2000 Minnesota Statutes

     336.9-312 Perfection of security interests in chattel 
  paper, deposit accounts, documents, goods covered by documents, 
  instruments, investment property, letter of credit rights, and 
  money; perfection by permissive filing; temporary perfection 
  without filing or transfer of possession. 

    (a)    Perfection by filing permitted.  A security 
 interest in chattel paper, negotiable documents, instruments, or 
 investment property may be perfected by filing. 

    (b)    Control or possession of certain collateral.  
 Except as otherwise provided in section 336.9-315(c) and (d) for 
 proceeds: 

    (1) a security interest in a deposit account may be 
 perfected only by control under section 336.9-314; 

    (2) and except as otherwise provided in section 
 336.9-308(d), a security interest in a letter of credit right 
 may be perfected only by control under section 336.9-314; and 

    (3) a security interest in money may be perfected only by 
 the secured party's taking possession under section 336.9-313. 

    (c)    Goods covered by negotiable document.  While 
 goods are in the possession of a bailee that has issued a 
 negotiable document covering the goods: 

    (1) a security interest in the goods may be perfected by 
 perfecting a security interest in the document; and 

    (2) a security interest perfected in the document has 
 priority over any security interest that becomes perfected in 
 the goods by another method during that time. 

    (d)    Goods covered by nonnegotiable document.  While 
 goods are in the possession of a bailee that has issued a 
 nonnegotiable document covering the goods, a security interest 
 in the goods may be perfected by: 

    (1) issuance of a document in the name of the secured 
 party; 

    (2) the bailee's receipt of notification of the secured 
 party's interest; or 

    (3) filing as to the goods. 

    (e)    Temporary perfection:  new value.  A security 
 interest in certificated securities, negotiable documents, or 
 instruments is perfected without filing or the taking of 
 possession for a period of 20 days from the time it attaches to 
 the extent that it arises for new value given under an 
 authenticated security agreement. 

    (f)    Temporary perfection:  goods or documents made 
 available to debtor.  A perfected security interest in a 
 negotiable document or goods in possession of a bailee, other 
 than one that has issued a negotiable document for the goods, 
 remains perfected for 20 days without filing if the secured 
 party makes available to the debtor the goods or documents 
 representing the goods for the purpose of: 

    (1) ultimate sale or exchange; or 

    (2) loading, unloading, storing, shipping, transshipping, 
 manufacturing, processing, or otherwise dealing with them in a 
 manner preliminary to their sale or exchange. 

    (g)    Temporary perfection:  delivery of security 
 certificate or instrument to debtor.  A perfected security 
 interest in a certificated security or instrument remains 
 perfected for 20 days without filing if the secured party 
 delivers the security certificate or instrument to the debtor 
 for the purpose of: 

    (1) ultimate sale or exchange; or 

    (2) presentation, collection, enforcement, renewal, or 
 registration of transfer. 

    (h)    Expiration of temporary perfection.  After the 
 20-day period specified in subsection (e), (f), or (g) expires, 
 perfection depends upon compliance with this article. 

    HIST: 2000 c 399 art 1 s 32 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 32, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-312, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-312 Priorities among conflicting security 
*interests in the same collateral. 

*   (1) The rules of priority stated in other sections of this 
*part and in the following sections shall govern when 
*applicable:  section 336.4-210 with respect to the security 
*interests of collecting banks in items being collected, 
*accompanying documents and proceeds; section 336.9-103 on 
*security interests related to other jurisdictions; section 
*336.9-114 on consignments; section 336.9-115 on security 
*interests in investment property. 

*   (2) A perfected security interest in crops for new value 
*given to enable the debtor to produce the crops during the 
*production season and given not more than three months before 
*the crops become growing crops by planting or otherwise takes 
*priority over an earlier perfected security interest to the 
*extent that such earlier interest secures obligations due more 
*than six months before the crops become growing crops by 
*planting or otherwise, even though the person giving new value 
*had knowledge of the earlier security interest. 

*   (3) A perfected purchase money security interest in 
*inventory has priority over a conflicting security interest in 
*the same inventory and also has priority in identifiable cash 
*proceeds received on or before the delivery of the inventory to 
*a buyer if 

*   (a) the purchase money security interest is perfected at 
*the time the debtor receives possession of the inventory; and 

*   (b) the purchase money secured party gives notification in 
*writing to the holder of the conflicting security interest if 
*the holder had filed a financing statement covering the same 
*types of inventory (i) before the date of the filing made by the 
*purchase money secured party, or (ii) before the beginning of 
*the 21 day period where the purchase money security interest is 
*temporarily perfected without filing or possession (subsection 
*(5) of section 336.9-304); and 

*   (c) the holder of the conflicting security interest 
*receives the notification within five years before the debtor 
*receives possession of the inventory; and 

*   (d) the notification states that the person giving the 
*notice has or expects to acquire a purchase money security 
*interest in inventory of the debtor, describing such inventory 
*by item or type. 

*   (4) A purchase money security interest in collateral other 
*than inventory has priority over a conflicting security interest 
*in the same collateral or its proceeds if the purchase money 
*security interest is perfected at the time the debtor receives 
*possession of the collateral or within 20 days thereafter. 

*   (5) In all cases not governed by other rules stated in this 
*section (including cases of purchase money security interests 
*which do not qualify for the special priorities set forth in 
*subsections (3) and (4) of this section), priority between 
*conflicting security interests in the same collateral shall be 
*determined according to the following rules: 

*   (a) Conflicting security interests rank according to 
*priority in time of filing or perfection.  Priority dates from 
*the time a filing is first made covering the collateral or the 
*time the security interest is first perfected, whichever is 
*earlier, provided that there is no period thereafter when there 
*is neither filing nor perfection. 

*   (b) So long as conflicting security interests are 
*unperfected, the first to attach has priority. 

*   (6) For the purposes of subsection (5) a date of filing or 
*perfection as to collateral is also a date of filing or 
*perfection as to proceeds. 

*   (7) If future advances are made while a security interest 
*is perfected by filing, the taking of possession, or under 
*section 336.9-115 or 336.9-116 on investment property, the 
*security interest has the same priority for the purposes of 
*subsection (5) with respect to the future advances as it does 
*with respect to the first advance.  If a commitment is made 
*before or while the security interest is so perfected, the 
*security interest has the same priority with respect to advances 
*made pursuant thereto.  In other cases a perfected security 
*interest has priority from the date the advance is made."