Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 395-H.F.No. 2046 
           An act relating to commerce; motor vehicle 
          lienholders; requiring notice to certain secured 
          creditors before the vehicle is sold; amending 
          Minnesota Statutes 1990, section 514.20. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 514.20, is 
amended to read: 
    514.20 [SALE.] 
    If any sum secured by such lien be not paid within 90 days 
after it becomes due, the lienholder may sell the property and 
out of the proceeds of such sale there shall be paid, first, the 
disbursements aforesaid; second, all charges against the 
property paid by such person to any other person; and, third, 
the total indebtedness then secured by the lien.  The remainder, 
if any, shall be paid on demand to the owner or other person 
entitled thereto.  If the property subject to the lien is a 
motor vehicle registered in this state and subject to a 
certificate of title, then the lienholder must provide written 
notice, by registered mail, to all secured creditors listed on 
the certificate of title 45 days before the lienholder's right 
to sell the motor vehicle is considered effective.  The notice 
must state the name, address, and telephone number of the 
lienholder, the amount of money owed, and the rate at which 
storage charges, if any, are accruing.  Costs for registered 
mail and other reasonable costs related to complying with this 
notice provision constitute "lawful charges" pursuant to section 
514.19.  Failure to comply with the notice provision in this 
section renders any lien created by this chapter ineffective 
against any secured party listed on the certificate of title of 
the motor vehicle involved. 
    Presented to the governor April 2, 1992 
    Signed by the governor April 3, 1992, 3:00 p.m.