levied by the association, assessments shall be
levied at least annually, based upon a budget approved at least annually by the association.

(d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common
expenses shall be assessed against all the units in accordance with the allocations
established by the declaration pursuant to section 515B.2-108.

(e) Unless otherwise required by the declaration:

(1) any common expense associated with the maintenance, repair, or replacement
of a limited common element shall be assessed against the units to which that limited
common element is assigned, equally, or in any other proportion the declaration provides;

(2) any common expense or portion thereof benefiting fewer than all of the units
may be assessed exclusively against the units benefited, equally, or in any other proportion
the declaration provides;

(3) the costs of insurance may be assessed in proportion to risk or coverage, and the
costs of utilities may be assessed in proportion to usage;

(4) reasonable attorneys fees and costs incurred by the association in connection
with (i) the collection of assessments and, (ii) the enforcement of this chapter, the articles,
bylaws, declaration, or rules and regulations, against a unit owner, may be assessed
against the unit owner's unit; and

(5) fees, charges, late charges, fines and interest may be assessed as provided
in section 515B.3-116(a).

(f) Assessments levied under section 515B.3-116 to pay a judgment against the
association may be levied only against the units in the common interest community at the
time the judgment was entered, in proportion to their common expense liabilities.

(g) If any damage to the common elements or another unit is caused by the act or
omission of any unit owner, or occupant of a unit, or their invitees, the association may
assess the costs of repairing the damage exclusively against the unit owner's unit to the
extent not covered by insurance.

(h) Subject to any shorter period specified by the declaration or bylaws, if any
installment of an assessment becomes more than 60 days past due, then the association
may, upon ten days' written notice to the unit owner, declare the entire amount of the
assessment immediately due and payable in full.

(i) If common expense liabilities are reallocated for any purpose authorized by this
chapter, common expense assessments and any installment thereof not yet due shall be
recalculated in accordance with the reallocated common expense liabilities.

(j) An assessment against fewer than all of the units must be levied within three years
after the event or circumstances forming the basis for the assessment, or shall be barred.

Sec. 14.

Minnesota Statutes 2005 Supplement, section 515B.3-117, is amended to read:

515B.3-117 OTHER LIENS.

(a) Except in a cooperative and except as otherwise provided in this chapter or in
a security instrument, an individual unit owner may have the unit owner's unit released
from a lien if the unit owner pays the lienholder the portion of the amount which the
lien secures that is attributable to the unit. Upon the receipt of payment, the lienholder
shall promptly deliver to the unit owner a recordable partial satisfaction and release of
lien releasing the unit from the lien. The release shall be deemed to include a release of
any rights in the common elements appurtenant to the unit. The portion of the amount
which a lien secures that is attributable to the unit shall be equal to the total amount which
the lien secures multiplied by a percentage calculated by dividing the common expense
liability attributable to the unit by the common expense liability attributable to all units
against which the lien has been recorded, or in the case of a lien under subsection (b), the
units against which the lien is permitted or required to be recorded. At the request of a
lien claimant or unit owners, the association shall provide a written statement of the
percentage of common expense liability attributable to all units. After a unit owner's
payment pursuant to this section, the association may not assess the unit for any common
expense incurred thereafter in connection with the satisfaction or defense against the lien.

(b) Labor performed or materials furnished for the improvement of a unit shall be
the basis for the recording of a lien against that unit pursuant to the provisions of chapter
514 but shall not be the basis for the recording of a lien against the common elements.
Labor performed or materials furnished for the improvement of common elements, for
which a lien may be recorded under chapter 514, if duly authorized by the association,
shall be deemed to be performed or furnished with the express consent of each unit owner,
and shall be perfected by recording a lien against all the units in the common interest
community, but shall not be the basis for the recording of a lien against the common
elements except in the case of a condominium on registered land, in which case a lien
must be filed pursuant to section 508.351, subdivision deleted text begin 3deleted text end new text begin 5new text end , or 508A.351, subdivision deleted text begin 3deleted text end new text begin 5new text end .
Where a lien is recorded against the units for labor performed or material furnished for the
improvement of common elements, the association shall be deemed to be the authorized
agent of the unit owners for purposes of receiving the notices required under sections
514.011 and 514.08, subdivision 1, clause (2).

