SF 199

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor vehicles; requiring certain notices 
  1.3             to secured lienholders when vehicles are towed and 
  1.4             stored; amending Minnesota Statutes 1994, section 
  1.5             514.20. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 514.20, is 
  1.8   amended to read: 
  1.9      514.20 [SALE; NOTICE TO MOTOR VEHICLE CREDITORS.] 
  1.10     Subdivision 1.  [GENERAL PROVISIONS.] If any sum secured by 
  1.11  such lien be not paid within 90 days after it becomes due, the 
  1.12  lienholder may sell the property and out of the proceeds of such 
  1.13  sale there shall be paid, first, the disbursements aforesaid; 
  1.14  second, all charges against the property paid by such person to 
  1.15  any other person; and, third, the total indebtedness then 
  1.16  secured by the lien.  The remainder, if any, shall be paid on 
  1.17  demand to the owner or other person entitled thereto. 
  1.18     Subd. 2.  [MOTOR VEHICLES.] (a) Subject to paragraph (b), 
  1.19  if the property subject to the lien is a motor vehicle 
  1.20  registered in this state and subject to a certificate of title, 
  1.21  then the lienholder must provide written notice, by registered 
  1.22  mail, to all secured creditors listed on the certificate of 
  1.23  title 45 days before the lienholder's right to sell the motor 
  1.24  vehicle is considered effective.  The notice must state the 
  1.25  name, address, and telephone number of the lienholder, the 
  2.1   amount of money owed, and the rate at which storage charges, if 
  2.2   any, are accruing.  Costs for registered mail and other 
  2.3   reasonable costs related to complying with this notice provision 
  2.4   constitute "lawful charges" pursuant to section 514.19. 
  2.5      (b) If the lien arises out of the towing and storage of a 
  2.6   motor vehicle registered in this state, the person who stores 
  2.7   the motor vehicle shall give the notice described in paragraph 
  2.8   (a) to all secured creditors listed on the certificate of title 
  2.9   within ten days after the motor vehicle is taken into storage. 
  2.10     (c) Failure to comply with the notice provision in 
  2.11  requirements of this section subdivision renders any lien 
  2.12  created by this chapter ineffective against any secured party 
  2.13  listed on the certificate of title of the motor vehicle involved.