Minnesota Legislature
HF 3533
1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/11/2020 12:09pm
Current Version - 1st Engrossment
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A bill for an act
relating to agriculture; modifying and updating certain provisions relating to real
property; repealing obsolete provisions; making clarifying and technical changes;
amending Minnesota Statutes 2018, sections 336.9-601; 550.365, subdivision 2;
559.209; 582.039, subdivision 2; 583.25; 583.26, subdivision 2; repealing
Minnesota Statutes 2018, section 346.02.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2018, section 336.9-601, is amended to read:
336.9-601 RIGHTS AFTER DEFAULT; JUDICIAL ENFORCEMENT;
CONSIGNOR OR BUYER OF ACCOUNTS, CHATTEL PAPER, PAYMENT
INTANGIBLES, OR PROMISSORY NOTES.
(a) Rights of secured party after default. After default, a secured party has the rights
provided in this part and, except as otherwise provided in section 336.9-602, those provided
by agreement of the parties. A secured party:
(1) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security
interest, or agricultural lien by any available judicial procedure; and
(2) if the collateral is documents, may proceed either as to the documents or as to the
goods they cover.
(b) Rights and duties of secured party in possession or control. A secured party in
possession of collateral or control of collateral under section 336.7-106, 336.9-104,
336.9-105, 336.9-106, or 336.9-107 has the rights and duties provided in section 336.9-207.
(c) Rights cumulative; simultaneous exercise. The rights under subsections (a) and
(b) are cumulative and may be exercised simultaneously.
(d) Rights of debtor and obligor. Except as otherwise provided in subsection (g) and
section 336.9-605, after default, a debtor and an obligor have the rights provided in this part
and by agreement of the parties.
(e) Lien of levy after judgment. If a secured party has reduced its claim to judgment,
the lien of any levy that may be made upon the collateral by virtue of an execution based
upon the judgment relates back to the earliest of:
(1) the date of perfection of the security interest or agricultural lien in the collateral;
(2) the date of filing a financing statement covering the collateral; or
(3) any date specified in a statute under which the agricultural lien was created.
(f) Execution sale. A sale pursuant to an execution is a foreclosure of the security interest
or agricultural lien by judicial procedure within the meaning of this section. A secured party
may purchase at the sale and thereafter hold the collateral free of any other requirements
of this article.
(g) Consignor or buyer of certain rights to payment. Except as otherwise provided
in section 336.9-607 (c), this part imposes no duties upon a secured party that is a consignor
or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
(h) Security interest in collateral that is agricultural property; enforcement. A
person may not begin to enforce a security interest in collateral that is agricultural property
subject to sections 583.20 to 583.32 that has secured a debt of more than the amount provided
in section 583.24, subdivision 5, unless: a mediation notice under subsection (i) is served
on the debtor after a condition of default has occurred in the security agreement and a copy
served on the director of the deleted text begin agriculturaldeleted text end new text begin Minnesotanew text end extension service; and the debtor and
creditor have completed mediation under sections 583.20 to 583.32; or as otherwise allowed
under sections 583.20 to 583.32.
(i) Mediation notice. A mediation notice under subsection (h) must contain the following
notice with the blanks properly filled in.
"TO: ...(Name of Debtor)...
YOU HAVE DEFAULTED ON THE ...(Debt in Default)... SECURED BY
AGRICULTURAL PROPERTY DESCRIBED AS ...(Reasonable Description of Agricultural
Property Collateral). THE AMOUNT OF THE OUTSTANDING DEBT IS ...(Amount of
Debt)...
AS A SECURED PARTY, ...(Name of Secured Party)... INTENDS TO ENFORCE
THE SECURITY AGREEMENT AGAINST THE AGRICULTURAL PROPERTY
DESCRIBED ABOVE BY REPOSSESSING, FORECLOSING ON, OR OBTAINING A
COURT JUDGMENT AGAINST THE PROPERTY.
YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION.
IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE
MEDIATED ONLY ONCE. IF YOU DO NOT REQUEST MEDIATION, THIS DEBT
WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY
ENFORCES THE DEBT.
IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
deleted text begin AGRICULTURALdeleted text end new text begin MINNESOTAnew text end EXTENSION SERVICE WILL PROVIDE AN
ORIENTATION MEETING AND A FINANCIAL ANALYST TO HELP YOU TO
PREPARE FINANCIAL INFORMATION. IF YOU DECIDE TO PARTICIPATE IN
MEDIATION, IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM
FINANCE AND OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION
OFFICE AS SOON AS POSSIBLE. MEDIATION WILL ATTEMPT TO ARRIVE AT
AN AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.
TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A
MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER YOU
RECEIVE THIS NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE deleted text begin AT
ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICEdeleted text end new text begin FROM THE
DIRECTOR OF THE MINNESOTA EXTENSION SERVICEnew text end .
FROM: ...(Name and Address of Secured Party)..."
Sec. 2.
