Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

 

                         Laws of Minnesota 1985 

                         CHAPTER 18-S.F.No. 30 
           An act relating to real property; changing notice 
          period required for termination of contracts for the 
          conveyance of real estate; designating seller's 
          attorney as an agent; clarifying the application of 
          the mortgage registry tax; modifying provisions 
          relating to persons defaulting on homesteads; imposing 
          a penalty; amending Minnesota Statutes 1984, sections 
          47.20, subdivision 15, as amended; 287.10; 336.9-402, 
          as amended; 336.9-403, as amended; 559.21, 
          subdivisions 3, 4, and 6, as amended, and by adding 
          subdivisions; 580.031, as amended; 583.03, subdivision 
          2, as amended; 583.04, as amended; 583.05, as amended; 
          and 583.07, as amended; and Laws 1985, chapter 233, 
          section 6, as amended; repealing Minnesota Statutes 
          1984, section 559.21, subdivisions 1, 1a, 2, and 8, as 
          amended.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 47.20, 
subdivision 15, as amended by Laws 1985, chapter 306, section 1, 
is amended to read: 
    Subd. 15.  (a) Notwithstanding the provisions of any other 
law to the contrary, any notice of default on homestead property 
as defined in section 583.02 to which the provisions of chapter 
583 apply, mailed after May 24, 1983 and prior to May 1, 1985, 
or after the effective date of this section June 8, 1985, and 
prior to May 1, 1987, shall indicate that the borrower has 60 
days from the date the notice is mailed in which to cure the 
default.  The notice shall include a statement that the borrower 
may be eligible for an extension of the time prior to 
foreclosure and execution sale under sections 583.01 to 583.12. 
    (b) The statement must be in bold type, capitalized 
letters, or other form sufficient for the reader to quickly and 
easily distinguish the statement from the rest of the notice.  
The requirements of this paragraph must be followed on notices 
mailed under this subdivision on or after August 1, 1985.  A 
violation of this paragraph is a petty misdemeanor.  
    Sec. 2.  Laws 1985, chapter 233, section 6, as amended by 
Laws 1985, chapter 306, section 22, is amended by adding a 
subdivision to read: 
    Subd. 5.  [DEFINITIONS.] The definitions in chapter 336 
apply to this section. 
    Sec. 3.  Minnesota Statutes 1984, section 287.10, is 
amended to read: 
    287.10 [PREPAYMENT OF TAX; EVIDENCE; NOTICE.] 
    No such A mortgage, no or papers relating to its 
foreclosure nor any, assignment, or satisfaction thereof, 
shall, must not be recorded or registered unless the tax shall 
have has been paid; nor shall any such.  A document, or any 
record thereof, of the mortgage may not be received in evidence 
in any court, or have any validity as and is not valid notice or 
otherwise; but, unless the tax has been paid.  If the tax be is 
paid, no an error in computation or ascertainment of the amount 
thereof shall does not affect the validity of such the mortgage 
or the record or foreclosure thereof.  This section does not 
apply to a mortgage or a contract for the conveyance of real 
estate that is exempt from taxation under section 287.04 or 
287.05, subdivision 1.  
    Sec. 4.  Minnesota Statutes 1984, section 336.9-402, as 
amended by Laws 1985, chapter 233, section 8, and chapter 306, 
section 24, is amended to read: 
    336.9-402 [FORMAL REQUISITES OF FINANCING STATEMENT; 
AMENDMENTS; MORTGAGE AS FINANCING STATEMENT.] 
    (1) A financing statement is sufficient if it gives the 
name of the debtor and the secured party, is signed by the 
debtor, gives an address of the secured party from which 
information concerning the security interest may be obtained, 
gives a mailing address of the debtor and contains a statement 
indicating the types or describing the items, of collateral.  A 
financing statement may be filed before a security agreement is 
made or a security interest otherwise attaches.  When the 
financing statement covers crops growing or to be grown, the 
statement must also contain a description of the real estate 
concerned and the name of the record owner thereof and the crop 
years that are covered by the financing statement.  The 
financing statement may only cover the crops grown by a debtor 
in a single growing season and may not cover other collateral.  
When the financing statement covers timber to be cut or covers 
minerals or the like (including oil and gas) or accounts subject 
to subsection (5) of section 336.9-103, or when the financing 
statement is filed as a fixture filing (section 336.9-313) and 
the collateral is goods which are or are to become fixtures, the 
statement must also comply with subsection (5).  A copy of the 
security agreement is sufficient as a financing statement if it 
contains the above information and is signed by the debtor.  A 
carbon, photographic or other reproduction of a security 
agreement or a financing statement is sufficient as a financing 
statement if the security agreement so provides or if the 
original has been filed in this state. 
