2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to farm products; regulating liens and 1.3 financing statements; establishing filing 1.4 requirements; setting fees; appropriating money; 1.5 amending Minnesota Statutes 2002, sections 336A.01; 1.6 336A.02; 336A.03; 336A.04; 336A.05; 336A.06; 336A.07; 1.7 336A.08; 336A.09; 336A.10; 336A.11, subdivisions 1, 2; 1.8 336A.12; 336A.13; proposing coding for new law in 1.9 Minnesota Statutes, chapter 336A; repealing Minnesota 1.10 Rules, parts 8265.0100; 8265.0200; 8265.0300; 1.11 8265.0400; 8265.0500; 8265.0600. 1.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.13 Section 1. Minnesota Statutes 2002, section 336A.01, is 1.14 amended to read: 1.15 336A.01 [DEFINITIONS.] 1.16 Subdivision 1. [APPLICABILITY.] The definitions in this 1.17 section apply to this chapter. 1.18 Subd. 2. [BUSINESS DAY.] "Business day" means a weekday on 1.19 which government offices are open for business. Business day 1.20 does not include state or federal holidays, Saturdays, or 1.21 Sundays. 1.22 Subd.2.3. [BUYER IN THE ORDINARY COURSE OF BUSINESS.] 1.23 "Buyer in the ordinary course of business" means a person who, 1.24 in the ordinary course of business, buys farm products from a 1.25 person engaged in farming operations who is in the business of 1.26 selling farm products. 1.27 Subd.3.4. [COMMISSION MERCHANT.] "Commission merchant" 1.28 means a person engaged in the business of receiving a farm 2.1 product for sale on commission or for or on behalf of another 2.2 person. 2.3 Subd.4.5. [COMPUTERIZED FILING SYSTEM.] "Computerized 2.4 filing system" means the system created by the secretary of 2.5 statewith separate programsfor filing and giving notice of 2.6 effective financing statements and farm products statutory liens. 2.7 Subd. 6. [CROP YEAR.] "Crop year" means: 2.8 (1) for a crop, the calendar year in which it is harvested 2.9 or to be harvested; 2.10 (2) for animals, the calendar year in which they are born 2.11 or acquired; and 2.12 (3) for poultry or eggs, the calendar year in which they 2.13 are sold or to be sold. 2.14 Subd. 7. [DEBTOR.] "Debtor" means an individual or other 2.15 legal entity that has borrowed money from or is otherwise 2.16 indebted to a lienholder or secured party and whose farm 2.17 products are subject to a farm products statutory lien created 2.18 by operation of law or a security interest, to secure payment of 2.19 the obligation. 2.20 Subd.5.8. [EFFECTIVE FINANCING STATEMENT.] "Effective 2.21 financing statement" meansan original or reproduced copy of an2.22originala statement that meets the requirements of section 2.23 336A.03. 2.24 Subd.6.9. [FARM PRODUCT.] "Farm product" means an 2.25 agricultural commodity, a species of livestock used or produced 2.26 in farming operations, or a product of a crop or the livestock 2.27 in its unmanufactured state, that is in the possession of a 2.28 person engaged in farming operations. 2.29 Subd.7.10. [FARM PRODUCT DEALER.] "Farm product dealer" 2.30 means a buyer in the ordinary course of business, a commission 2.31 merchant, or a selling agent. 2.32 Subd.8.11. [FARM PRODUCTS STATUTORY LIEN.] "Farm 2.33 products statutory lien" means a lien on farm products which is 2.34 given by statute or other rule of law for services or 2.35 materials and includes an agricultural lien as defined in 2.36 sections 336.9-102(a)(5); 514.963, subdivision 3; and 514.965, 3.1 subdivision 2; and an agricultural producer's lien as provided 3.2 in section 514.945. 3.3 Subd.9.12. [FILING OFFICE.] "Filing office" meansthe3.4office of the county recorder orthe Office of the Secretary of 3.5 State. 3.6 Subd.10.13. [FILING OFFICER.] "Filing officer" meansa3.7county recorder,the secretary of state,or an agent ofa county3.8recorder orthe secretary of state authorized to accept filings. 3.9 Subd. 14. [LIENHOLDER.] "Lienholder" means an individual 3.10 or other legal entity who has the right to collect money from a 3.11 debtor and who has a farm products statutory lien. 3.12 Subd.11.15. [LIEN NOTICE.] "Lien notice" meansan3.13original or reproduced copy of an originala statement that 3.14 meets the requirements of section 336A.03. 3.15 Subd. 16. [MONTHLY LIST.] "Monthly list" means information 3.16 about debtors, secured parties, lienholders, and farm products 3.17 that is produced by the secretary of state and distributed once 3.18 a month in the form of master or partial master lists. 3.19 Subd.12.17. [PERSON.] "Person" means an individual, 3.20 partnership, corporation, trust, or other business entity. 3.21 Subd. 18. [SECURED PARTY.] "Secured party" means an 3.22 individual or other legal entity that has received a security 3.23 interest in farm products to secure repayment of the obligation 3.24 owed to it. 3.25 Subd.13.19. [SECURITY INTEREST.] "Security interest" 3.26 means an interest in farm products that secures payment or 3.27 performance of an obligation. 3.28 Subd.14.20. [SELLING AGENT.] "Selling agent" means a 3.29 person, other than a commission merchant, who is engaged in the 3.30 business of negotiating the sale and purchase of a farm product 3.31 on behalf of a person engaged in farming operations. 3.32 Sec. 2. Minnesota Statutes 2002, section 336A.02, is 3.33 amended to read: 3.34 336A.02 [SPECIFICATION OF FARM PRODUCTS.] 