2000 Minnesota Statutes

     336.9-607 Collection and enforcement by secured party. 

    (a)    Collection and enforcement generally.  If so 
 agreed, and in any event after default, a secured party: 

    (1) may notify an account debtor or other person obligated 
 on collateral to make payment or otherwise render performance to 
 or for the benefit of the secured party; 

    (2) may take any proceeds to which the secured party is 
 entitled under section 336.9-315; 

    (3) may enforce the obligations of an account debtor or 
 other person obligated on collateral and exercise the rights of 
 the debtor with respect to the obligation of the account debtor 
 or other person obligated on collateral to make payment or 
 otherwise render performance to the debtor, and with respect to 
 any property that secures the obligations of the account debtor 
 or other person obligated on the collateral; 

    (4) if it holds a security interest in a deposit account 
 perfected by control under section 336.9-104(a)(1), may apply 
 the balance of the deposit account to the obligation secured by 
 the deposit account; 

    (5) if it holds a security interest in a deposit account 
 perfected by control under section 336.9-104(a)(2) or (3), may 
 instruct the bank to pay the balance of the deposit account to 
 or for the benefit of the secured party; and 

    (6) if the obligation of the account debtor or other person 
 obligated on collateral is secured by an interest in real 
 property and the account debtor or other person obligated on 
 collateral satisfies its obligation, must furnish the account 
 debtor or the other person obligated on collateral with a 
 release or satisfaction of the interest in real property 
 sufficient for recording in the real property records applicable 
 to that real property.  

    (b)    Nonjudicial enforcement of mortgage.  (1) To 
 exercise under subsection (a)(3) the right of a debtor to 
 enforce a mortgage nonjudicially, the secured party must record 
 in the office in which a record of the mortgage is recorded: 

    (A) an assignment of the mortgage to the secured party; or 

    (B) the secured party's sworn affidavit of assignment in 
 recordable form stating: 

    (i) a default has occurred under a security agreement that 
 creates or provides for a security interest in the obligation 
 secured by the mortgage; 

    (ii) a true and correct copy of the security agreement is 
 attached to the affidavit; 

    (iii) the secured party is entitled to enforce the mortgage 
 nonjudicially; 

    (iv) the legal description of the real property encumbered 
 by the mortgage; 

    (v) the parties to the mortgage, the date of the mortgage, 
 the date of recording of the mortgage, the place of recording of 
 the mortgage, and the identifying number or other indexing 
 information that identifies the mortgage in the office of the 
 county recorder or registrar of titles where the mortgage is 
 recorded; 

    (vi) the secured party has succeeded to the interest of the 
 debtor under the mortgage; and 

    (vii) the affidavit of assignment shall be an assignment to 
 the secured party of the interest of the debtor under the 
 mortgage. 

    (2) The affidavit of assignment is entitled to be recorded 
 with the county recorder or the registrar of titles and upon 
 recording, the affidavit of assignment shall be deemed an 
 assignment to the secured party of the interest of the debtor 
 under the mortgage. 

    (c)    Commercially reasonable collection and enforcement. 
  A secured party shall proceed in a commercially reasonable 
 manner if the secured party: 

    (1) undertakes to collect from or enforce an obligation of 
 an account debtor or other person obligated on collateral; and 

    (2) is entitled to charge back uncollected collateral or 
 otherwise to full or limited recourse against the debtor or a 
 secondary obligor. 

    (d)    Expenses of collection and enforcement.  A 
 secured party may deduct from the collections made pursuant to 
 subsection (c) reasonable expenses of collection and 
 enforcement, including reasonable attorneys fees and legal 
 expenses incurred by the secured party. 

    (e)    Duties to secured party not affected.  This 
 section does not determine whether an account debtor, bank, or 
 other person obligated on collateral owes a duty to a secured 
 party. 

    (f)    Secured party to obtain assignment of debtor's 
 interest under the mortgage.  If the obligation of an account 
 debtor or other person obligated on collateral is secured by an 
 interest in real property, the secured party promptly after 
 commencing exercise of any of its rights under this section 
 shall: 

    (1) file an assignment of the mortgage to the secured 
 party; 

    (2) proceed under section 336.9-619 and record a transfer 
 statement in the office of the county recorder or registrar of 
 titles where the mortgage is recorded; or 

    (3) file an affidavit of assignment as provided under 
 subsection (b). 

    HIST: 2000 c 399 art 1 s 108 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 108, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130.