     (2) A financing statement which otherwise complies with 
subsection (1) is sufficient when it is signed by the secured 
party instead of the debtor when it is filed to perfect a 
security interest in 
     (a) collateral already subject to a security interest in 
another jurisdiction when it is brought into this state, or when 
the debtor's location is changed to this state.  Such a 
financing statement must state that the collateral was brought 
into this state or that the debtor's location was changed to 
this state under such circumstances; or 
     (b) proceeds under section 336.9-306 if the security 
interest in the original collateral was perfected.  Such a 
financing statement must describe the original collateral; or 
     (c) collateral as to which the filing has lapsed within one 
year; or 
     (d) collateral acquired after a change of name, identity or 
corporate structure of the debtor (subsection (7)); or 
     (e) a lien filed pursuant to Minnesota Statutes, chapter 
514; or 
      (f) collateral which is subject to a filed judgment.  
     (2a) Except for documents filed under clauses (e) and (f), 
the reason for the omission of the debtor signature must be 
stated on the front of the financing statement.  
     (3) A form substantially as follows is sufficient to comply 
with subsection (1): 
     Name of debtor (or assignor) 
     .............................. 
     Address 
     .............................. 
     Name of secured party (or assignee) 
     .............................. 
     Address 
     .............................. 
     1.  This financing statement covers the following types (or 
items) of property: 
     (Describe) 
     .............................. 
     2.  (If collateral is crops) The above described crops are 
growing or are to be grown on: 
     (Describe real estate and the name of the record owner 
thereof) ...... 
     ....................................................... ....
     3.  (If applicable) The above goods are to become fixtures 
on 
     (Describe real estate).......................... and this 
financing statement is to be filed for record in the real estate 
records.  (If the debtor does not have an interest of record) 
The name of a record owner is ................. 
     4.  (If products of collateral are claimed) 
     Products of the collateral are also covered. 
     Use whichever signature line is applicable. 
     Signature of debtor (or assignor) 
     ......................... 
     Signature of secured party (or assignee) 
     ......................... 
     (4) A financing statement may be amended by filing a 
writing signed by both the debtor and the secured party.  If the 
sole purpose of the amendment is to change the name or address 
of the secured party, only the secured party need sign the 
amendment.  A writing is sufficient if it sets forth the name 
and address of the debtor and secured party as those items 
appear on the original financing statement or the most recently 
filed amendment, the file number and date of filing of the 
financing statement.  An amendment does not extend the period of 
effectiveness of a financing statement.  If any amendment adds 
collateral, it is effective as to the added collateral only from 
the filing date of the amendment.  In this article, unless the 
context otherwise requires, the term "financing statement" means 
the original financing statement and any amendments. 
     (5) A financing statement covering timber to be cut or 
covering minerals or the like (including oil and gas) or 
accounts subject to subsection (5) of section 336.9-103, or a 
financing statement filed as a fixture filing (section 
336.9-313) where the debtor is not a transmitting utility, must 
show that it covers this type of collateral, must recite that it 
is to be filed for record in the real estate records, and the 
financing statement must contain a description of the real 
estate sufficient if it were contained in a mortgage of the real 
estate to give constructive notice of the mortgage under the law 
of this state.  If the debtor does not have an interest of 
record in the real estate, the financing statement must show the 
name of a record owner.  No description of the real estate or 
the name of the record owner thereof is required for a fixture 
filing where the debtor is a transmitting utility. 
Notwithstanding the foregoing a general description of the real 
estate is sufficient for a fixture filing where a railroad is 
the record owner of the real estate on which the fixtures are or 
are to be located; and for the purposes of this subsection, the 
requirement of a general description is satisfied if the fixture 
filing (1) identifies the section, township and range numbers of 
the county in which the land is located; (2) identifies the 
quarter-quarter of the section that the land is located in; (3) 
indicates the name of the record owner of the real estate; and 
(4) states the street address of the real estate if one exists. 
     (6) A mortgage is effective as a financing statement filed 
as a fixture filing from the date of its recording if (a) the 
goods are described in the mortgage by item or type, (b) the 
goods are or are to become fixtures related to the real estate 
described in the mortgage, (c) the mortgage complies with the 
requirements for a financing statement in this section other 
than a recital that it is to be filed in the real estate 
records, and (d) the mortgage is duly recorded.  No fee with 
reference to the financing statement is required other than the 
regular recording and satisfaction fees with respect to the 
mortgage. 