3.35 Subdivision 1. [LIST OF PRODUCTS.]The secretary of state3.36shall, by rule, determine which specific farm products will be4.1included in the computerized filing and notification system.4.2Consideration shall be given to the value of the product sold4.3within the state and its marketing system.The computerized 4.4 filing system must provide information about the following farm 4.5 products: 4.6 (1) wheat/durum; 4.7 (2) alfalfa; 4.8 (3) barley; 4.9 (4) oats; 4.10 (5) rye; 4.11 (6) sorghum; 4.12 (7) hay; 4.13 (8) flax; 4.14 (9) sunflowers; 4.15 (10) field corn; 4.16 (11) silage; 4.17 (12) canola; 4.18 (13) soybeans; 4.19 (14) dry edible beans; 4.20 (15) green beans; 4.21 (16) snap beans; 4.22 (17) green lima beans; 4.23 (18) sweet corn; 4.24 (19) green peas; 4.25 (20) potatoes; 4.26 (21) carrots; 4.27 (22) onions; 4.28 (23) cucumbers; 4.29 (24) sugar beets; 4.30 (25) wool; 4.31 (26) milk; 4.32 (27) eggs; 4.33 (28) cheese; 4.34 (29) apples; 4.35 (30) honey/bees wax; 4.36 (31) cattle/calves; 5.1 (32) hogs/pigs; 5.2 (33) sheep/lambs; 5.3 (34) horses; 5.4 (35) goats; 5.5 (36) chickens; 5.6 (37) broilers; 5.7 (38) turkeys; 5.8 (39) mink; 5.9 (40) fish; 5.10 (41) wild rice; and 5.11 (42) bison. 5.12 Subd. 2. [CROPS GROWN FOR SEED.] Information about the 5.13 crops listed in subdivision 1 includes information on crops 5.14 grown for seed. 5.15 Sec. 3. Minnesota Statutes 2002, section 336A.03, is 5.16 amended to read: 5.17 336A.03 [CONTENTS OF FINANCING STATEMENT OR LIEN NOTICE.] 5.18 Subdivision 1. [SUBSTANTIAL COMPLIANCE.] An effective 5.19 financing statement or lien notice must substantially comply 5.20 with this section but may contain minor errors that are not 5.21 seriously misleading. 5.22 Subd. 1a. [FORM.] (a) An effective financing statement is 5.23 an original or reproduced copy of the statement or an 5.24 electronically reproduced copy of the statement. 5.25 (b) A lien notice is an original or reproduced copy of the 5.26 notice or an electronically reproduced copy of the notice. 5.27 Subd. 2. [CONTENTS.] (a) An effective financing statement 5.28 or lien notice must contain: 5.29 (1) a description of the farm products subject to the 5.30 security interest or farm products statutory lien, including the 5.31 amount of the farm products, if applicable, anda reasonable5.32description of the location of the property, includingthe name 5.33 of the county, where the farm products are produced or located; 5.34 (2) the name and address of the secured party or theperson5.35entitled to the farm products statutory lienlienholder; 5.36 (3) the name and address of the debtor; 6.1 (4) in the case of an effective financing statement, the 6.2 Social Security number of the debtor, or, if the debtor is doing 6.3 business other than as an individual, the United States Internal 6.4 Revenue Service taxpayer identification number of the 6.5 debtor; and 6.6 (5)in the case of an effective financing statement, the6.7following statement with the appropriate blank checked:6.8"THIS EFFECTIVE FINANCING STATEMENT .... WILL ..... WILL6.9NOT BE TERMINATED WITHIN 30 DAYS OF THE DATE ON WHICH THE6.10OBLIGATION(S) IT SECURES NO LONGER EXIST."; and6.11(6)in the case of a lien notice, any payment obligations 6.12 imposed on the buyer, commission merchant, or selling agent as a 6.13 condition for waiver or release of the farm products statutory 6.14 lien. 6.15 (b) An effective financing statement or lien notice for one 6.16 or more debtors may cover more than one farm product located in 6.17 more than one county. 6.18 (c) The effective financing statementformand lien notice 6.19 may not be combined with a Uniform Commercial Code financing 6.20 statement form or format and must be filed on the form or in the 6.21 format designated by the secretary of state as an effective 6.22 financing statement/lien notice. 6.23 (d) An effective financing statement or the record 6.24 authorizing the filing of an effective financing statement must 6.25 contain the following statement, all in capital letters: 6.26 "THE INFORMATION CONTAINED INTHISAN EFFECTIVE FINANCING 6.27 STATEMENT WILL BE SENT TO FARM PRODUCT BUYERS REGISTERED IN 6.28 MINNESOTA. SALE OF FARM PRODUCTS TO THOSE BUYERS MAY 6.29 RESULT IN A CHECK BEING ISSUED PAYABLE JOINTLY TO BOTH THE 6.30 SELLER AND THE SECURED PARTY." 6.31 (e) A description of the farm products must include a 6.32 product code provided by the secretary of state and if 6.33 applicable, the amount of the farm product in those situations 6.34 where this information is needed to distinguish that part of the 6.35 farm product subject to the security interest or farm products 6.36 statutory lien from that part which is not. The amount may be 7.1 described by the number of acres, the number of bushels, the 7.2 number of head, or any other accepted method of counting the 7.3 specific farm product. A dollar amount may not be used as this 7.4 description. 7.5 (f) The name of the county where the farm products are 7.6 produced or located must be designated by using the two-digit 7.7 county code provided by the secretary of state. 7.8 (g) The party completing the effective financing statement 7.9 or lien notice is responsible for choosing and listing the farm 7.10 product and county codes on the document from the lists provided 7.11 by the secretary of state. The filing officer shall reject 7.12 those documents that do not have farm product and county codes. 7.13 (h) The name of the secured party or lienholder must be the 7.14 full legal name of that person or other legal entity. Business 7.15 names must be presented as they have been registered and only 7.16 those abbreviations appearing in the name as registered are 7.17 acceptable. If the secured party or lienholder is an 7.18 individual, the person's full first name, middle initial, if 7.19 any, and full last name are the person's full legal name. 7.20 Nicknames or abbreviations of individual names, except a middle 7.21 initial, are not acceptable. The single address must be a 7.22 mailing address and include a city, state, and zip code. 7.23 (i) The name of the debtor must be the full legal name of 7.24 the individual or other legal entity. Business names must be 7.25 presented as they have been registered and only those 7.26 abbreviations appearing in the name as registered are 7.27 acceptable. If the debtor is an individual, the person's full 7.28 first name, middle initial, if any, and full last name are the 7.29 person's full legal name. Nicknames or abbreviations of 7.30 individual names, except a middle initial, are not acceptable. 