1999 Minnesota Statutes

     336.9-505 Compulsory disposition of collateral; 
  acceptance of the collateral as discharge of obligation. 

    (1) If the debtor has paid 60 percent of the cash price in 
 the case of a purchase money security interest in consumer goods 
 or 60 percent of the loan in the case of another security 
 interest in consumer goods, and has not signed after default a 
 statement renouncing or modifying the debtor's rights under this 
 part a secured party who has taken possession of collateral must 
 dispose of it under section 336.9-504 and if the secured party 
 fails to do so within 90 days after taking possession the debtor 
 either may recover in conversion or under section 336.9-507(1) 
 on secured party's liability. 

    (2) In any other case involving consumer goods or any other 
 collateral a secured party in possession may, after default, 
 propose to retain the collateral in satisfaction of the 
 obligation.  Written notice of such proposal shall be sent to 
 the debtor if the debtor has not signed after default a 
 statement renouncing or modifying the debtor's rights under this 
 subsection.  In the case of consumer goods no other notice need 
 be given.  In other cases notice shall be sent to any other 
 secured party from whom the secured party has received (before 
 sending notice to the debtor or before the debtor's renunciation 
 of rights) written notice of a claim of an interest in the 
 collateral.  If the secured party receives objection in writing 
 from a person entitled to receive notification within 21 days 
 after the notice was sent, the secured party must dispose of the 
 collateral under section 336.9-504.  In the absence of such 
 written objection the secured party may retain the collateral in 
 satisfaction of the debtor's obligation. 

    HIST: 1965 c 811 s 336.9-505; 1976 c 135 s 36; 1986 c 444