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Office of the Revisor of Statutes

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

                            CHAPTER 195-S.F.No. 1561 
                  An act relating to commerce; revised Article 9 of the 
                  Uniform Commercial Code; making corrective and 
                  conforming amendments; appropriating money; amending 
                  Minnesota Statutes 2000, sections 27.138, subdivisions 
                  2 and 3; 86B.820, subdivisions 10 and 11; 86B.880, 
                  subdivision 2; 168A.01, subdivisions 18 and 19; 
                  168A.05, subdivision 8; 168A.17, subdivision 2; 
                  169A.63, subdivisions 7 and 11; 268.058, subdivision 
                  1; 270.69, subdivisions 2, 9, and 13; 270.7001, 
                  subdivision 4; 272.483; 272.484; 272.488, subdivision 
                  3; 277.20, subdivision 8; 300.112, subdivision 1; 
                  325L.16; 336.2-210; 336.9-102; 336.9-201; 336.9-203; 
                  336.9-311; 336.9-317; 336.9-334; 336.9-407; 336.9-509; 
                  336.9-521; 336.9-601; 336.9-607; 336.9-617; 336.9-619; 
                  336A.01, subdivision 4; 507.24, subdivision 2; 514.18, 
                  subdivision 2; 514.221, subdivisions 2 and 3; 514.661, 
                  subdivisions 3, 4, 5, and 6; 514.945, subdivisions 2, 
                  4, and 6; 515B.3-116; 515B.3-117; 550.13; 557.12, 
                  subdivision 5; 583.26, subdivisions 1 and 2; and 
                  583.284; Laws 1986, chapter 398, article 1, section 
                  18, as amended; proposing coding for new law in 
                  Minnesota Statutes, chapters 336; 507; 508; and 508A; 
                  repealing Minnesota Statutes 2000, sections 168A.17, 
                  subdivision 3; 336.11-101; 336.11-102; 336.11-103; 
                  336.11-104; 336.11-105; 336.11-106; 336.11-107; and 
                  336.11-108; Minnesota Rules, parts 8260.0600; 
                  8260.0700; 8260.0800; 8260.0900; 8260.1000; 8260.1100; 
                  8270.0010; 8270.0050; 8270.0100; 8270.0105; 8270.0110; 
                  8270.0115; 8270.0200; 8270.0205; 8270.0210; 8270.0215; 
                  8270.0220; 8270.0225; 8270.0230; 8270.0235; 8270.0240; 
                  8270.0245; 8270.0255; 8270.0260; 8270.0265; and 
                  8270.0270.  
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                             CORRECTIVE AMENDMENTS 
           Section 1.  Minnesota Statutes 2000, section 86B.880, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERFECTION.] A security interest is perfected by 
        the delivery to the commissioner of the existing certificate of 
        title, if any, or an application for a certificate of title, 
        containing the name and address of the secured party, the date 
        of the security agreement, and the required fee.  It is 
        perfected as of the time of its creation if the delivery is 
        completed within the following ten days.  In other instances 
        it A security interest is perfected as of the time of the 
        delivery.  The method provided in this chapter is exclusive.  
           Sec. 2.  Minnesota Statutes 2000, section 168A.17, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERFECTION.] A security interest is perfected by 
        the delivery to the department of the existing certificate of 
        title, if any, an application for a certificate of title 
        containing the name and address of the secured party, the date 
        of the secured party's security agreement and the required fee.  
        It A security interest is perfected as of the time of its 
        creation if the delivery is completed within ten days 
        thereafter; otherwise as of the time of the delivery. 
           Sec. 3.  [336.1-110] [UNIFORM COMMERCIAL CODE ACCOUNT.] 
           The uniform commercial code account is established as an 
        account in the state treasury.  Fees that are not expressly set 
        by statute but are charged by the secretary of state to offset 
        the costs of providing a service under this chapter must be 
        deposited in the state treasury and credited to the uniform 
        commercial code account. 
           Fees that are not expressly set by statute but are charged 
        by the secretary of state to offset the costs of providing 
        information contained in the computerized records maintained by 
        the secretary of state must be deposited in the state treasury 
        and credited to the uniform commercial code account. 
           Money in the uniform commercial code account is 
        continuously appropriated to the secretary of state to implement 
        and maintain the central filing system under this chapter and to 
        provide electronic access to other computerized records 
        maintained by the secretary of state. 
           Sec. 4.  Minnesota Statutes 2000, section 336.2-210, is 
        amended to read: 
           336.2-210 [DELEGATION OF PERFORMANCE; ASSIGNMENT OF 
        RIGHTS.] 
           (1) A party may perform a duty through a delegate unless 
        otherwise agreed or unless the other party has a substantial 
        interest in having the original promisor perform or control the 
        acts required by the contract.  No delegation of performance 
        relieves the party delegating of any duty to perform or any 
        liability for breach.  
           (2) Except as otherwise provided in section 336.9-406, 
        unless otherwise agreed all rights of either seller or buyer can 
        be assigned except where the assignment would materially change 
        the duty of the other party, or increase materially the burden 
        or risk imposed on the other party by the contract, or impair 
        materially the other party's chance of obtaining return 
        performance.  A right to damages for breach of the whole 
        contract or a right arising out of the assignor's due 
        performance of the assignor's entire obligation can be assigned 
        despite agreement otherwise.  
           (3) The creation, attachment, perfection, or enforcement of 
        a security interest in the seller's interest under a contract is 
        not a transfer that materially changes the duty of or increases 
        materially the burden or risk imposed on the buyer or impairs 
        materially the buyer's chance of obtaining return performance 
        within the purview of subsection (2) unless, and then only to 
        the extent that, enforcement actually results in a delegation of 
        material performance of the seller.  Even in that event, the 
        creation, attachment, perfection, and enforcement of the 
        security interest remain effective, but (i) the seller is liable 
        to the buyer for damages caused by the delegation to the extent 
        that the damages could not reasonably be prevented by the buyer, 
        and (ii) a court having jurisdiction may grant other appropriate 
        relief, including cancellation of the contract for sale or an 
        injunction against enforcement of the security interest or 
        consummation of the enforcement. 
           (4) Unless the circumstances indicate the contrary a 
        prohibition of assignment of "the contract" is to be construed 
        as barring only the delegation to the assignee of the assignor's 
        performance.  
           (5) An assignment of "the contract" or of "all my rights 
        under the contract" or an assignment in similar general terms is 
        an assignment of rights and unless the language or the 
        circumstances (as in an assignment for security) indicate the 
        contrary, it is a delegation of performance of the duties of the 
        assignor and its acceptance by the assignee constitutes a 
        promise by the assignee to perform those duties.  This promise 
        is enforceable by either the assignor or the other party to the 
        original contract.  
           (6) The other party may treat any assignment which 
        delegates performance as creating reasonable grounds for 
        insecurity and may without prejudice to the rights of the other 
        party against the assignor demand assurances from the assignee 
        (section 336.2-609). 
           Sec. 5.  Minnesota Statutes 2000, section 336.9-102, is 
        amended to read: 
           336.9-102 [DEFINITIONS AND INDEX OF DEFINITIONS.] 
           (a)  [DEFINITIONS.] In this article: 
           (1) "Accession" means goods that are physically united with 
        other goods in such a manner that the identity of the original 
        goods is not lost. 
           (2) "Account", except as used in "account for", means a 
        right to payment of a monetary obligation, whether or not earned 
        by performance, (i) for property that has been or is to be sold, 
        leased, licensed, assigned, or otherwise disposed of, (ii) for 
        services rendered or to be rendered, (iii) for a policy of 
        insurance issued or to be issued, (iv) for a secondary 
        obligation incurred or to be incurred, (v) for energy provided 
        or to be provided, (vi) for the use or hire of a vessel under a 
        charter or other contract, (vii) arising out of the use of a 
        credit or charge card or information contained on or for use 
        with the card, or (viii) as winnings in a lottery or other game 
        of chance operated or sponsored by a state, governmental unit of 
        a state, or person licensed or authorized to operate the game by 
        a state or governmental unit of a state.  The term includes 
        health-care-insurance receivables.  The term does not include (i)
        rights to payment evidenced by chattel paper or an instrument, 
        (ii) commercial tort claims, (iii) deposit accounts, (iv) 
        investment property, (v) letter of credit rights or letters of 
        credit, or (vi) rights to payment for money or funds advanced or 
        sold, other than rights arising out of the use of a credit or 
        charge card or information contained on or for use with the card.
           (3) "Account debtor" means a person obligated on an 
        account, chattel paper, or general intangible.  The term does 
        not include persons obligated to pay a negotiable instrument, 
        even if the instrument constitutes part of chattel paper. 
           (4) "Accounting", except as used in "accounting for", means 
        a record: 
           (A) authenticated by a secured party; 
           (B) indicating the aggregate unpaid secured obligations as 
        of a date not more than 35 days earlier or 35 days later than 
        the date of the record; and 
           (C) identifying the components of the obligations in 
        reasonable detail. 
           (5) "Agricultural lien" means an interest, other than a 
        security interest, in farm products: 
           (A) which secures payment or performance of an obligation 
        for: 
           (i) goods or services furnished in connection with a 
        debtor's farming operation; or 
           (ii) rent on real property leased by a debtor in connection 
        with its farming operation; 
           (B) which is created by statute in favor of a person that: 
           (i) in the ordinary course of its business furnished goods 
        or services to a debtor in connection with a debtor's farming 
        operation; or 
           (ii) leased real property to a debtor in connection with 
        the debtor's farming operation; and 
           (C) whose effectiveness does not depend on the person's 
        possession of the personal property. 
           (6) "As-extracted collateral" means: 
           (A) oil, gas, or other minerals that are subject to a 
        security interest that: 
           (i) is created by a debtor having an interest in the 
        minerals before extraction; and 
           (ii) attaches to the minerals as extracted; or 
           (B) accounts arising out of the sale at the wellhead or 
        minehead of oil, gas, or other minerals in which the debtor had 
        an interest before extraction. 
           (7) "Authenticate" means: 
           (A) to sign; or 
           (B) to execute or otherwise adopt a symbol, or encrypt or 
        similarly process a record in whole or in part, with the present 
        intent of the authenticating person to identify the person and 
        adopt or accept a record. 
           (8) "Bank" means an organization that is engaged in the 
        business of banking.  The term includes savings banks, savings 
        and loan associations, credit unions, and trust companies. 
           (9) "Cash proceeds" means proceeds that are money, checks, 
        deposit accounts, or the like. 
           (10) "Certificate of title" means a certificate of title 
        with respect to which a statute provides for the security 
        interest in question to be indicated on the certificate as a 
        condition or result of the security interest's obtaining 
        priority over the rights of a lien creditor with respect to the 
        collateral. 
           (11) "Chattel paper" means a record or records that 
        evidence both a monetary obligation and a security interest in 
        specific goods, a security interest in specific goods and 
        software used in the goods, a security interest in specific 
        goods and license of software used in the goods, a lease of 
        specific goods, or a lease of specific goods and license of 
        software used in the goods.  In this paragraph, "monetary 
        obligation" means a monetary obligation secured by the goods or 
        owed under a lease of the goods and includes a monetary 
        obligation with respect to software used in the goods.  The term 
        does not include (i) charters or other contracts involving the 
        use or hire of a vessel or (ii) records that evidence a right to 
        payment arising out of the use of a credit or charge card or 
        information contained on or for use with the card.  If a 
        transaction is evidenced by records that include an instrument 
        or series of instruments, the group of records taken together 
        constitutes chattel paper. 
           (12) "Collateral" means the property subject to a security 
        interest or agricultural lien.  The term includes: 
           (A) proceeds to which a security interest attaches; 
           (B) accounts, chattel paper, payment intangibles, and 
        promissory notes that have been sold; and 
           (C) goods that are the subject of a consignment. 
           (13) "Commercial tort claim" means a claim arising in tort 
        with respect to which: 
           (A) the claimant is an organization; or 
           (B) the claimant is an individual and the claim: 
           (i) arose in the course of the claimant's business or 
        profession; and 
           (ii) does not include damages arising out of personal 
        injury to or the death of an individual. 
           (14) "Commodity account" means an account maintained by a 
        commodity intermediary in which a commodity contract is carried 
        for a commodity customer. 
           (15) "Commodity contract" means a commodity futures 
        contract, an option on a commodity futures contract, a commodity 
        option, or another contract if the contract or option is: 
           (A) traded on or subject to the rules of a board of trade 
        that has been designated as a contract market for such a 
        contract pursuant to federal commodities law; or 
           (B) traded on a foreign commodity board of trade, exchange, 
        or market, and is carried on the books of a commodity 
        intermediary for a commodity customer. 
           (16) "Commodity customer" means a person for which a 
        commodity intermediary carries a commodity contract on its books.
           (17) "Commodity intermediary" means a person that: 
           (A) is registered as a futures commission merchant under 
        federal commodities law; or 
           (B) in the ordinary course of its business provides 
        clearance or settlement services for a board of trade that has 
        been designated as a contract market pursuant to federal 
        commodities law. 
           (18) "Communicate" means: 
           (A) to send a written or other tangible record; 
           (B) to transmit a record by any means agreed upon by the 
        persons sending and receiving the record; or 
           (C) in the case of transmission of a record to or by a 
        filing office, to transmit a record by any means prescribed by 
        filing office rule. 
           (19) "Consignee" means a merchant to which goods are 
        delivered in a consignment. 
           (20) "Consignment" means a transaction, regardless of its 
        form, in which a person delivers goods to a merchant for the 
        purpose of sale and: 
           (A) the merchant: 
           (i) deals in goods of that kind under a name other than the 
        name of the person making delivery; 
           (ii) is not an auctioneer; and 
           (iii) is not generally known by its creditors to be 
        substantially engaged in selling the goods of others; 
           (B) with respect to each delivery, the aggregate value of 
        the goods is $1,000 or more at the time of delivery; 
           (C) the goods are not consumer goods immediately before 
        delivery; and 
           (D) the transaction does not create a security interest 
        that secures an obligation. 
           (21) "Consignor" means a person that delivers goods to a 
        consignee in a consignment. 
           (22) "Consumer debtor" means a debtor in a consumer 
        transaction. 
           (23) "Consumer goods" means goods that are used or bought 
        for use primarily for personal, family, or household purposes. 
           (24) "Consumer goods transaction" means a consumer 
        transaction in which: 
           (A) an individual incurs an obligation primarily for 
        personal, family, or household purposes; and 
           (B) a security interest in consumer goods secures the 
        obligation. 
           (25) "Consumer obligor" means an obligor who is an 
        individual and who incurred the obligation as part of a 
        transaction entered into primarily for personal, family, or 
        household purposes. 
           (26) "Consumer transaction" means a transaction in which (i)
        an individual incurs an obligation primarily for personal, 
        family, or household purposes, (ii) a security interest secures 
        the obligation, and (iii) the collateral is held or acquired 
        primarily for personal, family, or household purposes.  The term 
        includes consumer goods transactions. 
