Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 246-S.F.No. 1118
           An act relating to agriculture; requiring lender's 
          response for an agricultural production input lien be 
          sent to borrowers; providing filing procedure; 
          authorizing rules; amending Minnesota Statutes 1984, 
          sections 514.952, subdivisions 2, 3, 4, and 5; 
          514.954, subdivision 1; 514.956, subdivision 3, and by 
          adding a subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 514.952, 
subdivision 2, is amended to read: 
    Subd. 2.  [LIEN-NOTIFICATION STATEMENT.] The 
lien-notification statement must be in a form approved by the 
secretary of state and disclose the following:  
    (1) the name and business address of any the lender that is 
to receive notification;  
    (2) the name and address of the supplier claiming the lien; 
    (3) a description and the date or anticipated date or dates 
of the transaction and the retail cost or anticipated costs of 
the agricultural production input;  
    (4) the name, residential address, and signature of the 
person to whom the agricultural production input was furnished;  
    (5) the name and residential address of the owner and a 
description of the real estate where the crops to which the lien 
attaches are growing or are to be grown; or for a lien attaching 
to livestock, the name and residential address of the owner of 
the livestock, the location where the livestock will be raised, 
and a description of the livestock; and 
    (6) a statement that products and proceeds of the crops or 
livestock are covered by the agricultural input lien.  
    Sec. 2.  Minnesota Statutes 1984, section 514.952, 
subdivision 3, is amended to read: 
    Subd. 3.  [RESPONSE OF LENDER TO NOTIFICATION.] (a) Within 
ten calendar days after receiving a lien-notification statement, 
the lender must respond to the supplier with either:  
    (1) a letter of commitment for part of all of the amount in 
the lien-notification statement; or 
    (2) a written refusal to issue a letter of commitment.  
    (b) A copy of the response must be mailed to the person for 
whom the financing was requested. 
    Sec. 3.  Minnesota Statutes 1984, section 514.952, 
subdivision 4, is amended to read: 
    Subd. 4.  [EFFECT OF RESPONSE.] (a) If a lender responds 
with a letter of commitment for part or all of the amount in the 
lien-notification statement, the supplier may not obtain a lien 
for the amount stated in the letter of credit commitment.  
    (b) If a lender responds with a refusal to provide a letter 
of credit commitment the rights of the lender and the supplier 
are not affected. 
    Sec. 4.  Minnesota Statutes 1984, section 514.952, 
subdivision 5, is amended to read: 
    Subd. 5.  [EFFECT OF NO RESPONSE.] If a lender does not 
respond under subdivision 3 to the supplier within ten calendar 
days after receiving the lien-notification statement, an a 
perfected agricultural production input lien corresponding to 
the lien-notification statement has priority over any security 
interest of the lender in the same crops or livestock or their 
proceeds for the lesser of:  
    (1) the amount stated in the lien-notification statement;  
    (2) the unpaid retail cost of the agricultural production 
input identified in the lien-notification statement; or 
    (3) for livestock any limitation in section 514.954, 
subdivision 2.  
    Sec. 5.  Minnesota Statutes 1984, section 514.954, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIEN ON CROPS.] A supplier who furnishes 
crop production inputs has an agricultural input lien for the 
unpaid retail cost of the crop production inputs.  The lien 
attaches to:  (1) the existing crops upon the land where a 
furnished agricultural chemical was applied, or if crops are not 
planted, to the next production crop within 16 months following 
the last date on which the agricultural chemical was applied; 
(2) the crops produced from furnished seed; or (3) the crops 
produced, harvested, or processed using a furnished petroleum 
product.  If the crops are grown on leased land and the lease 
provides for payment in crops, the lien does not attach to the 
lessor's portion of the crops.  The lien continues in crop 
products and proceeds, except that the lien does not continue in 
grain after a cash sale under section 223.16.  
    Sec. 6.  Minnesota Statutes 1984, section 514.956, 
subdivision 3, is amended to read: 
    Subd. 3.  [DUTIES OF FILING OFFICER.] The filing officer 
shall enter on the lien-notification statement the time of day 
and date of filing.  The filing officer shall file and, amend, 
terminate, note the filing of a lien-notification statement, and 
charge the fee for filing under this section in the manner 
provided by section 336.9-403 for a financing statement.  A 
lien-notification statement is void and may be removed from the 
filing system 18 months after the date of filing.  The 
lien-notification statement may be physically destroyed after 30 
months from the date of filing.  
    Sec. 7.  Minnesota Statutes 1984, section 514.956, is 
amended by adding a subdivision to read: 
    Subd. 4.  [RULES.] The secretary of state shall adopt rules 
for the filing, amending, termination, and removal of 
lien-notification statements. 
    Sec. 8.  [EFFECTIVE DATE.] 
     This act is effective the day after enactment. 
    Approved May 28, 1985