Office of the Revisor of Statutes
Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 191-S.F.No. 2437
An act relating to farm products; regulating liens and
financing statements; establishing filing
requirements; setting fees; appropriating money;
amending Minnesota Statutes 2002, sections 336A.01;
336A.02; 336A.03; 336A.04; 336A.05; 336A.06; 336A.07;
336A.08; 336A.09; 336A.10; 336A.11, subdivisions 1, 2;
336A.12; 336A.13; proposing coding for new law in
Minnesota Statutes, chapter 336A; repealing Minnesota
Rules, parts 8265.0100; 8265.0200; 8265.0300;
8265.0400; 8265.0500; 8265.0600.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2002, section 336A.01, is
amended to read:
336A.01 [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to this chapter.
Subd. 2. [BUSINESS DAY.] "Business day" means a weekday on
which government offices are open for business. Business day
does not include state or federal holidays, Saturdays, or
Sundays.
Subd. 2. 3. [BUYER IN THE ORDINARY COURSE OF BUSINESS.]
"Buyer in the ordinary course of business" means a person who,
in the ordinary course of business, buys farm products from a
person engaged in farming operations who is in the business of
selling farm products.
Subd. 3. 4. [COMMISSION MERCHANT.] "Commission merchant"
means a person engaged in the business of receiving a farm
product for sale on commission or for or on behalf of another
person.
Subd. 4. 5. [COMPUTERIZED FILING SYSTEM.] "Computerized
filing system" means the system created by the secretary of
state with separate programs for filing and giving notice of
effective financing statements and farm products statutory liens.
Subd. 6. [CROP YEAR.] "Crop year" means:
(1) for a crop, the calendar year in which it is harvested
or to be harvested;
(2) for animals, the calendar year in which they are born
or acquired; and
(3) for poultry or eggs, the calendar year in which they
are sold or to be sold.
Subd. 7. [DEBTOR.] "Debtor" means an individual or other
legal entity that has borrowed money from or is otherwise
indebted to a lienholder or secured party and whose farm
products are subject to a farm products statutory lien created
by operation of law or a security interest, to secure payment of
the obligation.
Subd. 5. 8. [EFFECTIVE FINANCING STATEMENT.] "Effective
financing statement" means an original or reproduced copy of an
original a statement that meets the requirements of section
336A.03.
Subd. 6. 9. [FARM PRODUCT.] "Farm product" means an
agricultural commodity, a species of livestock used or produced
in farming operations, or a product of a crop or the livestock
in its unmanufactured state, that is in the possession of a
person engaged in farming operations.
Subd. 7. 10. [FARM PRODUCT DEALER.] "Farm product dealer"
means a buyer in the ordinary course of business, a commission
merchant, or a selling agent.
Subd. 8. 11. [FARM PRODUCTS STATUTORY LIEN.] "Farm
products statutory lien" means a lien on farm products which is
given by statute or other rule of law for services or
materials and includes an agricultural lien as defined in
sections 336.9-102(a)(5); 514.963, subdivision 3; and 514.965,
subdivision 2; and an agricultural producer's lien as provided
in section 514.945.
Subd. 9. 12. [FILING OFFICE.] "Filing office" means the
office of the county recorder or the Office of the Secretary of
State.
Subd. 10. 13. [FILING OFFICER.] "Filing officer" means a
county recorder, the secretary of state, or an agent of a county
recorder or the secretary of state authorized to accept filings.
Subd. 14. [LIENHOLDER.] "Lienholder" means an individual
or other legal entity who has the right to collect money from a
debtor and who has a farm products statutory lien.
Subd. 11. 15. [LIEN NOTICE.] "Lien notice" means an
original or reproduced copy of an original a statement that
meets the requirements of section 336A.03.
Subd. 16. [MONTHLY LIST.] "Monthly list" means information
about debtors, secured parties, lienholders, and farm products
that is produced by the secretary of state and distributed once
a month in the form of master or partial master lists.
Subd. 12. 17. [PERSON.] "Person" means an individual,
partnership, corporation, trust, or other business entity.
Subd. 18. [SECURED PARTY.] "Secured party" means an
individual or other legal entity that has received a security
interest in farm products to secure repayment of the obligation
owed to it.
Subd. 13. 19. [SECURITY INTEREST.] "Security interest"
means an interest in farm products that secures payment or
performance of an obligation.
Subd. 14. 20. [SELLING AGENT.] "Selling agent" means a
person, other than a commission merchant, who is engaged in the
business of negotiating the sale and purchase of a farm product
on behalf of a person engaged in farming operations.