           (27) "Continuation statement" means an amendment of a 
        financing statement which: 
           (A) identifies, by its file number, the initial financing 
        statement to which it relates; and 
           (B) indicates that it is a continuation statement for, or 
        that it is filed to continue the effectiveness of, the 
        identified financing statement. 
           (28) "Debtor" means: 
           (A) a person having an interest, other than a security 
        interest or other lien, in the collateral, whether or not the 
        person is an obligor; 
           (B) a seller of accounts, chattel paper, payment 
        intangibles, or promissory notes; or 
           (C) a consignee. 
           (29) "Deposit account" means a demand, time, savings, 
        passbook, or similar account maintained with a bank.  The term 
        does not include investment property or accounts evidenced by an 
        instrument. 
           (30) "Document" means a document of title or a receipt of 
        the type described in section 336.7-201(2). 
           (31) "Electronic chattel paper" means chattel paper 
        evidenced by a record or records consisting of information 
        stored in an electronic medium. 
           (32) "Encumbrance" means a right, other than an ownership 
        interest, in real property.  The term includes mortgages and 
        other liens on real property. 
           (33) "Equipment" means goods other than inventory, farm 
        products, or consumer goods. 
           (34) "Farm products" means goods, other than standing 
        timber, with respect to which the debtor is engaged in a farming 
        operation and which are: 
           (A) crops grown, growing, or to be grown, including: 
           (i) crops produced on trees, vines, and bushes; and 
           (ii) aquatic goods produced in aquacultural operations; 
           (B) livestock, born or unborn, including aquatic goods 
        produced in aquacultural operations; 
           (C) supplies used or produced in a farming operation; or 
           (D) products of crops or livestock in their unmanufactured 
        states. 
           (35) "Farming operation" means raising, cultivating, 
        propagating, fattening, grazing, or any other farming, 
        livestock, or aquacultural operation. 
           (36) "File number" means the number assigned to an initial 
        financing statement pursuant to section 336.9-519(a). 
           (37) "Filing office" means an office designated in section 
        336.9-501 as the place to file a financing statement. 
           (38) "Filing office rule" means a rule adopted pursuant to 
        Laws 2000, chapter 399, article 1, section 139. 
           (39) "Financing statement" means a record or records 
        composed of an initial financing statement and any filed record 
        relating to the initial financing statement. 
           (40) "Fixture filing" means the filing of a financing 
        statement covering goods that are or are to become fixtures and 
        satisfying section 336.9-502(a) and (b).  The term includes the 
        filing of a financing statement covering goods of a transmitting 
        utility which are or are to become fixtures. 
           (41) "Fixtures" means goods that have become so related to 
        particular real property that an interest in them arises under 
        real property law. 
           (42) "General intangible" means any personal property, 
        including things in action, other than accounts, chattel paper, 
        commercial tort claims, deposit accounts, documents, goods, 
        instruments, investment property, letter of credit rights, 
        letters of credit, money, and oil, gas, or other minerals before 
        extraction.  The term includes payment intangibles and software. 
           (43) "Good faith" means honesty in fact and the observance 
        of reasonable commercial standards of fair dealing. 
           (44) "Goods" means all things that are movable when a 
        security interest attaches.  The term includes (i) fixtures, 
        (ii) standing timber that is to be cut and removed under a 
        conveyance or contract for sale, (iii) the unborn young of 
        animals, (iv) crops grown, growing, or to be grown, even if the 
        crops are produced on trees, vines, or bushes, and (v) 
        manufactured homes.  The term also includes a computer program 
        embedded in goods and any supporting information provided in 
        connection with a transaction relating to the program if the 
        program is associated with the goods in such a manner that it 
        customarily is considered part of the goods, or by becoming the 
        owner of the goods, a person acquires a right to use the program 
        in connection with the goods.  The term does not include a 
        computer program embedded in goods that consist solely of the 
        medium in which the program is embedded.  The term also does not 
        include accounts, chattel paper, commercial tort claims, deposit 
        accounts, documents, general intangibles, instruments, 
        investment property, letter of credit rights, letters of credit, 
        money, or oil, gas, or other minerals before extraction. 
           (45) "Governmental unit" means a subdivision, agency, 
        department, county, parish, municipality, or other unit of the 
        government of the United States, a state, or a foreign country.  
        The term includes an organization having a separate corporate 
        existence if the organization is eligible to issue debt on which 
        interest is exempt from income taxation under the laws of the 
        United States. 
           (46) "Health-care-insurance receivable" means an interest 
        in or claim under a policy of insurance which is a right to 
        payment of a monetary obligation for health-care goods or 
        services provided. 
           (47) "Instrument" means a negotiable instrument or any 
        other writing that evidences a right to the payment of a 
        monetary obligation, is not itself a security agreement or 
        lease, and is of a type that in ordinary course of business is 
        transferred by delivery with any necessary endorsement or 
        assignment.  The term does not include (i) investment property, 
        (ii) letters of credit, or (iii) writings that evidence a right 
        to payment arising out of the use of a credit or charge card or 
        information contained on or for use with the card. 
           (48) "Inventory" means goods, other than farm products, 
        which: 
           (A) are leased by a person as lessor; 
           (B) are held by a person for sale or lease or to be 
        furnished under a contract of service; 
           (C) are furnished by a person under a contract of service; 
        or 
           (D) consist of raw materials, work in process, or materials 
        used or consumed in a business. 
           (49) "Investment property" means a security, whether 
        certificated or uncertificated, security entitlement, securities 
        account, commodity contract, or commodity account. 
           (50) "Jurisdiction of organization", with respect to a 
        registered organization, means the jurisdiction under whose law 
        the organization is organized. 
           (51) "Letter of credit right" means a right to payment or 
        performance under a letter of credit, whether or not the 
        beneficiary has demanded or is at the time entitled to demand 
        payment or performance.  The term does not include the right of 
        a beneficiary to demand payment or performance under a letter of 
        credit. 
           (52) "Lien creditor" means: 
           (A) a creditor that has acquired a lien on the property 
        involved by attachment, levy, or the like; 
           (B) an assignee for benefit of creditors from the time of 
        assignment; 
           (C) a trustee in bankruptcy from the date of the filing of 
        the petition; or 
           (D) a receiver in equity from the time of appointment. 
           (53) Unless a certificate has been issued, "manufactured 
        home" means a structure, transportable in one or more sections, 
        which, in the traveling mode, is eight body feet or more in 
        width or 40 body feet or more in length, or, when erected on 
        site, is 320 or more square feet, and which is built on a 
        permanent chassis and designed to be used as a dwelling with or 
        without a permanent foundation when connected to the required 
        utilities, and includes the plumbing, heating, air-conditioning, 
        and electrical systems contained therein.  The term includes any 
        structure that meets all of the requirements of this paragraph 
        except the size requirements and with respect to which the 
        manufacturer voluntarily files a certification required by the 
        United States Secretary of Housing and Urban Development and 
        complies with the standards established under United States 
        Code, title 42.  
           A manufactured home within the meaning of this section does 
        not include a manufactured home for which a certificate of title 
        as defined in section 336.9-102(a)(10) has been issued.  
           (54) "Manufactured home transaction" means a secured 
        transaction: 
           (A) that creates a purchase-money security interest in a 
        manufactured home, other than a manufactured home held as 
        inventory; or 
           (B) in which a manufactured home, other than a manufactured 
        home held as inventory, is the primary collateral. 
           (55) "Mortgage" means a consensual interest in real 
        property, including fixtures, which secures payment or 
        performance of an obligation.  Mortgage includes an executory 
        contract for the sale of real property or of an interest in real 
        property that entitles the purchaser to possession of the real 
        property. 
           (56) "New debtor" means a person that becomes bound as 
        debtor under section 336.9-203(d) by a security agreement 
        previously entered into by another person. 
           (57) "New value" means (i) money, (ii) money's worth in 
        property, services, or new credit, or (iii) release by a 
        transferee of an interest in property previously transferred to 
        the transferee.  The term does not include an obligation 
        substituted for another obligation. 
           (58) "Noncash proceeds" means proceeds other than cash 
        proceeds. 
           (59) "Obligor" means a person that, with respect to an 
        obligation secured by a security interest in or an agricultural 
        lien on the collateral, (i) owes payment or other performance of 
        the obligation, (ii) has provided property other than the 
        collateral to secure payment or other performance of the 
        obligation, or (iii) is otherwise accountable in whole or in 
        part for payment or other performance of the obligation.  The 
        term does not include issuers or nominated persons under a 
        letter of credit. 
           (60) "Original debtor", except as used in section 
        336.9-310(c), means a person that, as debtor, entered into a 
        security agreement to which a new debtor has become bound under 
        section 336.9-203(d). 
           (61) "Payment intangible" means a general intangible under 
        which the account debtor's principal obligation is a monetary 
        obligation. 
           (62) "Person related to", with respect to an individual, 
        means: 
           (A) the spouse of the individual; 
           (B) a brother, brother-in-law, sister, or sister-in-law of 
        the individual; 
           (C) an ancestor or lineal descendant of the individual or 
        the individual's spouse; or 
           (D) any other relative, by blood or marriage, of the 
        individual or the individual's spouse who shares the same home 
        with the individual. 
           (63) "Person related to", with respect to an organization, 
        means: 
           (A) a person directly or indirectly controlling, controlled 
        by, or under common control with the organization; 
           (B) an officer or director of, or a person performing 
        similar functions with respect to, the organization; 
           (C) an officer or director of, or a person performing 
        similar functions with respect to, a person described in 
        subparagraph (A); 
           (D) the spouse of an individual described in subparagraph 
        (A), (B), or (C); or 
           (E) an individual who is related by blood or marriage to an 
        individual described in subparagraph (A), (B), (C), or (D), and 
        shares the same home with the individual. 
           (64) "Proceeds", except as used in section 336.9-609(b), 
        means the following property: 
           (A) whatever is acquired upon the sale, lease, license, 
        exchange, or other disposition of collateral; 
           (B) whatever is collected on, or distributed on account of, 
        collateral; 
           (C) rights arising out of collateral; 
           (D) to the extent of the value of collateral, claims 
        arising out of the loss, nonconformity, or interference with the 
        use of, defects or infringement of rights in, or damage to, the 
        collateral; or 
           (E) to the extent of the value of collateral and to the 
        extent payable to the debtor or the secured party, insurance 
        payable by reason of the loss or nonconformity of, defects or 
        infringement of rights in, or damage to, the collateral. 
           (65) "Promissory note" means an instrument that evidences a 
        promise to pay a monetary obligation, does not evidence an order 
        to pay, and does not contain an acknowledgment by a bank that 
        the bank has received for deposit a sum of money or funds. 
           (66) "Proposal" means a record authenticated by a secured 
        party which includes the terms on which the secured party is 
        willing to accept collateral in full or partial satisfaction of 
        the obligation it secures pursuant to sections 336.9-620, 
        336.9-621, and 336.9-622. 
           (67) "Public-finance transaction" means a secured 
        transaction in connection with which: 
           (A) debt securities are issued; 
           (B) all or a portion of the securities issued have an 
        initial stated maturity of at least 20 years; and 
           (C) the debtor, obligor, secured party, account debtor or 
        other person obligated on collateral, assignor or assignee of a 
        secured obligation, or assignor or assignee of a security 
        interest is a state or a governmental unit of a state. 
           (68) "Pursuant to commitment", with respect to an advance 
        made or other value given by a secured party, means pursuant to 
        the secured party's obligation, whether or not a subsequent 
        event of default or other event not within the secured party's 
        control has relieved or may relieve the secured party from its 
        obligation. 
           (69) "Record", except as used in "for record", "of record", 
        "record or legal title", and "record owner", means information 
        that is inscribed on a tangible medium or which is stored in an 
        electronic or other medium and is retrievable in perceivable 
        form. 
           (70) "Registered organization" means an organization 
        organized solely under the law of a single state or the United 
        States and as to which the state or the United States must 
        maintain a public record showing the organization to have been 
        organized. 
           (71) "Secondary obligor" means an obligor to the extent 
        that: 
           (A) the obligor's obligation is secondary; or 
           (B) the obligor has a right of recourse with respect to an 
        obligation secured by collateral against the debtor, another 
        obligor, or property of either. 
           (72) "Secured party" means: 
           (A) a person in whose favor a security interest is created 
        or provided for under a security agreement, whether or not any 
        obligation to be secured is outstanding; 
           (B) a person that holds an agricultural lien; 
           (C) a consignor; 
           (D) a person to which accounts, chattel paper, payment 
        intangibles, or promissory notes have been sold; 
           (E) a trustee, indenture trustee, agent, collateral agent, 
        or other representative in whose favor a security interest or 
        agricultural lien is created or provided for; or 
           (F) a person that holds a security interest arising under 
        section 336.2-401, 336.2-505, 336.2-711(3), 336.2A-508(5), 
        336.4-210, or 336.5-118. 
           (73) "Security agreement" means an agreement that creates 
        or provides for a security interest. 
           (74) "Send", in connection with a record or notification, 
        means: 
           (A) to deposit in the mail, deliver for transmission, or 
        transmit by any other usual means of communication, with postage 
        or cost of transmission provided for, addressed to any address 
        reasonable under the circumstances; or 
           (B) to cause the record or notification to be received 
        within the time that it would have been received if properly 
        sent under subparagraph (A). 
           (75) "Software" means a computer program and any supporting 
        information provided in connection with a transaction relating 
        to the program.  The term does not include a computer program 
        that is included in the definition of goods. 
           (76) "State" means a state of the United States, the 
        District of Columbia, Puerto Rico, the United States Virgin 
        Islands, or any territory or insular possession subject to the 
        jurisdiction of the United States. 
           (77) "Supporting obligation" means a letter of credit right 
        or secondary obligation that supports the payment or performance 
        of an account, chattel paper, a document, a general intangible, 
        an instrument, or investment property. 
           (78) "Tangible chattel paper" means chattel paper evidenced 
        by a record or records consisting of information that is 
        inscribed on a tangible medium. 
           (79) "Termination statement" means an amendment of a 
        financing statement which: 
           (A) identifies, by its file number, the initial financing 
        statement to which it relates; and 
           (B) indicates either that it is a termination statement or 
        that the identified financing statement is no longer effective. 
           (80) "Transmitting utility" means a person primarily 
        engaged in the business of: 
           (A) operating a railroad, subway, street railway, or 
        trolley bus; 
           (B) transmitting communications electrically, 
        electromagnetically, or by light; 
           (C) transmitting goods by pipeline or sewer; or 
           (D) transmitting or producing and transmitting electricity, 
        steam, gas, or water. 
           A person filing a financing statement under this article 
        and under the authority of sections 300.111 to 300.115 is a 
        transmitting utility for purposes of this article. 