(c) A security interest in a cooperative whose unit owners' interests in the units
are personal property shall be perfected by recording a financing statement in the UCC
filing section of the central filing system operated by the Office of the Secretary of
State. In any disposition by a secured party pursuant to section 336.9-610 or retention
pursuant to sections 336.9-620 to 336.9-622, the rights of the parties shall be the same
as those provided by law, subject to the exceptions and requirements set forth in section
515B.3-116(h)(3), and except that the unit owner has the right to reinstate the debt owing
to the secured party by paying to the secured party, prior to the effective date of the
disposition or retention, the amount which would be required to reinstate the debt under
section 580.30 if the unit were wholly real estate.

Sec. 15.

Minnesota Statutes 2005 Supplement, section 515B.4-101, is amended to read:

515B.4-101 APPLICABILITY; DELIVERY OF DISCLOSURE STATEMENT.

(a) Sections 515B.4-101 through 515B.4-118 apply to all units subject to this chapter,
except as provided in subsection (c) or as modified or waived by written agreement of
purchasers of a unit which is restricted to nonresidential use.

(b) Subject to subsections (a) and (c), a declarant who offers a unit to a purchaser
shall deliver to the purchaser a current disclosure statement which complies with the
requirements of section 515B.4-102. The disclosure statement shall include any material
amendments to the disclosure statement made prior to the conveyance of the unit to
the purchaser. The declarant shall be liable to the purchaser to whom it delivered the
disclosure statement for any false or misleading statement set forth therein or for any
omission of a material fact therefrom.

(c) Neither a disclosure statement nor a resale disclosure certificate need be prepared
or delivered in the case of:

(1) a gratuitous transfer;

(2) a transfer pursuant to a court order;

(3) a transfer to a government or governmental agency;

(4) a transfer to a secured party by foreclosure or deed in lieu of foreclosure;

(5) an option to purchase a unit, until exercised;

(6) a transfer to a person who "controls" or is "controlled by," the grantor as those
terms are defined with respect to a declarant under section 515B.1-103(2);

(7) a transfer by inheritance;

(8) a transfer of special declarant rights under section 515B.3-104; or

(9) a transfer in connection with a change of form of common interest community
under section 515B.2-123.

(d) A purchase agreement for a unit shall contain the following notice: "The
following notice is required by Minnesota Statutes. The purchaser is entitled to receive
a disclosure statement or resale disclosure certificate, as applicable. The disclosure
statement or resale disclosure certificate contains important information regarding the
common interest community and the purchaser's cancellation rights."

(e) A purchase agreement for the sale, to the initial occupant, of a platted lot or other
parcel of real estate (i) which is subject to a master declaration, (ii) which is intended
for residential occupancy, and (iii) which does not and is not intended to constitute a
unit, shall contain the following notice: "The following notice is required by Minnesota
Statutes: The real estate to be conveyed under this agreement is or will be subject to a
master association as defined in Minnesota Statutes, chapter 515B. The master association
deleted text begin is obligated todeleted text end new text begin shallnew text end provide to the deleted text begin purchaserdeleted text end new text begin buyernew text end , pursuant to Minnesota Statutes,
section 515B.4-102(c), upon the deleted text begin purchaser'sdeleted text end new text begin buyer'snew text end request, a statement containing the
information required by Minnesota Statutes, section 515B.4-102(a)(20), with respect to the
master association, prior to the time that the deleted text begin purchaserdeleted text end new text begin buyernew text end signs a purchase agreement
for the real estate. The statement contains important information regarding the master
association and the deleted text begin purchaser'sdeleted text end new text begin buyer'snew text end obligations thereunder." A claim by a deleted text begin purchaserdeleted text end new text begin
buyernew text end based upon a failure to include the foregoing notice in a purchase agreement:

(1) shall be limited to legal, and not equitable, remedies;

(2) shall be barred unless it is commenced within the time period specified in section
515B.4-115(a); or

(3) may be waived by a separate written document signed by the seller and deleted text begin purchaserdeleted text end new text begin
buyernew text end .

Sec. 16.

Minnesota Statutes 2005 Supplement, section 515B.4-102, is amended to read:

515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS.

