SF 2538

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/02/2014 08:30am

A bill for an act
relating to liens; regulating liens on personal property; providing for the sale of
a motor vehicle held by a licensed dealer; amending Minnesota Statutes 2012,
section 514.21.

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

Section 1.

Minnesota Statutes 2012, section 514.21, is amended to read:

514.21 SALE, WHEN AND WHERE MADE; NOTICE.

new text begin Subdivision 1. new text end

new text begin Generally. new text end

The sale herein provided for shall be made at public
auction between nine o'clock in the morning and five o'clock in the afternoon in the county
where the property or some part thereof is situated. A notice stating the time and place
of sale, the amount which will be due on the date of sale exclusive of the expenses
of advertising and sale, and the grounds of the lien, giving a general description of the
property to be sold, shall be served personally upon the owner of the property if the owner
can be found within the county in which the property is stored, and if not, then it shall be
mailed to the owner thereof at least three weeks before the time fixed for such sale if the
place of residence or post office address of such owner is known by, or with due diligence
can be learned by, the person claiming such lien, and shall be published once in each week
for three successive weeks in a newspaper printed and published in the county where the
property, or some part thereof, is situated, the last publication of such notice to be at least
one week prior to the date of sale; or, if there is no newspaper printed and published in
the county, then the notice of sale shall be posted in three of the most public places in the
county at least three weeks before the time of sale. In case neither the place of residence
nor the post office address of such owner is known to the person claiming such lien and
cannot with reasonable diligence be learned, the publication or posting of notice, as herein
provided, shall be sufficient to authorize such sale.

new text begin Subd. 2. new text end

new text begin Motor vehicle held by licensed dealer. new text end

new text begin (a) If the property subject to
the lien is a motor vehicle and the lienholder is a dealer licensed under section 168.27,
subdivision 2 or 3, the dealer may sell the vehicle as provided in subdivision 1 or may
sell the vehicle at wholesale or retail in the ordinary course of business after notice to
the owner as provided in this subdivision.
new text end

new text begin (b) At least three weeks prior to sale, the dealer shall send a written notice by
certified mail to the last known address of the owner of the vehicle according to the
records of the dealer. If the vehicle is registered in this state and subject to a certificate of
title and the name of the owner or the address of the owner is different than shown on
the records of the dealer, the dealer shall also send the written notice to the registered
owner by certified mail at the address shown.
new text end

new text begin (c) The notice must contain a description of the vehicle, the grounds of the lien, the
name, address, and telephone number of the dealer, the total amount owed including any
accrued storage charges, the date after which the vehicle will be sold, and a statement that
the owner may reclaim the vehicle prior to sale by paying the full amount due.
new text end

new text begin (d) A dealer who sells a vehicle under this subdivision waives any further claim
against the owner for any deficiency or other charges secured by the lien.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective August 1, 2014,
and applies to a vehicle in the possession of a licensed dealer on or after that date.
new text end