Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                         CHAPTER 292-S.F.No. 89 
           An act relating to agriculture; clarifying and 
          amending the farmer-lender mediation act; amending 
          Minnesota Statutes 1986, sections 336.9-501; 514.960, 
          subdivisions 2 and 4; 550.365; 559.209; 580.031; 
          581.015; 583.22, subdivisions 2, 7b, and 8, and by 
          adding a subdivision; 583.24, subdivision 1, and by 
          adding a subdivision; 583.26, subdivisions 1, 2, 3, 4, 
          5, 6, and 9, and by adding a subdivision; 583.27, 
          subdivisions 1, 3, and 4; and 583.285; proposing 
          coding for new law in Minnesota Statutes, chapters 
          514, 550, 559, and 583; repealing Minnesota Statutes 
          1986, section 583.24, subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [550.366] [JUDGMENTS ON DEBTS RELATED TO 
AGRICULTURAL PROPERTY.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this section 
the following terms have the meanings given: 
    (a) [AGRICULTURAL PROPERTY.] "Agricultural property" means 
personal property that is used in a farm operation. 
    (b) [FARM DEBTOR.] "Farm debtor" means a person who has 
incurred debt while in the operation of a family farm, a family 
farm corporation, or an authorized farm corporation as defined 
in section 500.24, subdivision 2. 
    Subd. 2.  [LIMITS ON EXECUTION.] A judgment for the unpaid 
balance of a debt on agricultural property owed by a farm debtor 
may not be executed upon real or personal property after three 
years from the date the judgment was entered. 
    Subd. 3.  [ATTACHMENT TO NEWLY ACQUIRED PROPERTY.] A 
judgment for the unpaid balance of a debt on agricultural 
property owed by a farm debtor does not attach to real or 
personal property that is acquired by the farm debtor after the 
judgment is entered. 
    Sec. 2.  Minnesota Statutes 1986, section 336.9-501, is 
amended to read:  
    336.9-501 [DEFAULT; PROCEDURE WHEN SECURITY AGREEMENT 
COVERS BOTH REAL AND PERSONAL PROPERTY.] 
    (1) When a debtor is in default under a security agreement, 
a secured party has the rights and remedies provided in this 
part and except as limited by subsection (3) those provided in 
the security agreement.  The secured party may reduce a claim to 
judgment, foreclose, or otherwise enforce the security interest 
by any available judicial procedure.  If the collateral is 
documents the secured party may proceed either as to the 
documents or as to the goods covered thereby.  A secured party 
in possession has the rights, remedies, and duties provided in 
section 336.9-207.  The rights and remedies referred to in this 
subsection are cumulative. 
    (2) After default, the debtor has the rights and remedies 
provided in this part, those provided in the security agreement, 
and those provided in section 336.9-207. 
    (3) To the extent that they give rights to the debtor and 
impose duties on the secured party, the rules stated in the 
subsections referred to below may not be waived or varied except 
as provided with respect to compulsory disposition of collateral 
(subsection (3) of section 336.9-504 and section 336.9-505) and 
with respect to redemption of collateral (section 336.9-506) but 
the parties may by agreement determine the standards by which 
the fulfillment of these rights and duties is to be measured if 
such standards are not manifestly unreasonable: 
    (a) Subsection (2) of section 336.9-502 and subsection (2) 
of section 336.9-504 insofar as they require accounting for 
surplus proceeds of collateral; 
    (b) Subsection (3) of section 336.9-504 and subsection (1) 
of section 336.9-505 which deal with disposition of collateral; 
    (c) Subsection (2) of section 336.9-505 which deals with 
acceptance of collateral as discharge of obligation; 
    (d) Section 336.9-506 which deals with redemption of 
collateral; and 
    (e) Subsection (1) of section 336.9-507 which deals with 
the secured party's liability for failure to comply with this 
part. 
    (4) If the security agreement covers both real and personal 
property, the secured party may proceed under this part as to 
the personal property or may proceed as to both the real and the 
personal property in accordance with the secured party's rights 
and remedies in respect of the real property in which case the 
provisions of this part do not apply. 
    (5) When a secured party has reduced a claim to judgment 
the lien of any levy which may be made upon collateral by virtue 
of any execution based upon the judgment shall relate back to 
the date of the perfection of the security interest in such 
collateral.  A judicial sale, pursuant to such execution, is a 
foreclosure of the security interest by judicial procedure 
within the meaning of this section, and the secured party may 
purchase at the sale and thereafter hold the collateral free of 
any other requirements of this article. 
    (6) A person may not begin to enforce a security interest 
in collateral that is agricultural property subject to sections 
583.20 to 583.32 that has secured a debt of more than $5,000 
unless:  a mediation notice under subsection (7) is served on 
the debtor after a condition of default has occurred in the 
security agreement and a copy filed with served on the director; 
and the debtor and creditor have completed mediation under 
sections 583.20 to 583.32; or as otherwise allowed under 
sections 583.20 to 583.32. 
    (7) A mediation notice under subsection (6) must contain 
the following notice with the blanks properly filled in. 
    "TO:  ....(Name of Debtor)....  
    YOU HAVE DEFAULTED ON THE ....(Debt in Default).... SECURED 
BY AGRICULTURAL PROPERTY DESCRIBED AS ....(Reasonable 
Description of Agricultural Property Collateral).... 
    AS A SECURED PARTY, ....(Name of Secured Party).... INTENDS 
TO ENFORCE THE SECURITY AGREEMENT AGAINST THE AGRICULTURAL 
PROPERTY DESCRIBED ABOVE BY REPOSSESSING, FORECLOSING ON, OR 
OBTAINING A COURT JUDGMENT AGAINST THE PROPERTY. 
    YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION. 
IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE 
MEDIATED ONLY ONCE.  IF YOU DO NOT REQUEST MEDIATION, THIS DEBT 
WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY 
ENFORCES THE DEBT. 
    IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 
MEETING AND A CREDIT FINANCIAL ANALYST TO HELP YOU TO PREPARE 
FINANCIAL INFORMATION.  IF YOU DECIDE TO PARTICIPATE IN 
MEDIATION, IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM 
FINANCE AND OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION 
OFFICE AS SOON AS POSSIBLE.  MEDIATION WILL ATTEMPT TO ARRIVE AT 
AN AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.  
    TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A 
MEDIATION REQUEST WITH THE DIRECTOR ... (Date of 14 Days after 
Service of the Mediation Notice)... WITHIN 14 DAYS AFTER YOU 
RECEIVE THIS NOTICE.  THE MEDIATION REQUEST FORM IS AVAILABLE AT 
ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE. 
    FROM:  ....(Name and Address of Secured Party)...." 
    Sec. 3.  [514.661] [LIEN FOR RENTAL VALUE OF FARM MACHINERY 
DURING MEDIATION.] 
    Subdivision 1.  [DEFINITIONS.] The definitions in this 
section apply to this section.  
    (a) "Reasonable rental value" means an amount not more than 
the rental value of machinery of like capacity and age as 
determined by the director of the University of Minnesota 
extension service and is limited to the tachometer time during 
which or the acreage for which the machinery is used during the 
mediation period. 
    (b) "Seasonal use machinery" means machinery, equipment, or 
implements used exclusively for planting, for row crop 
cultivating, or for harvesting.  Seasonal use machinery does not 
include a tractor, tillage equipment, or utility implements used 
for general farm purposes.  
    Subd. 2.  [LIEN; ATTACHMENT.] (a) A person or entity with a 
debt secured by a perfected or unperfected security interest in 
seasonal use machinery that is subject to mediation who engages 
in mediation under sections 583.20 to 583.32, as a result of a 
debtor's default on a purchase money loan or contract, has a 
lien limited to the lesser of:  (1) the total of principal and 
interest amounts required to bring the debt current until the 
stay of the creditor's enforcement action is lifted; and (2) the 
reasonable rental value of seasonal use machinery that is used 
for field operation during mediation until the stay of the 
creditor's enforcement action is lifted.  
     (b) The lien attaches to the crops produced by the debtor 
in the calendar year in which mediation occurs.  
    Subd. 3.  [PERFECTION.] To perfect a lien under this 
section, the lien must attach and a person or entity entitled to 
the lien must file a lien statement in the appropriate filing 
office under section 336.9-401 during mediation or within 30 
days after the conclusion of mediation.  
    Subd. 4.  [DUTIES OF FILING OFFICER.] The filing officer 
shall enter on the lien statement the time of day and date of 
filing.  The filing officer shall file, amend, terminate, note 
the filing of a lien 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 statement is void and may be 
removed from the filing system 18 months after the date of 
filing.  The lien statement may be physically destroyed after 30 
months from the date of filing.  
     Subd. 5.  [PRIORITY.] (a) A perfected lien has priority 
over all other liens and security interests in crops produced by 
the debtor during the calendar year in which the mediation 
occurs except for a perfected landlord's lien under section 
514.960.  
     (b) An unperfected lien has the priority of an unperfected 
security interest under section 336.9-312.  
    Subd. 6.  [ENFORCEMENT OF LIEN.] (a) The holder of a lien 
under this section may enforce the lien in the manner provided 
in sections 336.9-501 to 336.9-508, subject to section 550.17.  
For enforcement of the lien, the lienholder is the secured party 
and the person leasing the property is the debtor, and each has 
the respective rights and duties of a secured party and a debtor 
under sections 336.9-501 to 336.9-508.  If a right or duty under 
sections 336.9-501 to 336.9-508 is contingent upon the existence 
of express language in a security agreement or may be waived by 
express language in a security agreement, the requisite language 
does not exist.  
    (b) The principal amount of debt secured by seasonal use 
machinery must be reduced by an amount equal to any amount paid 
in satisfaction of a lien created under this section, less 
interest accrued on the debt during mediation.  
    Subd. 7.  [ENFORCEMENT ACTIONS; LIEN EXTINGUISHED.] An 
action to enforce a lien under this section may be brought in 
district court in a county where the property is located after 
the lien is perfected.  A lien statement may be amended, except 
the amount demanded, by leave of the court in the furtherance of 
justice.  A lien is extinguished if an action to enforce the 
lien is not brought within 18 months after the date the lien 
statement is filed. 
    Subd. 8.  [EXEMPTION FROM MEDIATION.] A lien created and 
perfected under this section is exempt from sections 583.20 to 
583.32 and is effective against crops growing or to be grown by 
the debtor in the calendar year. 
    Sec. 4.  Minnesota Statutes 1986, section 514.960, 
subdivision 2, is amended to read:  
    Subd. 2.  [PERFECTION.] (a) To perfect a landlord lien, the 
lien must attach and the person or entity entitled to the lien 
must file a lien statement with the appropriate filing office 
under section 336.9-401 by 30 days after the crops become 
growing crops.  
    (b) A landlord lien that is not perfected has the priority 
of an unperfected security interest under section 336.9-312.  
    Sec. 5.  Minnesota Statutes 1986, section 514.960, 
subdivision 4, is amended to read:  
    Subd. 4.  [PRIORITY.] (a) A perfected landlord lien has 
priority over all other liens or security interests in crops 
grown or produced on the property that was leased and the crop 
products and proceeds. 
    (b) A landlord lien that is not perfected has the priority 
of an unperfected security interest under section 336.9-312. 
    Sec. 6.  Minnesota Statutes 1986, section 550.365, is 
amended to read:  
    550.365 [MEDIATION NOTICE AND CONDITIONS REQUIREMENTS FOR 
AGRICULTURAL PROPERTY.] 
    Subdivision 1.  [REQUIREMENT.] A person may not attach, 
execute on, levy on, or seize agricultural property subject to 
sections 583.20 to 583.32 that has secured a debt of more than 
$5,000 unless:  (1) a mediation notice is served on the judgment 
debtor and a copy filed with served on the director; and (2) the 
debtor and creditor have completed mediation under sections 
583.20 to 583.32; or (2) as otherwise allowed under sections 
583.20 to 583.32. 
    Subd. 2.  [CONTENTS.] A mediation notice must contain the 
following notice with the blanks properly filled in. 