(a) A disclosure statement shall fully and accurately disclose:

(1) the name and, if available, the number of the common interest community;

(2) the name and principal address of the declarant;

(3) the number of units which the declarant has the right to include in the common
interest community and a statement that the common interest community is either a
condominium, cooperative, or planned community;

(4) a general description of the common interest community, including, at a
minimum, (i) the number of buildings, (ii) the number of dwellings per building, (iii)
the type of construction, (iv) whether the common interest community involves new
construction or rehabilitation, (v) whether any building was wholly or partially occupied,
for any purpose, before it was added to the common interest community and the nature
of the occupancy, and (vi) a general description of any roads, trails, or utilities that are
located on the common elements and that the association or a master association will
be required to maintain;

(5) declarant's schedule of commencement and completion of construction of any
buildings and other improvements that the declarant is obligated to build pursuant to
section 515B.4-117;

(6) any expenses or services, not reflected in the budget, that the declarant pays
or provides, which may become a common expense; the projected common expense
attributable to each of those expenses or services; and an explanation of declarant's limited
assessment liability under section 515B.3-115deleted text begin , subsectiondeleted text end (b);

(7) any initial or special fee due from the purchaser to the declarant or the association
at closing, together with a description of the purpose and method of calculating the fee;

(8) identification of any liens, defects, or encumbrances which will continue to affect
the title to a unit or to any real property owned by the association after the contemplated
conveyance;

(9) a description of any financing offered or arranged by the declarant;

(10) a statement as to whether application has been made for any project approvals
for the common interest community from the Federal National Mortgage Association
(FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing
and Urban Development (HUD) or Department of Veterans Affairs (VA), and which, if
any, such final approvals have been received;

(11) the terms of any warranties provided by the declarant, including copies of
sections 515B.4-112 through 515B.4-115, and any other applicable statutory warranties,
and a statement of any limitations on the enforcement of the applicable warranties or on
damages;

(12) a statement that: (i) within deleted text begin fivedeleted text end new text begin tennew text end days after the receipt of a disclosure
statement, a purchaser may cancel any contract for the purchase of a unit from a declarant;
provided, that the right to cancel terminates upon the purchaser's voluntary acceptance
of a conveyance of the unit from the declarant or by the purchaser agreeing to modify or
waive the right to cancel in the manner provided by section 515B.4-106deleted text begin , paragraphdeleted text end (a); (ii)
if a purchaser receives a disclosure statement more than deleted text begin fivedeleted text end new text begin tennew text end days before signing a
purchase agreement, the purchaser cannot cancel the purchase agreement; and (iii) if a
declarant obligated to deliver a disclosure statement fails to deliver a disclosure statement
which substantially complies with this chapter to a purchaser to whom a unit is conveyed,
the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);

(13) a statement disclosing to the extent of the declarant's or an affiliate of a
declarant's actual knowledge, after reasonable inquiry, any unsatisfied judgments or
lawsuits to which the association is a party, and the status of those lawsuits which are
material to the common interest community or the unit being purchased;

(14) a statement (i) describing the conditions under which earnest money will be
held in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii)
that the earnest money will be returned to the purchaser if the purchaser cancels the
contract pursuant to section 515B.4-106, and (iii) setting forth the name and address
of the escrow agent;

(15) a detailed description of the insurance coverage provided by the association for
the benefit of unit owners, including a statement as to which, if any, of the items referred
to in section 515B.3-113, subsection (b), are insured by the association;

(16) any current or expected fees or charges, other than assessments for common
expenses, to be paid by unit owners for the use of the common elements or any other
improvements or facilities;

(17) the financial arrangements, including any contingencies, which have been made
to provide for completion of all improvements that the declarant is obligated to build
pursuant to section 515B.4-118, or a statement that no such arrangements have been made;

(18) in a cooperative: (i) whether the unit owners will be entitled for federal and
state tax purposes, to deduct payments made by the association for real estate taxes
and interest paid to the holder of a security interest encumbering the cooperative; (ii) a
statement as to the effect on the unit owners if the association fails to pay real estate taxes
or payments due the holder of a security interest encumbering the cooperative; and (iii) the
principal amount and a general description of the terms of any blanket mortgage, contract
for deed, or other blanket security instrument encumbering the cooperative property;

(19) a statement: (i) that real estate taxes for the unit or any real property owned by
the association are not delinquent or, if there are delinquent real estate taxes, describing
the property for which the taxes are delinquent, stating the amount of the delinquent
taxes, interest and penalties, and stating the years for which taxes are delinquent, and
(ii) setting forth the amount of real estate taxes, including the amount of any special
assessment certified for payment with the real estate taxes, due and payable with respect to
the unit in the year in which the disclosure statement is given, if real estate taxes have
been separately assessed against the unit;