           (b)  [DEFINITIONS IN OTHER ARTICLES.] The following 
        definitions in other articles apply to this article: 
             "Applicant"                    Section 336.5-102
             "Beneficiary"                  Section 336.5-102
             "Broker"                       Section 336.8-102
             "Certificated security"        Section 336.8-102
             "Check"                        Section 336.3-104
             "Clearing corporation"         Section 336.8-102
             "Contract for sale"            Section 336.2-106
             "Customer"                     Section 336.4-104
             "Entitlement holder"           Section 336.8-102
             "Financial asset"              Section 336.8-102
             "Holder in due course"         Section 336.3-302
             "Issuer" (with respect to a    
              letter of credit or
              letter of credit right)       Section 336.5-102
             "Issuer" (with respect to
              a security)                   Section 336.8-201
             "Lease"                        Section 336.2A-103
             "Lease agreement"              Section 336.2A-103
             "Lease contract"               Section 336.2A-103
             "Leasehold interest"           Section 336.2A-103
             "Lessee"                       Section 336.2A-103
             "Lessee in ordinary course
              of business"                  Section 336.2A-103
             "Lessor"                       Section 336.2A-103
             "Lessor's residual interest"   Section 336.2A-103
             "Letter of credit"             Section 336.5-102
             "Merchant"                     Section 336.2-104
             "Negotiable instrument"        Section 336.3-104
             "Nominated person"             Section 336.5-102
             "Note"                         Section 336.3-104
             "Proceeds of a letter of
              credit"                       Section 336.5-114
             "Prove"                        Section 336.3-103
             "Sale"                         Section 336.2-106
             "Securities account"           Section 336.8-501
             "Securities intermediary"      Section 336.8-102
             "Security"                     Section 336.8-102
             "Security certificate"         Section 336.8-102
             "Security entitlement"         Section 336.8-102
             "Uncertificated security"      Section 336.8-102
           (c)  [ARTICLE 1 DEFINITIONS AND PRINCIPLES.] Article 1 
        contains general definitions and principles of construction and 
        interpretation applicable throughout this article. 
           Sec. 6.  Minnesota Statutes 2000, section 336.9-201, is 
        amended to read: 
           336.9-201 [GENERAL EFFECTIVENESS OF SECURITY AGREEMENT.] 
           (a)  [GENERAL EFFECTIVENESS.] Except as otherwise provided 
        in the Uniform Commercial Code, a security agreement is 
        effective according to its terms between the parties, against 
        purchasers of the collateral, and against creditors. 
           (b)  [APPLICABLE CONSUMER LAWS AND OTHER LAW.] A 
        transaction subject to this article is subject to any applicable 
        rule of law which establishes a different rule for consumers and 
        (i) any other statute or regulation that regulates the rates, 
        charges, agreements, and practices for loans, credit sales, or 
        other extensions of credit and including but not limited to 
        sections 48.153 to 48.157; 168.66 to 168.77; 222.13 to 222.16; 
        334.01 to 334.06; and chapters 52, 53, and 56, (ii) any consumer 
        protection statute or rule, and (iii) the Manufactured Home 
        Repossession Security Act, sections 327.61 to 327.67. 
           (c)  [OTHER APPLICABLE LAW CONTROLS.] In case of conflict 
        between this article and a rule of law, statute, or regulation 
        described in subsection (b), the rule of law, statute, or 
        regulation controls.  Failure to comply with a statute or 
        regulation described in subsection (b) has only the effect the 
        statute or regulation specifies. 
           (d)  [FURTHER DEFERENCE TO OTHER APPLICABLE LAW.] This 
        article does not: 
           (1) validate any rate, charge, agreement, or practice that 
        violates a rule of law, statute, or regulation described in 
        subsection (b); or 
           (2) extend the application of the rule of law, statute, or 
        regulation to a transaction not otherwise subject to it. 
           Sec. 7.  Minnesota Statutes 2000, section 336.9-203, is 
        amended to read: 
           336.9-203 [ATTACHMENT AND ENFORCEABILITY OF SECURITY 
        INTEREST; PROCEEDS; SUPPORTING OBLIGATIONS; FORMAL REQUISITES.] 
           (a)  [ATTACHMENT.] A security interest attaches to 
        collateral when it becomes enforceable against the debtor with 
        respect to the collateral, unless an agreement expressly 
        postpones the time of attachment. 
           (b)  [ENFORCEABILITY.] Except as otherwise provided in 
        subsections (c) through (i), a security interest is enforceable 
        against the debtor and third parties with respect to the 
        collateral only if: 
           (1) value has been given; 
           (2) the debtor has rights in the collateral or the power to 
        transfer rights in the collateral to a secured party; and 
           (3) one of the following conditions is met: 
           (A) the debtor has authenticated a security agreement that 
        provides a description of the collateral and, if the security 
        interest covers timber to be cut, a description of the land 
        concerned; 
           (B) the collateral is not a certificated security and is in 
        the possession of the secured party under section 336.9-313 
        pursuant to the debtor's security agreement; 
           (C) the collateral is a certificated security in registered 
        form and the security certificate has been delivered to the 
        secured party under section 336.8-301 pursuant to the debtor's 
        security agreement; or 
           (D) the collateral is deposit accounts, electronic chattel 
        paper, investment property, or letter of credit rights, and the 
        secured party has control under section 336.9-104, 336.9-105, 
        336.9-106, or 336.9-107 pursuant to the debtor's security 
        agreement. 
           (c)  [OTHER UCC PROVISIONS.] Subsection (b) is subject to 
        section 336.4-210 on the security interest of a collecting bank, 
        section 336.5-118 on the security interest of a letter of credit 
        issuer or nominated person, section 336.9-110 on a security 
        interest arising under article 2 or 2A, and section 336.9-206 on 
        security interests in investment property. 
           (d)  [WHEN PERSON BECOMES BOUND BY ANOTHER PERSON'S 
        SECURITY AGREEMENT.] A person becomes bound as debtor by a 
        security agreement entered into by another person if, by 
        operation of law other than this article or by contract: 
           (1) the security agreement becomes effective to create a 
        security interest in the person's property; or 
           (2) the person becomes generally obligated for the 
        obligations of the other person, including the obligation 
        secured under the security agreement, and acquires or succeeds 
        to all or substantially all of the assets of the other person. 
           (e)  [EFFECT OF NEW DEBTOR BECOMING BOUND.] If a new debtor 
        becomes bound as debtor by a security agreement entered into by 
        another person: 
           (1) the agreement satisfies subsection (b)(3) with respect 
        to existing or after-acquired property of the new debtor to the 
        extent the property is described in the agreement; and 
           (2) another agreement is not necessary to make a security 
        interest in the property enforceable. 
           (f)  [PROCEEDS AND SUPPORTING OBLIGATIONS.] The attachment 
        of a security interest in collateral gives the secured party the 
        rights to proceeds provided by section 336.9-315 and is also 
        attachment of a security interest in a supporting obligation for 
        the collateral. 
           (g)  [LIEN SECURING RIGHT TO PAYMENT.] The attachment of a 
        security interest in a right to payment or performance secured 
        by a security interest or other lien on personal or real 
        property is also attachment of a security interest in the 
        security interest, mortgage, or other lien.  The attachment of a 
        security interest in the mortgage or lien on real property does 
        not create an interest in real property.  
           (h)  [SECURITY ENTITLEMENT CARRIED IN SECURITIES ACCOUNT.] 
        The attachment of a security interest in a securities account is 
        also attachment of a security interest in the security 
        entitlements carried in the securities account. 
           (i)  [COMMODITY CONTRACTS CARRIED IN COMMODITY ACCOUNT.] 
        The attachment of a security interest in a commodity account is 
        also attachment of a security interest in the commodity 
        contracts carried in the commodity account. 
           Sec. 8.  Minnesota Statutes 2000, section 336.9-311, is 
        amended to read: 
           336.9-311 [PERFECTION OF SECURITY INTERESTS IN PROPERTY 
        SUBJECT TO CERTAIN STATUTES, REGULATIONS, AND TREATIES.] 
           (a)  [SECURITY INTEREST SUBJECT TO OTHER LAW.] Except as 
        otherwise provided in subsection (d), the filing of a financing 
        statement is not necessary or effective to perfect a security 
        interest in property subject to: 
           (1) a statute, regulation, or treaty of the United States 
        whose requirements for a security interest's obtaining priority 
        over the rights of a lien creditor with respect to the property 
        preempt section 336.9-310(a); 
           (2) sections 86B.820 to 86B.920 and 168A.01 to 168A.31; but 
        during any period which collateral is inventory held for sale by 
        a person who is in the business of selling goods of that kind, 
        the filing provisions of this article (part 5) apply to a 
        security interest in the collateral created by the person as a 
        debtor; or sections 300.11 to 300.115; or 
           (3) a certificate-of-title statute of another jurisdiction 
        which provides for a security interest to be indicated on the 
        certificate as a condition or result of the security interest's 
        obtaining priority over the rights of a lien creditor with 
        respect to the property. 
           (b)  [COMPLIANCE WITH OTHER LAW.] Compliance with the 
        requirements of a statute, regulation, or treaty described in 
        subsection (a) for obtaining priority over the rights of a lien 
        creditor is equivalent to the filing of a financing statement 
        under this article.  Except as otherwise provided in subsection 
        (d) and sections 336.9-313 and 336.9-316(d) and (e) for goods 
        covered by a certificate of title, a security interest in 
        property subject to a statute, regulation, or treaty described 
        in subsection (a) may be perfected only by compliance with those 
        requirements, and a security interest so perfected remains 
        perfected notwithstanding a change in the use or transfer of 
        possession of the collateral. 
           (c)  [DURATION AND RENEWAL OF PERFECTION.] Except as 
        otherwise provided in subsection (d) and section 336.9-316(d) 
        and (e), duration and renewal of perfection of a security 
        interest perfected by compliance with the requirements 
        prescribed by a statute, regulation, or treaty described in 
        subsection (a) are governed by the statute, regulation, or 
        treaty.  In other respects, the security interest is subject to 
        this article. 
           (d)  [INAPPLICABILITY TO CERTAIN INVENTORY.] During any 
        period in which collateral subject to a statute specified in 
        subsection (a)(2) is inventory held for sale or lease by a 
        person or leased by that person as lessor and that person is in 
        the business of selling goods of that kind, this section does 
        not apply to a security interest in that collateral created by 
        that person. 
           Sec. 9.  Minnesota Statutes 2000, section 336.9-317, is 
        amended to read: 
           336.9-317 [INTERESTS THAT TAKE PRIORITY OVER OR TAKE FREE 
        OF SECURITY INTEREST OR AGRICULTURAL LIEN.] 
           (a)  [CONFLICTING SECURITY INTERESTS AND RIGHTS OF LIEN 
        CREDITORS.] A security interest or agricultural lien is 
        subordinate to the rights of: 
           (1) a person entitled to priority under section 336.9-322; 
        and 
           (2) except as otherwise provided in subsection (e), a 
        person that becomes a lien creditor before the earlier of the 
        time: 
           (A) the security interest or agricultural lien is 
        perfected; or 
           (B) one of the conditions specified in section 
        336.9-203(b)(3) is met 
        and a financing statement covering the collateral is filed one 
        of the conditions specified in section 336.9-203(b)(3) is met 
        and a financing statement covering the collateral is filed. 
           (b)  [BUYERS THAT RECEIVE DELIVERY.] Except as otherwise 
        provided in subsection (e), a buyer, other than a secured party, 
        of tangible chattel paper, documents, goods, instruments, or a 
        security certificate takes free of a security interest or 
        agricultural lien if the buyer gives value and receives delivery 
        of the collateral without knowledge of the security interest or 
        agricultural lien and before it is perfected. 
           (c)  [LESSEES THAT RECEIVE DELIVERY.] Except as otherwise 
        provided in subsection (e), a lessee of goods takes free of a 
        security interest or agricultural lien if the lessee gives value 
        and receives delivery of the collateral without knowledge of the 
        security interest or agricultural lien and before it is 
        perfected. 
           (d)  [LICENSEES AND BUYERS OF CERTAIN COLLATERAL.] A 
        licensee of a general intangible or a buyer, other than a 
        secured party, of accounts, electronic chattel paper, general 
        intangibles, or investment property other than a certificated 
        security takes free of a security interest if the licensee or 
        buyer gives value without knowledge of the security interest and 
        before it is perfected. 
           (e)  [PURCHASE-MONEY SECURITY INTEREST.] Except as 
        otherwise provided in sections 336.9-320 and 336.9-321, if a 
        person files a financing statement with respect to a 
        purchase-money security interest before or within 20 days after 
        the debtor receives delivery of the collateral, the security 
        interest takes priority over the rights of a buyer, lessee, or 
        lien creditor which arise between the time the security interest 
        attaches and the time of filing. 
           Sec. 10.  Minnesota Statutes 2000, section 336.9-334, is 
        amended to read: 
           336.9-334 [PRIORITY OF SECURITY INTERESTS IN FIXTURES AND 
        CROPS.] 
           (a)  [SECURITY INTEREST IN FIXTURES UNDER THIS ARTICLE.] A 
        security interest under this article may be created in goods 
        that are fixtures or may continue in goods that become 
        fixtures.  A security interest does not exist under this article 
        in ordinary building materials incorporated into an improvement 
        on land. 
           (b)  [SECURITY INTEREST IN FIXTURES UNDER REAL PROPERTY 
        LAW.] This article does not prevent creation of an encumbrance 
        upon fixtures under real property law. 
           (c)  [GENERAL RULE:  SUBORDINATION OF SECURITY INTEREST IN 
        FIXTURES.] In cases not governed by subsections (d) through (h), 
        a security interest in fixtures is subordinate to a conflicting 
        interest of an encumbrancer or owner of the related real 
        property other than the debtor. 
           (d)  [FIXTURES PURCHASE-MONEY PRIORITY.] Except as 
        otherwise provided in subsection (h), a perfected security 
        interest in fixtures has priority over a conflicting interest of 
        an encumbrancer or owner of the real property if the debtor has 
        an interest of record in or is in possession of the real 
        property and: 
           (1) the security interest is a purchase-money security 
        interest; 
           (2) the interest of the encumbrancer or owner arises before 
        the goods become fixtures; and 
           (3) the security interest is perfected by a fixture filing 
        before the goods become fixtures or within 20 days thereafter. 
           (e)  [PRIORITY OF SECURITY INTEREST IN FIXTURES OVER 
        INTERESTS IN REAL PROPERTY.] A perfected security interest in 
        fixtures has priority over a conflicting interest of an 
        encumbrancer or owner of the real property if: 
           (1) the debtor has an interest of record in the real 
        property or is in possession of the real property and the 
        security interest: 
           (A) is perfected by a fixture filing before the interest of 
        the encumbrancer or owner is of record; and 
           (B) has priority over any conflicting interest of a 
        predecessor in title of the encumbrancer or owner; 
           (2) before the goods become fixtures, the security interest 
        is perfected by any method permitted by this article and the 
        fixtures are readily removable: 
           (A) factory or office machines; 
           (B) equipment that is not primarily used or leased for use 
        in the operation of the real property; or 
           (C) replacements of domestic appliances that are consumer 
        goods; 
           (3) the conflicting interest is a lien on the real property 
        obtained by legal or equitable proceedings after the security 
        interest was perfected by any method permitted by this article; 
        or 
           (4) the security interest is: 
           (A) created in a manufactured home in a manufactured home 
        transaction; and 
           (B) perfected pursuant to a statute described in section 
        336.9-311(a)(2). 