Sec. 2. Minnesota Statutes 2002, section 336A.02, is
amended to read:
336A.02 [SPECIFICATION OF FARM PRODUCTS.]
Subdivision 1. [LIST OF PRODUCTS.] The secretary of state
shall, by rule, determine which specific farm products will be
included in the computerized filing and notification system.
Consideration shall be given to the value of the product sold
within the state and its marketing system. The computerized
filing system must provide information about the following farm
products:
(1) wheat/durum;
(2) alfalfa;
(3) barley;
(4) oats;
(5) rye;
(6) sorghum;
(7) hay;
(8) flax;
(9) sunflowers;
(10) field corn;
(11) silage;
(12) canola;
(13) soybeans;
(14) dry edible beans;
(15) green beans;
(16) snap beans;
(17) green lima beans;
(18) sweet corn;
(19) green peas;
(20) potatoes;
(21) carrots;
(22) onions;
(23) cucumbers;
(24) sugar beets;
(25) wool;
(26) milk;
(27) eggs;
(28) cheese;
(29) apples;
(30) honey/bees wax;
(31) cattle/calves;
(32) hogs/pigs;
(33) sheep/lambs;
(34) horses;
(35) goats;
(36) chickens;
(37) broilers;
(38) turkeys;
(39) mink;
(40) fish;
(41) wild rice; and
(42) bison.
Subd. 2. [CROPS GROWN FOR SEED.] Information about the
crops listed in subdivision 1 includes information on crops
grown for seed.
Sec. 3. Minnesota Statutes 2002, section 336A.03, is
amended to read:
336A.03 [CONTENTS OF FINANCING STATEMENT OR LIEN NOTICE.]
Subdivision 1. [SUBSTANTIAL COMPLIANCE.] An effective
financing statement or lien notice must substantially comply
with this section but may contain minor errors that are not
seriously misleading.
Subd. 1a. [FORM.] (a) An effective financing statement is
an original or reproduced copy of the statement or an
electronically reproduced copy of the statement.
(b) A lien notice is an original or reproduced copy of the
notice or an electronically reproduced copy of the notice.
Subd. 2. [CONTENTS.] (a) An effective financing statement
or lien notice must contain:
(1) a description of the farm products subject to the
security interest or farm products statutory lien, including the
amount of the farm products, if applicable, and a reasonable
description of the location of the property, including the name
of the county, where the farm products are produced or located;
(2) the name and address of the secured party or the person
entitled to the farm products statutory lien lienholder;
(3) the name and address of the debtor;
(4) in the case of an effective financing statement, the
Social Security number of the debtor, or, if the debtor is doing
business other than as an individual, the United States Internal
Revenue Service taxpayer identification number of the
debtor; and
(5) in the case of an effective financing statement, the
following statement with the appropriate blank checked:
"THIS EFFECTIVE FINANCING STATEMENT .... WILL ..... WILL
NOT BE TERMINATED WITHIN 30 DAYS OF THE DATE ON WHICH THE
OBLIGATION(S) IT SECURES NO LONGER EXIST."; and
(6) in the case of a lien notice, any payment obligations
imposed on the buyer, commission merchant, or selling agent as a
condition for waiver or release of the farm products statutory
lien.
(b) An effective financing statement or lien notice for one
or more debtors may cover more than one farm product located in
more than one county.
(c) The effective financing statement form and lien notice
may not be combined with a Uniform Commercial Code financing
statement form or format and must be filed on the form or in the
format designated by the secretary of state as an effective
financing statement/lien notice.
(d) An effective financing statement or the record
authorizing the filing of an effective financing statement must
contain the following statement, all in capital letters:
"THE INFORMATION CONTAINED IN THIS AN EFFECTIVE FINANCING
STATEMENT WILL BE SENT TO FARM PRODUCT BUYERS REGISTERED IN
MINNESOTA. SALE OF FARM PRODUCTS TO THOSE BUYERS MAY
RESULT IN A CHECK BEING ISSUED PAYABLE JOINTLY TO BOTH THE
SELLER AND THE SECURED PARTY."
(e) A description of the farm products must include a
product code provided by the secretary of state and if
applicable, the amount of the farm product in those situations
where this information is needed to distinguish that part of the
farm product subject to the security interest or farm products
statutory lien from that part which is not. The amount may be
described by the number of acres, the number of bushels, the
number of head, or any other accepted method of counting the
specific farm product. A dollar amount may not be used as this
description.
(f) The name of the county where the farm products are
produced or located must be designated by using the two-digit
county code provided by the secretary of state.