    "TO:  ....(Name of Judgment Debtor).... 
    A JUDGMENT WAS ORDERED AGAINST YOU BY ....(Name of 
Court).... ON ....(Date of Judgment). 
    AS A JUDGMENT CREDITOR, ....(Name of Judgment Creditor).... 
INTENDS TO TAKE ACTION AGAINST THE AGRICULTURAL PROPERTY 
DESCRIBED AS ....(Description of Agricultural Property).... TO 
SATISFY THE JUDGMENT. 
    YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION. 
IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE 
MEDIATED ONLY ONCE.  IF YOU DO NOT REQUEST MEDIATION, THIS DEBT 
WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY 
ENFORCES THE DEBT. 
    IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 
MEETING AND A CREDIT FINANCIAL ANALYST TO HELP YOU PREPARE 
FINANCIAL INFORMATION.  IF YOU DECIDE TO PARTICIPATE IN 
MEDIATION, IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM 
FINANCE AND OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION 
OFFICE AS SOON AS POSSIBLE.  MEDIATION WILL ATTEMPT TO ARRIVE AT 
AN AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.  
    TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A 
MEDIATION REQUEST WITH THE DIRECTOR ... (Date of 14 Days after 
Service of the Mediation Notice)... WITHIN 14 DAYS AFTER YOU 
RECEIVE THIS NOTICE.  THE MEDIATION REQUEST FORM IS AVAILABLE AT 
ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE. 
    FROM:  ....(Name and Address of Judgment Creditor)...." 
    Sec. 7.  Minnesota Statutes 1986, section 559.209, is 
amended to read:  
    559.209 [MEDIATION NOTICE AND CONDITIONS FOR AGRICULTURAL 
PROPERTY.] 
    Subdivision 1.  [REQUIREMENT.] A person may not begin to 
terminate a contract for deed under section 559.21 to purchase 
agricultural property subject to sections 583.20 to 583.32 that 
secured a debt for a remaining balance on the contract of more 
than $5,000 unless:  (1) a mediation notice is served on the 
contract for deed purchaser after a default has occurred under 
the contract and a copy filed with served on the director; and 
(2) the contract for deed vendor and purchaser have completed 
mediation under sections 583.20 to 583.32; or (2) as otherwise 
allowed under sections 583.20 to 583.32. 
    Subd. 2.  [CONTENTS.] A mediation notice must contain the 
following notice with the blanks properly filled in.  
    "TO:  ....(Name of Contract for Deed Purchaser).... 
    YOU HAVE DEFAULTED ON THE CONTRACT FOR DEED OF THE 
AGRICULTURAL PROPERTY DESCRIBED AS ....(Size and Reasonable 
Location of Property, Not Legal Description).... 
    AS THE CONTRACT FOR DEED VENDOR, ....(Contract for Deed 
Vendor).... INTENDS TO TERMINATE THE CONTRACT AND TAKE BACK THE 
PROPERTY. 
    YOU HAVE THE RIGHT TO HAVE THE CONTRACT FOR DEED DEBT 
REVIEWED FOR MEDIATION.  IF YOU REQUEST MEDIATION, A DEBT THAT 
IS IN DEFAULT WILL BE MEDIATED ONLY ONCE.  IF YOU DO NOT REQUEST 
MEDIATION, THIS DEBT WILL NOT BE SUBJECT TO FUTURE MEDIATION IF 
THE CONTRACT FOR DEED VENDOR BEGINS REMEDIES TO ENFORCE THE DEBT.
    IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 
MEETING AND A CREDIT FINANCIAL ANALYST TO HELP YOU PREPARE 
FINANCIAL INFORMATION.  IF YOU DECIDE TO PARTICIPATE IN 
MEDIATION, IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM 
FINANCE AND OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION 
OFFICE AS SOON AS POSSIBLE.  MEDIATION WILL ATTEMPT TO ARRIVE AT 
AN AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS. 
    TO HAVE THE CONTRACT FOR DEED DEBT REVIEWED FOR MEDIATION 
YOU MUST FILE A MEDIATION REQUEST WITH THE DIRECTOR ....(Date of 
14 Days after Service of the Mediation Notice)... WITHIN 14 DAYS 
AFTER YOU RECEIVE THE NOTICE.  THE MEDIATION REQUEST FORM IS 
AVAILABLE AT ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE. 
    FROM:  ....(Name and Address of Contract for Deed 
                 Vendor)...." 
    Sec. 8.  [559.2091] [CONTRACT FOR DEED SUBJECT TO 
MEDIATION.] 
    Subdivision 1.  [LIEN FOR RENTAL VALUE; ATTACHMENT.] (a) A 
contract for deed vendor who is a natural person with a debt 
subject to mediation under sections 583.20 to 583.32 and who 
engages in mediation under sections 583.20 to 583.32 as a result 
of a purchaser's default on the contract, is considered a person 
who leases a property for agricultural production under section 
514.960.  The vendor has a lien for the reasonable rental value 
of the property during the mediation period as mutually 
determined by the vendor and the vendee not to exceed the rental 
value of the land as determined by the director of the 
University of Minnesota extension service, or by district court. 
The rental period under this section must not exceed the period 
in which the vendor's remedies are stayed under sections 583.20 
to 583.32.  
     (b) The lien attaches to crops grown or to be grown by the 
vendee on the property subject to the contract regardless of the 
ownership of the crops.  
    Subd. 2.  [PERFECTION.] Notwithstanding the requirement of 
section 514.960, subdivision 2, that the lien be filed within 30 
days after the crops become growing crops, the lien provided 
under this subdivision is perfected by the vendor only if filed 
during mediation or within 30 days after the conclusion of 
mediation.  
    Subd. 3.  [CREDITING OF PAYMENTS.] Payments acquired 
through a lien created under this subdivision must be applied as 
a payment on the contract according to the terms of the contract.
    Subd. 4.  [MEDIATION EXEMPTION.] A lien created under this 
section and filed under section 514.960 is exempt from sections 
583.20 to 583.32.  