(20) if the association or the purchaser of the unit will be a member of a master
association, a statement to that effect, and all of the following information with
respect to the master association: (i) a copy of the master declaration, the articles of
incorporation, bylaws, and rules and regulations for the master association, together
with any amendments thereto; (ii) the name, address and general description of the
master association, including a general description of any other association, unit
owners, or other persons which are or may become members; (iii) a description of any
nonresidential use permitted on any property subject to the master association; (iv) a
statement as to the estimated maximum number of associations, unit owners or other
persons which may become members of the master association, and the degree and period
of control of the master association by a declarant or other person; (v) a description of
any facilities intended for the benefit of the members of the master association and
not located on property owned or controlled by a member or the master association;
(vi) the financial arrangements, including any contingencies, which have been made to
provide for completion of the facilities referred to in subsection (v), or a statement that no
arrangements have been made; (vii) any current balance sheet of the master association
and a projected or current annual budget, as applicable, which budget shall include with
respect to the master association those items in paragraph (23), clauses (i) through (iii),
and the projected monthly common expense assessment for each type of unit, lot, or other
parcel of real estate which is or is planned to be subject to assessment; (viii) a description
of any expenses or services not reflected in the budget, paid for or provided by a declarant
or a person executing the master declaration, which may become an expense of the master
association in the future; (ix) a description of any powers delegated to and accepted by
the master association pursuant to section 515B.2-121(f)(2); (x) identification of any
liens, defects or encumbrances that will continue to affect title to property owned or
operated by the master association for the benefit of its members; (xi) the terms of any
warranties provided by any person for construction of facilities in which the members of
the master association have or may have an interest, and any known defects in the facilities
which would violate the standards described in section 515B.4-112(b); (xii) a statement
disclosing, after inquiry of the master association, any unsatisfied judgments or lawsuits to
which the master association is a party, and the status of those lawsuits which are material
to the master association; (xiii) a description of any insurance coverage provided for the
benefit of its members by the master association; and (xiv) any current or expected fees or
charges, other than assessments by the master association, to be paid by members of the
master association for the use of any facilities intended for the benefit of the members;

(21) a statement as to whether the unit will be substantially completed at the time
of conveyance to a purchaser, and if not substantially completed, who is responsible to
complete and pay for the construction of the unit;

(22) a copy of the declaration and any amendments thereto, (exclusive of the CIC
plat), any other recorded covenants, conditions restrictions, and reservations affecting
the common interest community; the articles of incorporation, bylaws and any rules
or regulations of the association; any agreement excluding or modifying any implied
warranties; any agreement reducing the statute of limitations for the enforcement of
warranties; any contracts or leases to be signed by purchaser at closing; and a brief
narrative description of any (i) contracts or leases that are or may be subject to cancellation
by the association under section 515B.3-105 and (ii) any material agreements entered
into between the declarant and a governmental entity that affect the common interest
community; and

(23) a balance sheet for the association, current within 90 days; a projected annual
budget for the association; and a statement identifying the party responsible for the
preparation of the budget. The budget shall assume that all units intended to be included
in the common interest community, based upon the declarant's good faith estimate, have
been subjected to the declaration; provided, that additional budget portrayals based upon
a lesser number of units are permitted. The budget shall include, without limitation: (i)
a statement of the amount included in the budget as a reserve for replacement; (ii) a
statement of any other reserves; (iii) the projected common expense for each category of
expenditures for the association; (iv) the projected monthly common expense assessment
for each type of unit; and (v) a footnote or other reference to those components of the
common interest community the maintenance, repair, or replacement of which the budget
assumes will be funded by assessments under section 515B.3-115(e) rather than by
assessments included in the association's annual budget, and a statement referencing
section 515B.3-115(e)(1) or (2) as the source of funding. If, based upon the association's
then current budget, the monthly common expense assessment for the unit at the time of
conveyance to the purchaser is anticipated to exceed the monthly assessment stated in the
budget, a statement to such effect shall be included.

(b) A declarant shall promptly amend the disclosure statement to reflect any material
change in the information required by this chapter.