    (7) A financing statement sufficiently shows the name of 
the debtor if it gives the individual, partnership or corporate 
name of the debtor, whether or not it adds other trade names or 
the names of partners.  Where the debtor so changes his name or 
in the case of an organization its name, identity or corporate 
structure that a filed financing statement becomes seriously 
misleading, the filing is not effective to perfect a security 
interest in collateral acquired by the debtor more than four 
months after the change, unless a new appropriate financing 
statement is filed before the expiration of that time.  A filed 
financing statement remains effective with respect to collateral 
transferred by the debtor even though the secured party knows of 
or consents to the transfer. 
    (8) A financing statement, amendment, continuation, 
assignment, release, or termination substantially complying with 
the requirements of this section is effective even though it 
contains minor errors which are not seriously misleading. 
    Sec. 5.  Minnesota Statutes 1984, section 336.9-403, as 
amended by Laws 1985, chapter 233, section 9, and chapter 306, 
section 25, is amended to read: 
    336.9-403 [WHAT CONSTITUTES FILING; DURATION OF FILING; 
EFFECT OF LAPSED FILING; DUTIES OF FILING OFFICER.] 
    (1) Presentation for filing of a financing statement and 
tender of the filing fee or acceptance of the statement by the 
filing officer constitutes filing under this article. 
    (2) Except as provided in subsections subsection (6) and 
(9) a filed financing statement is effective for a period of 
five years from the date of filing.  The effectiveness of a 
filed financing statement lapses on the expiration of the five 
year period unless a continuation statement is filed prior to 
the lapse.  If a security interest perfected by filing exists at 
the time insolvency proceedings are commenced by or against the 
debtor, the security interest remains perfected until 
termination of the insolvency proceedings and thereafter for a 
period of 60 days or until expiration of the five year period, 
whichever occurs later regardless of whether the financing 
statement filed as to that security interest is destroyed by the 
filing officer pursuant to subsection (3).  Upon lapse the 
security interest becomes unperfected, unless it is perfected 
without filing.  If the security interest becomes unperfected 
upon lapse, it is deemed to have been unperfected as against a 
person who became a purchaser or lien creditor before lapse. 
      (3) A continuation statement may be filed by the secured 
party within six months prior to the expiration of the five year 
period specified in subsection (2).  Any such continuation 
statement must be signed by the secured party, set forth the 
name and address of the debtor and secured party as those items 
appear on the original financing statement or the most recently 
filed amendment, identify the original statement by file number 
and filing date, and state that the original statement is still 
effective.  A continuation statement signed by a person other 
than the secured party of record must be accompanied by a 
separate written statement of assignment signed by the secured 
party of record and complying with subsection (2) of section 
336.9-405, including payment of the required fee.  Upon timely 
filing of the continuation statement, the effectiveness of the 
original statement is continued for five years after the last 
date to which the filing was effective whereupon it lapses in 
the same manner as provided in subsection (2) unless another 
continuation statement is filed prior to such lapse. Succeeding 
continuation statements may be filed in the same manner to 
continue the effectiveness of the original statement. Unless a 
statute on disposition of public records provides otherwise, the 
filing officer may remove a lapsed statement from the files and 
destroy it immediately if he has retained a microfilm or other 
photographic record, or in other cases after one year after the 
lapse.  The filing officer shall so arrange matters by physical 
annexation of financing statements to continuation statements or 
other related filings, or by other means, that if he physically 
destroys the financing statements of a period more than five 
years past, those which have been continued by a continuation 
statement or which are still effective under subsection (6) 
shall be retained.  If insolvency proceedings are commenced by 
or against the debtor, the secured party shall notify the filing 
officer both upon commencement and termination of the 
proceedings, and the filing officer shall not destroy any 
financing statements filed with respect to the debtor until 
termination of the insolvency proceedings.  The security 
interest remains perfected until termination of the insolvency 
proceedings and thereafter for a period of 60 days or until 
expiration of the five year period, whichever occurs later. 
      (4) Except as provided in subsection (7) a filing officer 
shall mark each statement with a file number and with the date 
and hour of filing and shall hold the statement or a microfilm 
or other photographic copy thereof for public inspection.  In 
addition the filing officer shall index the statements according 
to the name of the debtor and shall note in the index the file 
number and the address of the debtor given in the statement. 
