SF 3234

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; regulating statutory housing warranties; clarifying the
legislature's intent that housing warranties and insurance contract obligations
remain unaffected by corporate dissolution; amending Minnesota Statutes 2004, sections 60A.08, subdivision 6; 302A.781, by adding a subdivision; 322B.863, by adding a subdivision; 327A.02, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 60A.08, subdivision 6, is amended to read:

Subd. 6.

Bankruptcy deleted text begin or deleted text end new text begin , new text end insolvency new text begin , or dissolution new text end clause.

Every bond or
policy of insurance issued in this state insuring against either actual loss suffered by the
insured, and imposed by law for damages on account of personal injury, death, or injury
to property caused by accident, or legal liability imposed upon the insured by reason of
such injuries or death, shall, notwithstanding anything in the policy to the contrary, be
deemed to contain the following condition:

The bankruptcy deleted text begin or deleted text end new text begin , new text end insolvency new text begin , or dissolution new text end of the insured shall not relieve the
insurer of any of its obligations under this policy, and in case an execution against the
insured on a final judgment is returned unsatisfied, then such judgment creditor shall have
a right of action on this policy against the company to the same extent that the insured
would have, had the insured paid the final judgment.

Sec. 2.

Minnesota Statutes 2004, section 302A.781, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Statutory homeowner warranty claims preserved. new text end

new text begin The statutory
warranties provided under section 327A.02 are not affected by a dissolution under this
chapter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 322B.863, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Statutory homeowner warranty claims preserved. new text end

new text begin The statutory
warranties provided under section 327A.02 are not affected by a dissolution under this
chapter.
new text end

Sec. 4.

Minnesota Statutes 2004, section 327A.02, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Remedies unaffected by corporate dissolution. new text end

new text begin The statutory
warranties provided in this section are not affected by the dissolution of a vendor or home
improvement contractor that is a corporation or limited liability company.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment and applies to all homes
constructed or improved after January 1, 1994, that have existing warranties under
Minnesota Statutes, section 327A.02.
new text end