7.31 The single address must be a mailing address and include a city, 7.32 state, and a zip code. 7.33 Subd. 3. [SIGNATURES.] A lien notice must be signed, 7.34 authorized, or otherwise authenticated by the lienholder. An 7.35 effective financing statement must be signed, authorized, or 7.36 otherwise authenticated by: 8.1 (1) the secured party; and 8.2 (2) the debtor. 8.3 Subd. 4. [REQUIRED AMENDMENTS.] An effective financing 8.4 statement or lien notice must be amended in writing within three 8.5 months after material changes occur to reflect the material 8.6 changes. To amend information contained on an effective 8.7 financing statement or lien notice, the existing effective 8.8 financing statement or lien notice must be terminated and a new 8.9 effective financing statement or lien notice filed. The 8.10 amendment to an effective financing statement or a lien 8.11 statement must be signed, authorized, or otherwise 8.12 authenticated, and filed in the same manner required for the 8.13 original document. 8.14 Subd. 5. [EFFECTIVE PERIOD.] (a) An effective financing 8.15 statement is effective for five years from the date of filing. 8.16 The effective period may be extended for additional periods of 8.17 five years as provided in section 336A.06. 8.18 (b) An effective financing statement is not effective after: 8.19 (1) the effective financing statement lapses on the 8.20 expiration of the effective period; or 8.21 (2) a notice that the effective financing statement is 8.22 terminated is signed, authorized, or otherwise authenticated by 8.23 the secured party and filed in the filing officewhere the8.24original effective financing statement is filed. 8.25 (c) A lien notice is not effective after: 8.26 (1) five years from the date of filing; 8.27 (2) expiration of the period for commencing an action to 8.28 enforce the lien under applicable Minnesota law; or 8.29 (3) the obligation secured by the farm products statutory 8.30 lien no longer exists. 8.31 Sec. 4. [336A.031] [SATELLITE OFFICES.] 8.32 Subdivision 1. [AUTHORITY TO ESTABLISH.] The secretary of 8.33 state may establish satellite offices by written agreements with 8.34 public officials within the state for the purpose of meeting the 8.35 filing officer responsibilities described in this chapter. The 8.36 terms of the agreement must be set by, and may be renewed by, 9.1 mutual agreement. The agreement may be terminated upon 60 days' 9.2 notice. The secretary must maintain a list of those public 9.3 officials authorized to act as satellite offices. The secretary 9.4 of state must make this list available in an electronic format 9.5 and the list must be updated at least monthly. 9.6 Subd. 2. [DUTIES.] Satellite offices must accept effective 9.7 financing statements and lien notices and respond to requests 9.8 for information pursuant to the provisions of this chapter. A 9.9 filing made at a satellite office is filed and effective at the 9.10 same time and under the same rules provided for filing in any 9.11 other manner in the computerized filing system. The filing 9.12 date, time, and file number for any effective financing 9.13 statement or lien notice accepted at a satellite office must be 9.14 automatically assigned by the computerized filing system 9.15 operated by the secretary of state, and the file number must be 9.16 the next available file number in the computerized filing system. 9.17 Subd. 3. [FILINGS ON OR AFTER JULY 1, 2001.] This 9.18 subdivision applies to all effective financing statements and 9.19 lien notices filed on or after July 1, 2001. The secretary of 9.20 state shall maintain all effective financing statements and lien 9.21 notices and the database used to index them regardless of where 9.22 or how the statement or notice was filed. The documents and 9.23 database must be housed in the computerized filing system. 9.24 These documents and data must be available from the secretary of 9.25 state or any satellite office. Any filing office authorized to 9.26 be a part of the computerized filing system may respond to 9.27 requests for information, and the secretary of state shall 9.28 establish and administer a system to facilitate those responses. 9.29 Subd. 4. [FILINGS BEFORE JULY 1, 2001.] This subdivision 9.30 applies to all effective financing statements and lien notices 9.31 filed before July 1, 2001. The database containing the 9.32 information from the effective financing statements and lien 9.33 notices must be housed in the computerized filing system. 9.34 Subd. 5. [PERFORMANCE OF FILING OFFICERS.] (a) All filing 9.35 officers must perform the responsibilities required under this 9.36 chapter and rules adopted pursuant to this chapter in a uniform 10.1 manner, whether services are provided by the secretary of state 10.2 or at a satellite office location. Reports by citizens 10.3 describing concerns with performance of filing officer 10.4 responsibilities must be made to the secretary of state. The 10.5 secretary of state is responsible for responding to reports 10.6 about performance in a manner the secretary of state determines 10.7 is appropriate. 10.8 (b) If, upon investigation of citizen reports described in 10.9 subdivision 1, the secretary of state determines that 10.10 performance by a satellite office of the filing officer 10.11 responsibilities has been so unsatisfactory that customer 10.12 service has been severely impaired, the secretary of state must 10.13 terminate the satellite office's status and ability to perform 10.14 filing office responsibilities. If a satellite office's ability 10.15 to perform filing office responsibilities is terminated by the 10.16 secretary of state, the change in status must be posted in the 10.17 former satellite office and must also be publicly posted in the 10.18 county courthouse in the county in which the former satellite 10.19 office is located and must be made available in an electronic 10.20 format. 