HF 894

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to property; modifying provisions relating to 
  1.3             certificates of title to manufactured homes; amending 
  1.4             Minnesota Statutes 2002, section 168A.141. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 168A.141, is 
  1.7   amended to read: 
  1.8      168A.141 [MANUFACTURED HOME AFFIXED TO REAL ESTATE 
  1.9   PROPERTY.] 
  1.10     Subdivision 1.  [PROCEDURE CERTIFICATES SURRENDERED FOR 
  1.11  CANCELLATION.] The owner of When a manufactured home which is 
  1.12  affixed as an improvement as defined in section 273.125, 
  1.13  subdivision 8, paragraph (b), to real estate may property, and 
  1.14  financed by the giving of a mortgage on the real property, the 
  1.15  owner of the manufactured home shall surrender the home's 
  1.16  manufacturer's certificate of origin or certificate of title to 
  1.17  the department for cancellation.  The owner of the manufactured 
  1.18  home shall give the department the address and location legal 
  1.19  description of the real estate property.  The department may 
  1.20  require the filing of other information.  Upon surrender of the 
  1.21  manufacturer's certificate of origin or the certificate of 
  1.22  title, the manufactured home is deemed to be an improvement to 
  1.23  real property. 
  1.24     Subd. 2.  [PERFECTED SECURITY INTEREST AVOIDS 
  1.25  CANCELLATION.] The department may not cancel a certificate of 
  2.1   title if a security interest has been perfected on the 
  2.2   manufactured home.  If a security interest has been perfected, 
  2.3   the department shall notify the owner and each secured party 
  2.4   that the certificate of title and a description of the security 
  2.5   interest have been surrendered to the department and that the 
  2.6   department will not cancel the certificate of title until the 
  2.7   security interest is satisfied.  Permanent attachment to real 
  2.8   estate property does not extinguish an otherwise valid security 
  2.9   interest in or tax lien on the manufactured home.  
  2.10     Subd. 3.  [NOTICE OF SECURITY INTEREST AVOIDS 
  2.11  SURRENDER.] The manufacturer's certificate of origin or the 
  2.12  certificate of title need not be surrendered to the department 
  2.13  under subdivision 1 when a perfected security interest exists on 
  2.14  the manufactured home at the time the manufactured home is 
  2.15  affixed to real property, if the owner of the manufactured home 
  2.16  files a notice with the county recorder, or with the registrar 
  2.17  of titles if the land is registered, stating that the 
  2.18  manufactured home located on the property is encumbered by a 
  2.19  perfected security interest.  The notice must state the name and 
  2.20  address of the secured party as set forth on the certificate of 
  2.21  title, the legal description of the real property, and the name 
  2.22  and address of the record fee owner of the real property on 
  2.23  which the manufactured home is affixed.  When the security 
  2.24  interest is released or satisfied, the secured party shall 
  2.25  attach a copy of the release or satisfaction to a notice 
  2.26  executed by the secured party containing the county recorder or 
  2.27  registrar of titles document number of the notice of security 
  2.28  interest.  The notice of release or satisfaction must be filed 
  2.29  with the county recorder, or with the registrar of titles if the 
  2.30  land is registered.  Neither the notice described in this 
  2.31  subdivision nor the security interest on the certificate of 
  2.32  title is deemed an encumbrance. 
  2.33     Subd. 4.  [REISSUANCE OF CERTIFICATE OF TITLE.] The 
  2.34  department shall issue a certificate of title to the owner of a 
  2.35  manufactured home affixed to real property upon receipt of: 
  2.36     (1) an affidavit executed by the owner of the real property 
  3.1   stating that the manufactured home is no longer affixed to real 
  3.2   property; 
  3.3      (2) a signed inspection report from the authority having 
  3.4   jurisdiction, stating that the manufactured home is in 
  3.5   compliance with the federal Manufactured Home Construction and 
  3.6   Safety Standards; and 
  3.7      (3) proof that any security interests encumbering 
  3.8   improvements to the real property have been satisfied or 
  3.9   released, as evidenced by a certified copy of the recorded 
  3.10  satisfaction or release. 
  3.11     Sec. 2.  [EFFECTIVE DATE.] 
  3.12     Section 1 is effective the day following enactment.