    Sec. 9.  Minnesota Statutes 1986, section 580.031, is 
amended to read:  
    580.031 [MINIMUM NOTICE.] 
    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 to which the provisions of 
chapter 583 sections 583.01 to 583.12 apply if the notice is 
published for the first time after May 24, 1983 and prior to May 
1, 1985 or, after June 8, 1985, and prior to May 1, 1987, or 
after the effective date of this act and prior to May 1, 1989. 
The notice must contain the information specified in section 
580.04.  
    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. 10.  Minnesota Statutes 1986, section 581.015, is 
amended to read:  
    581.015 [MEDIATION NOTICE AND CONDITIONS FOR AGRICULTURAL 
PROPERTY.] 
    Subdivision 1.  [REQUIREMENT.] A person may not begin a 
proceeding under this chapter 580 or 581 to foreclose a mortgage 
on agricultural property subject to sections 583.20 to 583.32 
that has a secured debt of more than $5,000 unless:  (1) a 
mediation notice is served on the mortgagor after a default has 
occurred in the mortgage and a copy is filed with served on the 
director; and (2) the mortgagor and mortgagee have completed 
mediation under sections 583.20 to 583.32; or (2) as otherwise 
allowed under sections 583.20 to 583.32. 
    Subd. 2.  [CONTENTS.] A mediation notice must contain the 
following notice with the blanks properly filled in.  
    "TO:  ....(Name of Record Owner).... 
    YOU HAVE DEFAULTED ON THE MORTGAGE OF THE AGRICULTURAL 
PROPERTY DESCRIBED AS ....(Size and Reasonable Location, Not 
Legal Description).... 
    AS HOLDER OF THE MORTGAGE, ....(Name of Holder of 
Mortgage).... INTENDS TO FORECLOSE ON THE PROPERTY DESCRIBED 
ABOVE. 
    YOU HAVE THE RIGHT TO HAVE THE MORTGAGE DEBT REVIEWED FOR 
MEDIATION.  IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT 
WILL BE MEDIATED ONLY ONCE.  IF YOU DO NOT REQUEST MEDIATION, 
THIS DEBT WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED 
PARTY ENFORCES THE DEBT. 
    IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 
AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 
MEETING AND A CREDIT FINANCIAL ANALYST TO HELP YOU PREPARE 
FINANCIAL INFORMATION.  IF YOU DECIDE TO PARTICIPATE IN 
MEDIATION, IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM 
FINANCE AND OPERATION RECORDS AND TO CONTACT A COUNTY EXTENSION 
OFFICE AS SOON AS POSSIBLE.  MEDIATION WILL ATTEMPT TO ARRIVE AT 
AN AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.  
    TO HAVE THE MORTGAGE DEBT REVIEWED FOR MEDIATION YOU MUST 
FILE A MEDIATION REQUEST WITH THE DIRECTOR ... (Date of 14 Days 
after Service of the Mediation Notice)... WITHIN 14 DAYS AFTER 
YOU RECEIVE THIS NOTICE.  THE MEDIATION REQUEST FORM IS 
AVAILABLE AT ANY COUNTY RECORDER'S OR COUNTY EXTENSION OFFICE. 
    FROM:  ....(Name and Address of Holder of Mortgage)...." 
    Sec. 11.  Minnesota Statutes 1986, section 583.22, 
subdivision 2, is amended to read:  
    Subd. 2.  [AGRICULTURAL PROPERTY.] "Agricultural property" 
means real property that is principally used for farming as 
defined in section 500.24, subdivision 2, paragraph (a), and 
raising poultry, and personal property that is used as security 
to finance a farm operation or used as part of a farm operation 
including equipment, crops, livestock, and proceeds of the 
security, and removable agricultural structures under lease with 
option to purchase.  "Agricultural property" does not include:  
personal property that is subject to a possessory lien under 
sections 514.18 to 514.22; property that is leased to the debtor 
other than removable agricultural structures under lease with 
option to purchase; or farm machinery that is primarily used for 
custom field work. 
    Sec. 12.  Minnesota Statutes 1986, section 583.22, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [FINANCIAL ANALYST.] "Financial analyst" means a 
person:  (1) knowledgeable in agricultural and financial matters 
that can provide financial analysis; (2) who is able to aid the 
debtor in preparing the financial information required under 
section 583.26, subdivision 3; and (3) who is approved by the 
director.  A financial analyst may include county extension 
agents, adult farm management instructors, AVTI instructors, and 
other persons able to carry out the duties of a financial 
analyst. 
    Sec. 13.  Minnesota Statutes 1986, section 583.22, 
subdivision 7b, is amended to read:  
    Subd. 7b.  [NECESSARY LIVING EXPENSES.] As used in section 
583.27, "necessary living expenses" means a sum approximately 
equal to one and one-half times the amount to which the family 
would be entitled if eligible for payments under section 256.74, 
unless limited by section 583.27, subdivision 1, paragraph (b). 
    Sec. 14.  Minnesota Statutes 1986, section 583.22, 
subdivision 8, is amended to read: 
    Subd. 8.  [SERVE.] "Serve" means (1) personal service as in 
a district court civil action; (2) service by certified mail 
using return receipt signed by addressee only; or (3) actual 
delivery of required documents with signed receipt; or (4) if an 
unsuccessful attempt is made to serve under clause (1) or (2), 
service may be made by mail with a certificate of mailing to the 
last known address of the debtor.  For purposes of serving under 
clause (4), the addressee is considered to have been served the 
documents five days after the date on the certificate of mailing.
    Sec. 15.  Minnesota Statutes 1986, section 583.24, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CREDITORS.] (a) The farmer-lender 
mediation act applies to creditors who are owed debts subject to 
the farmer-lender mediation act and are:  
    (1) the United States or an agency of the United States; 
    (2) corporations, partnerships, and other business 
entities; and 
    (3) individuals.  
    (b) The farmer-lender mediation act does not apply to 
creditors of a debtor described under subdivision 2, paragraph 
(b). 