           (f)  [PRIORITY BASED ON CONSENT, DISCLAIMER, OR RIGHT TO 
        REMOVE.] A security interest in fixtures, whether or not 
        perfected, has priority over a conflicting interest of an 
        encumbrancer or owner of the real property if: 
           (1) the encumbrancer or owner has, in an authenticated 
        record, consented to the security interest or disclaimed an 
        interest in the goods as fixtures; or 
           (2) the debtor has a right to remove the goods as against 
        the encumbrancer or owner. 
           (g)  [CONTINUATION OF PARAGRAPH (F)(2) PRIORITY.] The 
        priority of the security interest under paragraph (f)(2) 
        continues for a reasonable time if the debtor's right to remove 
        the goods as against the encumbrancer or owner terminates. 
           (h)  [PRIORITY OF CONSTRUCTION MORTGAGE.] A mortgage is a 
        construction mortgage to the extent that it secures an 
        obligation incurred for the construction of an improvement on 
        land, including the acquisition cost of the land, if a recorded 
        record of the mortgage so indicates.  Except as otherwise 
        provided in subsections (e) and (f), a security interest in 
        fixtures is subordinate to a construction mortgage if a record 
        of the mortgage is recorded before the goods become fixtures and 
        the goods become fixtures before the completion of the 
        construction.  A mortgage has this priority to the same extent 
        as a construction mortgage to the extent that it is given to 
        refinance a construction mortgage. 
           (i)  [PRIORITY OF SECURITY INTEREST IN CROPS.] A perfected 
        security interest in crops growing on real property has priority 
        over a conflicting interest of an encumbrancer or owner of the 
        real property except a perfected landlord's lien if the debtor 
        has an interest of record in or is in possession of the real 
        property. 
           (j)  [SUBSECTION (I) PREVAILS.] Subsection (i) prevails 
        over any inconsistent provisions of the following statutes: 
           (1) section 557.12; and 
           (2) section 559.2091. 
           Sec. 11.  Minnesota Statutes 2000, section 336.9-407, is 
        amended to read: 
           336.9-407 [RESTRICTIONS ON CREATION OR ENFORCEMENT OF 
        SECURITY INTEREST IN LEASEHOLD INTEREST OR IN LESSOR'S RESIDUAL 
        INTEREST.] 
           (a)  [TERM RESTRICTING ASSIGNMENT GENERALLY INEFFECTIVE.] 
        Except as otherwise provided in subsection (b), a term in a 
        lease agreement is ineffective to the extent that it: 
           (1) prohibits, restricts, or requires the consent of a 
        party to the lease to the assignment or transfer of, or the 
        creation, attachment, perfection, or enforcement of a security 
        interest in, an interest of a party under the lease contract or 
        in the lessor's residual interest in the goods; or 
           (2) provides that the assignment or transfer or the 
        creation, attachment, perfection, or enforcement of the security 
        interest may give rise to a default, breach, right of 
        recoupment, claim, defense, termination, right of termination, 
        or remedy under the lease. 
           (b)  [EFFECTIVENESS OF CERTAIN TERMS.] Except as otherwise 
        provided in section 336.2A-303(7), a term described in 
        subsection (a)(2) is effective to the extent that there is: 
           (1) a transfer by the lessee of the lessee's right of 
        possession or use of the goods in violation of the term; or 
           (2) a delegation of a material performance of either party 
        to the lease contract in violation of the term. 
           (c)  [SECURITY INTEREST NOT MATERIAL IMPAIRMENT.] The 
        creation, attachment, perfection, or enforcement of a security 
        interest in the lessor's interest under the lease contract or 
        the lessor's residual interest in the goods is not a transfer 
        that materially impairs the lessee's prospect of obtaining 
        return performance or materially changes the duty of or 
        materially increases the burden or risk imposed on the lessee 
        within the purview of section 336.2A-303(4) unless, and then 
        only to the extent that, enforcement actually results in a 
        delegation of material performance of the lessor.  Even in that 
        event, the creation, attachment, perfection, and enforcement of 
        the security interest remain effective. 
           Sec. 12.  Minnesota Statutes 2000, section 336.9-509, is 
        amended to read: 
           336.9-509 [PERSONS ENTITLED TO FILE A RECORD.] 
           (a)  [PERSON ENTITLED TO FILE RECORD.] A person may file an 
        initial financing statement, amendment that adds collateral 
        covered by a financing statement, or amendment that adds a 
        debtor to a financing statement only if: 
           (1) the debtor authorizes the filing in an authenticated 
        record or pursuant to subsection (b) or (c); or 
           (2) the person holds an agricultural lien that has become 
        effective at the time of filing and the financing statement 
        covers only collateral in which the person holds an agricultural 
        lien. 
           (b)  [SECURITY AGREEMENT AS AUTHORIZATION.] By 
        authenticating or becoming bound as debtor by a security 
        agreement, a debtor or new debtor authorizes the filing of an 
        initial financing statement, and an amendment, covering: 
           (1) the collateral described in the security agreement; and 
           (2) property that becomes collateral under section 
        336.9-315(a)(2), whether or not the security agreement expressly 
        covers proceeds. 
           (c)  [ACQUISITION OF COLLATERAL AS AUTHORIZATION.] By 
        acquiring collateral in which a security interest or 
        agricultural lien continues under section 336.9-315(a)(1), a 
        debtor authorizes the filing of an initial financing statement, 
        and an amendment, covering the collateral and property that 
        becomes collateral under section 336.9-315(a)(2). 
           (c) (d)  [PERSON ENTITLED TO FILE CERTAIN AMENDMENTS.] A 
        person may file an amendment other than an amendment that adds 
        collateral covered by a financing statement or an amendment that 
        adds a debtor to a financing statement only if: 
           (1) the secured party of record authorizes the filing; or 
           (2) the amendment is a termination statement for a 
        financing statement as to which the secured party of record has 
        failed to file or send a termination statement as required by 
        section 336.9-513(a) or (c), the debtor authorizes the filing, 
        and the termination statement indicates that the debtor 
        authorized it to be filed. 
           (d) (e)  [MULTIPLE SECURED PARTIES OF RECORD.] If there is 
        more than one secured party of record for a financing statement, 
        each secured party of record may authorize the filing of an 
        amendment under subsection (c) (d). 
           Sec. 13.  Minnesota Statutes 2000, section 336.9-521, is 
        amended to read: 
           336.9-521 [UNIFORM FORM OF WRITTEN FINANCING STATEMENT AND 
        AMENDMENT.] 
           (a)  [INITIAL FINANCING STATEMENT FORM.] A filing office 
        that accepts written records may not refuse to accept a written 
        initial financing statement in the form and format adopted by 
        the National Conference of Commissioners on Uniform State Laws, 
        except for a reason set forth in section 336.9-516(b). 
           (b)  [AMENDMENT FORM.] A filing office that accepts written 
        records may not refuse to accept a written amendment of an 
        initial financing statement record in the form and format 
        adopted by the National Conference of Commissioners on Uniform 
        State Laws, except for a reason set forth in section 
        336.9-516(b). 
           Sec. 14.  [336.9-5291] [ELECTRONIC ACCESS; LIABILITY; 
        RETENTION.] 
           (a)  [ELECTRONIC ACCESS.] The secretary of state may allow 
        private parties to have electronic access to the central filing 
        system and to other computerized records maintained by the 
        secretary of state on a fee basis, except that:  (1) visual 
        access to electronic display terminals at the public counters at 
        the secretary of state's office must be without charge and must 
        be available during public counter hours; and (2) access by law 
        enforcement personnel, acting in an official capacity, must be 
        without charge.  If the central filing system allows a form of 
        electronic access to information regarding the obligations of 
        debtors, the access must be available 24 hours a day, every day 
        of the year.  Notwithstanding section 13.49, private parties who 
        have electronic access to computerized records may view the 
        social security number information about a debtor that is of 
        record.  
           Notwithstanding section 13.49, a filing office may include 
        social security number information in an information request 
        response under section 336.9-523 or a search of other liens in 
        the central filing system.  A filing office may also include 
        social security number information on a photocopy or electronic 
        copy of a record whether provided in an information request 
        response or in response to a request made under section 13.03. 
           (b)  [LIABILITY.] The secretary of state, county recorders, 
        and their employees and agents are not liable for any loss or 
        damages arising from errors in or omissions from information 
        entered into the central filing system as a result of the 
        electronic transmission of tax lien notices under sections 
        268.058, subdivision 1, paragraph (c); 270.69, subdivision 2, 
        paragraph (b), clause (2); 272.483; and 272.488, subdivisions 1 
        and 3.  
           The state, the secretary of state, counties, county 
        recorders, and their employees and agents are immune from 
        liability that occurs as a result of errors in or omissions from 
        information provided from the central filing system.  
           (c)  [RETENTION.] Once the image of a paper record has been 
        captured by the central filing system, the secretary of state 
        may remove or direct the removal from the files and destroy the 
        paper record.  
           Sec. 15.  Minnesota Statutes 2000, section 336.9-601, is 
        amended to read: 
           336.9-601 [RIGHTS AFTER DEFAULT; JUDICIAL ENFORCEMENT; 
        CONSIGNOR OR BUYER OF ACCOUNTS, CHATTEL PAPER, PAYMENT 
        INTANGIBLES, OR PROMISSORY NOTES.] 
           (a)  [RIGHTS OF SECURED PARTY AFTER DEFAULT.] After 
        default, a secured party has the rights provided in this part 
        and, except as otherwise provided in section 336.9-602, those 
        provided by agreement of the parties.  A secured party: 
           (1) may reduce a claim to judgment, foreclose, or otherwise 
        enforce the claim, security interest, or agricultural lien by 
        any available judicial procedure; and 
           (2) if the collateral is documents, may proceed either as 
        to the documents or as to the goods they cover. 
           (b)  [RIGHTS AND DUTIES OF SECURED PARTY IN POSSESSION OR 
        CONTROL.] A secured party in possession of collateral or control 
        of collateral under section 336.9-104, 336.9-105, 336.9-106, or 
        336.9-107 has the rights and duties provided in section 
        336.9-207. 
           (c)  [RIGHTS CUMULATIVE; SIMULTANEOUS EXERCISE.] The rights 
        under subsections (a) and (b) are cumulative and may be 
        exercised simultaneously. 
           (d)  [RIGHTS OF DEBTOR AND OBLIGOR.] Except as otherwise 
        provided in subsection (g) and section 336.9-605, after default, 
        a debtor and an obligor have the rights provided in this part 
        and by agreement of the parties. 
           (e)  [LIEN OF LEVY AFTER JUDGMENT.] If a secured party has 
        reduced its claim to judgment, the lien of any levy that may be 
        made upon the collateral by virtue of an execution based upon 
        the judgment relates back to the earliest of: 
           (1) the date of perfection of the security interest or 
        agricultural lien in the collateral; 
           (2) the date of filing a financing statement covering the 
        collateral; or 
           (3) any date specified in a statute under which the 
        agricultural lien was created. 
           (f)  [EXECUTION SALE.] A sale pursuant to an execution is a 
        foreclosure of the security interest or agricultural lien by 
        judicial procedure within the meaning of this section.  A 
        secured party may purchase at the sale and thereafter hold the 
        collateral free of any other requirements of this article. 
           (g)  [CONSIGNOR OR BUYER OF CERTAIN RIGHTS TO PAYMENT.] 
        Except as otherwise provided in section 336.9-607(c), this part 
        imposes no duties upon a secured party that is a consignor or is 
        a buyer of accounts, chattel paper, payment intangibles, or 
        promissory notes. 
           (h) 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 (i) is served on 
        the debtor after a condition of default has occurred in the 
        security agreement and a copy served on the director of the 
        agricultural extension service; 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. 
           (i) A mediation notice under subsection (h) 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 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 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. 16.  Minnesota Statutes 2000, section 336.9-607, is 
        amended to read: 
           336.9-607 [COLLECTION AND ENFORCEMENT BY SECURED PARTY.] 
           (a)  [COLLECTION AND ENFORCEMENT GENERALLY.] (1) If so 
        agreed, and in any event after default, a secured party: 
           (1) (A) may notify an account debtor or other person 
        obligated on collateral to make payment or otherwise render 
        performance to or for the benefit of the secured party; 
           (2) (B) may take any proceeds to which the secured party is 
        entitled under section 336.9-315; 
           (3) (C) may enforce the obligations of an account debtor or 
        other person obligated on collateral and exercise the rights of 
        the debtor with respect to the obligation of the account debtor 
        or other person obligated on collateral to make payment or 
        otherwise render performance to the debtor, and with respect to 
        any property that secures the obligations of the account debtor 
        or other person obligated on the collateral; 
           (4) (D) if it holds a security interest in a deposit 
        account perfected by control under section 336.9-104(a)(1), may 
        apply the balance of the deposit account to the obligation 
        secured by the deposit account; and 
           (5) (E) if it holds a security interest in a deposit 
        account perfected by control under section 336.9-104(a)(2) or 
        (3), may instruct the bank to pay the balance of the deposit 
        account to or for the benefit of the secured party; and. 
           (2) If a secured party exercises its rights under 
        subsection (a)(1), the following rules apply: 
           (6) (A) Except as otherwise provided in subsection (B), if 
        the obligation of the account debtor or other person obligated 
        on collateral is secured by an interest in real property and the 
        account debtor or other person obligated on collateral satisfies 
        its obligation, the secured party must furnish the account 
        debtor or the other person obligated on collateral with a 
        release or satisfaction of the interest in real property 
        sufficient for recording in the real property records applicable 
        to that real property.  
           (B) This subsection applies in the case of an executory 
        contract for the sale of real property or of an interest in real 
        property that entitles the purchaser to possession of the real 
        property.  If the purchaser satisfies its obligations under that 
        contract, the secured party shall deliver to the purchaser a 
        deed to the real property in accordance with the terms of the 
        contract.  
