2006 Minnesota Statutes

168A.17 SECURITY INTEREST.
    Subdivision 1. Validity. Unless excepted by section 168A.16, a security interest in a vehicle
of a type for which a certificate of title is required is not valid against creditors of the owner or
subsequent transferees or secured parties of the vehicle unless perfected as provided in sections
168A.01 to 168A.31.
    Subd. 1a. Leases that are not sales or security interests. Notwithstanding any other
provision of sections 168A.01 to 168A.31 or other law, in the case of a lease agreement with
respect to a vehicle other than a vehicle used primarily for personal, family, or household
purposes, the determination whether the lease agreement constitutes a lease and does not create a
conditional sale or security interest shall be governed by the stated intent of the parties set forth in
the lease agreement, unless it can be shown by a preponderance of the evidence that the terms
of the lease agreement cannot be reconciled with the stated intent. In no event shall the lease
agreement be deemed to create a conditional sale or security interest merely because it permits or
requires the amount of rental payments to be adjusted upward or downward by reference to the
amount realized by the lessor upon sale or disposition of the vehicle.
    Subd. 2. Perfection. A security interest is perfected by the delivery to the department of the
existing certificate of title, if any, an application for a certificate of title containing the name and
address of the secured party, the date of the secured party's security agreement and the required
fee. A security interest is perfected as of the time of the delivery.
    Subd. 3.[Repealed, 2001 c 195 art 1 s 25]
History: 1971 c 162 s 17; 1986 c 444; 1989 c 174 s 1; 1989 c 232 art 2 s 1; 1989 c 356
s 21; 2001 c 195 art 1 s 2