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

  

                         Laws of Minnesota 1986 

                        CHAPTER 322-S.F.No. 1597 
           An act relating to agriculture; removing the liability 
          of persons who buy farm products; repealing the 
          notification and registration system for security 
          interests in farm products; amending Minnesota 
          Statutes 1985 Supplement, sections 17A.04, 
          subdivisions 2 and 5; and 336.9-307; repealing 
          Minnesota Statutes 1985 Supplement, sections 17A.04, 
          subdivision 1a; 27.03, subdivision 2; 223.17, 
          subdivision 1a; 223A.01; and 386.42. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1985 Supplement, section 
17A.04, subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION.] Any person desiring to carry on 
the business of a livestock market agency or livestock dealer, 
or both, or a public stockyard shall make application to the 
commissioner on a form or forms provided by the commissioner. 
The form must provide for registration as a livestock buyer 
under section 386.42. 
    Sec. 2.  Minnesota Statutes 1985 Supplement, section 
17A.04, subdivision 5, is amended to read: 
    Subd. 5.  [LICENSE FEE.] The applicant shall submit to the 
commissioner the fee for the county registration as a livestock 
buyer under subdivision 1a and the following applicable fees and 
penalties for late renewal: 
    (a) $150 for each livestock market agency and public 
stockyard license, penalty $38;  
    (b) $50 for each livestock dealer license, penalty $13;  
    (c) $30 for each agent of a livestock dealer license, 
penalty $10;  
    (d) $50 for each meat packing company license, penalty $13; 
    (e) $30 for each agent of a meat packing company license, 
penalty $10. 
    Sec. 3.  Minnesota Statutes 1985 Supplement, section 
336.9-307, is amended to read: 
    336.9-307 [PROTECTION OF BUYERS OF GOODS.] 
    (1) A buyer in ordinary course of business (subsection (9) 
of section 336.1-201) takes free of a security interest created 
by his seller even though the security interest is perfected and 
even though the buyer knows of its existence, except that a 
buyer in the ordinary course of business who purchases farm 
products from a person engaged in farming operations is subject 
to section 223A.01.  
    (2) In the case of consumer goods, a buyer takes free of a 
security interest even though perfected if he buys without 
knowledge of the security interest, for value and for his own 
personal, family or household purposes unless prior to the 
purchase the secured party has filed a financing statement 
covering such goods. 
    (3) A buyer other than a buyer in ordinary course of 
business (subsection (1) of this section) takes free of a 
security interest to the extent that it secures future advances 
made after the secured party acquires knowledge of the purchase, 
or more than 45 days after the purchase, whichever first occurs, 
unless made pursuant to a commitment entered into without 
knowledge of the purchase and before the expiration of the 
45-day period. 
    Sec. 4.  [REPEALER.] 
    Minnesota Statutes 1985 Supplement, sections 17A.04, 
subdivision 1a; 27.03, subdivision 2; 223.17, subdivision 1a; 
223A.01; and 386.42 are repealed. 
    Sec. 5.  [EFFECTIVE DATE.] 
    Sections 1 to 4 are effective the day following final 
enactment. 
    Approved March 14, 1986