           (b)  [NONJUDICIAL ENFORCEMENT OF MORTGAGE.] (1) In the case 
        of a mortgage that is not an executory contract for the sale of 
        real property or of an interest in real property that entitles 
        the purchaser to possession of the real property, to exercise 
        under subsection (a)(3)(1)(C) the right of a debtor to enforce a 
        mortgage nonjudicially, the secured party must record in the 
        office in which a record of the mortgage is recorded: 
           (A) an assignment of the mortgage to the secured party; or 
           (B) the secured party's sworn affidavit of assignment in 
        recordable form stating: 
           (i) a default has occurred under a security agreement that 
        creates or provides for a security interest in the obligation 
        secured by the mortgage; 
           (ii) a true and correct copy of the security agreement is 
        attached to the affidavit; 
           (iii) the secured party is entitled to enforce the mortgage 
        nonjudicially; 
           (iv) the legal description of the real property encumbered 
        by the mortgage; 
           (v) the parties to the mortgage, the date of the mortgage, 
        the date of recording of the mortgage, the place of recording of 
        the mortgage, and the identifying number or other indexing 
        information that identifies the mortgage in the office of the 
        county recorder or registrar of titles where the mortgage is 
        recorded; 
           (vi) the secured party has succeeded to the interest of the 
        debtor under the mortgage; and 
           (vii) the affidavit of assignment shall be an assignment to 
        the secured party of the interest of the debtor under the 
        mortgage. 
           (2) The affidavit of assignment is entitled to be recorded 
        with the county recorder or the registrar of titles and upon 
        recording, the affidavit of assignment shall be deemed an 
        assignment to the secured party of the interest of the debtor 
        under the mortgage. 
           (3) This subsection applies in the case of an executory 
        contract for the sale of real property or of an interest in real 
        property that entitles the purchaser to possession of the real 
        property.  To exercise under subsection (a)(1)(C) the right of a 
        debtor to terminate the contract nonjudicially, the secured 
        party shall record a transfer statement, as provided in section 
        336.9-619, with the county recorder or the registrar of titles 
        in the county where the real property is located.  The 
        transferee is entitled to have the statement recorded with the 
        county recorder or the registrar of titles.  When recorded, the 
        transfer statement is a conveyance of the interest of the debtor 
        under the contract.  
           (c)  [COMMERCIALLY REASONABLE COLLECTION AND ENFORCEMENT.] 
        A secured party shall proceed in a commercially reasonable 
        manner if the secured party: 
           (1) undertakes to collect from or enforce an obligation of 
        an account debtor or other person obligated on collateral; and 
           (2) is entitled to charge back uncollected collateral or 
        otherwise to full or limited recourse against the debtor or a 
        secondary obligor. 
           (d)  [EXPENSES OF COLLECTION AND ENFORCEMENT.] A secured 
        party may deduct from the collections made pursuant to 
        subsection (c) reasonable expenses of collection and 
        enforcement, including reasonable attorneys fees and legal 
        expenses incurred by the secured party. 
           (e)  [DUTIES TO SECURED PARTY NOT AFFECTED.] This section 
        does not determine whether an account debtor, bank, or other 
        person obligated on collateral owes a duty to a secured party. 
           (f)  [SECURED PARTY TO OBTAIN ASSIGNMENT OF DEBTOR'S 
        INTEREST UNDER THE MORTGAGE.] (1) This subsection applies if the 
        obligation of an account debtor or other person obligated on 
        collateral is secured by an interest in real property, the 
        secured party promptly after commencing exercise of any of its 
        rights. 
           (2) If the interest is under an executory contract for the 
        sale of real property or of an interest in real property that 
        entitles the account debtor to possession of the real property, 
        then promptly after beginning to exercise a right under this 
        section, the secured party shall record a transfer statement as 
        provided in section 336.9-619.  The statement must be recorded 
        with the county recorder or registrar of titles in the county 
        where the real property is located.  
           (3) If the interest is not under a record described in 
        paragraph (2), then promptly after beginning to exercise a right 
        under this section, the secured party shall: 
           (1) (A) file an assignment of the mortgage to the secured 
        party; 
           (2) (B) proceed under section 336.9-619 and record a 
        transfer statement in the office of, as provided in section 
        336.9-619, with the county recorder or registrar of titles where 
        the mortgage is recorded in the county where the real property 
        is located; or 
           (3) (C) file an affidavit of assignment as provided under 
        subsection (b). 
           Sec. 17.  Minnesota Statutes 2000, section 336.9-617, is 
        amended to read: 
           336.9-617 [RIGHTS OF TRANSFEREE OF COLLATERAL.] 
           (a)  [EFFECTS OF DISPOSITION.] A secured party's 
        disposition of collateral after default: 
           (1) transfers to a transferee for value all of the debtor's 
        rights in the collateral; 
           (2) discharges the security interest under which the 
        disposition is made; and 
           (3) discharges any subordinate security interest or other 
        subordinate lien other than liens created under (cite acts or 
        statutes providing for liens, if any, that are not to be 
        discharged). 
           (b)  [RIGHTS OF GOOD FAITH TRANSFEREE.] A transferee that 
        acts in good faith takes free of the rights and interests 
        described in subsection (a), even if the secured party fails to 
        comply with this article or the requirements of any judicial 
        proceeding. 
           (c)  [RIGHTS OF OTHER TRANSFEREE.] If a transferee does not 
        take free of the rights and interests described in subsection 
        (a), the transferee takes the collateral subject to: 
           (1) the debtor's rights in the collateral; 
           (2) the security interest or agricultural lien under which 
        the disposition is made; and 
           (3) any other security interest or other lien. 
           Sec. 18.  Minnesota Statutes 2000, section 336.9-619, is 
        amended to read: 
           336.9-619 [TRANSFER OF RECORD OR LEGAL TITLE.] 
           (a)  [TRANSFER STATEMENT.] (1) In this section, "transfer 
        statement" means a record authenticated by a secured party 
        stating: 
           (A) that the debtor has defaulted in connection with an 
        obligation secured by specified collateral; 
           (B) that the secured party has exercised its postdefault 
        remedies with respect to the collateral; 
           (C) that, by reason of the exercise, a transferee has 
        acquired the rights of the debtor in the collateral; 
           (D) the name and mailing address of the secured party, 
        debtor, and transferee; and 
           (E) in addition, if the statement is to be filed in the 
        real property records concerning a mortgage or other record 
        evidencing an interest in real property, the statement must 
        state the following information concerning the mortgage or other 
        record evidencing an interest in real property: 
           (i) the name and title on the record; 
           (ii) the date on the record; 
           (iii) the names of the parties on the record; 
           (iv) the identity of the office of the county recorder or 
        registrar of titles where the record is filed; 
           (v) the date the record was filed; and 
           (vi) the identifying number of the record in the office of 
        the county recorder or registrar of titles; and 
           (vii) in the case of an executory contract for the sale of 
        real property or of an interest in real property that entitles 
        the purchaser to possession of the real property, the legal 
        description of the real property subject to the contract. 
           (2) A transfer statement that is to be filed in the real 
        property records must contain an acknowledgment by the secured 
        party in a form sufficient to satisfy the requirements of 
        chapter 358. 
           (3) If an executory contract for the sale of real property 
        or of an interest in real property that entitles the purchaser 
        to possession of the real property is terminated, the secured 
        party may not file a transfer statement concerning that contract 
        after the termination.  If a transfer statement is filed by the 
        secured party after the debtor has terminated that contract, the 
        transfer statement is not effective as a conveyance.  
           (b)  [EFFECT OF TRANSFER STATEMENT.] A transfer statement 
        entitles the transferee to the transfer of record of all rights 
        of the debtor in the collateral specified in the statement in 
        any official filing, recording, registration, or certificate of 
        title system covering the collateral.  If a transfer statement 
        is presented with the applicable fee and request form to the 
        official or office responsible for maintaining the system, the 
        official or office shall: 
           (1) accept the transfer statement; 
           (2) promptly amend its records to reflect the transfer; and 
           (3) if applicable, 
           (A) issue a new appropriate certificate of title in the 
        name of transferee in the case of property not subject to 
        chapter 508 or 508A; or 
           (B) in the case of property subject to chapter 508 or 508A, 
        issue a new certificate of title upon satisfaction of the 
        requirements of those chapters. 
           (c)  [TRANSFER NOT A DISPOSITION; NO RELIEF OF SECURED 
        PARTY'S DUTIES.] A transfer of the record or legal title to 
        collateral to a secured party under subsection (b) or otherwise 
        is not of itself a disposition of collateral under this article 
        and does not of itself relieve the secured party of its duties 
        under this article. 
           (d)  [TRANSFER OF CERTIFICATES OF TITLE.] A secured party 
        who complies with section 86B.840, subdivision 2, paragraph (b), 
        or 168A.12, subdivision 2, is considered to have provided a 
        transfer statement for purposes of this section.  
           Sec. 19.  [507.236] [TRANSFER STATEMENT FOR CONTRACT FOR 
        DEED.] 
           Subdivision 1.  [DEFINITION.] In this section, "transfer 
        statement for a contract for deed" means a document that: 
           (1) is a transfer statement made in compliance with section 
        336.9-619(a); and 
           (2) transfers a seller's interest in an executory contract 
        for the sale of real estate or of an interest in real estate 
        that entitles the purchaser to possession of the real estate. 
           Subd. 2.  [RECORDING OF STATEMENT.] A transferee under a 
        transfer statement for a contract for deed is entitled to have 
        the statement recorded as provided in section 336.9-619(b).  
        Recording must be with the county recorder or registrar of 
        titles in the county where the affected real estate is located.  
           Subd. 3.  [EFFECTS OF RECORDING.] Subject to compliance 
        with any applicable provisions of section 508.491 or 508A.491, 
        recording a transfer statement for a contract for deed has the 
        following effects: 
           (1) it transfers from the contract seller named as debtor 
        in the statement to the transferee all title and interest of the 
        contract seller in the real estate described in the statement; 
           (2) it has the same effect as an assignment and a deed from 
        the contract seller to the transferee; and 
           (3) it is a conveyance within the meaning of section 507.34.
           Sec. 20.  Minnesota Statutes 2000, section 507.24, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ORIGINAL SIGNATURES REQUIRED.] Unless otherwise 
        provided by law, an instrument affecting real estate that is to 
        be recorded as provided in this section or other applicable law 
        must contain the original signatures of the parties who execute 
        it and of the notary public or other officer taking an 
        acknowledgment.  However, a financing statement that is recorded 
        as a filing pursuant to section 336.9-502(b) need not contain:  
        (1) the signatures of the debtor or the secured party; or (2) an 
        acknowledgment. 
           Sec. 21.  [508.491] [TRANSFER STATEMENT FOR CONTRACT FOR 
        DEED.] 
           Subdivision 1.  [DEFINITION.] In this section, "transfer 
        statement for a contract for deed" means a document that: 
           (1) is a transfer statement made in compliance with section 
        336.9-619(a); and 
           (2) transfers a seller's interest in an executory contract 
        for the sale of land or of an interest in land that entitles the 
        purchaser to possession of the land.  
           Subd. 2.  [REGISTRATION OF STATEMENT.] A transferee under a 
        transfer statement for a contract for deed is entitled to have 
        the statement recorded as provided in section 336.9-619(b).  The 
        registrar shall enter a memorial of the statement on the 
        certificate of title for the land in which the debtor has a 
        registered interest.  
           Subd. 3.  [NEW CERTIFICATE OF TITLE.] If a transferee under 
        a transfer statement for a contract for deed has become the 
        owner in fee of the land, or any part of it, the transferee may 
        have the title registered.  To do so, the transferee must 
        petition the court for a new certificate of title to the land.  
        On receiving the petition, the court shall notify the parties in 
        interest and order a new certificate issued to the petitioner.  
        The registrar shall issue a new certificate of title to the 
        land, or the part of the land, the petitioner owns, as in the 
        case of a voluntary conveyance.  
           Subd. 4.  [FINANCING STATEMENTS.] A financing statement 
        that is filed pursuant to section 336.9-502(b) need not 
        contain:  (1) the signatures of the debtor or the secured party; 
        or (2) an acknowledgment, and must be filed with the registrar, 
        and shown as a memorial on the certificate of title. 
           Sec. 22.  [508A.491] [TRANSFER STATEMENT FOR CONTRACT FOR 
        DEED.] 
           Subdivision 1.  [DEFINITION.] In this section, "transfer 
        statement for a contract for deed" means a document that: 
           (1) is a transfer statement made in compliance with section 
        336.9-619(a); and 
           (2) transfers a seller's interest in an executory contract 
        for the sale of land or of an interest in land that entitles the 
        purchaser to possession of the land.  
           Subd. 2.  [REGISTRATION OF STATEMENT.] A transferee under a 
        transfer statement for a contract for deed is entitled to have 
        the statement recorded as provided in section 336.9-619(b).  The 
        registrar shall enter a memorial of the statement on the 
        certificate of title for the land in which the debtor has a 
        registered interest.  
           Subd. 3.  [NEW CERTIFICATE OF TITLE.] If a transferee under 
        a transfer statement for a contract for deed has become the 
        owner in fee of the land, or any part of it, the transferee may 
        have the title registered.  To do so, the transferee must 
        petition the court for a new certificate of title to the land.  
        On receiving the petition, the court shall notify the parties in 
        interest and order a new certificate issued to the petitioner.  
        The registrar shall issue a new certificate of title to the 
        land, or the part of the land, the petitioner owns, as in the 
        case of a voluntary conveyance.  
           Subd. 4.  [FINANCING STATEMENTS.] A financing statement 
        that is filed pursuant to section 336.9-502(b) need not 
        contain:  (1) the signatures of the debtor or the secured party; 
        or (2) an acknowledgment, and must be filed with the registrar, 
        and shown as a memorial on the certificate of title. 
           Sec. 23.  Laws 1986, chapter 398, article 1, section 18, as 
        amended by Laws 1987, chapter 292, section 37; Laws 1989, 
        chapter 350, article 16, section 8; Laws 1990, chapter 525, 
        section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
        Special Session chapter 2, article 6, section 2; Laws 1995, 
        chapter 212, article 2, section 11; Laws 1997, chapter 183, 
        article 3, section 29; Laws 1998, chapter 395, section 7; Laws 
        1998, chapter 402, section 6; and Laws 1999, chapter 214, 
        article 2, section 19, is amended to read: 
           Sec. 18.  [REPEALER.] 
           Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
        subsections (6) and (7) 336.9-601, subsections (h) and (i), and 
        sections 583.284, 583.285, 583.286, and 583.305, are repealed on 
        July 1, 2001. 
           Sec. 24.  [USER MANUAL FOR DIRECT ACCESS SUBSCRIBERS.] 
           The secretary of state shall prepare a user manual for 
        persons who are direct access subscribers to the central filing 
        system.  The user manual must provide information on revised 
        Article 9 of the Uniform Commercial Code, including information 
        on effective searching, filing, and practices under revised 
        Article 9.  Copies of the user manual must be available to the 
        public by August 1, 2001. 
           Sec. 25.  [REPEALER.] 
           (a) Minnesota Statutes 2000, section 168A.17, subdivision 
        3, is repealed.  
           (b) Minnesota Rules, parts 8260.0600; 8260.0700; 8260.0800; 
        8260.0900; 8260.1000; 8260.1100; 8270.0010; 8270.0050; 
        8270.0100; 8270.0105; 8270.0110; 8270.0115; 8270.0200; 
        8270.0205; 8270.0210; 8270.0215; 8270.0220; 8270.0225; 
        8270.0230; 8270.0235; 8270.0240; 8270.0245; 8270.0255; 
        8270.0260; 8270.0265; and 8270.0270, are repealed.  

