1.1 A bill for an act
1.2 relating to state government; secretary of state;
1.3 regulating filing fees and procedures; amending
1.4 Minnesota Statutes 1996, sections 5.12; 5.23; 5.25,
1.5 subdivision 1; 5A.03; 5A.04; 302A.821, subdivision 5;
1.6 303.14, subdivision 1; 308A.005, by adding a
1.7 subdivision; 317A.821, subdivision 3; 317A.827,
1.8 subdivision 1; 322A.03; 331A.02, subdivision 1;
1.9 333.035; 336.9-403; 336.9-404; 336A.04, subdivision 4;
1.10 and 514.08, subdivision 2; proposing coding for new
1.11 law in Minnesota Statutes, chapter 5; repealing
1.12 Minnesota Rules, part 3650.0030, subpart 8.
1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.14 Section 1. Minnesota Statutes 1996, section 5.12, is
1.15 amended to read:
1.16 5.12 [CERTIFICATE; CERTIFIED COPY OF DOCUMENT; FEE
1.17 CERTIFICATES AND CERTIFICATIONS.]
1.18 Subdivision 1. [FEES.] The secretary of state shall charge
1.19 a fee of $5 for each certificate or certification of a copy of
1.20 any document filed in the office of the secretary of state. The
1.21 secretary of state shall charge a fee of $3 for a copy of an
1.22 original filing of a corporation, limited partnership, trade or
1.23 service mark, or for the complete record of a certificate of
1.24 assumed name. The secretary of state shall charge a fee of $3
1.25 for a copy of any or all subsequent filings of a corporation,
1.26 limited partnership, or trade or service mark. The secretary of
1.27 state shall charge a fee of $1 per page for copies of other
1.28 nonuniform commercial code documents filed with the secretary of
1.29 state.
2.1 Subd. 2. [CERTIFICATE OF GOOD STANDING.] Upon payment of
2.2 the proper fee, the secretary of state shall issue a certificate
2.3 of good standing to a person when a business entity is in good
2.4 standing as defined in section 5.26.
2.5 Subd. 3. [CERTIFICATE OF NOT IN GOOD STANDING.] Upon
2.6 payment of the proper fee, the secretary of state shall issue a
2.7 certificate of not in good standing to a person when a business
2.8 entity is not in good standing as defined in section 5.26.
2.9 Subd. 4. [CERTIFICATE OF REGISTRATION.] Upon payment of
2.10 the proper fee, the secretary of state shall issue a certificate
2.11 of registration to a person when a business filing with the
2.12 secretary has been made that does not create a separate legal
2.13 entity.
2.14 Sec. 2. Minnesota Statutes 1996, section 5.23, is amended
2.15 to read:
2.16 5.23 [REMOVAL OF DOCUMENTS FROM THE PUBLIC RECORD.]
2.17 Subdivision 1. [FAILURE TO PAY FILING FEE.] If an
2.18 instrument authorized to be filed with the secretary of state
2.19 has been submitted with a draft or other negotiable
2.20 instrument payment order or item that is returned without being
2.21 honored rejected or dishonored, the secretary may must remove
2.22 the instrument from the public record. The secretary may also
2.23 pursue collection of the rejected or dishonored draft or
2.24 negotiable instrument payment order or item and recover the face
2.25 amount of the draft or negotiable instrument payment order or
2.26 item, any service fee, and any additional collection costs
2.27 incurred to collect the amount. If the draft or negotiable
2.28 instrument payment order or item is honored, the instrument must
2.29 be returned to the public record as of the date the draft or
2.30 negotiable instrument payment order or item is honored and the
2.31 secretary may impose restrictions on the manner of payment that
2.32 will be accepted for any future filings. This subdivision does
2.33 not apply to financing statements filed under chapter 336.
2.34 Subd. 2. [FAILURE TO PAY FEE.] If a party enters into a
2.35 continuing agreement with the secretary of state for the receipt
2.36 of information or products containing information and payment
3.1 for services or products is made by a draft or other negotiable
3.2 instrument payment order or item that is returned without being
3.3 honored rejected or dishonored, the secretary shall immediately
3.4 terminate the agreement. The secretary may also pursue
3.5 collection of the rejected or dishonored draft or negotiable
3.6 instrument payment order or item and recover the face amount of
3.7 the draft or negotiable instrument payment order or item and any
3.8 additional costs incurred to collect the amount. If the draft
3.9 or negotiable instrument payment order or item is honored, the
3.10 agreement may be reinstated and the secretary may impose
3.11 restrictions on the manner of payment that will be accepted
3.12 during the course of the agreement.