10.21 Subd. 6. [RECORD RETENTION.] Once the image of a paper 10.22 record has been captured by the computerized filing system, the 10.23 secretary of state may remove or direct the removal from the 10.24 files and destroy the paper record. 10.25 Sec. 5. Minnesota Statutes 2002, section 336A.04, is 10.26 amended to read: 10.27 336A.04 [FILING EFFECTIVE FINANCING STATEMENT OR LIEN 10.28 NOTICE.] 10.29 Subdivision 1. [FILING LOCATION.] An effective financing 10.30 statement or lien notice must be filed in the computerized 10.31 filing system operated by the Office of the Secretary of State. 10.32or the county recorder in the county of the debtor's residence10.33if the debtor is an individual or organization with residence in10.34this state. If the debtor is not a resident of this state, the10.35effective financing statement or lien notice must be filed in10.36the Office of the Secretary of State.Effective financing 11.1 statements and lien notices may be filed in writing or by any 11.2 other means authorized from a filing officer. 11.3 Subd. 2. [EFFECTIVE FILING.] Presentation of an effective 11.4 financing statement or lien notice with the appropriate filing 11.5 fee to a filing officer or acceptance of the statement by a 11.6 filing officer constitutes filing under this chapter. 11.7 Subd. 3. [FEES.](a)The fee for filing and indexing a 11.8 standard form or format for a lien notice, effective financing 11.9 statement, or continuation statement, and stamping the date and 11.10 place of filing on a copy of the filed document furnished by the 11.11 filing party is $15for up to two debtor names and $15 for each11.12additional name thereafteruntil June 30, 2005. Effective July 11.13 1, 2005, the fee for each filing will be as follows: 11.14 (1) $15 for each filing made through the Web interface of 11.15 the Office of the Secretary of State; and 11.16 (2) $20 for each filing submitted in any other manner. 11.17(b) A fee may not be charged for filing a termination11.18statement if the termination is filed within 30 days after11.19satisfaction of the lien or security interest. Otherwise, the11.20fee is $10.11.21(c) A county recorder shall forward $5 of each filing fee11.22collected under this subdivision to the secretary of state.11.23Surcharge amounts shall be collected quarterly by the secretary11.24of state from each county recorder. The secretary of state11.25shall send each county recorder an invoice at the end of each11.26fiscal quarter and each county recorder shall forward payment to11.27the secretary of state within 30 days of the date of the11.28invoice. The surcharge amounts received from county recorders11.29and the surcharge amounts collected by the secretary of state's11.30office must be deposited in the state treasury and credited to11.31the general fund. The balance of theFiling fees collected by a 11.32county recordersatellite office must be deposited in the 11.33 general fund of the county in which the satellite office is 11.34 located. 11.35 Subd. 3a. [STANDARD FORMS.] The standard form for a lien 11.36 notice, effective financing statement, continuation statement, 12.1 or termination statement is available from the filing office. 12.2 Subd. 4. [FILING PROCEDURE.] (a)The filing officer shall12.3mark the effective financing statement or lien notice with a12.4consecutive file number and the date and hour of filing.For 12.5 each effective financing statement, lien notice, continuation 12.6 statement, or termination statement filed in a filing office, 12.7 the filing office shall: 12.8 (1) assign a unique number to the filed record; 12.9 (2) create a record that bears the number assigned to the 12.10 filed record and the date and time of filing; 12.11 (3) maintain the filed record for public inspection; and 12.12 (4) index the filed record in accordance with paragraph (b). 12.13 (b) The filing office shallmaintain the original filed12.14document or a copy of the filed document in a format that meets12.15archival standards for public inspection as provided in rule by12.16the secretary of state.index an effective financing statement 12.17 or lien notice according to the name of the debtor and index all 12.18 filed records relating to the initial filing in a manner that 12.19 associates the related filings with the initial effective 12.20 financing statement or lien notice. 12.21 (c) The filing office shallindex filed documents according12.22to the file number of the document.maintain a capability: 12.23 (1) to retrieve a record by the name of the debtor and by 12.24 the file number assigned to the initial effective financing 12.25 statement or lien notice to which the record relates; and 12.26 (2) to associate and retrieve with one another an initial 12.27 effective financing statement or lien notice and each filed 12.28 record relating to the initial effective financing statement or 12.29 lien notice as the case may be. 12.30 (d) The filing office may not remove a debtor's name from 12.31 the index until one year after the effectiveness of an effective 12.32 financing statement or lien notice naming the debtor lapses 12.33 under section 336A.03, subdivision 5, paragraph (b), clause (1), 12.34 or paragraph (c), clause (1). 