2000 Minnesota Statutes

     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 (ii) any consumer protection 
 statute or rule. 

    (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. 

    HIST: 2000 c 399 art 1 s 11 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 11, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-201, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-201 General validity of security agreement.  

*   Except as otherwise provided by this chapter a security 
*agreement is effective according to its terms between the 
*parties, against purchasers of the collateral and against 
*creditors.  Nothing in this article validates any charge or 
*practice illegal under any statute or regulation thereunder 
*governing usury, small loans, retail installment sales, or the 
*like, or extends the application of any such statute or 
*regulation to any transaction not otherwise subject thereto."