(c) The master association, within ten days after a request by a declarant, a holder
of declarant rights, or a deleted text begin purchaserdeleted text end new text begin buyernew text end referred to in section 515B.4-101(e), or the
authorized representative of any of them, shall furnish the information required to be
provided by subsection (a)(20). A declarant or other person who provides information
pursuant to subsection (a)(20) is not liable to the deleted text begin purchaserdeleted text end new text begin buyernew text end for any erroneous
information if the declarant or other person: (i) is not an affiliate of or related in any
way to a person authorized to appoint the master association board pursuant to section
515B.2-121(c)(3), and (ii) has no actual knowledge that the information is incorrect.

Sec. 20.

Minnesota Statutes 2004, section 524.3-301, is amended to read:

524.3-301 INFORMAL PROBATE OR APPOINTMENT PROCEEDINGS;
APPLICATION; CONTENTS.

An informal probate proceeding is an informal proceeding for the probate of
decedent's will with or without an application for informal appointment. An informal
appointment proceeding is an informal proceeding for appointment of a personal
representative in testate or intestate estates. These proceedings may be combined in a
single proceeding. Applications for informal probate or informal appointment shall
be directed to the registrar, and verified by the applicant, in accordance with section
524.1-310, to be accurate and complete to the best of applicant's knowledge and belief
as to the following information:

(1) Every application for informal probate of a will or for informal appointment of
a personal representative, other than a special or successor representative, shall contain
the following:

(i) a statement of the interest of the applicant;

(ii) the name, deleted text begin Social Security number,deleted text end birthdate, and date of death of the decedent,
and the county and state of the decedent's domicile at the time of death, and the names and
addresses of the spouse, children, heirs, and devisees and the ages of any who are minors
so far as known or ascertainable with reasonable diligence by the applicant;

(iii) if the decedent was not domiciled in the state at the time of death, a statement
showing venue;

(iv) a statement identifying and indicating the address of any personal representative
of the decedent appointed in this state or elsewhere whose appointment has not been
terminated;

(v) a statement indicating whether the applicant has received a demand for notice, or
is aware of any demand for notice of any probate or appointment proceeding concerning
the decedent that may have been filed in this state or elsewhere.

(2) An application for informal probate of a will shall state the following in addition
to the statements required by (1):

(i) that the original of the decedent's last will is in the possession of the court, or
accompanies the application, or that an authenticated copy of a will probated in another
jurisdiction accompanies the application;

(ii) that the applicant, to the best of the applicant's knowledge, believes the will to
have been validly executed;

(iii) that after the exercise of reasonable diligence, the applicant is unaware of any
instrument revoking the will, and that the applicant believes that the instrument which is
the subject of the application is the decedent's last will;

(iv) that the time limit for informal probate as provided in this article has not expired
either because three years or less have passed since the decedent's death, or, if more than
three years from death have passed, that circumstances as described by section 524.3-108
authorizing tardy probate have occurred.

(3) An application for informal appointment of a personal representative to
administer an estate under a will shall describe the will by date of execution and state
the time and place of probate or the pending application or petition for probate. The
application for appointment shall adopt the statements in the application or petition for
probate and state the name, address and priority for appointment of the person whose
appointment is sought.

(4) An application for informal appointment of an administrator in intestacy shall
state in addition to the statements required by (1):

(i) that after the exercise of reasonable diligence, the applicant is unaware of any
unrevoked testamentary instrument relating to property having a situs in this state under
section 524.1-301, or, a statement why any such instrument of which the applicant may
be aware is not being probated;

(ii) the priority of the person whose appointment is sought and the names of any
other persons having a prior or equal right to the appointment under section 524.3-203.

(5) An application for appointment of a personal representative to succeed a personal
representative appointed under a different testacy status shall refer to the order in the most
recent testacy proceeding, state the name and address of the person whose appointment
is sought and of the person whose appointment will be terminated if the application is
granted, and describe the priority of the applicant.

(6) An application for appointment of a personal representative to succeed a personal
representative who has tendered a resignation as provided in section 524.3-610(c), or
whose appointment has been terminated by death or removal, shall adopt the statements in
the application or petition which led to the appointment of the person being succeeded
except as specifically changed or corrected, state the name and address of the person who
seeks appointment as successor, and describe the priority of the applicant.

Sec. 21.

Minnesota Statutes 2004, 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 federally insured interest-bearing accounts,
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
thereinnew text begin , including the homestead, exempt or otherwise, new text end for cash, credit, or for part cash
and part credit, deleted text begin anddeleted text end with or without security for unpaid balances, deleted text begin provided, however,deleted text end new text begin
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 new text end 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.

Sec. 22.

