2000 Minnesota Statutes

     336.9-301 Law governing perfection and priority of 
  security interests. 

    Except as otherwise provided in sections 336.9-303 through 
 336.9-306, the following rules determine the law governing 
 perfection, the effect of perfection or nonperfection, and the 
 priority of a security interest in collateral: 

    (1) Except as otherwise provided in this section, while a 
 debtor is located in a jurisdiction, the local law of that 
 jurisdiction governs perfection, the effect of perfection or 
 nonperfection, and the priority of a security interest in 
 collateral. 

    (2) While collateral is located in a jurisdiction, the 
 local law of that jurisdiction governs perfection, the effect of 
 perfection or nonperfection, and the priority of a possessory 
 security interest in that collateral. 

    (3) Except as otherwise provided in paragraph (4), while 
 negotiable documents, goods, instruments, money, or tangible 
 chattel paper is located in a jurisdiction, the local law of 
 that jurisdiction governs: 

    (A) perfection of a security interest in the goods by 
 filing a fixture filing; 

    (B) perfection of a security interest in timber to be cut; 
 and 

    (C) the effect of perfection or nonperfection and the 
 priority of a nonpossessory security interest in the collateral. 

    (4) The local law of the jurisdiction in which the wellhead 
 or minehead is located governs perfection, the effect of 
 perfection or nonperfection, and the priority of a security 
 interest in as-extracted collateral. 

    HIST: 2000 c 399 art 1 s 21 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 21, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-301, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-301 Persons who take priority over unperfected 
*security interests; right of "lien creditor." 

*   (1) Except as otherwise provided in subsection (2), an 
*unperfected security interest is subordinate to the rights of 

*   (a) persons entitled to priority under section 336.9-312; 

*   (b) a person who becomes a lien creditor before the 
*security interest is perfected; 

*   (c) in the case of goods, instruments, documents, and 
*chattel paper, a person who is not a secured party and who is a 
*transferee in bulk or other buyer not in ordinary course of 
*business, or is a buyer of farm products in the ordinary course 
*of business, to the extent that the person gives value and 
*receives delivery of the collateral without knowledge of the 
*security interest and before it is perfected; 

*   (d) in the case of accounts, general intangibles, and 
*investment property, a person who is not a secured party and who 
*is a transferee to the extent that the person gives value 
*without knowledge of the security interest and before it is 
*perfected. 

*   (2) If the secured party files with respect to a purchase 
*money security interest before or within 20 days after the 
*debtor receives possession of the collateral, the secured party 
*takes priority over the rights of a transferee in bulk or of a 
*lien creditor which arise between the time the security interest 
*attaches and the time of filing. 

*   (3) A "lien creditor" means a creditor who has acquired a 
*lien on the property involved by attachment, levy or the like 
*and includes an assignee for benefit of creditors from the time 
*of assignment, and a trustee in bankruptcy from the date of the 
*filing of the petition or a receiver in equity from the time of 
*appointment. 

*   (4) A person who becomes a lien creditor while a security 
*interest is perfected takes subject to the security interest 
*only to the extent that it secures advances made before the 
*person becomes a lien creditor or within 45 days thereafter or 
*made without knowledge of the lien or pursuant to a commitment 
*entered into without knowledge of the lien."