                                   ARTICLE 2
                  CONFORMING AMENDMENTS TO MINNESOTA STATUTES
           Section 1.  Minnesota Statutes 2000, section 27.138, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SELLERS' RIGHTS TO TRUST ASSETS.] (a) An unpaid 
        seller may recover trust assets for the net amount unpaid after 
        the due date after allowing deductions of contemplated expenses 
        or advances made in connection with the transaction.  An amount 
        is considered unpaid if a seller receives a payment instrument 
        that is dishonored.  
           (b) An unpaid seller may recover trust assets after filing 
        a beneficiaries notice with the wholesale produce dealer to whom 
        the produce was transferred, and the commissioner, and the 
        appropriate filing office after filing in the central filing 
        system under section 336.9-401 336.9-501 as if the trust were a 
        security interest in the trust assets by 40 days after the due 
        date for the payment to the seller or 40 days after a payment 
        instrument to the seller for the produce is dishonored, 
        whichever is later.  
           Sec. 2.  Minnesota Statutes 2000, section 27.138, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BENEFICIARIES NOTICE.] (a) A beneficiaries 
        notice must be in writing and in a form prescribed by the 
        commissioner after consultation with the secretary of state.  
           (b) The beneficiaries notice must contain:  
           (1) the name and address of the seller; 
           (2) the name and address of the wholesale produce dealer 
        maintaining the trust assets; 
           (3) the produce, amount of produce, amount to be paid the 
        seller, and the due date of transactions that are unpaid or, if 
        appropriate, the date a payment instrument was dishonored; and 
           (4) a description of the trust assets.  
           (c) The filing officer shall enter on the beneficiaries 
        notice initial financing statement filed pursuant to this 
        section the time of day and date of filing.  The filing officer 
        shall accept filings, amendments, and terminations of a 
        beneficiaries notice an initial financing statement filed 
        pursuant to this section and charge the same filing fees as 
        provided in section 336.9-403 for a financing statement 
        336.9-525.  A beneficiaries notice An initial financing 
        statement filed pursuant to this section is void and may be 
        removed from the filing system 18 months after the date of 
        filing.  The beneficiaries notice may be physically destroyed 30 
        months after the date of filing.  
           Sec. 3.  Minnesota Statutes 2000, section 86B.820, 
        subdivision 10, is amended to read: 
           Subd. 10.  [SECURED PARTY.] "Secured party" means a secured 
        party as defined in section 336.9-105, subsection 
        (1)(m) 336.9-102(a)(72), having a security interest in a 
        watercraft and includes a lienholder. 
           Sec. 4.  Minnesota Statutes 2000, section 86B.820, 
        subdivision 11, is amended to read: 
           Subd. 11.  [SECURITY AGREEMENT.] "Security agreement" has 
        the meaning given it in section 336.9-105, subsection 
        (1)(l) 336.9-102(a)(73). 
           Sec. 5.  Minnesota Statutes 2000, section 168A.01, 
        subdivision 18, is amended to read: 
           Subd. 18.  [SECURED PARTY.] "Secured party" means a secured 
        party as defined in section 336.9-105 (1)(m) 336.9-102(a)(72) 
        having a security interest in a vehicle. 
           Sec. 6.  Minnesota Statutes 2000, section 168A.01, 
        subdivision 19, is amended to read: 
           Subd. 19.  [SECURITY AGREEMENT.] "Security agreement" means 
        a security agreement as defined in section 336.9-105 (1) 
        (l) 336.9-102(a)(73). 
           Sec. 7.  Minnesota Statutes 2000, section 168A.05, 
        subdivision 8, is amended to read: 
           Subd. 8.  [LIENS FILED FOR ENFORCEMENT OF CHILD SUPPORT.] 
        This subdivision applies if the court or a public authority 
        responsible for child support enforcement orders or directs the 
        commissioner to enter a lien, as provided in section 518.551, 
        subdivision 14.  If a certificate of title is applied for by the 
        owner, the department shall enter a lien on the title in the 
        name of the state of Minnesota or in the name of the obligee in 
        accordance with the notice if the value of the motor vehicle 
        determined in accordance with either the definitions of section 
        297B.01, subdivision 8, or the retail value described in the 
        N.A.D.A. Official Used Car Guide, Midwest Edition, for the 
        current year exceeds the exemption allowed in section 550.37.  
        The lien on the title is subordinate to any bona fide purchase 
        money security interest as defined in under section 336.9-107 
        336.9-103 regardless of when the purchase money security 
        interest is perfected.  With respect to all other security 
        interests, the lien is perfected as of the date entered on the 
        title.  
           Sec. 8.  Minnesota Statutes 2000, section 169A.63, 
        subdivision 7, is amended to read: 
           Subd. 7.  [LIMITATIONS ON VEHICLE FORFEITURE.] (a) A 
        vehicle is subject to forfeiture under this section only if: 
           (1) the driver is convicted of the designated offense upon 
        which the forfeiture is based; 
           (2) the driver fails to appear with respect to the 
        designated offense charge in violation of section 609.49 
        (release; failure to appear); or 
           (3) the driver's conduct results in a designated license 
        revocation and the driver either fails to seek administrative or 
        judicial review of the revocation in a timely manner as required 
        by section 169A.53 (administrative and judicial review of 
        license revocation), or the license revocation is sustained 
        under section 169A.53. 
           (b) A vehicle encumbered by a bona fide security interest, 
        or subject to a lease that has a term of 180 days or more, is 
        subject to the interest of the secured party or lessor unless 
        the party or lessor had knowledge of or consented to the act 
        upon which the forfeiture is based.  However, when the proceeds 
        of the sale of a seized vehicle do not equal or exceed the 
        outstanding loan balance, the appropriate agency shall remit all 
        proceeds of the sale to the secured party.  If the sale of the 
        vehicle is conducted in a commercially reasonable manner 
        consistent with the provisions of section 336.9-504, clause 
        (3) 336.9-610, the agency is not liable to the secured party for 
        any amount owed on the loan in excess of the sale proceeds if 
        the secured party received notification of the time and place of 
        the sale at least three days prior to the sale. 
           (c) Notwithstanding paragraphs (b) and (d), the secured 
        party's, lessor's, or owner's interest in a vehicle is not 
        subject to forfeiture based solely on the secured party's, 
        lessor's, or owner's knowledge of the act or omission upon which 
        the forfeiture is based if the secured party, lessor, or owner 
        took reasonable steps to terminate use of the vehicle by the 
        offender. 
           (d) A motor vehicle is subject to forfeiture under this 
        section only if its owner knew or should have known of the 
        unlawful use or intended use. 
           (e) A vehicle subject to a security interest, based upon a 
        loan or other financing arranged by a financial institution, is 
        subject to the interest of the financial institution. 
           Sec. 9.  Minnesota Statutes 2000, section 169A.63, 
        subdivision 11, is amended to read: 
           Subd. 11.  [SALE OF FORFEITED VEHICLE BY SECURED PARTY.] 
        (a) A financial institution with a valid security interest in or 
        a valid lease covering a forfeited vehicle may choose to dispose 
        of the vehicle under this subdivision, in lieu of the 
        appropriate agency disposing of the vehicle under subdivision 
        9.  A financial institution wishing to dispose of a vehicle 
        under this subdivision shall notify the appropriate agency of 
        its intent, in writing, within 30 days after receiving notice of 
        the seizure and forfeiture.  The appropriate agency shall 
        release the vehicle to the financial institution or its agent 
        after the financial institution presents proof of its valid 
        security agreement or of its lease agreement and the financial 
        institution agrees not to sell the vehicle to a member of the 
        violator's household, unless the violator is not convicted of 
        the offense on which the forfeiture is based.  The financial 
        institution shall dispose of the vehicle in a commercially 
        reasonable manner as defined in section 336.9-504 336.9-610. 
           (b) After disposing of the forfeited vehicle, the financial 
        institution shall reimburse the appropriate agency for its 
        seizure, storage, and forfeiture costs.  The financial 
        institution may then apply the proceeds of the sale to its 
        storage costs, to its sale expenses, and to satisfy the lien or 
        the lease on the vehicle.  If any proceeds remain, the financial 
        institution shall forward the proceeds to the state treasury, 
        which shall credit the appropriate fund as specified in 
        subdivision 9. 
           Sec. 10.  Minnesota Statutes 2000, section 268.058, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LIEN.] (a) Any taxes, unemployment benefit 
        overpayments, or payments in lieu of taxes due including 
        interest, penalties, and costs shall become a lien upon all the 
        property, within this state, both real and personal, of the 
        person liable, from the date of assessment.  The term "date of 
        assessment" means the date the obligation was due. 
           (b) The lien is not enforceable against any purchaser, 
        mortgagee, pledgee, holder of a Uniform Commercial Code security 
        interest, mechanic's lien, or judgment lien creditor, until a 
        notice of lien has been filed with the county recorder of the 
        county where the property is situated, or in the case of 
        personal property belonging to a nonresident person in the 
        office of the secretary of state.  When the notice of lien is 
        filed with the county recorder, the fee for filing and indexing 
        shall be as provided in sections 272.483 and 272.484.  
           (c) Notices of liens, lien renewals, and lien releases, in 
        a form prescribed by the commissioner, may be filed with the 
        county recorder or the secretary of state by mail, personal 
        delivery, or by electronic transmission into the computerized 
        filing system of the secretary of state under section 336.9-411. 
        The secretary of state shall, on any notice filed with that 
        office, transmit the notice electronically to the appropriate 
        county recorder.  The filing officer, whether the county 
        recorder or the secretary of state, shall endorse and index a 
        printout of the notice as if the notice had been mailed or 
        delivered.  
           (d) County recorders and the secretary of state shall enter 
        information on lien notices, renewals, and releases into the 
        central database of the secretary of state.  For notices filed 
        electronically with the county recorders, the date and time of 
        receipt of the notice and county recorder's file number, and for 
        notices filed electronically with the secretary of state, the 
        secretary of state's recording information, must be entered into 
        the central database before the close of the working day 
        following the day of the original data entry by the commissioner.
           (e) The lien imposed on personal property, even though 
        properly filed, is not enforceable against a purchaser of 
        tangible personal property purchased at retail or personal 
        property listed as exempt in sections 550.37, 550.38, and 550.39.
           (f) A notice of lien filed has priority over any security 
        interest arising under chapter 336, article 9, that is perfected 
        prior in time to the lien imposed by this subdivision, but only 
        if:  
           (1) the perfected security interest secures property not in 
        existence at the time the notice of lien is filed; and 
           (2) the property comes into existence after the 45th 
        calendar day following the day the notice of lien is filed, or 
        after the secured party has actual notice or knowledge of the 
        lien filing, whichever is earlier. 
           (g) The lien shall be enforceable from the time the lien 
        arises and for ten years from the date of filing the notice of 
        lien.  A notice of lien may be renewed before expiration for an 
        additional ten years.  
           (h) The lien shall be enforceable by levy under subdivision 
        2 or by judgment lien foreclosure under chapter 550.  
           (i) The lien may be imposed upon property defined as 
        homestead property in chapter 510 but may be enforced only upon 
        the sale, transfer, or conveyance of the homestead property. 
           (j) The commissioner may sell and assign to a third party 
        the commissioner's right of redemption in specific real property 
        for liens filed under this subdivision.  The assignee shall be 
        limited to the same rights of redemption as the commissioner, 
        except that in a bankruptcy proceeding, the assignee does not 
        obtain the commissioner's priority.  Any proceeds from the sale 
        of the right of redemption shall be credited to the contingent 
        account.  Any sale shall be by written agreement signed by an 
        attorney who is a classified employee of the department 
        designated by the commissioner for that purpose. 
           Sec. 11.  Minnesota Statutes 2000, section 270.69, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FILING OF LIENS NECESSARY FOR ENFORCEABILITY 
        AGAINST CERTAIN PERSONS; METHODS OF FILING; FEES.] (a) The lien 
        imposed by subdivision 1 is not enforceable against any 
        purchaser, mortgagee, pledgee, holder of a Uniform Commercial 
        Code security interest, mechanic's lienor, or judgment lien 
        creditor whose interest has been duly perfected or is entitled 
        to protection under applicable provisions of state law, until a 
        notice of lien has been filed by the commissioner of revenue in 
        the office of the county recorder of the county in which real 
        property is situated, or in the case of personal property 
        belonging to an individual who is not a resident of this state 
        or to a corporation, partnership, or other organization, in the 
        office of the secretary of state, or in the case of personal 
        property belonging to a resident individual, in the office of 
        the county recorder of the county of residence of the individual.
           (b)(1) Notices of liens, and lien releases, transcriptions, 
        and renewals, in a form prescribed by the commissioner of 
        revenue, may be filed with the county recorder or the secretary 
        of state by mail, personal delivery, or by electronic 
        transmission by the commissioner or a delegate into the 
        computerized filing system of the secretary of state authorized 
        under section 336.9-411.  The secretary of state shall transmit 
        the notice electronically to the office of the county recorder, 
        if that is the place of filing, in the county or counties shown 
        on the computer entry.  The filing officer, whether the county 
        recorder or the secretary of state, shall endorse and index a 
        printout of the notice in the same manner as if the notice had 
        been mailed or delivered.  
           (2) County recorders and the secretary of state shall enter 
        information relative to lien notices, transcriptions, renewals, 
        and releases filed in their offices into the central database of 
        the secretary of state.  For notices filed electronically with 
        the county recorders, the date and time of receipt of the notice 
        and county recorder's file number, and for notices filed 
        electronically with the secretary of state, the secretary of 
        state's recording information, must be entered by the filing 
        officer into the central database before the close of the 
        working day following the day of the original data entry by the 
        department of revenue.  
           The filing and indexing of all notices must be in 
        accordance with the filing and indexing of notices of federal 
        liens, certificates of release, and refiled notices under 
        section 272.483.  
           (c) Notwithstanding any other law to the contrary, the 
        department of revenue is exempt from payment of fees when a 
        lien, lien renewal, or lien transcription is offered for 
        recording.  The recording fees must be paid along with the 
        release fee at the end of the month in which the release of lien 
        is recorded, after receipt of a monthly statement from a county 
        recorder or the secretary of state.  The department of revenue 
        shall add the recording fees to the delinquent tax liability of 
        the taxpayer.  Notwithstanding any other law to the contrary, 
        the fee for filing or recording a notice of lien, or lien 
        release, transcription, or renewal is $15.  
           (d) There is appropriated to the commissioner of revenue an 
        amount representing the cost of payment of recording fees to the 
        county recorders and the secretary of state.  The commissioner 
        shall keep a separate accounting of the costs and of payments 
        for recording fees remitted by taxpayers, and make the records 
        available to the legislature upon request.  