(g) The party completing the effective financing statement
or lien notice is responsible for choosing and listing the farm
product and county codes on the document from the lists provided
by the secretary of state. The filing officer shall reject
those documents that do not have farm product and county codes.
(h) The name of the secured party or lienholder must be the
full legal name of that person or other legal entity. Business
names must be presented as they have been registered and only
those abbreviations appearing in the name as registered are
acceptable. If the secured party or lienholder is an
individual, the person's full first name, middle initial, if
any, and full last name are the person's full legal name.
Nicknames or abbreviations of individual names, except a middle
initial, are not acceptable. The single address must be a
mailing address and include a city, state, and zip code.
(i) The name of the debtor must be the full legal name of
the individual or other legal entity. Business names must be
presented as they have been registered and only those
abbreviations appearing in the name as registered are
acceptable. If the debtor is an individual, the person's full
first name, middle initial, if any, and full last name are the
person's full legal name. Nicknames or abbreviations of
individual names, except a middle initial, are not acceptable.
The single address must be a mailing address and include a city,
state, and a zip code.
Subd. 3. [SIGNATURES.] A lien notice must be signed,
authorized, or otherwise authenticated by the lienholder. An
effective financing statement must be signed, authorized, or
otherwise authenticated by:
(1) the secured party; and
(2) the debtor.
Subd. 4. [REQUIRED AMENDMENTS.] An effective financing
statement or lien notice must be amended in writing within three
months after material changes occur to reflect the material
changes. To amend information contained on an effective
financing statement or lien notice, the existing effective
financing statement or lien notice must be terminated and a new
effective financing statement or lien notice filed. The
amendment to an effective financing statement or a lien
statement must be signed, authorized, or otherwise
authenticated, and filed in the same manner required for the
original document.
Subd. 5. [EFFECTIVE PERIOD.] (a) An effective financing
statement is effective for five years from the date of filing.
The effective period may be extended for additional periods of
five years as provided in section 336A.06.
(b) An effective financing statement is not effective after:
(1) the effective financing statement lapses on the
expiration of the effective period; or
(2) a notice that the effective financing statement is
terminated is signed, authorized, or otherwise authenticated by
the secured party and filed in the filing office where the
original effective financing statement is filed.
(c) A lien notice is not effective after:
(1) five years from the date of filing;
(2) expiration of the period for commencing an action to
enforce the lien under applicable Minnesota law; or
(3) the obligation secured by the farm products statutory
lien no longer exists.
Sec. 4. [336A.031] [SATELLITE OFFICES.]
Subdivision 1. [AUTHORITY TO ESTABLISH.] The secretary of
state may establish satellite offices by written agreements with
public officials within the state for the purpose of meeting the
filing officer responsibilities described in this chapter. The
terms of the agreement must be set by, and may be renewed by,
mutual agreement. The agreement may be terminated upon 60 days'
notice. The secretary must maintain a list of those public
officials authorized to act as satellite offices. The secretary
of state must make this list available in an electronic format
and the list must be updated at least monthly.
Subd. 2. [DUTIES.] Satellite offices must accept effective
financing statements and lien notices and respond to requests
for information pursuant to the provisions of this chapter. A
filing made at a satellite office is filed and effective at the
same time and under the same rules provided for filing in any
other manner in the computerized filing system. The filing
date, time, and file number for any effective financing
statement or lien notice accepted at a satellite office must be
automatically assigned by the computerized filing system
operated by the secretary of state, and the file number must be
the next available file number in the computerized filing system.
Subd. 3. [FILINGS ON OR AFTER JULY 1, 2001.] This
subdivision applies to all effective financing statements and
lien notices filed on or after July 1, 2001. The secretary of
state shall maintain all effective financing statements and lien
notices and the database used to index them regardless of where
or how the statement or notice was filed. The documents and
database must be housed in the computerized filing system.
These documents and data must be available from the secretary of
state or any satellite office. Any filing office authorized to
be a part of the computerized filing system may respond to
requests for information, and the secretary of state shall
establish and administer a system to facilitate those responses.
Subd. 4. [FILINGS BEFORE JULY 1, 2001.] This subdivision
applies to all effective financing statements and lien notices
filed before July 1, 2001. The database containing the
information from the effective financing statements and lien
notices must be housed in the computerized filing system.