12.35 (e) The filing office shall maintain a record of the 12.36 information provided in a filed effective financing statement or 13.1 lien notice for at least one year after the effectiveness of the 13.2 financing statement or lien notice has lapsed under section 13.3 336A.03, subdivision 5, paragraph (b), clause (1), or paragraph 13.4 (c), clause (1). The record must be retrievable by using the 13.5 name of the debtor and by using the file number assigned to the 13.6 initial effective financing statement or lien notice to which 13.7 the record relates. 13.8 (f) Except to the extent that a statute governing 13.9 disposition of public records provides otherwise, the filing 13.10 office immediately may destroy any written record evidencing an 13.11 effective financing statement or lien notice. However, if the 13.12 filing office destroys a written record, it shall maintain 13.13 another record of the effective financing statement or lien 13.14 notice which complies with paragraph (e). 13.15 Subd. 5. [ENTERING FILING INFORMATION INTO COMPUTERIZED 13.16 FILING SYSTEM.] Each filing office shall enter the information 13.17 from the filed documents into the computerized filing system as 13.18 prescribed by the secretary of state. 13.19 The secretary of state shall record lien notices in the 13.20 computerized filing system in a manner that separately 13.21 identifies all farm products statutory liens, and shall ensure 13.22 that the computerized filing and notification system 13.23 distinguishes security interests covered by effective financing 13.24 statements from liens covered by lien notices to the extent 13.25 required by United States Code, title 7, section 1631, et seq., 13.26 and regulations adopted under those sections. 13.27 Subd. 6. [VERIFICATION OF INFORMATION.] A person who has 13.28 filed an effective financing statement or lien notice may verify 13.29 the accuracy of the information entered into the computerized 13.30 filing system and compiled into the master list by making an 13.31 inquiry under section 336A.09.The secretary of state shall13.32establish a procedure for requesting an inquiry to verify the13.33accuracy of the information at the time of filing.13.34 Sec. 6. Minnesota Statutes 2002, section 336A.05, is 13.35 amended to read: 13.36 336A.05 [EFFECT OF FILING ON PERFECTION AND PRIORITY.] 14.1 Filing under this chapter does not affect the perfectionor14.2priorityof security interests filed under the Uniform 14.3 Commercial Code or a farm products statutory lien filed in 14.4 accordance with the provisions of law under which it was created 14.5 and does not affect the priority of a security interest in farm 14.6 products or a farm products statutory lien except as provided in 14.7 section 336A.15 or 336A.16 and United States Code, title 7, 14.8 section 1631. 14.9 Sec. 7. Minnesota Statutes 2002, section 336A.06, is 14.10 amended to read: 14.11 336A.06 [CONTINUATION STATEMENT.] 14.12 Subdivision 1. [FILING PERIOD.] A secured party may file a 14.13 continuation statement for an effective financing statement 14.14 within six months before a five-year effective period expires. 14.15 Subd. 2. [CONTENTS.] A continuation statement must: 14.16 (1) be signed, authorized, or otherwise authenticated by 14.17 the secured party and the debtor; 14.18 (2) identify the original effective financing statement by 14.19 file number; and 14.20 (3) state that the original effective financing statement 14.21 is still effective. 14.22 Subd. 3. [EFFECTIVE PERIOD.] If a continuation statement 14.23 is filed within six months before a five-year effective period 14.24 expires, the effectiveness of the original effective financing 14.25 statement continues for an additional five years after the 14.26 original five-year effective period. Additional continuation 14.27 statements filed within six months before an effective period 14.28 expires continue the effectiveness of the original effective 14.29 financing statement for additional five-year periods. 14.30 Subd. 4. [FILING.] The continuation statement must be 14.31 filed in thefiling office where the original effective14.32financing statement is filedcomputerized filing system of the 14.33 Office of the Secretary of State. 14.34 Sec. 8. Minnesota Statutes 2002, section 336A.07, is 14.35 amended to read: 14.36 336A.07 [TERMINATION STATEMENTS.] 15.1 Subdivision 1. [REQUIREMENT.] (a)If required in an15.2effective financing statement,A secured party shall within 30 15.3 days file a lien termination statement and termination statement 15.4 for the effective financing statement when: 15.5 (1) an outstanding secured obligation does not exist; and 15.6 (2) a written commitment to make advances, incur 15.7 obligations, or otherwise give value does not exist. 15.8 (b) A lienholder shall file a termination statement with 15.9 respect to a lien notice within 30 days after an outstanding 15.10 lien notice obligation no longer exists. 15.11 Subd. 2. [CONTENTS.] (a) Unless filed pursuant to section 15.12 336A.03, subdivision 4, in order to amend an effective financing 15.13 statement or a lien notice, alien termination statement and15.14 termination statement forthea lien notice or an effective 15.15 financing statement must: 15.16 (1) state the file number of the effective financing 15.17 statement or lien notice; 15.18 (2) state the date on which the lien or security interest 15.19 was satisfied; 15.20 (3) state that the secured party does not claim a security 15.21 interest under the effective financing statement or that the 15.22 lienholder does not claim a lien under the lien notice; and 15.23 (4) be signed, authorized, or otherwise authenticated by 15.24 the secured party or lienholder. 15.25 (b) If a termination statement is filed pursuant to section 15.26 336A.03, subdivision 4, in order to amend an effective financing 15.27 statement or a lien notice, the termination statement must: 15.28 (1) state the file number of the effective financing 15.29 statement or lien notice; and 15.30 (2) be signed, authorized, or otherwise authenticated by 15.31 the secured party or lienholder. 