      (5) The secretary of state shall prescribe uniform forms 
for statements and samples thereof shall be furnished to all 
filing officers in the state.  The uniform fee for filing and 
indexing and for stamping a copy furnished by the secured party 
to show the date and place of filing for an original financing 
statement or for a continuation statement shall be $5 if the 
statement is in the standard form prescribed by the secretary of 
state and otherwise shall be $10, plus in each case, if the 
financing statement is subject to subsection (5) of section 
336.9-402, $5.  An additional fee of $5 shall be collected if 
more than one name is required to be indexed or if the secured 
party, at his option, shows a trade name for any debtor listed.  
There shall be no fee collected for the filing of an amendment 
to a financing statement if the amendment is in the standard 
form prescribed by the secretary of state and does not add 
additional debtor names to the financing statement.  The fee for 
an amendment adding additional debtor names shall be $5 if the 
amendment is in the form prescribed by the secretary of state 
and, if otherwise, $10.  The fee for an amendment which is not 
in the form prescribed by the secretary of state but which does 
not add additional names shall be $5.  
    The secretary of state shall adopt rules for filing, 
amendment, continuation, termination, removal, and destruction 
of financing statements. 
    (6) If the debtor is a transmitting utility (subsection (5) 
of section 336.9-401) and a filed financing statement so states, 
it is effective until a termination statement is filed.  A real 
estate mortgage which is effective as a fixture filing under 
subsection (6) of section 336.9-402 remains effective as a 
fixture filing until the mortgage is released or satisfied of 
record or its effectiveness otherwise terminates as to the real 
estate. 
     (7) When a financing statement covers timber to be cut or 
covers minerals or the like (including oil and gas) or accounts 
subject to subsection (5) of section 336.9-103, or is filed as a 
fixture filing, it shall be filed for record and the filing 
officer shall index it under the names of the debtor and any 
owner of record shown on the financing statement in the same 
fashion as if they were the mortgagors in a mortgage of the real 
estate described, and, to the extent that the law of this state 
provides for indexing of mortgages under the name of the 
mortgagee, under the name of the secured party as if he were the 
mortgagee thereunder, or, for filing offices other than the 
secretary of state, where indexing is by description in the same 
fashion as if the financing statement were a mortgage of the 
real estate described.  If requested of the filing officer on 
the financing statement, a financing statement filed for record 
as a fixture filing in the same office where nonfixture filings 
are made is effective, without a dual filing, as to collateral 
listed thereon for which filing is required in such office 
pursuant to section 336.9-401 (1) (a); in such case, the filing 
officer shall also index the recorded statement in accordance 
with subsection (4) using the recording data in lieu of a file 
number. 
    (8) The fees provided for in this article shall supersede 
the fees for similar services otherwise provided for by law 
except in the case of security interests filed in connection 
with a certificate of title on a motor vehicle. 
    (9) A financing statement that covers crops growing or to 
be grown is effective for a period of two years.  A continuation 
statement may be filed for the products of the crop covered in 
the original financing statement.  A continuation statement is 
effective for a period of two years and may be filed within six 
months prior to the expiration of the two-year period for the 
financing statement. 
    Sec. 6.  Minnesota Statutes 1984, section 559.21, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [TERMINATION NOTICE.] (a) If a default occurs in 
the conditions of a contract for the conveyance of real estate 
or an interest in the real estate that gives the seller a right 
to terminate it, the seller may terminate the contract by 
serving upon the purchaser or the purchaser's personal 
representatives or assigns, within or outside of the state, a 
notice specifying the conditions in which default has been 
made.  The notice must state that the contract will terminate 60 
days, or a shorter period allowed in subdivision 4, after the 
service of the notice, unless prior to the termination date the 
purchaser: 
    (1) complies with the conditions in default; 
    (2) makes all payments due and owing to the seller under 
the contract through the date that payment is made; 
    (3) pays the costs of service of the notice, which include 
the reasonable costs of service by sheriff, public officer, or 
private process server, except as provided in paragraph (c); 
    (4) pays two percent of any amount in default at the time 
of service, not including the final balloon payment, any taxes, 
assessments, mortgages, or prior contracts that are assumed by 
the purchaser; and 
    (5) pays an amount to apply on attorneys' fees actually 
expended or incurred, of $125 if the amount in default is less 
than $750, and of $250 if the amount in default is $750 or more, 
except as provided in paragraph (b). 
    (b) An amount for attorneys' fees is not required to be 
paid under this section, unless some part of the conditions of 
default has existed at least 30 days prior to the date of 
service of the notice.  
    (c) Payment of costs of service is not required unless the 
seller notifies the purchaser of actual costs of service by 
certified mail to the purchaser's last known address at least 
ten days prior to the date of termination.  
    Sec. 7.  Minnesota Statutes 1984, section 559.21, 
subdivision 3, is amended to read: 
    Subd. 3.  For purposes of this section, the term "notice" 
means a writing stating the information required in this 
section, stating the name, address and telephone number of the 
vendor seller or of an attorney authorized by the vendor seller 
to accept payments pursuant to the notice and the fact that the 
person named is authorized to receive the payments, and 
including the following information in 12 point or larger bold 
type or in large legible handwritten letters:  
    (a) For contracts executed prior to May 1, 1980:  
    THIS NOTICE IS TO INFORM YOU THAT BY THIS NOTICE THE SELLER 
HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, SECTION 559.21, 
TO TERMINATE YOUR CONTRACT FOR DEED FOR THE REASONS SPECIFIED IN 
THIS NOTICE.  THE CONTRACT WILL TERMINATE . . . . . DAYS AFTER 
(SERVICE OF THIS NOTICE UPON YOU) (THE FIRST DATE OF PUBLICATION 
OF THIS NOTICE) UNLESS BEFORE THEN THE PERSON AUTHORIZED IN THIS 
NOTICE TO RECEIVE PAYMENTS RECEIVES FROM YOU THE AMOUNT THIS 
NOTICE SAYS YOU OWE PLUS THE COSTS OF SERVICE OF THIS NOTICE 
TOGETHER WITH THE MORTGAGE REGISTRATION TAX OF $. . . . . AND $. 
. . . .  TO APPLY TO ATTORNEYS' FEES ACTUALLY EXPENDED OR 
INCURRED;  OR UNLESS BEFORE THEN YOU SECURE FROM A COUNTY OR 
DISTRICT COURT AN ORDER THAT THE TERMINATION OF THE CONTRACT BE 
SUSPENDED UNTIL YOUR CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF 
BY TRIAL, HEARING OR SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY 
STATE THOSE FACTS AND GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR 
DEFENSES.  IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 
WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR CONTRACT 
WILL TERMINATE AT THE END OF THE PERIOD AND YOU WILL LOSE ALL 
THE MONEY YOU HAVE PAID ON THE CONTRACT; YOU WILL LOSE YOUR 
RIGHT TO POSSESSION OF THE PROPERTY; YOU MAY LOSE YOUR RIGHT TO 
ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE; AND YOU WILL 
BE EVICTED.  IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, 
CONTACT AN ATTORNEY IMMEDIATELY.  
    (b) For contracts executed on or after May 1, 1980:  
    THIS NOTICE IS TO INFORM YOU THAT BY THIS NOTICE THE SELLER 
HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, SECTION 559.21, 
TO TERMINATE YOUR CONTRACT FOR DEED THE PURCHASE OF YOUR 
PROPERTY FOR THE REASONS SPECIFIED IN THIS NOTICE.  THE CONTRACT 
WILL TERMINATE ..... DAYS AFTER (SERVICE OF THIS NOTICE UPON 
YOU) (THE FIRST DATE OF PUBLICATION OF THIS NOTICE) UNLESS 
BEFORE THEN THE PERSON AUTHORIZED IN THIS NOTICE TO RECEIVE 
PAYMENTS RECEIVES FROM YOU THE AMOUNT THIS NOTICE SAYS YOU OWE 
PLUS ANY ADDITIONAL PAYMENTS DUE UNDER THE CONTRACT TO THE 
SELLER SINCE THE NOTICE WAS SERVED PLUS THE COSTS OF SERVICE OF 
THIS NOTICE (TO BE SENT TO YOU) TOGETHER WITH THE MORTGAGE 
REGISTRATION TAX OF $ . . . . (WHICH IS TWO PERCENT OF THE 
AMOUNT IN DEFAULT AT THE TIME OF SERVICE OTHER THAN THE FINAL 
BALLOON PAYMENT, ANY TAXES, ASSESSMENTS, MORTGAGES, OR PRIOR 
CONTRACTS THAT ARE ASSUMED BY YOU) AND $. . . . . TO APPLY TO 
ATTORNEYS' FEES ACTUALLY EXPENDED OR INCURRED; OR UNLESS BEFORE 
THEN YOU SECURE FROM A COUNTY OR DISTRICT COURT AN ORDER THAT 
THE TERMINATION OF THE CONTRACT BE SUSPENDED UNTIL YOUR CLAIMS 
OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING OR 
SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.  IF YOU DO NOT 
DO ONE OR THE OTHER OF THE ABOVE THINGS WITHIN THE TIME PERIOD 
SPECIFIED IN THIS NOTICE, YOUR CONTRACT WILL TERMINATE AT THE 
END OF THE PERIOD AND YOU WILL LOSE ALL THE MONEY YOU HAVE PAID 
ON THE CONTRACT; YOU WILL LOSE YOUR RIGHT TO POSSESSION OF THE 
PROPERTY; YOU MAY LOSE YOUR RIGHT TO ASSERT ANY CLAIMS OR 
DEFENSES THAT YOU MIGHT HAVE; AND YOU WILL BE EVICTED.  IF YOU 
HAVE ANY QUESTIONS ABOUT THIS NOTICE, CONTACT AN ATTORNEY 
IMMEDIATELY.  
    Sec. 8.  Minnesota Statutes 1984, section 559.21, 
subdivision 4, is amended to read: 
    Subd. 4.  (a) The notice required by this section must be 
given notwithstanding any provisions in the contract to the 
contrary, and shall except that earnest money contracts, 
purchase agreements, and exercised options that are subject to 
this section may, by their terms, provide for a shorter 
termination period, not less than 30 days.  The notice must be 
served within the state in the same manner as a summons in the 
district court, without and outside of the state, in the same 
manner, and without securing any sheriff's return of not found, 
making any preliminary affidavit, mailing a copy of the notice 
or doing any other preliminary act or thing whatsoever.  Service 
of the notice without outside of the state may be proved by the 
affidavit of the person making the same, made before an 
authorized officer having a seal, and within the state by such 
an affidavit or by the return of the sheriff of any county 
therein. 
    (b) Three weeks published notice, and if the premises 
described in the contract are actually occupied, then in 
addition thereto, the personal service of a copy of the notice 
within ten days after the first date of publication of the 
notice, and in like manner as the service of a summons in a 
civil action in the district court upon the person in possession 
of the premises, has the same effect as the personal service of 
the notice upon the purchaser, his personal representatives or 
assigns, either within or without outside of the state as herein 
provided for.  In case of service by publication, as herein 
provided, the notice shall specify the conditions in which 
default has been made, state that the purchaser, his personal 
representative, or assigns are allowed 90 days from and after 
the first date of publication of the notice to comply with the 
conditions of the contract, and state that the contract will 
terminate 90 days after the first date of publication of the 
notice, unless prior thereto the purchaser: 
     (1) complies with the conditions and, if required pursuant 
to subdivision 2,; 
    (2) makes all payments due and owing to the vendor seller 
under the contract through the date that payment is made and; 
    (3) pays the costs of service, the mortgage registration 
tax, if actually paid by the vendor, as provided in subdivision 
2a; 
    (4) pays two percent of the amount in default at the time 
of service, not including the final balloon payment, any taxes, 
assessments, mortgages, or prior contracts that are assumed by 
the purchaser; and 
    (5) pays attorneys' fees as provided herein, and the 
purchaser, his personal representatives or assigns, shall be 
allowed 90 days from and after the first date of publication of 
the notice to comply with the conditions of the contract in 
subdivision 2a. 
    (c) The contract is reinstated if, within the time 
mentioned, the person served: 
     (1) complies with the conditions and, if required pursuant 
to subdivision 2,; 
     (2) makes all payments due and owing to the vendor seller 
under the contract through the date that payment is made and; 
    (3) pays the costs of service, the mortgage registration 
tax, if actually paid by the vendor, as provided in subdivision 
2a; 
    (4) pays two percent of the amount in default, not 
including the final balloon payment, any taxes, assessments, 
mortgages, or prior contracts that are assumed by the purchaser; 
and 
    (5) pays attorneys' fees as provided herein, in subdivision 
2a. 
    (d) the contract shall be thereby reinstated; but otherwise 
shall terminate is terminated if the provisions of paragraph (c) 
are not met. 
     (e) In the event that the notice was not signed by an 
attorney for the vendor seller and the vendor seller is not 
present in the state, or cannot be found therein, then 
compliance with the conditions specified in the notice may be 
made by paying to the clerk of the district court in the county 
wherein the real estate or any part thereof is situated any 
money due and filing proof of compliance with other defaults 
specified, and the clerk of the district court shall be deemed 
the agent of the vendor seller for such purposes.  A copy of the 
notice with proof of service thereof, and the affidavit of 
the vendor seller, his agent or attorney, showing that the 
purchaser has not complied with the terms of the notice, may be 
recorded with the county recorder, and is prima facie evidence 
of the facts therein stated; but this section in no case applies 
to contracts for the sale or conveyance of lands situated in 
another state or in a foreign country. 
    Sec. 9.  Minnesota Statutes 1984, section 559.21, 
subdivision 6, as amended by Laws 1985, chapter 306, section 7, 
is amended to read: 
    Subd. 6.  [TEMPORARY MINIMUM ADDITIONAL NOTICE.] (a) 
Notwithstanding the provisions of any other law to the contrary, 
no contract for conveyance of homestead property, as defined in 
section 583.02, shall terminate until 60 days after service of 
notice if the notice is served after May 24, 1983, and prior to 
May 1, 1985 or after the effective date of this section and 
prior to May 1, 1987, or 90 days after service of notice if the 
contract was entered into after May 1, 1980 and the contract 
vendee has paid 25 percent or more of the purchase price.  The 
notice shall specify this 60- or 90-day period.  The a notice 
shall to terminate a contract for conveyance of homestead 
property to which the provisions of chapter 583 apply, served 
after May 24, 1983, and prior to May 1, 1985, or after June 8, 
1985, and prior to May 1, 1987, must include a statement that 
the borrower purchaser may be eligible for an extension of the 
time prior to foreclosure and execution sale termination under 
sections 583.01 to 583.12.  
    (b) The notice statement must be in bold type, capitalized 
letters, or other form sufficient for the reader to quickly and 
easily distinguish the notice statement from the rest of the 
writing; notice.  The requirements of this paragraph must be 
followed on notices served under this subdivision on or after 
August 1, 1985.  A violation of this requirement paragraph is a 
petty misdemeanor. 
    (c) This section subdivision does not apply to earnest 
money contracts, purchase agreements or exercised options. 
    Sec. 10.  Minnesota Statutes 1984, section 559.21, is 
amended by adding a subdivision to read: 
    Subd. 8.  [ATTORNEY AS AGENT.] Any attorney expressly 
authorized by the seller to receive payments in the notice of 
termination under this section is designated as the attorney who 
may receive service as agent for the seller of all summons, 
complaints, orders, and motions made in conjunction with an 
action by the purchaser to restrain the termination. 
    Sec. 11.  Minnesota Statutes 1984, section 580.031, as 
amended by Laws 1985, chapter 306, section 15, is amended to 
read: 
    580.031 [MINIMUM NOTICE.] 
    (a) Notwithstanding the provisions of any other law to the 
contrary, eight weeks' published notice must be given prior to 
the foreclosure sale of a homestead, as defined in section 
583.02, to which the provisions of chapter 583 apply if the 
notice is published for the first time after May 24, 1983 and 
prior to May 1, 1985 or after the effective date of this section 
June 8, 1985, and prior to May 1, 1987.  The notice must contain 
the information specified in section 580.04.  
    (b) The notice must be in bold type, capitalized letters, 
or other form sufficient for the reader to quickly and easily 
distinguish the notice from the rest of the writing; violation 
of this requirement is a petty misdemeanor. 
    (c) At least eight weeks before the appointed time of sale, 
a copy of the notice must be served upon the person in 
possession of the mortgaged premises, if the premises are 
actually occupied. 
    Sec. 12.  Minnesota Statutes 1984, section 583.03, 
subdivision 2, as amended by Laws 1985, chapter 306, section 17, 
is amended to read: 
    Subd. 2.  [GENERAL EXCLUSION.] The provisions of sections 
47.20, subdivision 15, 559.21, subdivision 6, 580.031, and 
583.01 to 583.12 do not apply to: 
     (1) mortgages or contracts for deed made after the 
effective date of this act, nor to May 24, 1983; 
     (2) mortgages or contracts for deed made before the 
effective date of this act which May 24, 1983, that are renewed 
or extended after the effective date of this act May 24, 1983, 
for a period longer than one year, nor to; or 
     (3) mortgages, judgments, or contracts for deed, regardless 
of when made, if a second or subsequent mortgage is made against 
the property after the effective date of this act May 24, 1983.  