Subd. 5. [PERFORMANCE OF FILING OFFICERS.] (a) All filing
officers must perform the responsibilities required under this
chapter and rules adopted pursuant to this chapter in a uniform
manner, whether services are provided by the secretary of state
or at a satellite office location. Reports by citizens
describing concerns with performance of filing officer
responsibilities must be made to the secretary of state. The
secretary of state is responsible for responding to reports
about performance in a manner the secretary of state determines
is appropriate.
(b) If, upon investigation of citizen reports described in
subdivision 1, the secretary of state determines that
performance by a satellite office of the filing officer
responsibilities has been so unsatisfactory that customer
service has been severely impaired, the secretary of state must
terminate the satellite office's status and ability to perform
filing office responsibilities. If a satellite office's ability
to perform filing office responsibilities is terminated by the
secretary of state, the change in status must be posted in the
former satellite office and must also be publicly posted in the
county courthouse in the county in which the former satellite
office is located and must be made available in an electronic
format.
Subd. 6. [RECORD RETENTION.] Once the image of a paper
record has been captured by the computerized filing system, the
secretary of state may remove or direct the removal from the
files and destroy the paper record.
Sec. 5. Minnesota Statutes 2002, section 336A.04, is
amended to read:
336A.04 [FILING EFFECTIVE FINANCING STATEMENT OR LIEN
NOTICE.]
Subdivision 1. [FILING LOCATION.] An effective financing
statement or lien notice must be filed in the computerized
filing system operated by the Office of the Secretary of State.
or the county recorder in the county of the debtor's residence
if the debtor is an individual or organization with residence in
this state. If the debtor is not a resident of this state, the
effective financing statement or lien notice must be filed in
the Office of the Secretary of State. Effective financing
statements and lien notices may be filed in writing or by any
other means authorized from a filing officer.
Subd. 2. [EFFECTIVE FILING.] Presentation of an effective
financing statement or lien notice with the appropriate filing
fee to a filing officer or acceptance of the statement by a
filing officer constitutes filing under this chapter.
Subd. 3. [FEES.] (a) The fee for filing and indexing a
standard form or format for a lien notice, effective financing
statement, or continuation statement, and stamping the date and
place of filing on a copy of the filed document furnished by the
filing party is $15 for up to two debtor names and $15 for each
additional name thereafter until June 30, 2005. Effective July
1, 2005, the fee for each filing will be as follows:
(1) $15 for each filing made through the Web interface of
the Office of the Secretary of State; and
(2) $20 for each filing submitted in any other manner.
(b) A fee may not be charged for filing a termination
statement if the termination is filed within 30 days after
satisfaction of the lien or security interest. Otherwise, the
fee is $10.
(c) A county recorder shall forward $5 of each filing fee
collected under this subdivision to the secretary of state.
Surcharge amounts shall be collected quarterly by the secretary
of state from each county recorder. The secretary of state
shall send each county recorder an invoice at the end of each
fiscal quarter and each county recorder shall forward payment to
the secretary of state within 30 days of the date of the
invoice. The surcharge amounts received from county recorders
and the surcharge amounts collected by the secretary of state's
office must be deposited in the state treasury and credited to
the general fund. The balance of the Filing fees collected by a
county recorder satellite office must be deposited in the
general fund of the county in which the satellite office is
located.
Subd. 3a. [STANDARD FORMS.] The standard form for a lien
notice, effective financing statement, continuation statement,
or termination statement is available from the filing office.
Subd. 4. [FILING PROCEDURE.] (a) The filing officer shall
mark the effective financing statement or lien notice with a
consecutive file number and the date and hour of filing. For
each effective financing statement, lien notice, continuation
statement, or termination statement filed in a filing office,
the filing office shall:
(1) assign a unique number to the filed record;
(2) create a record that bears the number assigned to the
filed record and the date and time of filing;
(3) maintain the filed record for public inspection; and
(4) index the filed record in accordance with paragraph (b).
(b) The filing office shall maintain the original filed
document or a copy of the filed document in a format that meets
archival standards for public inspection as provided in rule by
the secretary of state. index an effective financing statement
or lien notice according to the name of the debtor and index all
filed records relating to the initial filing in a manner that
associates the related filings with the initial effective
financing statement or lien notice.
(c) The filing office shall index filed documents according
to the file number of the document. maintain a capability:
(1) to retrieve a record by the name of the debtor and by
the file number assigned to the initial effective financing
statement or lien notice to which the record relates; and
(2) to associate and retrieve with one another an initial
effective financing statement or lien notice and each filed
record relating to the initial effective financing statement or
lien notice as the case may be.
(d) The filing office may not remove a debtor's name from
the index until one year after the effectiveness of an effective
financing statement or lien notice naming the debtor lapses
under section 336A.03, subdivision 5, paragraph (b), clause (1),
or paragraph (c), clause (1).