    Sec. 16.  Minnesota Statutes 1986, section 583.24, is 
amended by adding a subdivision to read: 
    Subd. 4.  [DEBTS.] (a) The farmer-lender mediation act does 
not apply to a debt: 
    (1) for which a proof of claim form has been filed in 
bankruptcy by a creditor or that was listed as a scheduled debt, 
of a debtor who has filed a petition in bankruptcy after the 
effective date of this act under United States Code, title 11, 
chapter 7, 11, 12, or 13; 
    (2) if the debt was in default when the creditor received a 
mediation proceeding notice under the farmer-lender mediation 
act and the creditor filed a claim form, the debt was mediated 
during the mediation period under section 583.26, subdivision 8, 
and (i) the mediation was unresolved; or (ii) a mediation 
agreement with respect to that debt was signed; 
    (3) for which the creditor has served a mediation notice, 
the debtor has failed to make a timely request for mediation, 
and within 30 days after the debtor failed to make a timely 
request the creditor began a proceeding to enforce the debt 
against the agricultural property of the debtor; 
    (4) for which a creditor has received a mediation 
proceeding notice and the creditor and debtor have restructured 
the debt and have signed a separate mediation agreement with 
respect to that debt; or 
    (5) for which there is a lien for rental value of farm 
machinery under section 514.661 or a lien for rental value 
relating to a contract for deed subject to the farmer-lender 
mediation act under section 559.2091.  
    (b) For purposes of paragraph (a), clause (3), providing a 
copy of a forbearance policy is considered beginning a 
proceeding to enforce a debt if the board of an institution has 
adopted a forbearance policy that provides for deferring or 
rescheduling payments of principal or interest, renewal or 
extension of loan terms, reduction in the amount or rate of 
principal or interest due on a loan, or other similar actions, 
and requires that the debtor must receive a copy of the policy 
at least 20 days prior to loan acceleration or debt collection 
proceedings. 
    Sec. 17.  Minnesota Statutes 1986, section 583.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEDIATION NOTICE.] (a) A creditor desiring 
to start a proceeding to enforce a debt against agricultural 
property under chapter 580 or 581 or sections 336.9-501 to 
336.9-508, to terminate a contract for deed to purchase 
agricultural property under section 559.21, or to garnish, levy 
on, execute on, seize, or attach agricultural property, must 
serve an applicable mediation notice under sections 336.9-501, 
550.365, 559.209, and 581.015 on the debtor and the director.  
The creditor must also file with the director proof of the date 
the mediation notice was served on the debtor.  The creditor may 
not begin the proceeding until the creditor and debtor have 
completed mediation the stay of the creditor's remedies is 
lifted under subdivision 5, or as allowed under sections 583.20 
to 583.32. 
    (b) The director shall combine all mediation notices for 
the same debtor that are received prior to the initial mediation 
meeting into one mediation proceeding.  
    Sec. 18.  Minnesota Statutes 1986, section 583.26, 
subdivision 2, is amended to read: 
    Subd. 2.  [MEDIATION REQUEST.] (a) A debtor must file a 
mediation request form with the director by 14 days after 
receiving a mediation notice.  The debtor must state all known 
creditors with debts secured for agricultural property.  The 
mediation request form must include an instruction that the 
debtor must state all known creditors with debts secured by 
agricultural property and unsecured creditors that are necessary 
for the farm operation of the debtor.  It is the debtor's 
discretion as to which unsecured creditors are necessary for the 
farm operation.  The mediation request must state the date that 
the notice was served on the debtor.  The director shall make 
mediation request forms available in the county recorder's and 
county extension office of each county. 
    (b) Except as provided in section 583.24, subdivision 4, 
paragraph (a), clause (3), a debtor who fails to file a timely 
mediation request waives the right to mediation for that debt 
under the farmer-lender mediation act.  The director shall 
notify a the creditor who served the mediation notice stating 
that the creditor may proceed against the agricultural property 
because the debtor has failed to file a mediation request. 
    (c) If a debtor has not received a mediation notice and is 
subject to a proceeding of a creditor enforcing a debt against 
agricultural property under chapter 580 or 581 or sections 
336.9-501 to 336.9-508, terminating a contract for deed to 
purchase agricultural property under section 559.21, or 
garnishing, levying on, executing on, seizing, or attaching 
agricultural property, the debtor may file a mediation request 
with the director.  The mediation request form must indicate 
that the debtor has not received a mediation notice. 
    Sec. 19.  Minnesota Statutes 1986, section 583.26, 
subdivision 3, is amended to read: 
    Subd. 3.  [CREDIT FINANCIAL ANALYST AND FARM ADVOCATE.] (a) 
Within three business days after receiving a mediation notice 
request, the director shall provide a credit financial analyst 
knowledgeable in agricultural and financial matters to meet with 
the debtor and assure that information relative to the finances 
of the debtor is prepared for the initial mediation 
meeting.  The financial analyst must review and, if necessary, 
prepare the debtor's financial records before the initial 
mediation meeting.  
    (b) After receiving the mediation notice, the director 
shall notify provide the debtor that with a list of farm 
advocate advocates that may be available without charge to 
assist the debtor and the credit financial analyst.  
    Sec. 20.  Minnesota Statutes 1986, section 583.26, is 
amended by adding a subdivision to read:  
    Subd. 3a.  [ORIENTATION SESSION.] The director shall 
schedule an orientation session to be held at least five days 
before the first mediation meeting.  The debtor, the financial 
analyst, and a mediator shall participate in the orientation 
session.  The mediator at the session need not be the one 
assigned to the mediation proceeding under subdivision 4.  
Creditors participating in the mediation may participate in the 
orientation session.  At the orientation session, the financial 
analyst shall review the debtor's financial and inventory 
records to determine if they are adequate for the mediation and 
inform the debtor of any inadequacies, and the mediator shall 
inform the debtor of the requirements of the mediation process.  
    Sec. 21.  Minnesota Statutes 1986, section 583.26, 
subdivision 4, is amended to read: 
    Subd. 4.  [INITIAL MEDIATION MEETING PROCEEDING NOTICE.] (a)
By ten days after receiving a mediation request, the director 
shall send: (1) a mediation meeting proceeding notice to the 
debtor; and (2) a mediation meeting proceeding notice to all 
creditors listed by the debtor in the mediation request; and (3) 
a claim form to all known secured creditors of stated by the 
debtor. 