Minnesota Statutes 2004, section 524.3-803, is amended to read:

524.3-803 LIMITATIONS ON PRESENTATION OF CLAIMS.

(a) All claims as defined in section 524.1-201deleted text begin (4)deleted text end new text begin (6), new text end against a decedent's estate
which arose before the death of the decedent, including claims of the state and any
subdivision thereof, whether due or to become due, absolute or contingent, liquidated or
unliquidated, if not barred earlier by other statute of limitations, are barred against the
estate, the personal representative, and the heirs and devisees of the decedent, unless
presented as follows:

(1) in the case of a creditor who is only entitled, under the United States Constitution
and under the Minnesota Constitution, to notice by publication under section 524.3-801,
within four months after the date of the court administrator's notice to creditors which
is subsequently published pursuant to section 524.3-801;

(2) in the case of a creditor who was served with notice under section 524.3-801deleted text begin ,deleted text end
deleted text begin paragraphdeleted text end (c), within the later to expire of four months after the date of the first publication
of notice to creditors or one month after the service;

(3) within the later to expire of one year after the decedent's death, or one year after
June 16, 1989, whether or not notice to creditors has been published or served under
section 524.3-801, provided, however, that in the case of a decedent who died before June
16, 1989, no claim which was then barred by any provision of law may be deemed to have
been revived by the amendment of this section.

(b) All claims against a decedent's estate which arise at or after the death of the
decedent, including claims of the state and any subdivision thereof, whether due or to
become due, absolute or contingent, liquidated or unliquidated, are barred against the
estate, the personal representative, and the heirs and devisees of the decedent, unless
presented as follows:

(1) a claim based on a contract with the personal representative, within four months
after performance by the personal representative is due;

(2) any other claim, within four months after it arises.

(c) Nothing in this section affects or prevents:

(1) any proceeding to enforce any mortgage, pledge, or other lien upon property
of the estate;

(2) any proceeding to establish liability of the decedent or the personal representative
for which there is protection by liability insurance, to the limits of the insurance protection
only;

(3) the presentment and payment at any time within one year after the decedent's
death of any claim arising before the death of the decedent that is referred to in section
524.3-715, clause (18), although the same may be otherwise barred under this section; or

(4) the presentment and payment at any time before a petition is filed in compliance
with section 524.3-1001 or 524.3-1002 or a closing statement is filed under section
524.3-1003, of:

(i) any claim arising after the death of the decedent that is referred to in section
524.3-715, clause (18), although the same may be otherwise barred hereunder;

(ii) any other claim, including claims subject to clause (3), which would otherwise be
barred hereunder, upon allowance by the court upon petition of the personal representative
or the claimant for cause shown on notice and hearing as the court may direct.

Sec. 23.

Minnesota Statutes 2005 Supplement, section 548.27, is amended to read:

548.27 FILING AND STATUS OF FOREIGN JUDGMENTS.

deleted text begin (a)deleted text end A certified copy of any foreign judgment may be filed in the office of the court
administrator of any district court of this state. deleted text begin Subject to paragraph (b),deleted text end The court
administrator shall treat the foreign judgment in the same manner as a judgment of
any district court or the Supreme Court of this statedeleted text begin , anddeleted text end new text begin . The time period provided in
section 548.09 for the continuation of the lien on real property, the rate of interest accrual
provided in section 549.09, the time period provided in section 550.01 for the enforcement
of the judgment, and the requirements of sections 508.63 and 508A.63 apply to foreign
judgments filed pursuant to this section. For purposes of sections 548.09, 549.09, 550.01,
508.63, and 508A.63, the date of entry of a foreign judgment is the original date of entry
in the foreign jurisdiction.new text end Upon the filing of a certified copy of a foreign judgment in
the office of the court administrator of district court of a county, it may not be filed in
another district court in the state. A judgment so filed has the same effect and is subject to
the same procedures, defenses and proceedings for reopening, vacating, or staying as a
judgment of a district court or the Supreme Court of this state, and may be enforced or
satisfied in like manner.

deleted text begin (b) If the creditor wants the foreign state's life span or interest rate applied to the
judgment, the creditor or creditor's attorney must file an affidavit attesting to the foreign
state's life span or interest rate, and a subsequent affidavit each time the interest rate or life
span changes. Absent such an affidavit, Minnesota's life span and interest rate shall be
applied to the judgment.
deleted text end