(e) The filing office shall maintain a record of the
information provided in a filed effective financing statement or
lien notice for at least one year after the effectiveness of the
financing statement or lien notice has lapsed under section
336A.03, subdivision 5, paragraph (b), clause (1), or paragraph
(c), clause (1). The record must be retrievable by using the
name of the debtor and by using the file number assigned to the
initial effective financing statement or lien notice to which
the record relates.
(f) Except to the extent that a statute governing
disposition of public records provides otherwise, the filing
office immediately may destroy any written record evidencing an
effective financing statement or lien notice. However, if the
filing office destroys a written record, it shall maintain
another record of the effective financing statement or lien
notice which complies with paragraph (e).
Subd. 5. [ENTERING FILING INFORMATION INTO COMPUTERIZED
FILING SYSTEM.] Each filing office shall enter the information
from the filed documents into the computerized filing system as
prescribed by the secretary of state.
The secretary of state shall record lien notices in the
computerized filing system in a manner that separately
identifies all farm products statutory liens, and shall ensure
that the computerized filing and notification system
distinguishes security interests covered by effective financing
statements from liens covered by lien notices to the extent
required by United States Code, title 7, section 1631, et seq.,
and regulations adopted under those sections.
Subd. 6. [VERIFICATION OF INFORMATION.] A person who has
filed an effective financing statement or lien notice may verify
the accuracy of the information entered into the computerized
filing system and compiled into the master list by making an
inquiry under section 336A.09. The secretary of state shall
establish a procedure for requesting an inquiry to verify the
accuracy of the information at the time of filing.
Sec. 6. Minnesota Statutes 2002, section 336A.05, is
amended to read:
336A.05 [EFFECT OF FILING ON PERFECTION AND PRIORITY.]
Filing under this chapter does not affect the perfection or
priority of security interests filed under the Uniform
Commercial Code or a farm products statutory lien filed in
accordance with the provisions of law under which it was created
and does not affect the priority of a security interest in farm
products or a farm products statutory lien except as provided in
section 336A.15 or 336A.16 and United States Code, title 7,
section 1631.
Sec. 7. Minnesota Statutes 2002, section 336A.06, is
amended to read:
336A.06 [CONTINUATION STATEMENT.]
Subdivision 1. [FILING PERIOD.] A secured party may file a
continuation statement for an effective financing statement
within six months before a five-year effective period expires.
Subd. 2. [CONTENTS.] A continuation statement must:
(1) be signed, authorized, or otherwise authenticated by
the secured party and the debtor;
(2) identify the original effective financing statement by
file number; and
(3) state that the original effective financing statement
is still effective.
Subd. 3. [EFFECTIVE PERIOD.] If a continuation statement
is filed within six months before a five-year effective period
expires, the effectiveness of the original effective financing
statement continues for an additional five years after the
original five-year effective period. Additional continuation
statements filed within six months before an effective period
expires continue the effectiveness of the original effective
financing statement for additional five-year periods.
Subd. 4. [FILING.] The continuation statement must be
filed in the filing office where the original effective
financing statement is filed computerized filing system of the
Office of the Secretary of State.
Sec. 8. Minnesota Statutes 2002, section 336A.07, is
amended to read:
336A.07 [TERMINATION STATEMENTS.]
Subdivision 1. [REQUIREMENT.] (a) If required in an
effective financing statement, A secured party shall within 30
days file a lien termination statement and termination statement
for the effective financing statement when:
(1) an outstanding secured obligation does not exist; and
(2) a written commitment to make advances, incur
obligations, or otherwise give value does not exist.
(b) A lienholder shall file a termination statement with
respect to a lien notice within 30 days after an outstanding
lien notice obligation no longer exists.
Subd. 2. [CONTENTS.] (a) Unless filed pursuant to section
336A.03, subdivision 4, in order to amend an effective financing
statement or a lien notice, a lien termination statement and
termination statement for the a lien notice or an effective
financing statement must:
(1) state the file number of the effective financing
statement or lien notice;
(2) state the date on which the lien or security interest
was satisfied;
(3) state that the secured party does not claim a security
interest under the effective financing statement or that the
lienholder does not claim a lien under the lien notice; and
(4) be signed, authorized, or otherwise authenticated by
the secured party or lienholder.
(b) If a termination statement is filed pursuant to section
336A.03, subdivision 4, in order to amend an effective financing
statement or a lien notice, the termination statement must:
(1) state the file number of the effective financing
statement or lien notice; and
(2) be signed, authorized, or otherwise authenticated by
the secured party or lienholder.
