1997 Minnesota Statutes

     336.9-114 Consignment. 

    (1) A person who delivers goods under a consignment which 
 is not a security interest and who would be required to file 
 under this article by paragraph (3) (c) of section 336.2-326 has 
 priority over a secured party who is or becomes a creditor of 
 the consignee and who would have a perfected security interest 
 in the goods if they were the property of the consignee, and 
 also has priority with respect to identifiable cash proceeds 
 received on or before delivery of the goods to a buyer, if 

    (a) the consignor complies with the filing provision of the 
 article on sales with respect to consignments (paragraph (3) (c) 
 of section 336.2-326) before the consignee receives possession 
 of the goods; and 

    (b) the consignor gives notification in writing to the 
 holder of the security interest if the holder has filed a 
 financing statement covering the same types of goods before the 
 date of the filing made by the consignor; and 

    (c) the holder of the security interest received the 
 notification within five years before the consignee receives 
 possession of the goods; and 

    (d) the notification states that the consignor expects to 
 deliver goods on consignment to the consignee, describing the 
 goods by item or type. 

    (2) In the case of a consignment which is not a security 
 interest and in which the requirements of the preceding 
 subsection have not been met, a person who delivers goods to 
 another is subordinate to a person who would have a perfected 
 security interest in the goods if they were the property of the 
 debtor. 

    HIST: 1976 c 135 s 10