15.32 Subd. 3. [FILING.] A termination statement for an 15.33 effective financing statement or a lien notice must be filed in 15.34 the computerized filing system operated by thesecured party in15.35the filing office where the original effective financing15.36statement is filed. A termination statement for the lien notice16.1must be filed by the lienholder in the same manner required for16.2filing the lien noticeOffice of the Secretary of the State. 16.3 Subd. 4. [FAILURE TO FILE.] If the secured party or 16.4 lienholder fails to file a termination statement as required by 16.5 subdivision 1, or within ten days after a debtor serves a 16.6 written demand for the termination statement if the conditions 16.7 in subdivision 1 exist, the secured party or lienholder is 16.8 liable to the debtor for $100 plus any loss caused to the debtor 16.9 by failing to file the termination statement. For the second 16.10 and each subsequent time a secured party or lienholder is found 16.11 liable to a debtor under this subdivision in any one calendar 16.12 year, the secured party or lienholder is liable to the debtor 16.13 for $250 plus any loss caused to the debtor. 16.14Subd. 5. [FILING PROCEDURES.] (a) When a termination16.15statement is filed, each filing office must delete the16.16information from the active files as prescribed by the secretary16.17of state.16.18(b) If the termination statement is filed in duplicate, the16.19filing office shall return one copy of the termination16.20statement, stamped to show the time of receipt, to the secured16.21party or lienholder.16.22 Sec. 9. Minnesota Statutes 2002, section 336A.08, is 16.23 amended to read: 16.24 336A.08 [MASTER LIST.] 16.25 Subdivision 1. [COMPILATION.] (a) The secretary of state 16.26 shall compile the information on effective financing statements 16.27 in the computerized filing system into a master list: 16.28 (1) organized according to farm product; 16.29 (2) arranged within each product: 16.30 (i) in alphabetical order according to the last name of the 16.31 individual debtor or, in the case of debtors doing business 16.32 other than as individuals, the first word in the name of the 16.33 debtors; 16.34 (ii) in numerical order according to the Social Security 16.35 number of the individual debtor or, in the case of debtors doing 16.36 business other than as individuals, the Internal Revenue Service 17.1 taxpayer identification number of the debtors; 17.2 (iii) geographically by county; and 17.3 (iv) by crop year;and17.4 (3) containing the information provided on an effective 17.5 financing statement; and 17.6 (4) designating any applicable terminations of the 17.7 effective financing statement. 17.8 (b) The secretary of state shall compile information from 17.9 lien notices recorded in the computerized filing system into a 17.10 statutory lien master list in alphabetical order according to 17.11 the last name of the individual debtor or, in the case of 17.12 debtors doing business other than as individuals, the first word 17.13 in the name of the debtors. The secretary of state may also 17.14 organize the statutory lien master list according to one or more 17.15 of the categories of information established in paragraph 17.16 (a). Any terminations of lien notices must be noted. 17.17 Subd. 2. [REMOVAL OF EFFECTIVE FINANCING STATEMENTS AND 17.18 LIEN NOTICES.] The secretary of state shall remove lapsedand17.19terminatedeffective financing statements and lien notices from 17.20 the computerized filing system before preparing master lists. 17.21 Subd. 3. [REQUEST FOR PARTIAL MASTER LIST.] If requested 17.22 by a buyer registered under section 336A.11, the secretary of 17.23 state shall distribute partial master lists to the buyer that 17.24 are limited to one or more of the categories in subdivision 1, 17.25 paragraph (a). 17.26 Subd. 3a. [ALL CROPS OR ALL LIVESTOCK DEFINED.] A 17.27 registered buyer who requests a monthly list may ask for a list 17.28 of all crops including wool, milk, eggs, cheese, and honey/bees 17.29 wax, all livestock including wool, milk, eggs, cheese, and 17.30 honey/bees wax, or both. The list given to the buyer must then 17.31 include information about all the crops or all the livestock 17.32 listed in subdivision 1, or both. 17.33 Subd. 4. [DISTRIBUTION OF MASTER AND PARTIAL LISTS.] (a) 17.34 The secretary of state shall maintain the information on the 17.35 effective financing statement master list: 17.36 (1) by farm product arranged alphabetically by debtor; and 18.1 (2) by farm product arranged numerically by the debtor's 18.2 Social Security number for an individual debtor or, in the case 18.3 of debtors doing business other than as individuals, the 18.4 Internal Revenue Service taxpayer identification number of the 18.5 debtors. 18.6 (b) The secretary of state shall maintain the information 18.7 in the farm products statutory lien master list by county 18.8 arranged alphabetically by debtor. 18.9 (c) The secretary of state shall distribute or make 18.10 available the requested master and partial master lists on a 18.11 monthly basis to farm product dealers registered under section 18.12 336A.11.The secretary of state may, by rule, establish that18.13lists of certain farm products must be distributed more18.14frequently.Lists will be distributed or made available on or 18.15 before the tenth day of each month or on the next business day 18.16 thereafter if the tenth day is not a business day. 18.17 (d)The secretary of state shall, by rule, establish:18.18(1) dates when the distribution of lists will be made;18.19(2) dates after which a filing of an effective financing18.20statement or lien notice will not be reflected on the next lists18.21distributed; and18.22(3) dates by which a registrant must complete a18.23registration to receive the next list distributed.18.24(e)The secretary of state shall make the master and 18.25 partial master lists available as written or printed paper 18.26 documents and may make lists available in other forms or media, 18.27 including: 18.28 (1)microfiche;18.29(2) magnetic tape;18.30(3)any electronically transmitted medium; or 18.31(4) computer disk(2) any form of digital media. 