           Sec. 12.  Minnesota Statutes 2000, section 270.69, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LIEN SEARCH FEES.] Upon request of any person, 
        the filing officer shall issue a certificate showing whether 
        there is recorded in that filing office, on the date and hour 
        stated in the certificate, any notice of lien or certificate or 
        notice affecting any lien filed on or after ten years before the 
        date of the search certificate, naming a particular person, and 
        giving the date and hour of filing of each notice or certificate 
        naming the person.  The fee for a certificate shall be as 
        provided by section 336.9-407 336.9-525 or 357.18, subdivision 
        1, clause (3).  Upon request, the filing officer shall furnish a 
        copy of any notice of state lien, or notice or certificate 
        affecting a state lien, for a fee of 50 cents per page. 
           Sec. 13.  Minnesota Statutes 2000, section 270.69, 
        subdivision 13, is amended to read: 
           Subd. 13.  [FORTY-FIVE DAY RULE.] A notice of tax lien 
        filed under this section has priority over a security interest 
        arising under article 9 of the Uniform Commercial Code, codified 
        as sections 336.9-101 to 336.9-508, that is perfected before the 
        date of filing of the lien imposed by this section, but only if: 
           (1) the perfected security interest secures property 
        acquired by the taxpayer or advances made by the secured party 
        after the notice of tax lien is filed; and 
           (2) the property is acquired or the advance is made after 
        the 45th day following the day on which the notice of tax lien 
        is filed, or after the secured party has actual notice or 
        knowledge of the tax lien filing, whichever is earlier.  
           Sec. 14.  Minnesota Statutes 2000, section 270.7001, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PAYMENTS COVERED.] For purposes of this section, 
        the term payments does not include wages as defined in section 
        290.92 or funds in a deposit account as defined in 
        section 336.9-105 336.9-102(a)(29).  The term payments does 
        include the following: 
           (1) payments due for services of independent contractors, 
        dividends, rents, royalties, residuals, patent rights, and 
        mineral or other natural resource rights; 
           (2) payments or credits under written or oral contracts for 
        services or sales whether denominated as wages, salary, 
        commission, bonus, or otherwise, if the payments are not covered 
        by section 290.92, subdivision 23; and 
           (3) any other periodic payments or credits resulting from 
        an enforceable obligation to the taxpayer, employer, or person. 
           Sec. 15.  Minnesota Statutes 2000, section 272.483, is 
        amended to read: 
           272.483 [DUTIES OF FILING OFFICER.] 
           (a) If a notice of federal lien, a refiling of a notice of 
        federal lien, or a notice of revocation of any certificate 
        described in clause (b) is presented to a filing officer who is: 
           (1) the secretary of state; the secretary shall cause the 
        notice to be marked and indexed alphabetically and numerically 
        in the computerized filing system maintained by the secretary of 
        state under section 336.9-411; 
           (2) the county recorder; the county recorder shall endorse 
        identification and the date and time of filing and file and 
        enter it in an alphabetical index showing the name and address 
        of the person named in the notice, the date and time of filing, 
        the file number of the lien, and the total amount appearing on 
        the notice of lien.  
           Each county recorder shall enter the date and time of 
        filing and the file number and shall index the names of the 
        persons shown on the notice into the computerized database 
        system maintained by the secretary of state.  
           For notices of federal tax liens on real property, the 
        information in the computerized filing and database systems does 
        not create, release, discharge, or recreate a notice of federal 
        tax lien on real property in this state. 
           (b) If a certificate of release, nonattachment, or 
        subordination of any lien is presented to the secretary of state 
        for filing, the secretary shall: 
           (1) enter the information into the computerized filing 
        system maintained under section 336.9-411; 
           (2) cause a certificate of release or nonattachment to be 
        marked and indexed as if the certificate were a termination 
        statement within the meaning of the Uniform Commercial Code, but 
        the notice of lien to which the certificate relates may not be 
        removed from the files until ten years and 30 days after the 
        filing date of the lien; and 
           (3) cause a certificate of subordination to be marked and 
        indexed as if the certificate were a release of collateral 
        within the meaning of the Uniform Commercial Code. 
           (c) If a refiled notice of federal lien referred to in 
        clause (a) or any of the certificates or notices referred to in 
        clause (b) is presented for filing to any other filing officer 
        specified in section 272.481, the officer shall enter the 
        refiled notice or the certificate with the date and time of 
        filing in any alphabetical lien index where the original notice 
        of lien is entered and into the computerized database system. 
           (d) When a filing officer receives a request to search the 
        records for the name of a particular person, the filing officer 
        must issue a search certificate showing whether there is any 
        notice of lien or certificate or notice of lien filed on or 
        after ten years and 30 days before the date of the search.  If a 
        notice or certificate is on file, the search certificate must 
        state the file or document number of the notice and the date and 
        time of filing of each notice or certificate and the date and 
        time the search certificate was issued.  The fee for a 
        certificate shall be that provided by section 336.9-407 
        336.9-525 or 357.18, subdivision 1, clause (3).  
           Sec. 16.  Minnesota Statutes 2000, section 272.484, is 
        amended to read: 
           272.484 [FEES.] 
           The fee for filing and indexing each notice of lien or 
        certificate or notice affecting the lien is: 
           (1) for a lien, certificate of discharge or subordination, 
        and for all other notices, including a certificate of release or 
        nonattachment filed with the secretary of state, the fee 
        provided by section 336.9-405 336.9-525, except that the filing 
        fee charged to the district directors of internal revenue for 
        filing a federal tax lien is $15 for up to two debtor names and 
        $15 for each additional name; 
           (2) for a lien, certificate of discharge or subordination, 
        and for all other notices, including a certificate of release or 
        nonattachment filed with the county recorder, the fee for filing 
        a real estate mortgage in the county where filed. 
           The officer shall bill the district directors of internal 
        revenue or other appropriate federal officials on a monthly 
        basis for fees for documents filed by them. 
           Sec. 17.  Minnesota Statutes 2000, section 272.488, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FILING WITH SECRETARY OF STATE.] (a) Notices of 
        federal tax liens, certificates, or revocations of certificates 
        of release of federal tax liens, refiled notices of any of those 
        items, and any other notices affecting federal tax liens that 
        are required to be filed with the secretary of state, in a form 
        prescribed by the Internal Revenue Service, may be filed with 
        the secretary of state by mail, personal delivery, or electronic 
        transmission by the Secretary of the Treasury of the United 
        States or a delegate into the computerized filing system of the 
        secretary of state authorized under section 336.9-411.  The 
        electronic record must be endorsed and indexed within the 
        computerized database system as required by section 272.483. 
           (b) For filings made pursuant to section 272.481, paragraph 
        (c), clause (1), with the secretary of state, when data entry is 
        complete as required by subdivision 2, the original document is 
        contained in the computerized filing system and is the official 
        copy from which all official copies will be made.  Reproductions 
        of documents described in section 272.483, paragraph (a) or (b), 
        which are contained in the computerized filing system will be in 
        the same format as if the document had been filed on paper by 
        the Internal Revenue Service. 
           Sec. 18.  Minnesota Statutes 2000, section 277.20, 
        subdivision 8, is amended to read: 
           Subd. 8.  [LIEN SEARCH FEES.] Upon request of a person, the 
        filing officer shall issue a certificate showing whether there 
        is on file, on the date and hour stated in the certificate, any 
        notice of lien or certificate or notice affecting any lien filed 
        after December 31, 1991, naming a particular person, and giving 
        the date and hour of filing of each notice or certificate naming 
        the person.  The fee for a certificate is as provided by section 
        336.9-407 336.9-525 or 357.18, subdivision 1, clause (3).  Upon 
        request, the filing officer shall furnish a copy of any notice 
        of lien, or notice or certificate affecting a lien, for a fee of 
        $1 per page. 
           Sec. 19.  Minnesota Statutes 2000, section 300.112, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FILING WITH SECRETARY OF STATE.] 
        Notwithstanding sections 336.9-302, subsections (3) and (4); 
        336.9-401, subsection (1); 336.9-402; and 336.9-403 336.9-311, 
        336.9-501, 336.9-502, 336.9-515, and 336.9-519 of the Uniform 
        Commercial Code, all filings required under the Uniform 
        Commercial Code in order to perfect a security interest against 
        the personal property or fixtures of a debtor public utility, or 
        against the personal property or fixtures of a debtor taconite 
        company or a debtor semitaconite company, must be made and 
        maintained in the office of the secretary of state.  
           Sec. 20.  Minnesota Statutes 2000, section 325L.16, is 
        amended to read: 
           325L.16 [TRANSFERABLE RECORD.] 
           (a) In this section, "transferable record" means an 
        electronic record that: 
           (1) would be a note under Article 3 of the Uniform 
        Commercial Code or a document under Article 7 of the Uniform 
        Commercial Code if the electronic record were in writing; and 
           (2) the issuer of the electronic record expressly has 
        agreed is a transferable record. 
           (b) A person has control of a transferable record if a 
        system employed for evidencing the transfer of interests in the 
        transferable record reliably establishes that person as the 
        person to which the transferable record was issued or 
        transferred. 
           (c) A system satisfies paragraph (b), and a person is 
        deemed to have control of a transferable record, if the 
        transferable record is created, stored, and assigned in such a 
        manner that: 
           (1) a single authoritative copy of the transferable record 
        exists which is unique, identifiable, and, except as otherwise 
        provided in clauses (4), (5), and (6), unalterable; 
           (2) the authoritative copy identifies the person asserting 
        control as: 
           (i) the person to which the transferable record was issued; 
        or 
           (ii) if the authoritative copy indicates that the 
        transferable record has been transferred, the person to which 
        the transferable record was most recently transferred; 
           (3) the authoritative copy is communicated to and 
        maintained by the person asserting control or its designated 
        custodian; 
           (4) copies or revisions that add or change an identified 
        assignee of the authoritative copy can be made only with the 
        consent of the person asserting control; 
           (5) each copy of the authoritative copy and any copy of a 
        copy is readily identifiable as a copy that is not the 
        authoritative copy; and 
           (6) any revision of the authoritative copy is readily 
        identifiable as authorized or unauthorized. 
           (d) Except as otherwise agreed, a person having control of 
        a transferable record is the holder, as defined in section 
        336.1-201(20) of the Uniform Commercial Code, of the 
        transferable record and has the same rights and defenses as a 
        holder of an equivalent record or writing under the Uniform 
        Commercial Code, including, if the applicable statutory 
        requirements under section 336.3-302(a), 336.7-501, or 336.9-308 
        336.9-330 of the Uniform Commercial Code are satisfied, the 
        rights and defenses of a holder in due course, a holder to which 
        a negotiable document of title has been duly negotiated, or a 
        purchaser, respectively.  Delivery, possession, and endorsement 
        are not required to obtain or exercise any of the rights under 
        this paragraph. 
           (e) Except as otherwise agreed, an obligor under a 
        transferable record has the same rights and defenses as an 
        equivalent obligor under equivalent records or writings under 
        the Uniform Commercial Code. 
           (f) If requested by a person against which enforcement is 
        sought, the person seeking to enforce the transferable record 
        shall provide reasonable proof that the person is in control of 
        the transferable record.  Proof may include access to the 
        authoritative copy of the transferable record and related 
        business records sufficient to review the terms of the 
        transferable record and to establish the identity of the person 
        having control of the transferable record. 
           Sec. 21.  Minnesota Statutes 2000, section 336A.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COMPUTERIZED FILING SYSTEM.] "Computerized 
        filing system" means the system created under section 336.9-411 
        by the secretary of state with separate programs for filing and 
        giving notice of effective financing statements and farm 
        products statutory liens.  
           Sec. 22.  Minnesota Statutes 2000, section 514.18, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NONPOSSESSORY LIEN; NOTICE.] Notwithstanding the 
        voluntary surrender or other loss of possession of the property 
        on which the lien is claimed, the person entitled thereto may 
        preserve the lien upon giving notice of the lien at any time 
        within 60 days after the surrender or loss of possession, by 
        filing in the appropriate filing office under the Uniform 
        Commercial Code, Minnesota Statutes, section 336.9-401 336.9-501 
        a verified statement and notice of intention to claim a lien. 
        The statement shall contain a description of the property upon 
        which the lien is claimed, the work performed or materials 
        furnished and the amount due.  
           Sec. 23.  Minnesota Statutes 2000, section 514.221, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERFECTION OF LIEN.] A person claiming a lien 
        created by this section shall, within 90 days after performing 
        the work or furnishing the materials, file in the appropriate 
        filing office under the Uniform Commercial Code, 
        section 336.9-401 336.9-501, a verified statement and 
        description of the aircraft and the work done or material 
        furnished.  The lien shall be in force from and after the date 
        on which it is filed.  
           Sec. 24.  Minnesota Statutes 2000, section 514.221, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PRIORITY, FORECLOSURE; LIMITATION.] A lien 
        created by this section is prior and paramount to all other 
        liens upon the aircraft except those previously filed in the 
        appropriate filing office.  The lien shall be treated in all 
        respects as a secured transaction under the Uniform Commercial 
        Code, sections 336.9-401 336.9-501 to 336.9-508 336.9-628, 
        except that:  
           (a) any foreclosure proceedings must be instituted within 
        one year of the date the lien was filed; and 
           (b) the lien is subject to the rights of a purchaser of the 
        aircraft in cases where the purchaser acquired the aircraft 
        prior to the filing of the lien without knowledge or notice of 
        the rights of the person performing the work or furnishing the 
        material. 
           Sec. 25.  Minnesota Statutes 2000, section 514.661, 
        subdivision 3, is amended to read: 
           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 336.9-401 336.9-501 during mediation or 
        within 30 days after the conclusion of mediation.  
           Sec. 26.  Minnesota Statutes 2000, section 514.661, 
        subdivision 4, is amended to read: 
           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 sections 336.9-501 to 336.9-527 for a financing 
        statement, except that the social security number of an 
        individual debtor or the Internal Revenue Service taxpayer 
        identification number for a debtor other than an individual is 
        not required.  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.  
           Sec. 27.  Minnesota Statutes 2000, section 514.661, 
        subdivision 5, is amended to read: 
           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 sections 336.9-317 and 
        336.9-322.  
           Sec. 28.  Minnesota Statutes 2000, section 514.661, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ENFORCEMENT OF LIEN.] (a) The holder of a lien 
        under this section may enforce the lien in the manner provided 
        in sections 336.9-501 336.9-601 to 336.9-508 336.9-628, 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 336.9-501 336.9-601 to 
        336.9-508 336.9-628.  If a right or duty under 
        sections 336.9-501 336.9-601 to 336.9-508 336.9-628 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.  
           Sec. 29.  Minnesota Statutes 2000, section 514.945, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERFECTION.] An agricultural producer's lien is 
        perfected from the time the agricultural commodity is delivered 
        until 20 days after the agricultural commodity is delivered 
        without filing.  An agricultural producer's lien may continue to 
        be perfected if a lien statement under subdivision 3 is filed in 
        the appropriate filing office under section 336.9-401 336.9-501 
        by 20 days after the agricultural commodity is delivered. 