Subd. 3. [FILING.] A termination statement for an
effective financing statement or a lien notice must be filed in
the computerized filing system operated by the secured party in
the filing office where the original effective financing
statement is filed. A termination statement for the lien notice
must be filed by the lienholder in the same manner required for
filing the lien notice Office of the Secretary of the State.
Subd. 4. [FAILURE TO FILE.] If the secured party or
lienholder fails to file a termination statement as required by
subdivision 1, or within ten days after a debtor serves a
written demand for the termination statement if the conditions
in subdivision 1 exist, the secured party or lienholder is
liable to the debtor for $100 plus any loss caused to the debtor
by failing to file the termination statement. For the second
and each subsequent time a secured party or lienholder is found
liable to a debtor under this subdivision in any one calendar
year, the secured party or lienholder is liable to the debtor
for $250 plus any loss caused to the debtor.
Subd. 5. [FILING PROCEDURES.] (a) When a termination
statement is filed, each filing office must delete the
information from the active files as prescribed by the secretary
of state.
(b) If the termination statement is filed in duplicate, the
filing office shall return one copy of the termination
statement, stamped to show the time of receipt, to the secured
party or lienholder.
Sec. 9. Minnesota Statutes 2002, section 336A.08, is
amended to read:
336A.08 [MASTER LIST.]
Subdivision 1. [COMPILATION.] (a) The secretary of state
shall compile the information on effective financing statements
in the computerized filing system into a master list:
(1) organized according to farm product;
(2) arranged within each product:
(i) in alphabetical order according to the last name of the
individual debtor or, in the case of debtors doing business
other than as individuals, the first word in the name of the
debtors;
(ii) in numerical order according to the Social Security
number of the individual debtor or, in the case of debtors doing
business other than as individuals, the Internal Revenue Service
taxpayer identification number of the debtors;
(iii) geographically by county; and
(iv) by crop year; and
(3) containing the information provided on an effective
financing statement; and
(4) designating any applicable terminations of the
effective financing statement.
(b) The secretary of state shall compile information from
lien notices recorded in the computerized filing system into a
statutory lien master list in alphabetical order according to
the last name of the individual debtor or, in the case of
debtors doing business other than as individuals, the first word
in the name of the debtors. The secretary of state may also
organize the statutory lien master list according to one or more
of the categories of information established in paragraph
(a). Any terminations of lien notices must be noted.
Subd. 2. [REMOVAL OF EFFECTIVE FINANCING STATEMENTS AND
LIEN NOTICES.] The secretary of state shall remove lapsed and
terminated effective financing statements and lien notices from
the computerized filing system before preparing master lists.
Subd. 3. [REQUEST FOR PARTIAL MASTER LIST.] If requested
by a buyer registered under section 336A.11, the secretary of
state shall distribute partial master lists to the buyer that
are limited to one or more of the categories in subdivision 1,
paragraph (a).
Subd. 3a. [ALL CROPS OR ALL LIVESTOCK DEFINED.] A
registered buyer who requests a monthly list may ask for a list
of all crops including wool, milk, eggs, cheese, and honey/bees
wax, all livestock including wool, milk, eggs, cheese, and
honey/bees wax, or both. The list given to the buyer must then
include information about all the crops or all the livestock
listed in subdivision 1, or both.
Subd. 4. [DISTRIBUTION OF MASTER AND PARTIAL LISTS.] (a)
The secretary of state shall maintain the information on the
effective financing statement master list:
(1) by farm product arranged alphabetically by debtor; and
(2) by farm product arranged numerically by the debtor's
Social Security number for an individual debtor or, in the case
of debtors doing business other than as individuals, the
Internal Revenue Service taxpayer identification number of the
debtors.
(b) The secretary of state shall maintain the information
in the farm products statutory lien master list by county
arranged alphabetically by debtor.
(c) The secretary of state shall distribute or make
available the requested master and partial master lists on a
monthly basis to farm product dealers registered under section
336A.11. The secretary of state may, by rule, establish that
lists of certain farm products must be distributed more
frequently. Lists will be distributed or made available on or
before the tenth day of each month or on the next business day
thereafter if the tenth day is not a business day.
(d) The secretary of state shall, by rule, establish:
(1) dates when the distribution of lists will be made;
(2) dates after which a filing of an effective financing
statement or lien notice will not be reflected on the next lists
distributed; and
(3) dates by which a registrant must complete a
registration to receive the next list distributed.