18.32(f)(e) There shall be no fee for partial or master lists 18.33 distributedon microfiche, magnetic tape,via an electronically 18.34 transmitted medium, computer disk, or comparable media. The 18.35 annual fee for any other form of digital media is $200. The 18.36 annual fee for paper partial lists is $250 and $400 for paper 19.1 master lists. 19.2(g) At the request of a farm product dealer registered19.3under section 336A.11, the secretary of state shall deliver19.4lists at cost by certified or registered mail, return receipt19.5requested.19.6 (f) A farm products dealer shall register pursuant to 19.7 section 336A.11 by the last business day of the month to receive 19.8 the monthly lists requested by the farm products dealer for that 19.9 month. 19.10 (g) If a registered farm products dealer receives a monthly 19.11 list that cannot be read or is incomplete, the farm products 19.12 dealer must immediately inform the secretary of state by 19.13 telephone or e-mail of the problem. The registered farm 19.14 products dealer shall confirm the existence of the problem by 19.15 writing to the secretary of state. The secretary of state shall 19.16 provide the registered farm products dealer with new monthly 19.17 lists in the medium chosen by the registered farm products 19.18 dealer no later than five business days after receipt of the 19.19 oral notice from the registered farm products dealer. A 19.20 registered farm products dealer is not considered to have 19.21 received notice of the information on the monthly lists until 19.22 the duplicate list is received from the secretary of state or 19.23 until five days have passed since the duplicate lists were 19.24 deposited in the mail by the secretary of state, whichever comes 19.25 first. 19.26 (h) On receipt of a written notice pursuant to section 19.27 336A.13, the secretary of state shall duplicate the monthly 19.28 lists requested by the registered farm products dealer. The 19.29 duplicate monthly lists must be sent to the registered farm 19.30 products dealer no later than five business days after receipt 19.31 of the written notice from the registered farm products dealer. 19.32 (i) A registered farm products dealer may request monthly 19.33 lists in one medium per registration. 19.34 (j) Registered farm products dealers must have renewed 19.35 their registration before the first day of July each year. 19.36 Failure to send in the registration before that date will result 20.1 in the farm products dealer not receiving the requested monthly 20.2 lists. 20.3 (k) Registered farm products dealers choosing to obtain 20.4 monthly lists via an electronically transmitted medium or in any 20.5 form of digital media may choose to receive all of the 20.6 information for the monthly lists requested the first month and 20.7 then only additions and deletions to the database for the 20.8 remaining 11 months of the year. Following the first year of 20.9 registration, the registered farm products dealer may choose to 20.10 continue to receive one copy of the full monthly list at the 20.11 beginning of each year or may choose to receive only additions 20.12 and deletions. 20.13 Sec. 10. Minnesota Statutes 2002, section 336A.09, is 20.14 amended to read: 20.15 336A.09 [INQUIRIES.] 20.16 Subdivision 1. [PROCEDURE.] (a) Oral and written inquiries 20.17 regarding information provided by the filing of effective 20.18 financing statements or lien notices may be made at any filing 20.19 office during regular business hours. 20.20 (b) A filing office receiving an oral or written inquiry 20.21 shall, upon request, provide an oral or facsimile response to 20.22 the inquiry and mustcertificatelisting of the file number, date, and 21.2 hour of each effective financing statement found in the search 21.3 and the names and addresses of each secured party on the 21.4 effective financing statements or of each lien notice found in 21.5 the search and the names and address of each lienholder on the 21.6 lien notice; or 21.7 (2)photocopies of the original effective financing21.8statement or lien notice documents on file; or21.9(3)upon request, both thecertificatereport and 21.10 photocopies of the effective financing statements or lien 21.11 notices. 21.12 (b) The uniform fee for conducting a search and for 21.13 preparing acertificatereport is$15$20 per debtor nameif21.14the request is in the standard form prescribed by the secretary21.15of state. This uniform fee shall include ten photocopies of21.16original documents. If the request for information is made on a21.17form other than the standard form prescribed by the secretary of21.18state, the fee is $20 per debtor name and shall include ten21.19photocopies of original documents. An additional fee of $1 per21.20page must be charged for each photocopy prepared in excess of21.21the first ten. If an oral or facsimile response is requested, 21.22 there is an additional fee of $5 per debtor name requested. A 21.23 fee of $1 per page will be charged for photocopies of effective 21.24 financing statements, lien notices, continuation statements, or 21.25 termination statements. 