HF 3234

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to liens; authorizing nonprofit charitable organizations to impose
one-year lien on donated motor vehicle; proposing coding for new law in
Minnesota Statutes, chapter 514.

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

Section 1.

new text begin [514.911] TEMPORARY LIEN ON MOTOR VEHICLE PROVIDED
BY CHARITY.
new text end

new text begin (a) Notwithstanding section 550.37, subdivision 12a, or other law to the contrary, a
nonprofit charitable organization, as defined in section 309.50, has a lien on a motor
vehicle donated or otherwise transferred to a person without charge and for a charitable
purpose. The lien is for either possession or fair market value of the motor vehicle at the
time of transfer and expires one year after the date the charitable organization transfers
the vehicle.
new text end

new text begin (b) The nonprofit charitable organization must elect to foreclose on the lien within
90 days of learning that the transferee, within the one-year lien period, attempted to or
did any of the following:
new text end

new text begin (1) sold or otherwise transferred possession of the vehicle for compensation of
any kind;
new text end

new text begin (2) used the vehicle for any unlawful purpose or during any unlawful transaction or
enterprise; or
new text end

new text begin (3) used the vehicle for any purpose or activity prohibited by the charitable
organization as a condition for retaining possession of the vehicle.
new text end

new text begin (c) The Department of Public Safety shall provide on any certificate of title issued
upon transfer of the motor vehicle under paragraph (a) notice of the one-year lien and the
date when the lien expires. The department shall issue an amended certificate to the
nonprofit charitable organization upon notice that the charitable organization has taken
possession of the motor vehicle pursuant to paragraph (b).
new text end