Minnesota Statutes 2018, section 550.365, subdivision 2, is amended to read:
Subd. 2.
Contents.
A mediation notice must contain the following notice with the blanks
properly filled in.
"TO: ....(Name of Judgment Debtor)....
A JUDGMENT WAS ORDERED AGAINST YOU BY ....(Name of Court).... ON
....(Date of Judgment).
AS A JUDGMENT CREDITOR, ....(Name of Judgment Creditor).... INTENDS TO
TAKE ACTION AGAINST THE AGRICULTURAL PROPERTY DESCRIBED
AS....(Description of Agricultural Property).... TO SATISFY THE JUDGMENT IN THE
AMOUNT OF ....(Amount of Debt)....
YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION.
IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE
MEDIATED ONLY ONCE. IF YOU DO NOT REQUEST MEDIATION, THIS DEBT
WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY
ENFORCES THE DEBT.
IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
deleted text begin AGRICULTURALdeleted text end new text begin MINNESOTAnew text end EXTENSION SERVICE WILL PROVIDE AN
ORIENTATION MEETING AND A FINANCIAL ANALYST TO HELP YOU PREPARE
FINANCIAL INFORMATION. IF YOU DECIDE TO PARTICIPATE IN MEDIATION,
IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM FINANCE AND
OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION OFFICE AS
SOON AS POSSIBLE. MEDIATION WILL ATTEMPT TO ARRIVE AT AN
AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.
TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A
MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER YOU
RECEIVE THIS NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE deleted text begin AT
ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICEdeleted text end new text begin FROM THE
DIRECTOR OF THE MINNESOTA EXTENSION SERVICEnew text end .
FROM: ....(Name and Address of Judgment Creditor)...."
Sec. 3.
Minnesota Statutes 2018, section 559.209, is amended to read:
559.209 MEDIATION NOTICE AND CONDITIONS FOR AGRICULTURAL
PROPERTY.
Subdivision 1.
Requirement.
A person may not begin to terminate a contract for deed
under section 559.21 to purchase agricultural property subject to sections 583.20 to 583.32
for a remaining balance on the contract of more than the amount provided in section 583.24,
subdivision 5, unless: (1) a mediation notice is served on the contract for deed purchaser
after a default has occurred under the contract and a copy served on the director and the
contract for deed vendor and purchaser have completed mediation under sections 583.20
to 583.32; or (2) as otherwise allowed under sections 583.20 to 583.32.
Subd. 2.
Contents.
A mediation notice must contain the following notice with the blanks
properly filled in.
"TO: ....(Name of Contract for Deed Purchaser)....
YOU HAVE DEFAULTED ON THE CONTRACT FOR DEED OF THE
AGRICULTURAL PROPERTY DESCRIBED AS ....(Size and Reasonable Location of
Property, Not Legal Description). THE AMOUNT OF THE OUTSTANDING DEBT IS
....(Amount of Debt)....
AS THE CONTRACT FOR DEED VENDOR, ....(Contract for Deed Vendor)....
INTENDS TO TERMINATE THE CONTRACT AND TAKE BACK THE PROPERTY.
YOU HAVE THE RIGHT TO HAVE THE CONTRACT FOR DEED DEBT
REVIEWED FOR MEDIATION. IF YOU REQUEST MEDIATION, A DEBT THAT IS
IN DEFAULT WILL BE MEDIATED ONLY ONCE. IF YOU DO NOT REQUEST
MEDIATION, THIS DEBT WILL NOT BE SUBJECT TO FUTURE MEDIATION IF
THE CONTRACT FOR DEED VENDOR BEGINS REMEDIES TO ENFORCE THE
DEBT.
IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
deleted text begin AGRICULTURALdeleted text end new text begin MINNESOTAnew text end EXTENSION SERVICE WILL PROVIDE AN
ORIENTATION MEETING AND A FINANCIAL ANALYST TO HELP YOU PREPARE
FINANCIAL INFORMATION. IF YOU DECIDE TO PARTICIPATE IN MEDIATION,
IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM FINANCE AND
OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION OFFICE AS
SOON AS POSSIBLE. MEDIATION WILL ATTEMPT TO ARRIVE AT AN
AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.
TO HAVE THE CONTRACT FOR DEED DEBT REVIEWED FOR MEDIATION
YOU MUST FILE A MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14
DAYS AFTER YOU RECEIVE THE NOTICE. THE MEDIATION REQUEST FORM
IS AVAILABLE deleted text begin AT ANY COUNTY EXTENSION OFFICEdeleted text end new text begin FROM THE DIRECTOR
OF THE MINNESOTA EXTENSION SERVICEnew text end .
FROM: ....(Name and Address of Contract for Deed Vendor)...."
Sec. 4.
Minnesota Statutes 2018, section 582.039, subdivision 2, is amended to read:
Subd. 2.
Contents.
A mediation notice must contain the following notice with the blanks
properly filled in.
"TO: ....(Name of Record Owner)....
