2000 Minnesota Statutes

     336.9-314 Perfection by control. 

    (a)    Perfection by control.  A security interest in 
 investment property, deposit accounts, letter of credit rights, 
 or electronic chattel paper may be perfected by control of the 
 collateral under section 336.9-104, 336.9-105, 336.9-106, or 
 336.9-107. 

    (b)    Specified collateral:  time of perfection by 
 control; continuation of perfection.  A security interest in 
 deposit accounts, electronic chattel paper, or letter of credit 
 rights is perfected by control under section 336.9-104, 
 336.9-105, or 336.9-107 when the secured party obtains control 
 and remains perfected by control only while the secured party 
 retains control. 

    (c)    Investment property:  time of perfection by 
 control; continuation of perfection.  A security interest in 
 investment property is perfected by control under section 
 336.9-106 from the time the secured party obtains control and 
 remains perfected by control until: 

    (1) the secured party does not have control; and 

    (2) one of the following occurs: 

    (A) if the collateral is a certificated security, the 
 debtor has or acquires possession of the security certificate; 

    (B) if the collateral is an uncertificated security, the 
 issuer has registered or registers the debtor as the registered 
 owner; or 

    (C) if the collateral is a security entitlement, the debtor 
 is or becomes the entitlement holder. 

    HIST: 2000 c 399 art 1 s 34 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 34, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-314, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-314 Accessions.  

*   (1) A security interest in goods which attaches before they 
*are installed in or affixed to other goods takes priority as to 
*the goods installed or affixed (called in this section 
*"accessions") over the claims of all persons to the whole except 
*as stated in subsection (3) and subject to section 336.9-315(1). 

*   (2) A security interest which attaches to goods after they 
*become part of a whole is valid against all persons subsequently 
*acquiring interests in the whole except as stated in subsection 
*(3) but is invalid against any person with an interest in the 
*whole at the time the security interest attaches to the goods 
*who has not in writing consented to the security interest or 
*disclaimed an interest in the goods as part of the whole.  

*   (3) The security interests described in subsections (1) and 
*(2) do not take priority over 

*   (a) a subsequent purchaser for value of any interest in the 
*whole; or 

*   (b) a creditor with a lien on the whole subsequently 
*obtained by judicial proceedings; or 

*   (c) a creditor with a prior perfected security interest in 
*the whole to the extent that the creditor makes subsequent 
*advances 

*   if the subsequent purchase is made, the lien by judicial 
*proceedings obtained, or the subsequent advance under the prior 
*perfected security interest is made or contracted for without 
*knowledge of the security interest and before it is perfected.  
*A purchaser of the whole at a foreclosure sale other than the 
*holder of a perfected security interest purchasing at the 
*holder's own foreclosure sale is a subsequent purchaser within 
*this section.  

*   (4) When under subsections (1) or (2) and (3) a secured 
*party has an interest in accessions which has priority over the 
*claims of all persons who have interests in the whole, the 
*secured party may on default subject to the provisions of part 5 
*remove collateral from the whole but the secured party must 
*reimburse any encumbrancer or owner of the whole who is not the 
*debtor and who has not otherwise agreed for the cost of repair 
*of any physical injury but not for any diminution in value of 
*the whole caused by the absence of the goods removed or by any 
*necessity for replacing them.  A person entitled to 
*reimbursement may refuse permission to remove until the secured 
*party gives adequate security for the performance of this 
*obligation."