           Sec. 30.  Minnesota Statutes 2000, section 514.945, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PRIORITY.] (a) An agricultural producer's lien 
        has priority over all other liens and encumbrances in: 
           (1) the agricultural commodity; 
           (2) proceeds from the agricultural commodity; 
           (3) the proportionate share of the agricultural commodities 
        or goods with which the agricultural commodity has been 
        commingled; and 
           (4) the products manufactured or processed with the 
        agricultural commodity. 
           (b) An agricultural producer's lien that is continuously 
        perfected from the time of delivery has priority over other 
        liens and encumbrances whether they are filed before or after 
        the agricultural producer's lien. 
           (c) An agricultural producer's lien that is filed after 20 
        days after delivery of the agricultural commodity has priority 
        in the order it is filed. 
           (d) Priority among perfected agricultural producers' liens 
        is according to the first lien filed. 
           (e) An agricultural producer's lien that is not perfected 
        has the priority of an unperfected security interest under 
        section 336.9-312 sections 336.9-317 and 336.9-322. 
           Sec. 31.  Minnesota Statutes 2000, section 514.945, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ENFORCEMENT.] The holder of an agricultural 
        producer's lien may enforce the lien in the manner provided in 
        sections 336.9-501 336.9-601 to 336.9-508 336.9-628, subject to 
        section 550.17.  For enforcement of the lien, the lienholder is 
        the secured party and the person receiving the agricultural 
        commodity is the debtor, and each has the respective rights and 
        duties of a secured party and a debtor under sections 336.9-501 
        336.9-601 to 336.9-508 336.9-628.  If a right or duty under 
        sections 336.9-501 336.9-601 to 336.9-508 336.9-628 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. 
           Sec. 32.  Minnesota Statutes 2000, section 515B.3-116, is 
        amended to read: 
           515B.3-116 [LIEN FOR ASSESSMENTS.] 
           (a) The association has a lien on a unit for any assessment 
        levied against that unit from the time the assessment becomes 
        due.  If an assessment is payable in installments, the full 
        amount of the assessment is a lien from the time the first 
        installment thereof becomes due.  Unless the declaration 
        otherwise provides, fees, charges, late charges, fines and 
        interest charges pursuant to section 515B.3-102(a)(10), (11) and 
        (12) are liens, and are enforceable as assessments, under this 
        section.  
           (b) A lien under this section is prior to all other liens 
        and encumbrances on a unit except (i) liens and encumbrances 
        recorded before the declaration and, in a cooperative, liens and 
        encumbrances which the association creates, assumes, or takes 
        subject to, (ii) any first mortgage encumbering the fee simple 
        interest in the unit, or, in a cooperative, any first security 
        interest encumbering only the unit owner's interest in the unit, 
        and (iii) liens for real estate taxes and other governmental 
        assessments or charges against the unit.  If a first mortgage on 
        a unit is foreclosed, the first mortgage was recorded after June 
        1, 1994, and no owner redeems during the owner's period of 
        redemption provided by chapter 580, 581, or 582, the holder of 
        the sheriff's certificate of sale from the foreclosure of the 
        first mortgage shall take title to the unit subject to a lien in 
        favor of the association for unpaid assessments for common 
        expenses levied pursuant to section 515B.3-115(a), (e)(1) to 
        (3), (f), and (i) which became due, without acceleration, during 
        the six months immediately preceding the first day following the 
        end of the owner's period of redemption.  If a first security 
        interest encumbering a unit owner's interest in a cooperative 
        unit which is personal property is foreclosed, the secured party 
        or the purchaser at the sale shall take title to the unit 
        subject to unpaid assessments for common expenses levied 
        pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) 
        which became due, without acceleration, during the six months 
        immediately preceding the first day following either 
        the disposition date of sale pursuant to section 336.9-504 
        336.9-610 or the date on which the obligation of the unit owner 
        is discharged pursuant to section 336.9-505 336.9-622.  This 
        subsection shall not affect the priority of mechanics' liens. 
           (c) Recording of the declaration constitutes record notice 
        and perfection of any lien under this section, and no further 
        recordation of any notice of or claim for the lien is required. 
           (d) Proceedings to enforce an assessment lien shall be 
        instituted within three years after the last installment of the 
        assessment becomes payable, or shall be barred. 
           (e) The unit owner of a unit at the time an assessment is 
        due shall be personally liable to the association for payment of 
        the assessment levied against the unit.  If there are multiple 
        owners of the unit, they shall be jointly and severally liable. 
           (f) This section does not prohibit actions to recover sums 
        for which subsection (a) creates a lien nor prohibit an 
        association from taking a deed in lieu of foreclosure.  The 
        commencement of an action to recover the sums is not an election 
        of remedies if it is dismissed before commencement of 
        foreclosure of the lien provided for by this section.  
           (g) The association shall furnish to a unit owner or the 
        owner's authorized agent upon written request of the unit owner 
        or the authorized agent a statement setting forth the amount of 
        unpaid assessments currently levied against the owner's unit.  
        If the unit owner's interest is real estate, the statement shall 
        be in recordable form.  The statement shall be furnished within 
        ten business days after receipt of the request and is binding on 
        the association and every unit owner. 
           (h) The association's lien may be foreclosed as provided in 
        this subsection. 
           (1) In a condominium or planned community, the 
        association's lien may be foreclosed in a like manner as a 
        mortgage containing a power of sale pursuant to chapter 580, or 
        by action pursuant to chapter 581.  The association shall have a 
        power of sale to foreclose the lien pursuant to chapter 580.  
           (2) In a cooperative whose unit owners' interests are real 
        estate, the association's lien shall be foreclosed in a like 
        manner as a mortgage on real estate as provided in paragraph (1).
           (3) In a cooperative whose unit owners' interests in the 
        units are personal property, the association's lien shall be 
        foreclosed in a like manner as a security interest under article 
        9 of chapter 336.  In any disposition pursuant to section 
        336.9-504 336.9-610 or retention pursuant to section 
        336.9-505 sections 336.9-620 to 336.9-622, the rights of the 
        parties shall be the same as those provided by law, except (i) 
        notice of sale, disposition, or retention shall be served on the 
        unit owner 90 days prior to sale, disposition, or retention, 
        (ii) the association shall be entitled to its reasonable costs 
        and attorney fees not exceeding the amount provided by section 
        582.01, subdivision 1a, (iii) the amount of the association's 
        lien shall be deemed to be adequate consideration for the unit 
        subject to disposition or retention, notwithstanding the value 
        of the unit, and (iv) the notice of sale, disposition, or 
        retention shall contain the following statement in capital 
        letters with the name of the association or secured party filled 
        in: 
           "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 
        association or secured party) HAS BEGUN PROCEEDINGS UNDER 
        MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 
        IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE.  YOUR 
        INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 
        THIS NOTICE ON YOU UNLESS BEFORE THEN: 
           (a) THE PERSON AUTHORIZED BY (fill in the name of 
        association or secured party) AND DESCRIBED IN THIS NOTICE TO 
        RECEIVE PAYMENTS RECEIVES FROM YOU: 
           (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 
           (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 
           (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 
        INCURRED; PLUS 
           (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 
        (fill in name of association or secured party) AFTER THE DATE OF 
        THIS NOTICE; OR 
           (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
        FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT 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 OWNERSHIP 
        RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 
        WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 
        LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, 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." 
           (4) In any foreclosure pursuant to chapter 580, 581, or 
        582, the rights of the parties shall be the same as those 
        provided by law, except (i) the period of redemption for unit 
        owners shall be six months from the date of sale or a lesser 
        period authorized by law, (ii) in a foreclosure by advertisement 
        under chapter 580, the foreclosing party shall be entitled to 
        costs and disbursements of foreclosure and attorneys fees 
        authorized by the declaration or bylaws, notwithstanding the 
        provisions of section 582.01, subdivisions 1 and 1a, (iii) in a 
        foreclosure by action under chapter 581, the foreclosing party 
        shall be entitled to costs and disbursements of foreclosure and 
        attorneys fees as the court shall determine, and (iv) the amount 
        of the association's lien shall be deemed to be adequate 
        consideration for the unit subject to foreclosure, 
        notwithstanding the value of the unit. 
           (i) If a holder of a sheriff's certificate of sale, prior 
        to the expiration of the period of redemption, pays any past due 
        or current assessments, or any other charges lienable as 
        assessments, with respect to the unit described in the sheriff's 
        certificate, then the amount paid shall be a part of the sum 
        required to be paid to redeem under section 582.03. 
           (j) In a cooperative, following foreclosure, the 
        association may bring an action for unlawful detainer against 
        the unit owner and any persons in possession of the unit, and in 
        that case section 504B.291 shall not apply. 
           (k) An association may assign its lien rights in the same 
        manner as any other secured party. 
           Sec. 33.  Minnesota Statutes 2000, section 515B.3-117, is 
        amended to read: 
           515B.3-117 [OTHER LIENS.] 
           (a) Except in a cooperative and except as otherwise 
        provided in this chapter or in a security instrument, an 
        individual unit owner may have the unit owner's unit released 
        from a lien if the unit owner pays the lienholder the portion of 
        the amount which the lien secures that is attributable to the 
        unit.  Upon the receipt of payment, the lienholder shall 
        promptly deliver to the unit owner a recordable partial 
        satisfaction and release of lien releasing the unit from the 
        lien.  The release shall be deemed to include a release of any 
        rights in the common elements appurtenant to the unit.  The 
        portion of the amount which a lien secures that is attributable 
        to the unit shall be equal to the total amount which the lien 
        secures multiplied by a percentage calculated by dividing the 
        common expense liability attributable to the unit by the common 
        expense liability attributable to all units against which the 
        lien has been recorded, or in the case of a lien under 
        subsection (b), the units against which the lien is permitted or 
        required to be recorded.  At the request of a lien claimant or 
        unit owners, the association shall provide a written statement 
        of the percentage of common expense liability attributable to 
        all units.  After a unit owner's payment pursuant to this 
        section, the association may not assess the unit for any common 
        expense incurred thereafter in connection with the satisfaction 
        or defense against the lien. 
           (b) Labor performed or materials furnished for the 
        improvement of a unit shall be the basis for the recording of a 
        lien against that unit pursuant to the provisions of chapter 514 
        but shall not be the basis for the recording of a lien against 
        the common elements.  Labor performed or materials furnished for 
        the improvement of common elements, if duly authorized by the 
        association, shall be deemed to be performed or furnished with 
        the express consent of each unit owner, and shall be perfected 
        by recording a lien against all the units in the common interest 
        community pursuant to the provisions of chapter 514, but shall 
        not be the basis for the recording of a lien against the common 
        elements.  Where a lien is recorded against the units for labor 
        performed or material furnished for the improvement of common 
        elements, the association shall be deemed to be the authorized 
        agent of the unit owners for purposes of receiving the notices 
        required under sections 514.011 and 514.08, subdivision 1, 
        clause (2). 
           (c) A security interest in a cooperative whose unit owners' 
        interests in the units are personal property shall be perfected 
        by recording a financing statement in the UCC filing section of 
        the office of the recording officer for the county in which the 
        unit is located.  In any disposition by a secured party pursuant 
        to section 336.9-504 336.9-610 or retention pursuant to section 
        336.9-505 sections 336.9-620 to 336.9-622, the rights of the 
        parties shall be the same as those provided by law, subject to 
        the exceptions and requirements set forth in section 
        515B.3-116(h)(3), and except that the unit owner has the right 
        to reinstate the debt owing to the secured party by paying to 
        the secured party, prior to the effective date of the 
        disposition or retention, the amount which would be required to 
        reinstate the debt under section 580.30 if the unit were wholly 
        real estate. 
           Sec. 34.  Minnesota Statutes 2000, section 550.13, is 
        amended to read: 
           550.13 [LEVY ON BULKY ARTICLES.] 
           When personal property, by reason of its bulk or other 
        cause, cannot be immediately removed, it shall be a sufficient 
        levy thereon if the officer, within three days thereafter, file 
        in the appropriate filing office under the Uniform Commercial 
        Code, section 336.9-401 336.9-501, a certified copy of the 
        execution, and of the officer's return and levy thereon.  The 
        officer shall pay the filing fee and include it in the charges. 
           Sec. 35.  Minnesota Statutes 2000, section 557.12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FILING AND ENFORCEMENT OF LIENS.] (a) A planting 
        crop owner's lien under subdivision 2 and a lien for the fair 
        market rental value where the crop was grown under subdivision 4 
        are perfected against the crop and crop products by attaching 
        and filing a financing statement covering the crop and crop 
        products as provided under sections 336.9-401 336.9-501 to 
        336.9-410 336.9-527 by 90 days after the planting crop owner's 
        right to harvest the crop is terminated.  The financing 
        statement must include a statement indicating whether it is a 
        planting crop owner's lien or a lien for a crop harvested by a 
        planting crop owner.  A perfected lien may be enforced in the 
        same manner as a security interest under sections 336.9-501 
        336.9-601 to 336.9-508 336.9-628. 
           (b) A lien against the real property under subdivision 2 
        must be recorded and foreclosed in the same manner as a 
        mechanics' lien under sections 514.08 to 514.15 as if the 
        planting crop owner was a contractor.  For purposes of this 
        paragraph, the lien statement must be filed and served under 
        section 514.08, subdivision 1, by 120 days after the crop was 
        harvested, or if the crop was not harvested, by 12 months after 
        the crop was planted. 
           Sec. 36.  Minnesota Statutes 2000, 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 
        336.9-501 336.9-601 to 336.9-508 336.9-628, 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 336.9-501 336.9-601, 550.365, 559.209, and 
        582.039 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 stay of the creditor's remedies is lifted 
        under subdivision 5, or as allowed under sections 583.20 to 
        583.32. 
           (b) For purposes of the Farmer-Lender Mediation Act, 
        starting a proceeding to enforce a debt means initiating a 
        proceeding under chapter 550, 580, or 581; sections 336.9-501 
        336.9-601 to 336.9-508 336.9-628; or section 559.21.  
           (c) 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. 37.  Minnesota Statutes 2000, 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 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 
        336.9-501 336.9-601 to 336.9-508 336.9-628, 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. 38.  Minnesota Statutes 2000, section 583.284, is 
        amended to read: 
           583.284 [RETENTION OF PURCHASE MONEY SECURITY INTEREST.] 
           If a creditor has a purchase money security interest as 
        defined in under section 336.9-107 336.9-103, 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. 39.  [REPEALER.] 
           Minnesota Statutes 2000, sections 336.11-101; 336.11-102; 
        336.11-103; 336.11-104; 336.11-105; 336.11-106; 336.11-107; and 
        336.11-108, are repealed. 
           Sec. 40.  [EFFECTIVE DATE.] 
           This act is effective July 1, 2001. 
           Presented to the governor May 23, 2001 
           Signed by the governor May 25, 2001, 12:05 p.m.