21.26 (c) Acounty recorder shall forward $5 of each search fee21.27collected under this subdivision to the secretary of state.21.28Surcharge amounts shall be collected quarterly by the secretary21.29of state from each county recorder. The secretary of state21.30shall send each county recorder an invoice at the end of each21.31fiscal quarter and each county recorder shall forward payment to21.32the secretary of state within 30 days of the date of the invoice.21.33The surcharge amounts received from county recorders and the21.34surcharge amounts collected by the Secretary of State's Office21.35must be deposited in the state treasury and credited to the21.36general fund. The balance of theSearch fees collected by a 22.1county recordersatellite office must be deposited in the 22.2 general fund of the county where the satellite office is located. 22.3 Sec. 11. Minnesota Statutes 2002, section 336A.10, is 22.4 amended to read: 22.5 336A.10 [LIABILITY FOR INFORMATION ERRORSIMMUNITY.] 22.6 (a) Except as provided in sections 609.87 to 609.891, the 22.7 state, the secretary of state, counties, county recorders, and 22.8 their employees and agents are immune from liability as a result 22.9 of errors or omissions in information supplied under this 22.10 chapter. 22.11 (b) The secretary of state, county recorders, and their 22.12 employees and agents are not liable for any loss or damages 22.13 arising from errors in or omissions from information entered 22.14 into the computerized filing system as a result of the 22.15 electronic transmission of effective financing statements and 22.16 lien notices. 22.17 Sec. 12. Minnesota Statutes 2002, section 336A.11, 22.18 subdivision 1, is amended to read: 22.19 Subdivision 1. [REQUIREMENTS.] Farm product dealers may 22.20 register with the secretary of state to receive master lists of 22.21 notices of security interests in farm products or farm products 22.22 statutory liens. Registration must be made on an annual 22.23 calendar year basis. A registration is not complete until the 22.24 registration form or format is properly completed and received 22.25 by the secretary of state and accompanied by the registration 22.26 fee. Registration entitles a farm product dealer to receive 22.27 lists for those farm products specified by the registrant at the 22.28 time of registration. 22.29 Sec. 13. Minnesota Statutes 2002, section 336A.11, 22.30 subdivision 2, is amended to read: 22.31 Subd. 2. [REGISTRATION FORMS OR FORMAT.] The secretary of 22.32 state shall make registration forms or format available to farm 22.33 product dealers.The secretary of state must also make22.34registration information available to the commissioner of22.35agriculture for distribution to applicants for licensure under22.36section 17A.04 or 223.17.The registration form or format must 23.1 include provisions for the name and address of the farm product 23.2 dealer, a request for the master or partial master lists, and 23.3 the medium on which the farm product dealer desires to receive 23.4 the master list. 23.5 Sec. 14. Minnesota Statutes 2002, section 336A.12, is 23.6 amended to read: 23.7 336A.12 [RULES.] 23.8 Subdivision 1. [AUTHORITY.] (a) The secretary of state may 23.9 adopt permanent rules to implement this chapter. 23.10 (b) If necessary to obtain federal certification of the 23.11 computerized filing system, additional or alternative 23.12 requirements made in conformity with United States Code, title 23.13 7, section 1631, may be adopted by the secretary of state by 23.14 rule. 23.15 Subd. 2. [FORMS OR FORMAT.] The secretary of state shall 23.16 prescribe the forms or format to be used for effective financing 23.17 statements, lien notices, combined forms, amendments, 23.18 continuation statements, termination statements, and notices to 23.19 debtors. 23.20 Sec. 15. Minnesota Statutes 2002, section 336A.13, is 23.21 amended to read: 23.22 336A.13 [RECEIPT OF WRITTEN NOTICE.] 23.23 For purposes of United States Code, title 7, section 1631, 23.24 and this chapter, receipt of written notice means the date the 23.25 notice is actually received by a farm product dealer or the 23.26 first date that delivery is attempted by a carrier. A farm 23.27 product dealer must act in good faith. For a mailed notice, a 23.28 farm product dealer is presumed to have received the notice by 23.29 five business days after it was mailed unless by ten days after 23.30 it was mailed the farm product dealer notifies the secretary of 23.31 state in writing that it has not received the notice by that 23.32 time. 23.33 Sec. 16. [TEMPORARY SURCHARGE.] 23.34 A $10 surcharge on every effective financing statement and 23.35 lien notice filed on or after July 1, 2004, shall be collected 23.36 and remitted to the secretary of state for deposit in the 24.1 general fund. 24.2 This section expires June 30, 2005. 24.3 Sec. 17. [APPROPRIATION.] 24.4 $62,000 is appropriated in fiscal year 2005 from the 24.5 general fund to the secretary of state for purposes of 24.6 implementing this act. This is a onetime appropriation. 24.7 Sec. 18. [REPEALER.] 24.8 Minnesota Rules, parts 8265.0100; 8265.0200; 8265.0300; 24.9 8265.0400; 8265.0500; and 8265.0600, are repealed on the 24.10 application date specified in section 19. 24.11 Sec. 19. [EFFECTIVE DATE; APPLICATION.] 24.12 (a) Sections 1 to 15 are effective August 1, 2004, and 24.13 apply to all effective financing statements and lien notices 24.14 governed by Minnesota Statutes, chapter 336A, that are made on 24.15 or after February 1 following the calendar year the United 24.16 States Department of Agriculture approves the central filing 24.17 system pursuant to United States Code, title 7, section 1631, 24.18 and notifies the secretary of state of the approval. 24.19 (b) The secretary of state shall promptly notify the 24.20 revisor of statutes of the notification in paragraph (a) for 24.21 purposes of determining the application date in section 18. 24.22 (c) Section 16 is effective July 1, 2004.