3.13 Subd. 3. [FAILURE TO PAY DIRECT ACCESS CHARGES.] If a
3.14 customer who has subscribed with the secretary of state for
3.15 direct computer access to the secretary's data bases makes
3.16 payment for information received with a draft or other
3.17 negotiable instrument payment order or item that is returned
3.18 without being honored rejected or dishonored, the secretary
3.19 shall immediately terminate the customer's access to the data
3.20 bases. The secretary may also pursue collection of the rejected
3.21 or dishonored draft or negotiable instrument payment order or
3.22 item and recover the face amount of the draft or negotiable
3.23 instrument payment order or item and any additional costs
3.24 incurred to collect the amount. If the draft or negotiable
3.25 instrument payment order or item is honored, access may be
3.26 restored and the secretary may impose restrictions on the
3.27 methods of payment that will be acceptable.
3.28 Subd. 4. [COLLECTION OF ALL AMOUNTS.] The secretary of
3.29 state must collect the face amount of the rejected or dishonored
3.30 draft or negotiable instrument payment order or item, any
3.31 service fee, and all costs of collection in every possible
3.32 instance. Collection must occur whether or not the instrument
3.33 is returned to the public record or the customer continues to
3.34 receive the information products or access to the data base.
3.35 Uncollectible drafts payment orders and items must be processed
3.36 according to applicable Minnesota law.
4.1 Sec. 3. Minnesota Statutes 1996, section 5.25, subdivision
4.2 1, is amended to read:
4.3 Subdivision 1. [WHO MAY BE SERVED.] A process, notice, or
4.4 demand required or permitted by law to be served upon an entity
4.5 governed by chapter 221, 302A, 303, 317A, 322A, 322B, 323, 330,
4.6 540, or 543 may be served on: (1) the registered agent, if any;
4.7 (2) if no agent has been appointed then on an officer, manager,
4.8 or partner of the entity; or (3) if no agent, officer, manager,
4.9 or partner can be found at the address on file with the
4.10 secretary of state, on the secretary of state as provided in
4.11 this section.
4.12 Sec. 4. [5.26] [GOOD STANDING.]
4.13 Subdivision 1. [DEFINITION.] "Good standing" means that a
4.14 business entity has complied with all of the filing and
4.15 registration requirements with the office of the secretary of
4.16 state described in the entity's governing chapter.
4.17 Subd. 2. [EFFECT OF STATUS.] (a) When a business entity is
4.18 in good standing it may amend its organizing document that is on
4.19 file with the secretary of state.
4.20 (b) When a business entity is in good standing, the
4.21 secretary of state shall issue a certificate of good standing as
4.22 described in section 5.12.
4.23 (c) A business entity that is not in good standing may
4.24 participate in a merger where it does not survive the merger
4.25 transaction or may dissolve or terminate its existence. It may
4.26 not amend its organizing document or file other documents with
4.27 the secretary of state, other than documents required to return
4.28 the business entity to good standing.
4.29 (d) When a business entity is not in good standing, the
4.30 secretary of state shall issue a certificate of not in good
4.31 standing as described in section 5.12. The secretary of state
4.32 shall not issue a certificate of good standing with respect to a
4.33 business entity that is not in good standing.
4.34 Subd. 3. [REINSTATEMENT.] Reinstatement of good standing
4.35 is controlled by the provisions of the chapter that governs the
4.36 business entity.
5.1 Sec. 5. Minnesota Statutes 1996, section 5A.03, is amended
5.2 to read:
5.3 5A.03 [ORGANIZATION APPLICATION FOR REGISTRATION.]
5.4 (a) An application for registration as an international
5.5 student exchange visitor placement organization must be
5.6 submitted in the form prescribed by the secretary of state. The
5.7 application must include:
5.8 (1) evidence that the organization meets the standards
5.9 established by the secretary of state by rule;
5.10 (2) the name, address, and telephone number of the
5.11 organization, its chief executive officer, and the person within
5.12 the organization who has primary responsibility for supervising
5.13 placements within the state;
5.14 (3) the organization's unified business identification
5.15 number, if any;
5.16 (4) the organization's United States Information Agency
5.17 number, if any;
5.18 (5) evidence of Council on Standards for International
5.19 Educational Travel listing, if any;
5.20 (6) whether the organization is exempt from federal income
5.21 tax; and
5.22 (7) a list of the organization's placements in Minnesota
5.23 for the previous academic year including the number of students
5.24 placed, their home countries, the school districts in which they
5.25 were placed, and the length of their placements.
5.26 (b) The application must be signed by the chief executive
5.27 officer of the organization and the person within the
5.28 organization who has primary responsibility for supervising
5.29 placements within Minnesota. If the secretary of state
5.30 determines that the application is complete, the secretary of
5.31 state shall file the application and the applicant is registered.
5.32 (c) Organizations that have registered shall inform the
5.33 secretary of state of any changes in the information required
5.34 under paragraph (a), clause (1), within 30 days of the
5.35 change. There is no fee to amend a registration.
5.36 (d) Registration under this chapter is valid for one year.
6.1 The registration may be renewed annually. The fee to renew a
6.2 registration is $50 per year.
6.3 (e) Organizations registering for the first time in
6.4 Minnesota must pay an initial registration fee of $150.
6.5 (f) Fees collected by the secretary of state under this
6.6 section must be deposited in the state treasury and credited to
6.7 the general fund and are added to the appropriation from which
6.8 registration costs are paid.
6.9 Sec. 6. Minnesota Statutes 1996, section 5A.04, is amended
6.10 to read:
6.11 5A.04 [RULES.]
6.12 (a) The secretary of state shall adopt by rule standards
6.13 for international student exchange visitor placement
6.14 organizations. In adopting the rules, the secretary of state
6.15 may adopt standards established by the United States Information
6.16 Agency and the Council on Standards for International
6.17 Educational Travel. The secretary of state may incorporate
6.18 standards established by the United States Information Agency or
6.19 the Council on Standards for International Educational Travel by
6.20 reference and may accept an organization's designation by the
6.21 United States Information Agency or acceptance for listing by
6.22 the Council on Standards for International Educational Travel as
6.23 evidence of compliance with the standards.
6.24 (b) The secretary of state may adopt rules as necessary to
6.25 carry out its duties under this chapter. The rules may provide
6.26 for a reasonable registration fee not to exceed $150 for each
6.27 initial registration and $50 for each annual renewal to defray
6.28 the costs of processing registrations. Fees collected by the
6.29 secretary of state under this provision shall be deposited in
6.30 the state treasury and credited to the general fund and are
6.31 added to the appropriation from which registration costs are
6.32 paid.
6.33 (c) The secretary of state must require that an
6.34 international student exchange visitor placement organization's
6.35 application form for participation as a host family include a
6.36 signed document complying with section 299C.62, subdivision 2,
7.1 that gives the organization permission to conduct a background
7.2 check on members of the host family. Sections 299C.60 to
7.3 299C.64 apply to the background check, except that for purposes
7.4 of this section the term "background check crime" includes any
7.5 felony.
7.6 Sec. 7. Minnesota Statutes 1996, section 302A.821,
7.7 subdivision 5, is amended to read:
7.8 Subd. 5. [PENALTY.] (a) A corporation that has failed for
7.9 three consecutive years to file a registration pursuant to the
7.10 requirements of subdivision 1, has been notified of the failure
7.11 pursuant to subdivision 4, and has failed to file the delinquent
7.12 registration during the 60-day period described in subdivision
7.13 4, shall be dissolved by the secretary of state as described in
7.14 paragraph (b).
7.15 (b) Immediately after the expiration of the 60-day period
7.16 described in paragraph (a), if the corporation has not filed the
7.17 delinquent registration, the secretary of state shall issue a
7.18 certificate of involuntary dissolution, and a copy of the
7.19 certificate shall be filed in the office of the secretary of
7.20 state. The original certificate shall be sent to the registered
7.21 office of the corporation. The secretary of state shall
7.22 annually inform the attorney general and the commissioner of
7.23 revenue of the methods by which the names of corporations
7.24 dissolved under this section during the preceding year may be
7.25 determined. A corporation dissolved in this manner is not
7.26 entitled to the benefits of section 302A.781. The liability, if
7.27 any, of the shareholders of a corporation dissolved in this
7.28 manner shall be determined and limited in accordance with
7.29 section 302A.557, except that the shareholders shall have no
7.30 liability to any director of the corporation under section
7.31 302A.559, subdivision 2.
