SF 3391

as introduced - 86th Legislature (2009 - 2010) Posted on 04/27/2010 01:22pm

A bill for an act
relating to real property; establishing a statute of limitations for actions to enforce
notes secured by junior liens on foreclosed residential property; proposing coding
for new law in Minnesota Statutes, chapter 541.

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

Section 1.

new text begin [541.031] ENFORCEMENT OF PROMISSORY NOTE SECURED
BY JUNIOR LIEN.
new text end

new text begin This section applies to real property that is improved with one to four family
dwelling units, one of which the owner occupies as the owner's principal place of
residency. If the first mortgage on the real property is foreclosed, an action to enforce a
promissory note that is secured by a mortgage that is a junior lien on the real property
must be commenced within one year after expiration of the redemption period from
foreclosure of the first mortgage.
new text end

Sec. 2. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin (a) Section 1 is effective June 1, 2010, and applies to actions where the applicable
redemption period expires before, on, or after that date.
new text end

new text begin (b) Notwithstanding paragraph (a), if the redemption period expired before June
1, 2010, an action may be commenced before June 1, 2011, or within six years after
expiration of the redemption period, whichever is earlier.
new text end