(e) The secretary of state shall make the master and
partial master lists available as written or printed paper
documents and may make lists available in other forms or media,
including:
(1) microfiche;
(2) magnetic tape;
(3) any electronically transmitted medium; or
(4) computer disk (2) any form of digital media.
(f) (e) There shall be no fee for partial or master lists
distributed on microfiche, magnetic tape, via an electronically
transmitted medium, computer disk, or comparable media. The
annual fee for any other form of digital media is $200. The
annual fee for paper partial lists is $250 and $400 for paper
master lists.
(g) At the request of a farm product dealer registered
under section 336A.11, the secretary of state shall deliver
lists at cost by certified or registered mail, return receipt
requested.
(f) A farm products dealer shall register pursuant to
section 336A.11 by the last business day of the month to receive
the monthly lists requested by the farm products dealer for that
month.
(g) If a registered farm products dealer receives a monthly
list that cannot be read or is incomplete, the farm products
dealer must immediately inform the secretary of state by
telephone or e-mail of the problem. The registered farm
products dealer shall confirm the existence of the problem by
writing to the secretary of state. The secretary of state shall
provide the registered farm products dealer with new monthly
lists in the medium chosen by the registered farm products
dealer no later than five business days after receipt of the
oral notice from the registered farm products dealer. A
registered farm products dealer is not considered to have
received notice of the information on the monthly lists until
the duplicate list is received from the secretary of state or
until five days have passed since the duplicate lists were
deposited in the mail by the secretary of state, whichever comes
first.
(h) On receipt of a written notice pursuant to section
336A.13, the secretary of state shall duplicate the monthly
lists requested by the registered farm products dealer. The
duplicate monthly lists must be sent to the registered farm
products dealer no later than five business days after receipt
of the written notice from the registered farm products dealer.
(i) A registered farm products dealer may request monthly
lists in one medium per registration.
(j) Registered farm products dealers must have renewed
their registration before the first day of July each year.
Failure to send in the registration before that date will result
in the farm products dealer not receiving the requested monthly
lists.
(k) Registered farm products dealers choosing to obtain
monthly lists via an electronically transmitted medium or in any
form of digital media may choose to receive all of the
information for the monthly lists requested the first month and
then only additions and deletions to the database for the
remaining 11 months of the year. Following the first year of
registration, the registered farm products dealer may choose to
continue to receive one copy of the full monthly list at the
beginning of each year or may choose to receive only additions
and deletions.
Sec. 10. Minnesota Statutes 2002, section 336A.09, is
amended to read:
336A.09 [INQUIRIES.]
Subdivision 1. [PROCEDURE.] (a) Oral and written inquiries
regarding information provided by the filing of effective
financing statements or lien notices may be made at any filing
office during regular business hours.
(b) A filing office receiving an oral or written inquiry
shall, upon request, provide an oral or facsimile response to
the inquiry and must mail send a confirmation of the inquiry in
writing by the end of the next business day after the inquiry is
received.
(c) A filing office shall maintain a record of inquiries
made under this section including:
(1) the date of the inquiry;
(2) the name of the debtor inquired about; and
(3) identification of the person making the request for
inquiry.
Subd. 2. [SEARCHES; FEES.] (a) If a person makes a
request, the filing officer shall conduct a search of the
computerized filing system for effective financing statements or
lien notices and statements of continuation of a particular
debtor. The filing officer shall produce a report including the
date, time, and results of the search by issuing:
(1) a certificate listing of the file number, date, and
hour of each effective financing statement found in the search
and the names and addresses of each secured party on the
effective financing statements or of each lien notice found in
the search and the names and address of each lienholder on the
lien notice; or
(2) photocopies of the original effective financing
statement or lien notice documents on file; or
(3) upon request, both the certificate report and
photocopies of the effective financing statements or lien
notices.
(b) The uniform fee for conducting a search and for
preparing a certificate report is $15 $20 per debtor name if
the request is in the standard form prescribed by the secretary
of state. This uniform fee shall include ten photocopies of
original documents. If the request for information is made on a
form other than the standard form prescribed by the secretary of
state, the fee is $20 per debtor name and shall include ten
photocopies of original documents. An additional fee of $1 per
page must be charged for each photocopy prepared in excess of
the first ten. If an oral or facsimile response is requested,
there is an additional fee of $5 per debtor name requested. A
fee of $1 per page will be charged for photocopies of effective
financing statements, lien notices, continuation statements, or
termination statements.
(c) A county recorder shall forward $5 of each search fee
collected under this subdivision to the secretary of state.
