2006 Minnesota Statutes

336.9-604 PROCEDURE IF SECURITY AGREEMENT COVERS REAL PROPERTY
OR FIXTURES.
(a) Enforcement: personal and real property. If a security agreement covers both personal
and real property, a secured party may proceed:
(1) under this part as to the personal property without prejudicing any rights with respect to
the real property; or
(2) as to both the personal property and the real property in accordance with the rights with
respect to the real property, in which case the other provisions of this part do not apply.
(b) Enforcement: fixtures. Subject to subsection (c), if a security agreement covers goods
that are or become fixtures, a secured party may proceed:
(1) under this part; or
(2) in accordance with the rights with respect to real property, in which case the other
provisions of this part do not apply.
(c) Removal of fixtures. Subject to the other provisions of this part, if a secured party
holding a security interest in fixtures has priority over all owners and encumbrancers of the real
property, the secured party, after default, may remove the collateral from the real property.
(d) Injury caused by removal. A secured party that removes collateral shall promptly
reimburse any encumbrancer or owner of the real property, other than the debtor, for the cost of
repair of any physical injury caused by the removal. The secured party need not reimburse the
encumbrancer or owner for any diminution in value of the real property caused by the absence of
the goods removed or by any necessity of replacing them. A person entitled to reimbursement
may refuse permission to remove until the secured party gives adequate assurance for the
performance of the obligation to reimburse.
History: 2000 c 399 art 1 s 105