1999 Minnesota Statutes

     336.9-304 Perfection of security interest in 
  instruments, documents, proceeds of a written letter of credit, 
  and goods covered by documents; perfection by permissive filing; 
  temporary perfection without filing or transfer of possession. 

    (1) A security interest in chattel paper or negotiable 
 documents may be perfected by filing.  A security interest in 
 the rights to proceeds of a written letter of credit can be 
 perfected only by the secured party's taking possession of the 
 letter of credit.  A security interest in money or instruments 
 (other than instruments which constitute part of chattel paper) 
 can be perfected only by the secured party's taking possession, 
 except as provided in subsections (4) and (5) of this section 
 and subsections (2) and (3) of section 336.9-306 on proceeds. 

    (2) During the period that goods are in the possession of 
 the issuer of a negotiable document therefor, a security 
 interest in the goods is perfected by perfecting a security 
 interest in the document, and any security interest in the goods 
 otherwise perfected during such period is subject thereto. 

    (3) A security interest in goods in the possession of a 
 bailee other than one who has issued a negotiable document 
 therefor is perfected by issuance of a document in the name of 
 the secured party or by the bailee's receipt of notification of 
 the secured party's interest or by filing as to the goods. 

    (4) A security interest in instruments, certificated 
 securities, or negotiable documents is perfected without filing 
 or the taking of possession for a period of 21 days from the 
 time it attaches to the extent that it arises for new value 
 given under a written security agreement. 

    (5) A security interest remains perfected for a period of 
 21 days without filing where a secured party having a perfected 
 security interest in an instrument, a certificated security, a 
 negotiable document, or goods in possession of a bailee other 
 than one who has issued a negotiable document therefor: 

    (a) makes available to the debtor the goods or documents 
 representing the goods for the purpose of ultimate sale or 
 exchange or for the purpose of loading, unloading, storing, 
 shipping, transshipping, manufacturing, processing or otherwise 
 dealing with them in a manner preliminary to their sale or 
 exchange but priority between conflicting security interests in 
 the goods is subject to subsection (3) of section 336.9-312; or 

    (b) delivers the instrument or certificated security to the 
 debtor for the purpose of ultimate sale or exchange or of 
 presentation, collection, renewal, or registration of transfer. 

    (6) After the 21 day period in subsections (4) and (5) 
 perfection depends upon compliance with applicable provisions of 
 this article. 

    HIST: 1965 c 811 s 336.9-304; 1976 c 135 s 16; 1978 c 695 s 
 51; 1995 c 194 art 2 s 9; 1997 c 11 art 2 s 7