Surcharge amounts shall be collected quarterly by the secretary
of state from each county recorder. The secretary of state
shall send each county recorder an invoice at the end of each
fiscal quarter and each county recorder shall forward payment to
the secretary of state within 30 days of the date of the invoice.
The surcharge amounts received from county recorders and the
surcharge amounts collected by the Secretary of State's Office
must be deposited in the state treasury and credited to the
general fund. The balance of the Search fees collected by a
county recorder satellite office must be deposited in the
general fund of the county where the satellite office is located.
Sec. 11. Minnesota Statutes 2002, section 336A.10, is
amended to read:
336A.10 [LIABILITY FOR INFORMATION ERRORS IMMUNITY.]
(a) Except as provided in sections 609.87 to 609.891, the
state, the secretary of state, counties, county recorders, and
their employees and agents are immune from liability as a result
of errors or omissions in information supplied under this
chapter.
(b) 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 computerized filing system as a result of the
electronic transmission of effective financing statements and
lien notices.
Sec. 12. Minnesota Statutes 2002, section 336A.11,
subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENTS.] Farm product dealers may
register with the secretary of state to receive master lists of
notices of security interests in farm products or farm products
statutory liens. Registration must be made on an annual
calendar year basis. A registration is not complete until the
registration form or format is properly completed and received
by the secretary of state and accompanied by the registration
fee. Registration entitles a farm product dealer to receive
lists for those farm products specified by the registrant at the
time of registration.
Sec. 13. Minnesota Statutes 2002, section 336A.11,
subdivision 2, is amended to read:
Subd. 2. [REGISTRATION FORMS OR FORMAT.] The secretary of
state shall make registration forms or format available to farm
product dealers. The secretary of state must also make
registration information available to the commissioner of
agriculture for distribution to applicants for licensure under
section 17A.04 or 223.17. The registration form or format must
include provisions for the name and address of the farm product
dealer, a request for the master or partial master lists, and
the medium on which the farm product dealer desires to receive
the master list.
Sec. 14. Minnesota Statutes 2002, section 336A.12, is
amended to read:
336A.12 [RULES.]
Subdivision 1. [AUTHORITY.] (a) The secretary of state may
adopt permanent rules to implement this chapter.
(b) If necessary to obtain federal certification of the
computerized filing system, additional or alternative
requirements made in conformity with United States Code, title
7, section 1631, may be adopted by the secretary of state by
rule.
Subd. 2. [FORMS OR FORMAT.] The secretary of state shall
prescribe the forms or format to be used for effective financing
statements, lien notices, combined forms, amendments,
continuation statements, termination statements, and notices to
debtors.
Sec. 15. Minnesota Statutes 2002, section 336A.13, is
amended to read:
336A.13 [RECEIPT OF WRITTEN NOTICE.]
For purposes of United States Code, title 7, section 1631,
and this chapter, receipt of written notice means the date the
notice is actually received by a farm product dealer or the
first date that delivery is attempted by a carrier. A farm
product dealer must act in good faith. For a mailed notice, a
farm product dealer is presumed to have received the notice by
five business days after it was mailed unless by ten days after
it was mailed the farm product dealer notifies the secretary of
state in writing that it has not received the notice by that
time.
Sec. 16. [TEMPORARY SURCHARGE.]
A $10 surcharge on every effective financing statement and
lien notice filed on or after July 1, 2004, shall be collected
and remitted to the secretary of state for deposit in the
general fund.
This section expires June 30, 2005.
Sec. 17. [APPROPRIATION.]
$62,000 is appropriated in fiscal year 2005 from the
general fund to the secretary of state for purposes of
implementing this act. This is a onetime appropriation.
Sec. 18. [REPEALER.]
Minnesota Rules, parts 8265.0100; 8265.0200; 8265.0300;
8265.0400; 8265.0500; and 8265.0600, are repealed on the
application date specified in section 19.
Sec. 19. [EFFECTIVE DATE; APPLICATION.]
(a) Sections 1 to 15 are effective August 1, 2004, and
apply to all effective financing statements and lien notices
governed by Minnesota Statutes, chapter 336A, that are made on
or after February 1 following the calendar year the United
States Department of Agriculture approves the central filing
system pursuant to United States Code, title 7, section 1631,
and notifies the secretary of state of the approval.
(b) The secretary of state shall promptly notify the
revisor of statutes of the notification in paragraph (a) for
purposes of determining the application date in section 18.
Presented to the governor May 10, 2004
Signed by the governor May 13, 2004, 11:20 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes