2000 Minnesota Statutes

     336.9-504 Indication of collateral. 

    A financing statement sufficiently indicates the collateral 
 that it covers if the financing statement provides: 

    (1) a description of the collateral pursuant to section 
 336.9-108; or 

    (2) an indication that the financing statement covers all 
 assets or all personal property. 

    HIST: 2000 c 399 art 1 s 75 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 75, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130. 

*   NOTE:  Minnesota Statutes 1998, section 336.9-504, which 
*reads as follows, is repealed July 1, 2001.  Laws 2000, chapter 
*399, article 1, section 130. 

*   "336.9-504 Secured party's right to dispose of 
*collateral after default; effect of disposition. 

*   (1) A secured party after default may sell, lease, or 
*otherwise dispose of any or all of the collateral in its then 
*condition or following any commercially reasonable preparation 
*or processing.  Any sale of goods is subject to the article on 
*sales (article 2).  The proceeds of disposition shall be applied 
*in the order following to 

*   (a) the reasonable expenses of retaking, holding, preparing 
*for sale or lease, selling, leasing and the like, and, to the 
*extent provided for in the agreement and not prohibited by law, 
*the reasonable attorneys' fees and legal expenses incurred by 
*the secured party; 

*   (b) the satisfaction of indebtedness secured by the 
*security interest under which the disposition is made; 

*   (c) the satisfaction of indebtedness secured by any 
*subordinate security interest in the collateral if written 
*notification of demand therefor is received before distribution 
*of the proceeds is completed.  If requested by the secured 
*party, the holder of a subordinate security interest must 
*seasonably furnish reasonable proof of the holder's interest, 
*and unless the holder does so, the secured party need not comply 
*with the demand. 

*   (2) If the security interest secures an indebtedness, the 
*secured party must account to the debtor for any surplus, and, 
*unless otherwise agreed, the debtor is liable for any 
*deficiency.  But if the underlying transaction was a sale of 
*accounts, contract rights, or chattel paper, the debtor is 
*entitled to any surplus or is liable for any deficiency only if 
*the security agreement so provides. 

*   (3) Disposition of the collateral may be by public or 
*private proceedings and may be made by way of one or more 
*contracts. Sale or other disposition may be as a unit or in 
*parcels and at any time and place and on any terms but every 
*aspect of the disposition including the method, manner, time, 
*place and terms must be commercially reasonable.  Unless 
*collateral is perishable or threatens to decline speedily in 
*value or is of a type customarily sold on a recognized market, 
*reasonable notification of the time and place of any public sale 
*or reasonable notification of the time after which any private 
*sale or other intended disposition is to be made shall be sent 
*by the secured party to the debtor, if the debtor has not signed 
*after default a statement renouncing or modifying the right to 
*notification of sale.  In the case of consumer goods no other 
*notification need be sent.  In other cases notification shall be 
*sent to any other secured party from whom the secured party has 
*received (before sending notification to the debtor or before 
*the debtor's renunciation of rights) written notice of a claim 
*of an interest in the collateral.  The secured party may buy at 
*any public sale and if the collateral is of a type customarily 
*sold in a recognized market or is of a type which is the subject 
*of widely distributed standard price quotations the secured 
*party may buy at private sale. 

*   (4) When collateral is disposed of by a secured party after 
*default, the disposition transfers to a purchaser for value all 
*of the debtor's rights therein, discharges the security interest 
*under which it is made and any security interest or lien 
*subordinate thereto.  The purchaser takes free of all such 
*rights and interests even though the secured party fails to 
*comply with the requirements of this part or of any judicial 
*proceedings 

*   (a) in the case of a public sale, if the purchaser has no 
*knowledge of any defects in the sale and if the purchaser does 
*not buy in collusion with the secured party, other bidders, or 
*the person conducting the sale; or 

*   (b) in any other case, if the purchaser acts in good faith. 

*   (5) A person who is liable to a secured party under a 
*guaranty, endorsement, repurchase agreement, or the like and who 
*receives a transfer of collateral from the secured party or is 
*subrogated to the secured party's rights has thereafter the 
*rights and duties of the secured party.  Such a transfer of 
*collateral is not a sale or disposition of the collateral under 
*this article."