7.32 Sec. 8. Minnesota Statutes 1996, section 303.14,
7.33 subdivision 1, is amended to read:
7.34 Subdivision 1. [FILED WITH SECRETARY OF STATE; CONTENTS.]
7.35 Between January 15 and May 15, in each calendar year, every
7.36 foreign corporation which holds a certificate of authority shall
8.1 make and file with the secretary of state a report for the
8.2 previous calendar year, setting forth:
8.3 (1) the name of the corporation and the state or country
8.4 under the laws of which it is organized;
8.5 (2) if the name of the corporation does not end with the
8.6 word "Corporation" or the word "Incorporated," or the
8.7 abbreviation "Inc.," or does not contain the word "Company" or
8.8 the abbreviation "Co." not immediately preceded by the word
8.9 "and" or the character "&," then the name of the corporation
8.10 with the word or abbreviation which it has agreed to add thereto
8.11 for use in this state;
8.12 (3) the address of its registered office in this state and
8.13 the name of its registered agent at such address;
8.14 (4) additional information necessary or appropriate to
8.15 enable the secretary of state to determine the additional
8.16 license fee, if any, payable by the corporation;
8.17 (5) a statement of the corporate taxable net income as
8.18 stated in its appropriate Minnesota corporate income tax return
8.19 that was due in the previous year; and
8.20 (6) the fee required by section 303.07, subdivision 2.
8.21 This fee shall be submitted with the annual report.
8.22 Sec. 9. Minnesota Statutes 1996, section 308A.005, is
8.23 amended by adding a subdivision to read:
8.24 Subd. 1a. [ADDRESS.] "Address" means mailing address,
8.25 including a zip code. In the case of a registered address, the
8.26 term means the mailing address and the actual office location,
8.27 which may not be a post office box.
8.28 Sec. 10. Minnesota Statutes 1996, section 317A.821,
8.29 subdivision 3, is amended to read:
8.30 Subd. 3. [DISSOLUTION; EXTENSION.] If a corporation fails
8.31 to regain its good standing under subdivision 2 on or before
8.32 December 31, 1997, the corporation is dissolved under section
8.33 317A.827. After December 31, 1997, the corporate existence of a
8.34 corporation dissolved under this subdivision may be extended by
8.35 filing the initial corporate registration with the secretary of
8.36 state and payment of a $1,000 $25 fee. The extension relates
9.1 back to December 31, 1997.
9.2 Sec. 11. Minnesota Statutes 1996, section 317A.827,
9.3 subdivision 1, is amended to read:
9.4 Subdivision 1. [PROCEDURE.] If a corporation fails to file
9.5 the initial registration by December 31, 1997, or if it fails to
9.6 file the delinquent registration before expiration of the 60-day
9.7 period in section 317A.823, subdivision 3, the secretary of
9.8 state shall immediately issue a certificate of involuntary
9.9 dissolution. The secretary of state shall send the original
9.10 certificate to the registered office of the corporation and file
9.11 a copy in the office of the secretary of state. The secretary
9.12 of state shall annually inform the attorney general of
9.13 the methods by which the names of corporations dissolved under
9.14 this section during the previous year may be determined. A
9.15 corporation dissolved under this section is not entitled to the
9.16 benefits of section 317A.781, subdivision 1.
9.17 Sec. 12. Minnesota Statutes 1996, section 322A.03, is
9.18 amended to read:
9.19 322A.03 [RESERVATION OF NAME.]
9.20 (a) The exclusive right to the use of a name may be
9.21 reserved by:
9.22 (1) any person intending to organize a limited partnership
9.23 under sections 322A.01 to 322A.87 and to adopt that name;
9.24 (2) any domestic limited partnership or any foreign limited
9.25 partnership registered in this state which, in either case,
9.26 intends to adopt that name;
9.27 (3) any foreign limited partnership intending to register
9.28 in this state and adopt that name; and
9.29 (4) any person intending to organize a foreign limited
9.30 partnership and intending to have it register in this state and
9.31 adopt that name.