YOU HAVE DEFAULTED ON THE MORTGAGE OF THE AGRICULTURAL
PROPERTY DESCRIBED AS ....(Size and Reasonable Location, Not Legal Description).
THE AMOUNT OF THE OUTSTANDING DEBT ON THIS PROPERTY IS ....(Amount
of Debt)....
AS HOLDER OF THE MORTGAGE, ....(Name of Holder of Mortgage).... INTENDS
TO FORECLOSE ON THE PROPERTY DESCRIBED ABOVE.
YOU HAVE THE RIGHT TO HAVE THE MORTGAGE DEBT REVIEWED FOR
MEDIATION. IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL
BE MEDIATED ONLY ONCE. IF YOU DO NOT REQUEST MEDIATION, THIS DEBT
WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY
ENFORCES THE DEBT.
IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE
deleted text begin AGRICULTURALdeleted text end new text begin MINNESOTAnew text end EXTENSION SERVICE WILL PROVIDE AN
ORIENTATION MEETING AND A FINANCIAL ANALYST TO HELP YOU PREPARE
FINANCIAL INFORMATION. IF YOU DECIDE TO PARTICIPATE IN MEDIATION,
IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM FINANCE AND
OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION OFFICE AS
SOON AS POSSIBLE. MEDIATION WILL ATTEMPT TO ARRIVE AT AN
AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.
TO HAVE THE MORTGAGE DEBT REVIEWED FOR MEDIATION YOU MUST
FILE A MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER
YOU RECEIVE THIS NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE
deleted text begin AT ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICEdeleted text end new text begin FROM THE
DIRECTOR OF THE MINNESOTA EXTENSION SERVICEnew text end .
FROM: ....(Name and Address of Holder of Mortgage)...."
Sec. 5.
Minnesota Statutes 2018, section 583.25, is amended to read:
583.25 VOLUNTARY MEDIATION PROCEEDINGS.
A debtor that owns agricultural property or a creditor of the debtor may request mediation
of the indebtedness by a farm mediator by applying to the director. The director shall deleted text begin makedeleted text end new text begin
providenew text end voluntary mediation application forms deleted text begin available at the county recorder's and county
extension office in each countydeleted text end new text begin when requestednew text end . The director must evaluate each request
and may direct a mediator to meet with the debtor and creditor to assist in mediation.
Sec. 6.
Minnesota Statutes 2018, section 583.26, subdivision 2, is amended to read:
Subd. 2.
Mediation request.
(a) A debtor must file a mediation request form with the
director by 14 days after receiving a mediation notice. The debtor must state all known
creditors with debts secured for agricultural property and must authorize the director to
obtain the debtor's credit report from one or more credit reporting agencies. The mediation
request form must include an instruction that the debtor must state all known creditors with
debts secured by agricultural property and unsecured creditors that are necessary for the
farm operation of the debtor. It is the debtor's discretion as to which unsecured creditors
are necessary for the farm operation but the mediation request form must notify the debtor
that omission of a significant unsecured creditor could result in a bad-faith determination
pursuant to section 583.27, subdivisions 1, paragraph (a), clause (2), and 2. The mediation
request must state the date that the notice was served on the debtor. The director shall deleted text begin makedeleted text end new text begin
providenew text end mediation request forms deleted text begin available in the county recorder's and county extension
office of each countydeleted text end new text begin when requestednew text end .
(b) Except as provided in section 583.24, subdivision 4, paragraph (a), clause (3), a
debtor who fails to file a timely mediation request waives the right to mediation for that
debt under the Farmer-Lender Mediation Act. The director shall notify the creditor who
served the mediation notice stating that the creditor may proceed against the agricultural
property because the debtor has failed to file a mediation request.
(c) If a debtor has not received a mediation notice and is subject to a proceeding of a
creditor enforcing a debt against agricultural property under chapter 580 or 581 or sections
336.9-601 to 336.9-628, terminating a contract for deed to purchase agricultural property
under section 559.21, or garnishing, levying on, executing on, seizing, or attaching
agricultural property, the debtor may file a mediation request with the director. The mediation
request form must indicate that the debtor has not received a mediation notice.
Sec. 7. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 346.02,
new text end
new text begin
is repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: H3533-1
346.02 FINDER TO GIVE NOTICE; PENALTY.
A person who finds an estray and knows who owns it shall notify the owner within seven days after finding the estray and request the owner to pay all reasonable charges and take such estray away. A finder who does not know who owns the estray shall within ten days file a notice with the town clerk. The clerk shall transmit a copy thereof to the county recorder, who shall record the same in a book designated "estray book." The finder shall give posted notice of the finding of the estray in said town. The notice shall briefly describe the estray, giving its marks, natural and artificial, as nearly as practicable, naming the residence of the finder, and specifying the town, section, and time when taken up. For failure to give such notice, the finder shall be liable to the owner of the estray in double the amount of damages sustained by the owner thereby.