2000 Minnesota Statutes

     336.9-208 Additional duties of secured party having 
  control of collateral. 

    (a)    Applicability of section.  This section applies 
 to cases in which there is no outstanding secured obligation and 
 the secured party is not committed to make advances, incur 
 obligations, or otherwise give value. 

    (b)    Duties of secured party after receiving demand from 
 debtor.  Within ten days after receiving an authenticated 
 demand by the debtor: 

    (1) a secured party having control of a deposit account 
 under section 336.9-104(a)(2) shall send to the bank with which 
 the deposit account is maintained an authenticated statement 
 that releases the bank from any further obligation to comply 
 with instructions originated by the secured party; 

    (2) a secured party having control of a deposit account 
 under section 336.9-104(a)(3) shall: 

    (A) pay the debtor the balance on deposit in the deposit 
 account; or 

    (B) transfer the balance on deposit into a deposit account 
 in the debtor's name; 

    (3) a secured party, other than a buyer, having control of 
 electronic chattel paper under section 336.9-105 shall: 

    (A) communicate the authoritative copy of the electronic 
 chattel paper to the debtor or its designated custodian; 

    (B) if the debtor designates a custodian that is the 
 designated custodian with which the authoritative copy of the 
 electronic chattel paper is maintained for the secured party, 
 communicate to the custodian an authenticated record releasing 
 the designated custodian from any further obligation to comply 
 with instructions originated by the secured party and 
 instructing the custodian to comply with instructions originated 
 by the debtor; and 

    (C) take appropriate action to enable the debtor or its 
 designated custodian to make copies of or revisions to the 
 authoritative copy which add or change an identified assignee of 
 the authoritative copy without the consent of the secured party; 

    (4) a secured party having control of investment property 
 under section 336.8-106(d)(2) or 336.9-106(b) shall send to the 
 securities intermediary or commodity intermediary with which the 
 security entitlement or commodity contract is maintained an 
 authenticated record that releases the securities intermediary 
 or commodity intermediary from any further obligation to comply 
 with entitlement orders or directions originated by the secured 
 party; and 

    (5) a secured party having control of a letter of credit 
 right under section 336.9-107 shall send to each person having 
 an unfulfilled obligation to pay or deliver proceeds of the 
 letter of credit to the secured party an authenticated release 
 from any further obligation to pay or deliver proceeds of the 
 letter of credit to the secured party. 

    HIST: 2000 c 399 art 1 s 18 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 18, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-208, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-208 Request for statement of account or list of 
*collateral.  

*   (1) A debtor may sign a statement indicating what the 
*debtor believes to be the aggregate amount of unpaid 
*indebtedness as of a specified date and may send it to the 
*secured party with a request that the statement be approved or 
*corrected and returned to the debtor.  When the security 
*agreement or any other record kept by the secured party 
*identifies the collateral a debtor may similarly request the 
*secured party to approve or correct a list of the collateral.  

*   (2) The secured party must comply with such a request 
*within two weeks after receipt by sending a written correction 
*or approval.  If the secured party claims a security interest in 
*all of a particular type of collateral owned by the debtor the 
*secured party may indicate that fact in the reply and need not 
*approve or correct an itemized list of such collateral.  If the 
*secured party without reasonable excuse fails to comply the 
*secured party is liable for any loss caused to the debtor 
*thereby; and if the debtor has properly included in the request 
*a good faith statement of the obligation or a list of the 
*collateral or both the secured party may claim a security 
*interest only as shown in the statement against persons misled 
*by the failure to comply.  If the secured party no longer has an 
*interest in the obligation or collateral at the time the request 
*is received the secured party must disclose the name and address 
*of any known successor in interest and the secured party is 
*liable for any loss caused to the debtor as a result of failure 
*to disclose.  A successor in interest is not subject to this 
*section until a request is received by the successor.  

*   (3) A debtor is entitled to such a statement once every six 
*months without charge.  The secured party may require payment of 
*a charge not exceeding $10 for each additional statement 
*furnished."