    (b) The mediation meeting proceeding notice must include a 
time and place for an initial mediation meeting between the 
debtor, all known creditors of the debtor, and a list of three 
mediators. state: 
     (1) the name and address of the debtor; 
     (2) that the debtor has requested mediation under the 
farmer-lender mediation act; 
     (3) the time and place for the orientation session; 
     (4) the time and place for the initial mediation meeting; 
     (5) a list of the names of three mediators that may be 
assigned to the proceeding, along with background information on 
those mediators including biographical information, a summary of 
previous mediation experience, and the number of agreements 
signed by parties to previous mediation; 
     (6) that the debtor and the initiating creditor may each 
request the director to exclude one mediator by notifying the 
director within three days after receiving the notice; 
    (7) that in lieu of having a mediator assigned by the 
director, the debtor and any one or more of the creditors may 
agree to select and pay for a professional mediator that is 
approved by the director; 
    (8) that the farmer-lender mediation act prohibits the 
creditor from beginning or continuing a proceeding to enforce 
the debt against agricultural property for 90 days after the 
debtor files a mediation request with the director unless 
otherwise allowed; and 
    (9) that the creditor must provide the debtor by the 
initial mediation meeting with copies of notes and contracts for 
debts subject to the farmer-lender mediation act and provide a 
statement of interest rates on the debts, delinquent payments, 
unpaid principal and interest balances, the creditor's value of 
the collateral, and debt restructuring programs available by the 
creditor. 
    (c) An initial mediation meeting must be held within 20 
days of the notice.  
    (c) Each (d) The initiating creditor and the debtor may 
each request the director to exclude one mediator from the list 
by sending the director a notice to such effect exclude the 
mediator within three days after receiving the mediation meeting 
proceeding notice.  In the event that requests from the 
creditors to remove mediators from the list would result in the 
exclusion of all of the remaining mediators the director shall 
appoint the mediator not excluded by the creditor owed the 
largest debt.  In the event that a debtor and creditor request 
the same mediator, the director shall appoint that mediator. 
    (e) In lieu of the director assigning a mediator, the 
debtor and any one or more of the creditors may agree to select 
and pay for a professional mediator for the mediation 
proceeding.  The director must approve the professional mediator 
before the professional mediator may be assigned to the 
mediation proceeding.  The professional mediator may not be 
approved unless the professional mediator prepares and signs an 
affidavit: 
    (1) disclosing any biases, relationships, or previous 
associations with the debtor or creditors subject to the 
mediation proceedings; 
    (2) stating certifications, training, or qualifications as 
a professional mediator; 
    (3) disclosing fees to be charged or a rate schedule of 
fees for the mediation proceeding; and 
    (4) affirming to uphold the farmer-lender mediation act and 
faithfully discharge the duties of a mediator. 
     (f) After receiving a mediation proceeding notice, a 
secured creditor must return a claim form if the debt is not 
subject to the farmer-lender mediation act and specify why the 
debt is not subject to sections 583.20 to 583.32. 
    Sec. 22.  Minnesota Statutes 1986, section 583.26, 
subdivision 5, is amended to read: 
    Subd. 5.  [EFFECT OF MEDIATION MEETING PROCEEDING NOTICE.] 
(a) Except as provided in paragraph paragraphs (b), (c), and 
(d), if a creditor receives a mediation meeting proceeding 
notice under subdivision 4 the creditor and the creditor's 
successors in interest may not begin or continue proceedings to 
enforce a debt subject to the farmer-lender mediation act 
against agricultural property of the debtor under chapter 580 or 
581 or sections 336.9-501 to 336.9-508, to terminate a contract 
for deed to purchase agricultural property under section 559.21, 
or to garnish, levy on, execute on, seize, or attach 
agricultural property.  Time periods under and affecting those 
procedures stop running until (1) 90 days after the initiation 
of mediation, or (2) a mediation agreement is reached date the 
debtor files a mediation request with the director. 
    (b) Except as provided in paragraph (c), if a creditor is 
an agency of the United States and receives a mediation meeting 
proceeding notice under subdivision 4, the creditor and the 
creditor's successors in interest may not begin or continue 
proceedings to enforce a debt against agricultural property of 
the debtor under chapter 580 or 581 or sections 336.9-501 to 
336.9-508, to terminate a contract for deed to purchase 
agricultural property under section 559.21, or to garnish, levy 
on, execute on, seize, or attach agricultural property.  Time 
periods under and affecting those procedures stop running until 
(1) 180 days after the initiation of mediation, or (2) a 
mediation agreement is reached date the debtor files a mediation 
request with the director. 
    (c) Notwithstanding paragraphs (a) and (b) or section 
583.26, subdivision 1, a creditor receiving a mediation 
proceeding notice may begin proceedings to enforce a debt 
against agricultural property of the debtor:  
    (1) at the time the creditor receives a mediator's 
affidavit of the debtor's lack of good faith under section 
583.27; or 
    (2) five days after the date the debtor and creditor sign 
an agreement allowing the creditor to proceed to enforce the 
debt against agricultural property if the debtor has not 
rescinded the agreement within the five days.  
    (d) A creditor receiving a mediation proceeding notice must 
provide the debtor by the initial mediation meeting with copies 
of notes and contracts for debts subject to the farmer-lender 
mediation act and provide a statement of interest rates on the 
debts, delinquent payments, unpaid principal balance, a list of 
all collateral securing debts, a creditor's estimate of the 
value of the collateral, and debt restructuring programs 
available by the creditor.  
    (e) The provisions of this subdivision are subject to 
section 583.27, relating to extension or reduction in the period 
before a creditor may begin to enforce a debt and 
court-supervised mediation.  
    Sec. 23.  Minnesota Statutes 1986, section 583.26, 
subdivision 6, is amended to read:  
    Subd. 6.  [ELIGIBILITY AND DUTIES OF MEDIATOR.] (a) A 
person is not eligible to be a mediator if the person has a 
conflict of interest that does not allow the person to be 
impartial.  A conflict of interest includes being a current 
officer or board member or officer of the initiating creditor.  