9.32 (b) The reservation shall be made by filing with the
9.33 secretary of state an application, executed by the applicant, to
9.34 reserve a specified name. On finding that the name is available
9.35 for use by a domestic or foreign limited partnership, the
9.36 secretary of state shall reserve the name for the exclusive use
10.1 of the applicant for a period of 120 days. Once having so
10.2 reserved a name, the same applicant may not again reserve the
10.3 same name until more than 60 days after the expiration of the
10.4 last 120-day period for which that applicant reserved that
10.5 name 12 months. The reservation may be renewed for successive
10.6 12-month periods. The right to the exclusive use of a reserved
10.7 name may be transferred to any other person by filing in the
10.8 office of the secretary of state a notice of the transfer,
10.9 executed by the applicant for whom the name was reserved and
10.10 specifying the name and address of the transferee.
10.11 Sec. 13. Minnesota Statutes 1996, section 331A.02,
10.12 subdivision 1, is amended to read:
10.13 Subdivision 1. [QUALIFICATION.] No newspaper in this state
10.14 shall be entitled to any compensation or fee for publishing any
10.15 public notice unless it is qualified as a medium of official and
10.16 legal publication. A newspaper that is not qualified must
10.17 inform a public body that presents a public notice for
10.18 publication that it is not qualified. To be qualified as a
10.19 medium of official and legal publication, a newspaper shall:
10.20 (a) be printed in the English language in newspaper format
10.21 and in column and sheet form equivalent in printed space to at
10.22 least 1,000 square inches;
10.23 (b) if a daily, be distributed at least five days each
10.24 week, or if not a daily, be distributed at least once each week,
10.25 for 50 weeks each year. In any week in which a legal holiday is
10.26 included, not more than four issues of a daily paper are
10.27 necessary;
10.28 (c) in at least half of its issues each year, have no more
10.29 than 75 percent of its printed space comprised of advertising
10.30 material and paid public notices. In all of its issues each
10.31 year, have 25 percent, if published more often than weekly, or
10.32 50 percent, if weekly, of its news columns devoted to news of
10.33 local interest to the community which it purports to serve. Not
10.34 more than 25 percent of its total nonadvertising column inches
10.35 in any issue may wholly duplicate any other publication unless
10.36 the duplicated material is from recognized general news
11.1 services;
11.2 (d) be circulated in the local public corporation which it
11.3 purports to serve, and either have at least 500 copies regularly
11.4 delivered to paying subscribers, or have at least 500 copies
11.5 regularly distributed without charge to local residents;
11.6 (e) have its known office of issue established in either
11.7 the county in which lies, in whole or in part, the local public
11.8 corporation which the newspaper purports to serve, or in an
11.9 adjoining county;
11.10 (f) file a copy of each issue immediately with the state
11.11 historical society;
11.12 (g) be made available at single or subscription prices to
11.13 any person, corporation, partnership, or other unincorporated
11.14 association requesting the newspaper and making the applicable
11.15 payment, or be distributed without charge to local residents;
11.16 (h) have complied with all the foregoing conditions of this
11.17 subdivision for at least one year immediately preceding the date
11.18 of the notice publication; and
11.19 (i) between September 1 and December 31 of each year
11.20 publish and submit to the secretary of state, along with a
11.21 filing fee of $25, a sworn United States Post Office
11.22 second-class periodicals-class statement of ownership and
11.23 circulation or a statement of ownership and circulation verified
11.24 by a recognized independent circulation auditing agency covering
11.25 a period of not less than at least one year ending no earlier
11.26 than the June 30 preceding the filing publication deadline,
11.27 provided that a filing published and submitted. When
11.28 publication occurs after December 31 and before July 1,
11.29 qualification shall be effective from the date of the
11.30 filing described in paragraph (j) through December 31 of that
11.31 year. The secretary of state shall make the list of newspapers
11.32 whose filings have been accepted available for public
11.33 inspection. The acceptance of a filing does not constitute a
11.34 guarantee by the state that any other qualification requirement
11.35 has been met.; and
11.36 (j) after publication, submit to the secretary of state by
12.1 December 31 a filing containing the newspaper's name, address of
12.2 its known office of issue, telephone number, and a statement
12.3 that it has complied with all of the requirements of this
12.4 section. The filing must be accompanied by a fee of $25. The
12.5 secretary of state shall make available for public inspection a
12.6 list of newspapers that have filed. Acceptance of a filing does
12.7 not constitute a guarantee by the state that any other
12.8 qualification has been met.
12.9 Sec. 14. Minnesota Statutes 1996, section 333.035, is
12.10 amended to read:
12.11 333.035 [AMENDMENT OF CERTIFICATE.]
12.12 Within 60 days after the occurrence of any event which
12.13 makes any statement in the last previous statement certificate
12.14 filed incorrect, an amended certificate shall be filed and the
12.15 amended certificate shall be published by the person conducting
12.16 the business in the same manner as provided by section
12.17 333.01. If the amendment is made only to comply with a change
12.18 in the law that occurred since the previous date of filing,
12.19 publication is not required.
12.20 Sec. 15. Minnesota Statutes 1996, section 336.9-403, is
12.21 amended to read:
12.22 336.9-403 [WHAT CONSTITUTES FILING; DURATION OF FILING;
12.23 EFFECT OF LAPSED FILING; DUTIES OF FILING OFFICER.]
12.24 (1) Presentation for filing of a financing statement and
12.25 tender of the filing fee or acceptance of the statement by the
12.26 filing officer constitutes filing under this article.
12.27 (2) Except as provided in subsection (6) a filed financing
12.28 statement is effective for a period of five years from the date
12.29 of filing. The effectiveness of a filed financing statement
12.30 lapses on the expiration of the five-year period unless a
12.31 continuation statement is filed prior to the lapse. If a
12.32 security interest perfected by filing exists at the time
12.33 insolvency proceedings are commenced by or against the debtor,
12.34 the security interest remains perfected until termination of the
12.35 insolvency proceedings and thereafter for a period of 60 days or
12.36 until expiration of the five-year period, whichever occurs later
13.1 regardless of whether the financing statement filed as to that
13.2 security interest is destroyed by the filing officer pursuant to
13.3 subsection (3). Upon lapse the security interest becomes
13.4 unperfected, unless it is perfected without filing. If the
13.5 security interest becomes unperfected upon lapse, it is deemed
13.6 to have been unperfected as against a person who became a
13.7 purchaser or lien creditor before lapse.
13.8 (3) A continuation statement may be filed by the secured
13.9 party within six months prior to the expiration of the five-year
13.10 period specified in subsection (2). Any such continuation
13.11 statement must be signed by the secured party, set forth the
13.12 name, social security number or other tax identification number
13.13 of the debtor, and address of the debtor and secured party as
13.14 those items appear on the original financing statement or the
13.15 most recently filed amendment, identify the original statement
13.16 by file number and filing date, and state that the original
13.17 statement is still effective. A continuation statement signed
13.18 by a person other than the secured party of record must be
13.19 accompanied by a separate written statement of assignment signed
13.20 by the secured party of record and complying with subsection (2)
13.21 of section 336.9-405, including payment of the required fee.
13.22 Upon timely filing of the continuation statement, the
13.23 effectiveness of the original statement is continued for five
13.24 years after the last date to which the filing was effective
13.25 whereupon it lapses in the same manner as provided in subsection
13.26 (2) unless another continuation statement is filed prior to such
13.27 lapse. Succeeding continuation statements may be filed in the
13.28 same manner to continue the effectiveness of the original
13.29 statement. Unless a statute on disposition of public records
13.30 provides otherwise, the filing officer may remove a lapsed
13.31 statement from the files and destroy it immediately if the
13.32 officer has retained a microfilm or other photographic record
13.33 copy in a format which meets archival standards, or in other
13.34 cases after one year after the lapse. The filing officer shall
13.35 so arrange matters by physical annexation of financing
13.36 statements to continuation statements or other related filings,
14.1 or by other means, that if the officer physically destroys the
14.2 financing statements of a period more than five years past,
14.3 those which have been continued by a continuation statement or
14.4 which are still effective under subsection (6) shall be
14.5 retained. If insolvency proceedings are commenced by or against
14.6 the debtor, the secured party shall notify the filing officer
14.7 both upon commencement and termination of the proceedings, and
14.8 the filing officer shall not destroy any financing statements
14.9 filed with respect to the debtor until termination of the
14.10 insolvency proceedings. The security interest remains perfected
14.11 until termination of the insolvency proceedings and thereafter
14.12 for a period of 60 days or until expiration of the five-year
14.13 period, whichever occurs later.
14.14 (4) Except as provided in subsection (7) a filing officer
14.15 shall mark each statement with a file number and with the date
14.16 and hour of filing and shall hold the statement or a microfilm
14.17 or other photographic copy thereof in a format that meets
14.18 archival standards for public inspection. In addition the
14.19 filing officer shall index the statements according to the name
14.20 of the debtor and shall note in the index the file number, the
14.21 address of the debtor given in the statement, and the social
14.22 security number or other tax identification number of the debtor
14.23 given in the statement.
14.24 (5) The secretary of state shall prescribe uniform forms
14.25 for statements and samples thereof shall be furnished to all
14.26 filing officers in the state. The uniform fee for filing and
14.27 indexing and for stamping a copy furnished by the secured party
14.28 to show the date and place of filing:
14.29 (a) for an original financing statement or statement of
14.30 continuation on a standard form prescribed by the secretary of
14.31 state, is $15 for up to two debtor names and $15 for each
14.32 additional name thereafter;
14.33 (b) for an original financing statement or statement of
14.34 continuation that is not on a standard form prescribed by the
14.35 secretary of state, is $20 for up to two debtor names and $20
14.36 for each additional name thereafter;
15.1 (c) for an amendment on a standard form prescribed by the
15.2 secretary of state that does not add debtor names, is $15;
15.3 (d) for an amendment that is not on a standard form
15.4 prescribed by the secretary of state and that does not add
15.5 debtor names, is $20;
15.6 (e) for an amendment on a standard form prescribed by the
15.7 secretary of state that adds more than one debtor name, is $15
15.8 per debtor name; and
15.9 (f) for an amendment that is not on a standard form
15.10 prescribed by the secretary of state that adds more than one
15.11 debtor name, is $20 per debtor name.
15.12 In no case will a filing officer accept more than four
15.13 additional pages per financing statement for filing in the
15.14 uniform commercial code records.
15.15 The secretary of state shall adopt rules for filing,
15.16 amendment, continuation, termination, removal, and destruction
15.17 of financing statements.
15.18 (6) If the debtor is a transmitting utility (subsection (5)
15.19 of section 336.9-401) and a filed financing statement so states,
15.20 it is effective until a termination statement is filed. A real
15.21 estate mortgage which is effective as a fixture filing under
15.22 subsection (6) of section 336.9-402 remains effective as a
15.23 fixture filing until the mortgage is released or satisfied of
15.24 record or its effectiveness otherwise terminates as to the real
15.25 estate.
15.26 (7) When a financing statement covers timber to be cut or
15.27 covers minerals or the like (including oil and gas) or accounts
15.28 subject to subsection (5) of section 336.9-103, or is filed as a
15.29 fixture filing, it shall be filed for record and the filing
15.30 officer shall index it under the names of the debtor and any
15.31 owner of record shown on the financing statement in the same
15.32 fashion as if they were the mortgagors in a mortgage of the real
15.33 estate described, and, to the extent that the law of this state
15.34 provides for indexing of mortgages under the name of the
15.35 mortgagee, under the name of the secured party as if the secured
15.36 party were the mortgagee thereunder, or, for filing offices
16.1 other than the secretary of state, where indexing is by
16.2 description in the same fashion as if the financing statement
16.3 were a mortgage of the real estate described.
16.4 (8) The fees provided for in this article shall supersede
16.5 the fees for similar services otherwise provided for by law
16.6 except in the case of security interests filed in connection
16.7 with a certificate of title on a motor vehicle.
16.8 Sec. 16. Minnesota Statutes 1996, section 336.9-404, is
16.9 amended to read:
16.10 336.9-404 [TERMINATION STATEMENT.]
16.11 (1) If a financing statement covering consumer goods is
16.12 filed on or after January 1, 1977, then within one month or
16.13 within ten days following written demand by the debtor after
16.14 there is no outstanding secured obligation and no commitment to
16.15 make advances, incur obligations or otherwise give value, the
16.16 secured party must file with each filing officer with whom the
16.17 financing statement was filed, a termination statement to the
16.18 effect that the secured party no longer claims a security
16.19 interest under the financing statement. The termination
16.20 statement must set forth the name and address of the debtor and
16.21 secured party as those items appear on the original financing
16.22 statement or the most recently filed amendment; identify the
16.23 original financing statement by file number and filing date; and
16.24 be signed by the secured party. In other cases whenever there
16.25 is no outstanding secured obligation and no commitment to make
16.26 advances, incur obligations, or otherwise give value, the
16.27 secured party must on written demand by the debtor send the
16.28 debtor, for each filing officer with whom the financing
16.29 statement was filed, a termination statement to the effect that
16.30 the secured party no longer claims a security interest under the
16.31 financing statement, which shall be identified by file number.
16.32 A termination statement signed by a person other than the
16.33 secured party of record must be accompanied by a separate
16.34 written statement of assignment signed by the secured party of
16.35 record and complying with subsection (2) of section 336.9-405,
16.36 including payment of the required fee. If the affected secured
17.1 party fails to file such a termination statement as required by
17.2 this subsection, or to send such a termination statement within
17.3 ten days after proper demand therefor the secured party shall be
17.4 liable to the debtor for $100, and in addition for any loss
17.5 caused to the debtor by such failure.
17.6 (2) On being presented with such a termination statement
17.7 the filing officer must note it in the index. If a duplicate
17.8 termination statement is provided, the filing officer shall
17.9 return one copy of the termination statement to the secured
17.10 party stamped to show the time of receipt thereof. If the
17.11 filing officer has a microfilm or other photographic record of
17.12 the financing statement in a format that meets archival
17.13 standards, and of any related continuation statement, statement
17.14 of assignment and statement of release, the filing officer may
17.15 remove the originals from the files at any time after receipt of
17.16 the termination statement, or having no such record, the filing
17.17 officer may remove them from the files at any time after one
17.18 year after receipt of the termination statement.
17.19 (3) There shall be no fee collected for the filing of a
17.20 termination if the termination statement is in the standard form
17.21 prescribed by the secretary of state. The fee for filing a
17.22 termination statement on a form that is not the standard form
17.23 prescribed by the secretary of state is $5. If the original
17.24 financing statement was subject to subsection (5) of section
17.25 336.9-402, the fee prescribed by section 357.18, subdivision 1,
17.26 clause (1), is also required.
17.27 Sec. 17. Minnesota Statutes 1996, section 336A.04,
17.28 subdivision 4, is amended to read:
17.29 Subd. 4. [FILING PROCEDURE.] (a) The filing officer shall
17.30 mark the effective financing statement or lien notice with a
17.31 consecutive file number and the date and hour of filing.
17.32 (b) The filing office shall maintain the original filed
17.33 document or a microfilm or other photographic copy of the filed
17.34 document in a format that meets archival standards for public
17.35 inspection as provided in rule by the secretary of state.
17.36 (c) The filing office shall index filed documents according
18.1 to the file number of the document.
18.2 Sec. 18. Minnesota Statutes 1996, section 514.08,
18.3 subdivision 2, is amended to read:
18.4 Subd. 2. [STATEMENT BY LIEN CLAIMANT; REQUIREMENTS.] Such
18.5 statement shall be made by or at the instance of the lien
18.6 claimant, be verified by the oath of some person shown by such
18.7 verification to have knowledge of the facts stated, and shall
18.8 set forth:
18.9 (1) a notice of intention to claim and hold a lien, and the
18.10 amount thereof;
18.11 (2) that such amount is due and owing to the claimant for
18.12 labor performed, or for skill, material, or machinery furnished,
18.13 and for what improvement the same was done or supplied;
18.14 (3) the names of the claimant, and of the person for or to
18.15 whom performed or furnished;
18.16 (4) the dates when the first and last items of the
18.17 claimant's contribution to the improvement were made;
18.18 (5) a description of the premises to be charged,
18.19 identifying the same with reasonable certainty;
18.20 (6) the name of the owner thereof at the time of making
18.21 such statement, according to the best information then had;
18.22 (7) the post office address of the claimant. (The failure
18.23 to insert such post office address shall not invalidate the lien
18.24 statement);
18.25 (8) that claimant acknowledges that a copy of the statement
18.26 must be served personally or by certified mail within the
18.27 120-day period provided in this section on the owner, the
18.28 owner's authorized agent or the person who entered into the
18.29 contract with the contractor as provided herein; and
18.30 (9) that notice as required by section 514.011, subdivision
18.31 2, if any, was given.
18.32 When the claimant files the notice, the social security
18.33 number of an individual owner or the Internal Revenue Service
18.34 taxpayer identification number for an owner other than an
18.35 individual is not required.
18.36 Sec. 19. [RULES REPEALER.]
19.1 Minnesota Rules, part 3650.0030, subpart 8, is repealed.