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HF 208

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:34am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
 relating to creditors' remedies; changing the type of mailed notification to secured
creditors required in connection with foreclosure of a mechanics lien on a motor
vehicle; amending Minnesota Statutes 2008, section 514.20.

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

Section 1.

Minnesota Statutes 2008, section 514.20, is amended to read:


514.20 SALE.

If any sum secured by such lien be not paid within 90 days after it becomes due, the
lienholder may sell the property and out of the proceeds of such sale there shall be paid,
first, the disbursements aforesaid; second, all charges against the property paid by such
person to any other person; and, third, the total indebtedness then secured by the lien. The
remainder, if any, shall be paid on demand to the owner or other person entitled thereto. If
the property subject to the lien is a motor vehicle registered in this state and subject to a
certificate of title, then the lienholder must provide written notice, by deleted text begin registereddeleted text end new text begin certifiednew text end
mail, to all secured creditors listed on the certificate of title 45 days before the lienholder's
right to sell the motor vehicle is considered effective. The notice must state the name,
address, and telephone number of the lienholder, the amount of money owed, and the rate
at which storage charges, if any, are accruing. Costs for deleted text begin registereddeleted text end new text begin certifiednew text end mail and
other reasonable costs related to complying with this notice provision constitute "lawful
charges" pursuant to section 514.19. Failure to comply with the notice provision in this
section renders any lien created by this chapter ineffective against any secured party listed
on the certificate of title of the motor vehicle involved.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to notices mailed on or after that date, provided however that it is also
permissible to send notices under this section by registered mail prior to August 1, 2009,
and the costs of those notices are lawful charges under this section.
 new text end