    No court shall allow a stay or postponement, or extension 
of time that would cause any right to be lost or adversely 
affected by any statute of limitation.  
    Sec. 13.  Minnesota Statutes 1984, section 583.04, as 
amended by Laws 1985, chapter 306, section 18, is amended to 
read: 
    583.04 [MORTGAGOR MAY APPLY TO DISTRICT COURT FOR RELIEF.] 
    Any mortgagor, or owner in possession of the mortgaged 
premises including farm homestead premises, or anyone claiming 
under the mortgage, or anyone liable for the mortgage debt, may 
at any time after the issuance of the notice of default the 
foreclosure proceedings and prior to the sale, petition the 
district court of the county where the foreclosure proceedings 
are pending, serving a summons and verified petition requesting 
that the sale in foreclosure be postponed for up to six months 
or, in the case of a farm homestead located on more than ten 
acres, for up to 12 months.  A contract for deed vendee or 
anyone claiming under the contract or liable for the contract 
payment, in any case where the contract has not yet been 
terminated as of May 24, 1983, may petition the district court 
in the same manner, requesting that the contract termination be 
postponed for up to 90 days.  Upon receiving the petition, the 
court shall order a stay in the foreclosure proceedings or 
contract termination until after the hearing on the petition.  
The court may order costs and attorney fees to be paid by the 
person applying for relief.  If the court orders attorney fees 
to be paid, the amount may not exceed $150 or one-half of the 
attorney fees allowed in section 582.01, whichever is less.  The 
court may order the attorney fees to be prorated and combined 
with payments ordered under section 583.08.  The court may not 
order attorney fees to be paid by the person applying for 
relief, if the person is receiving public assistance or legal 
aid for their own legal representation. 
    Sec. 14.  Minnesota Statutes 1984, section 583.05, as 
amended by Laws 1985, chapter 306, section 19, is amended to 
read: 
    583.05 [COURT MAY ORDER POSTPONEMENT OF SALE; FINDINGS.] 
    The court may consider the following criteria in 
determining whether or not to order a postponement of the sale 
or contract termination:  
    (1) that the petitioner is unemployed, underemployed, 
facing catastrophic medical expenses, or facing economic 
problems due to low farm commodity prices; and 
    (2) that the petitioner has an inability to make payments 
on the mortgage or contract for deed.  
    If the court grants or denies a postponement of the sale, 
the mortgagee shall publish notice of the new sale date as 
provided in section 580.03.  If the court grants a postponement 
of the sale, the mortgagee shall not publish notice of a new 
sale date as provided in section 580.03 until the postponement 
period has expired, except as provided in section 583.08.  
Section 580.07 does not apply to foreclosure sales postponed by 
a court pursuant to sections 583.01 to 583.12. 
    Sec. 15.  Minnesota Statutes 1984, section 583.07, as 
amended by Laws 1985, chapter 306, section 20, is amended to 
read: 
    583.07 [REDUCTION OF REDEMPTION PERIOD.] 
    If the court grants a postponement of the foreclosure sale 
pursuant to sections 583.01 to 583.12, the redemption period 
pursuant to section 580.23 may must be reduced by an equivalent 
period of time, provided, that in no event shall may the 
redemption period be less than 30 days.  If the court does not 
grant a postponement of the foreclosure sale, the redemption 
period shall must be as provided in section 580.23. 
    Sec. 16.  [REPEALER.] 
    (a) Minnesota Statutes 1984, section 559.21, subdivisions 
1, 1a, and 2 are repealed. 
    (b) Minnesota Statutes 1984, section 559.21, subdivision 8, 
as added by Laws 1985, chapter 300, section 29, is repealed.  
    Sec. 17.  [EFFECTIVE DATE.] 
    (a) Sections 1, 2, 4, 5, 11, 12, 14, and 15, and the 
amendments in section 9 to Minnesota Statutes 1984, section 
559.21, subdivision 6, paragraph (b), as amended, are effective 
retroactive to June 8, 1985. 
    (b) Sections 3, 6 to 8, 10, and 16, and the amendments in 
section 9 to Minnesota Statutes 1984, section 559.21, 
subdivision 6, paragraphs (a) and (c), as amended, are effective 
August 1, 1985, and apply to contracts for the conveyance of 
real estate or any interest therein executed before, on, or 
after that date. 
    (c) Section 13 is effective the day after final enactment. 
    Approved July 5, 1985