1999 Minnesota Statutes

     336.9-501 Default; procedure when security agreement 
  covers both real and personal property. 

    (1) When a debtor is in default under a security agreement, 
 a secured party has the rights and remedies provided in this 
 part and except as limited by subsection (3) those provided in 
 the security agreement.  The secured party may reduce a claim to 
 judgment, foreclose, or otherwise enforce the security interest 
 by any available judicial procedure.  If the collateral is 
 documents the secured party may proceed either as to the 
 documents or as to the goods covered thereby.  A secured party 
 in possession has the rights, remedies, and duties provided in 
 section 336.9-207.  The rights and remedies referred to in this 
 subsection are cumulative. 

    (2) After default, the debtor has the rights and remedies 
 provided in this part, those provided in the security agreement, 
 and those provided in section 336.9-207. 

    (3) To the extent that they give rights to the debtor and 
 impose duties on the secured party, the rules stated in the 
 subsections referred to below may not be waived or varied except 
 as provided with respect to compulsory disposition of collateral 
 (subsection (3) of section 336.9-504 and section 336.9-505) and 
 with respect to redemption of collateral (section 336.9-506) but 
 the parties may by agreement determine the standards by which 
 the fulfillment of these rights and duties is to be measured if 
 such standards are not manifestly unreasonable: 

    (a) Subsection (2) of section 336.9-502 and subsection (2) 
 of section 336.9-504 insofar as they require accounting for 
 surplus proceeds of collateral; 

    (b) Subsection (3) of section 336.9-504 and subsection (1) 
 of section 336.9-505 which deal with disposition of collateral; 

    (c) Subsection (2) of section 336.9-505 which deals with 
 acceptance of collateral as discharge of obligation; 

    (d) Section 336.9-506 which deals with redemption of 
 collateral; and 

    (e) Subsection (1) of section 336.9-507 which deals with 
 the secured party's liability for failure to comply with this 
 part. 

    (4) If the security agreement covers both real and personal 
 property, the secured party may proceed under this part as to 
 the personal property or may proceed as to both the real and the 
 personal property in accordance with the secured party's rights 
 and remedies in respect of the real property in which case the 
 provisions of this part do not apply. 

    (5) When a secured party has reduced a claim to judgment 
 the lien of any levy which may be made upon collateral by virtue 
 of any execution based upon the judgment shall relate back to 
 the date of the perfection of the security interest in such 
 collateral.  A judicial sale, pursuant to such execution, is a 
 foreclosure of the security interest by judicial procedure 
 within the meaning of this section, and the secured party may 
 purchase at the sale and thereafter hold the collateral free of 
 any other requirements of this article. 

    (6) A person may not begin to enforce a security interest 
 in collateral that is agricultural property subject to sections 
 583.20 to 583.32 that has secured a debt of more than $5,000 
 unless:  a mediation notice under subsection (7) is served on 
 the debtor after a condition of default has occurred in the 
 security agreement and a copy served on the director; and the 
 debtor and creditor have completed mediation under sections 
 583.20 to 583.32; or as otherwise allowed under sections 583.20 
 to 583.32. 

    (7) A mediation notice under subsection (6) must contain 
 the following notice with the blanks properly filled in. 

    "TO:  ....(Name of Debtor)....  

    YOU HAVE DEFAULTED ON THE ....(Debt in Default).... SECURED 
 BY AGRICULTURAL PROPERTY DESCRIBED AS ....(Reasonable 
 Description of Agricultural Property Collateral).... 

    AS A SECURED PARTY, ....(Name of Secured Party).... INTENDS 
 TO ENFORCE THE SECURITY AGREEMENT AGAINST THE AGRICULTURAL 
 PROPERTY DESCRIBED ABOVE BY REPOSSESSING, FORECLOSING ON, OR 
 OBTAINING A COURT JUDGMENT AGAINST THE PROPERTY. 

    YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION. 
 IF YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE 
 MEDIATED ONLY ONCE.  IF YOU DO NOT REQUEST MEDIATION, THIS DEBT 
 WILL NOT BE SUBJECT TO FUTURE MEDIATION IF THE SECURED PARTY 
 ENFORCES THE DEBT. 

    IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE 
 AGRICULTURAL EXTENSION SERVICE WILL PROVIDE AN ORIENTATION 
 MEETING AND A 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)...." 

    HIST: 1965 c 811 s 336.9-501; 1976 c 135 s 33; 1977 c 347 s 
 49; 1986 c 398 art 1 s 1; 1986 c 444; 1987 c 292 s 2 

*   NOTE:  This section, as amended by Laws 1986, chapter 398, 
*article 1, section 1, is repealed July 1, 1999.  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; 1997 c 183 art 3 s 29; Laws 1998, chapter 395, section 7; 
*and Laws 1998, chapter 402, section 6.