    (b) At the initial mediation meeting and subsequent 
meetings, the mediator shall: 
    (1) listen to the debtor and the creditors desiring to be 
heard; 
    (2) attempt to mediate between the debtor and the creditors;
    (3) advise the debtor and creditors of assistance programs 
available; 
    (4) attempt to arrive at an agreement to fairly adjust, 
refinance, or pay the debts; and 
    (5) advise, counsel, and assist the debtor and creditors in 
attempting to arrive at an agreement for the future conduct of 
financial relations among them. 
    Sec. 24.  Minnesota Statutes 1986, section 583.26, 
subdivision 9, is amended to read: 
    Subd. 9.  [MEDIATION AGREEMENT.] (a) If an agreement is 
reached among the debtor and creditors the mediator shall draft 
witness and sign a written mediation agreement, have it signed 
by the debtor and creditors, and, if applicable, submit the 
agreement to the Minnesota rural finance administration for 
approval of debt restructuring.  
    (b) The debtor and creditors who are parties to the 
approved mediation agreement and creditors who have filed claim 
forms and have not objected to the mediation agreement: 
    (1) are bound by the terms of the agreement; 
    (2) may enforce the mediation agreement as a legal 
contract; and 
    (3) may use the mediation agreement as a defense against an 
action contrary to the mediation agreement.  
    (c) A debtor may agree to allow a creditor to proceed to 
enforce a debt against agricultural property before the 
enforcement is otherwise allowed under subdivision 5, but the 
debtor or creditor may rescind the agreement within five 
business days after the debtor and particular creditor both sign 
the agreement. 
    Sec. 25.  Minnesota Statutes 1986, section 583.26, is 
amended by adding a subdivision to read: 
    Subd. 10.  [END OF MEDIATION.] (a) The mediator shall sign 
and serve to the parties and the director a termination 
statement by the end of the time period specified in subdivision 
5. 
    (b) The mediator shall prepare a termination statement that:
    (1) acknowledges that mediation has ended; and 
    (2) describes or references agreements reached between a 
creditor and the debtor, if any, and agreements reached among 
creditors, if any. 
    (c) Mediation agreements may be included as part of the 
termination statement. 
    Sec. 26.  Minnesota Statutes 1986, section 583.27, 
subdivision 1, is amended to read: 
    Subdivision 1.  [OBLIGATION OF GOOD FAITH.] (a) The parties 
must engage in mediation in good faith.  Not participating in 
good faith includes:  (1) a failure on a regular or continuing 
basis to attend and participate in mediation sessions without 
cause; (2) failure to provide full information regarding the 
financial obligations of the parties and other 
creditors including the obligation of a creditor to provide 
information under section 583.26, subdivision 5, paragraph (d); 
(3) failure of the creditor to designate a representative to 
participate in the mediation with authority to make binding 
commitments within one business day to fully settle, compromise, 
or otherwise mediate the matter; (4) lack of a written statement 
of debt restructuring alternatives and a statement of reasons 
why alternatives are unacceptable to one of the parties; (5) 
failure of a creditor to release funds from the sale of farm 
products to the debtor for necessary living and farm operating 
expenses; or (6) other similar behavior which evidences lack of 
good faith by the party.  A failure to agree to reduce, 
restructure, refinance, or forgive debt does not, in itself, 
evidence lack of good faith by the creditor. 
    (b) The amount that the creditor is required to release for 
necessary living expenses under this section is limited to 
$1,600 per month less the debtor's off-farm income. 
    (c) If the debtor and creditor do not agree on the amount 
of necessary living expenses to be released, the debtor or 
creditor may petition conciliation court in the county of the 
debtor's residence to make a determination of the amount to be 
released.  The conciliation court must make the determination 
within ten days after receiving the petition. 
    (d) If the debtor and creditors do not agree on the amount 
of necessary operating expenses or necessary living and 
operating expenses to be released, the debtor or a creditor 
requested to release necessary living or operating expenses may 
petition the district court of the debtor's residence to make a 
determination of the amount to be released.  The court shall 
hear and make a determination of the amount of living and 
operating expenses to be released within ten days after 
receiving the petition.  The court shall also add or subtract up 
to ten days to the time when the creditor can begin to enforce a 
proceeding to collect the debt against agricultural property of 
the debtor and assess costs, including any attorney fees, among 
the parties to the court proceeding.  The court shall equitably 
adjust the time to begin a creditor's proceeding and the 
assessment of costs based on the parties' good faith claim to 
the amount of living and operating expenses to be released. 
    Sec. 27.  Minnesota Statutes 1986, section 583.27, 
subdivision 3, is amended to read:  
    Subd. 3.  [CREDITOR'S LACK OF GOOD FAITH; COURT SUPERVISED 
MEDIATION.] If the mediator finds the creditor has not 
participated in mediation in good faith, the debtor may require 
court supervised mandatory mediation by filing the affidavit 
with the district court of the county where the property is 
located of the debtor's residence with a request for court 
supervision of mediation and serving a copy of the request on 
the creditor.  Upon request the court shall require both parties 
to mediate under the supervision of the court in good faith for 
a period of not more than 60 days.  All creditor remedies must 
be suspended during this period.  The court may issue orders 
necessary to effect good faith mediation.  Following the 
mediation period, if the court finds the creditor has not 
participated in mediation in good faith, the court shall by 
order suspend the creditor's remedies for an additional period 
of 180 days.  A creditor found by the mediator not to have 
participated in good faith shall pay attorneys' fees and costs 
of the debtor requesting court-supervision of mediation or 
additional suspension of creditor's remedies. 
    Sec. 28.  Minnesota Statutes 1986, section 583.27, 
subdivision 4, is amended to read:  
    Subd. 4.  [DEBTOR LACK OF GOOD FAITH.] (a) A debtor is not 
mediating in good faith if the debtor fraudulently conceals, 
removes, or transfers agricultural property in which the debtor 
knows there is a security interest.  The concealing, removing, 
or transferring must be in violation of a security agreement 
without remitting the proceeds to the secured party and must 
have occurred during the mediation period. 
    (b) A creditor may immediately proceed with creditor's 
remedies upon receipt of a mediator's affidavit of a debtor's 
lack of good faith notwithstanding any other requirements of 
sections 583.20 to 583.32. 
    Sec. 29.  Minnesota Statutes 1986, section 583.27, is 
amended by adding a subdivision to read:  
    Subd. 5.  [INSPECTION OF COLLATERAL.] (a) After a debtor 
requests mediation under section 583.26, subdivision 2, a 
creditor who is participating in the mediation and who has a 
security agreement relating to agricultural property under the 
debtor's control may inspect the secured agricultural property 
during normal business hours on 24 hours' notice to the debtor.  
For purposes of this subdivision, "normal business hours" means 
8:00 a.m. to 6:00 p.m. Monday through Saturday but excludes 
legal Minnesota and United States holidays. 
    (b) Failure to permit this inspection by the creditor, or 
destruction or waste of the property securing the debt, is 
evidence of the debtor's lack of good faith under subdivision 1, 
clause (6).  
    Sec. 30.  Minnesota Statutes 1986, section 583.27, is 
amended by adding a subdivision to read: 
    Subd. 6.  [REVIEW OF GOOD FAITH FINDING.] (a) Upon petition 
by a debtor or creditor, a court may review a mediator's 
affidavit of lack of good faith or a mediator's failure to file 
an affidavit of lack of good faith of a creditor under 
subdivision 3 or a debtor under subdivision 4.  The review is 
limited to whether the mediator committed an abuse of discretion 
in filing or failing to file an affidavit of lack of good 
faith.  The petition must be reviewed by the court within ten 
days after the petition is filed. 
    (b) If the court finds that the mediator committed an abuse 
of discretion in filing, or failing to file, an affidavit of 
lack of good faith, the court may:  (1) reinstate mediation and 
the stay of creditors' enforcement actions; (2) order court 
supervised mediation; or (3) allow creditors to proceed 
immediately with creditors' remedies. 
    (c) A mediator may offer testimony but is not required to 
testify as part of the court's review. 
    Sec. 31.  Minnesota Statutes 1986, section 583.27, is 
amended by adding a subdivision to read: 
    Subd. 7.  [CONVERSION OF SECURITY.] A debtor who 
fraudulently conceals, removes, or transfers agricultural 
property in which the debtor knows there is a security interest 
is ineligible for mediation under the farmer-lender mediation 
act if the concealing, removing, or transferring was in 
violation of a security agreement without remitting the proceeds 
to the secured party.  The secured party must petition the 
district court in the county of the debtor's residence for an 
order permitting the secured party to proceed with the secured 
party's remedies notwithstanding sections 583.20 to 583.32.  The 
petition must be brought within one year after the concealing, 
removing, or transferring occurred.  The district court shall 
issue a summons within seven days commanding the person against 
whom the petition is made to appear before the court on a day 
and place stated in the summons.  The appearance must be no less 
than seven and no more than 14 days from the issuance of the 
summons.  The district court must deliver findings within ten 
days after the close of the hearing.  A petition under this 
subdivision cannot be brought after the secured party has served 
a mediation notice on the debtor under section 583.26.  
    Sec. 32.  [583.284] [RETENTION OF PURCHASE MONEY SECURITY 
INTEREST.] 
    If a creditor has a purchase money security interest as 
defined in section 336.9-107, and renegotiates the debt under 
the farmer-lender mediation act to reduce the principal balance 
or the interest rate or to extend the repayment period, the 
creditor retains the purchase money security interest for the 
renegotiated debt.  
    Sec. 33.  Minnesota Statutes 1986, section 583.285, is 
amended to read:  
    583.285 [RULES.] 
    The state court administrator commissioner of agriculture, 
in consultation with the director of the bureau of mediation 
services and the director of the University of Minnesota 
agricultural extension service, shall make rules under chapter 
14, to implement the farmer-lender mediation act.  The state 
court administrator commissioner of agriculture may adopt 
emergency rules. 
    Sec. 34.  [583.305] [PROHIBITED WAIVERS.] 
    A waiver of mediation rights under the farmer-lender 
mediation act is void except as expressly allowed under the 
farmer-lender mediation act.  
    Sec. 35.  [CONTINUING EFFECT OF RULES.] 
    Rules adopted by the state court administrator's office and 
published in the State Register on August 18, 1986, in volume 
11, pages 302 to 307, are effective until June 30, 1989, unless 
the rules are amended or superseded by rules adopted by the 
commissioner of agriculture or the rules are inconsistent with 
this act.  
    Sec. 36.  Laws 1983, chapter 215, section 16, as amended by 
Laws 1984, chapter 474, section 7, as amended by Laws 1985, 
chapter 306, section 26, is amended to read: 
    Sec. 16.  [REPEALER.] 
    Sections 1 to 15 are repealed effective July 1, 1987 1989, 
but any postponement or other relief ordered by a court 
continues to be valid for the period ordered by the court. 
    Sec. 37.  Laws 1986, chapter 398, article 1, section 18, is 
amended to read: 
    Sec. 18.  [REPEALER.] 
    Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
subsections (6) and (7), are repealed on July 1, 1988 1989. 
    Sec. 38.  [INSTRUCTION TO REVISOR.] 
    The revisor shall renumber section 581.015 as section 
582.039 and make all corresponding changes to cross references. 
    Sec. 39.  [REPEALER.] 
    Minnesota Statutes 1986, section 583.24, subdivision 3, is 
repealed. 
    Sec. 40.  [EFFECTIVE DATES.] 
    Except as otherwise provided in this section, this act 
takes effect July 1, 1987.  
    Section 1 is effective the day after final enactment and 
applies to all judgments entered on or after that date. 
    Sections 2 to 8, 10 to 32, and 34 apply to mediation 

    Sections 9, 33, 35, and 36 take effect the day after final 
enactment. 
    Approved May 28, 1987