Chapter 490 — Chapter 490

§490:9-522 Maintenance and destruction of records. (a) The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under section 490:9-515 with respect to …

§490:9-523 Information from filing office; sale or license of records. (a) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to sec…

§490:9-524 Delay by filing office. Delay by the filing office beyond a time limit prescribed by this part is excused if:

§490:9-525 Fees. (a) Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in section 490:9-502(c), shall be as specified by rules adopted under section 502-25 by t…

§490:9-526 Filing-office rules. (a) The department of land and natural resources shall adopt and publish rules to implement this article. The filing-office rules must be: (b) To keep the filing-office rules and practices of the filing office in harmony with the rules and practice…

§490:9-527 Duty to report. The department of land and natural resources shall report annually, twenty days before the convening of each regular session of the legislature, to the governor and the legislature on the operation of the filing office. The report must contain a stateme…

PART 6. DEFAULT Subpart 1. Default and Enforcement of Security Interest §490:9-601 Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes. (a) After default, a secured party has the rights provided in th…

§490:9-602 Waiver and variance of rights and duties. Except as otherwise provided in section 490:9-624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following l…

§490:9-603 Agreement on standards concerning rights and duties. (a) The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in section 490:9-602 if the standards are …

§490:9-604 Procedure if security agreement covers real property or fixtures. (a) If a security agreement covers both personal and real property, a secured party may proceed: (b) Subject to subsection (c), if a security agreement covers goods that are or become fixtures, a secured…

§490:9-605 Unknown debtor or secondary obligor. (a) Except as provided in subsection (b), a secured party shall not owe a duty based on its status as secured party: (b) A secured party shall be deemed to owe a duty based on its status as a secured party to a person if, at the tim…

§490:9-606 Time of default for agricultural lien. For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created. [L 2000, c 241, pt o…

§490:9-607 Collection and enforcement by secured party. (a) If so agreed, and in any event after default, a secured party: (b) If necessary to enable a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a mortgage nonjudicially, the secured party m…

§490:9-608 Application of proceeds of collection or enforcement; liability for deficiency and right to surplus. (a) If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: (b) If the underlying transaction is a sale …

§490:9-609 Secured party's right to take possession after default. (a) After default, a secured party: (b) A secured party may proceed under subsection (a): (c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and mak…

§490:9-610 Disposition of collateral after default. (a) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. (b) Every aspect of a…

§490:9-611 Notification before disposition of collateral. (a) In this section, "notification date" means the earlier of the date on which: (b) Except as otherwise provided in subsection (d), a secured party that disposes of collateral under section 490:9-610 shall send to the per…

§490:9-612 Timeliness of notification before disposition of collateral. (a) Except as otherwise provided in subsection (b), whether a notification is sent within a reasonable time is a question of fact. (b) In a transaction other than a consumer transaction, a notification of dis…

§490:9-613 Contents and form of notification before disposition of collateral: general. (a) Except in a consumer-goods transaction, the following rules shall apply: NOTIFICATION OF DISPOSITION OF COLLATERAL To: (Name of debtor, obligor, or other person to which the notification i…

§490:9-614 Contents and form of notification before disposition of collateral: consumer-goods transaction. (a) In a consumer-goods transaction, the following rules shall apply: (Name and address of secured party) (Date) NOTICE OF OUR PLAN TO SELL PROPERTY (Name and address of any…

§490:9-615 Application of proceeds of disposition; liability for deficiency and right to surplus. (a) A secured party shall apply or pay over for application the cash proceeds of disposition under section 490:9-610 in the following order to: (b) If requested by a secured party, a…

§490:9-616 Explanation of calculation of surplus or deficiency. (a) In this section: (b) In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under section 490:9-615, the secured party shall: (c) To comply w…

§490:9-617 Rights of transferee of collateral. (a) A secured party's disposition of collateral after default: (b) A transferee that acts in good faith takes free of the rights and interests described in subsection (a), even if the secured party fails to comply with this article o…

§490:9-618 Rights and duties of certain secondary obligors. (a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor: (b) An assignment, transfer, or subrogation described in subsection (a):

§490:9-619 Transfer of record or legal title. (a) In this section, "transfer statement" means a record signed by a secured party stating: (b) A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the stat…

§490:9-620 Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral. (a) Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:…

§490:9-621 Notification of proposal to accept collateral. (a) A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to: (b) A secured party that desires to accept collateral in partial satisfaction o…

§490:9-622 Effect of acceptance of collateral. (a) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures: (b) A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with …

§490:9-623 Right to redeem collateral. (a) A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. (b) To redeem collateral, a person shall tender: (c) A redemption may occur at any time before a secured party:

§490:9-624 Waiver. (a) A debtor or secondary obligor may waive the right to notification of disposition of collateral under section 490:9-611 only by an agreement to that effect entered into and signed after default. (b) A debtor may waive the right to require disposition of coll…

Subpart 2. Noncompliance with Article §490:9-625 Remedies for secured party's failure to comply with article. (a) If it is established that a secured party is not proceeding in accordance with this article, a court may order or restrain collection, enforcement, or disposition of …

§490:9-626 Action in which deficiency or surplus is in issue. (a) In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply: (b) The limitation of the rules in subsection (a) t…

§490:9-627 Determination of whether conduct was commercially reasonable. (a) The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is no…

§490:9-628 Nonliability and limitation on liability of secured party; liability of secondary obligor. (a) Subject to subsection (f), unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person: …

PART 7. TRANSITION §490:9-701 Effective date. This article takes effect on July 1, 2001. [L 2000, c 241, pt of §1]

§490:9-702 Savings clause. (a) Except as otherwise provided in this part, this article applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before this article takes effect. (b) Except as otherwise provided in subsection (…

§490:9-703 Security interest perfected before effective date. (a) A security interest that is enforceable immediately before this article takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest un…

§490:9-704 Security interest unperfected before effective date. A security interest that is enforceable immediately before this article takes effect but which would be subordinate to the rights of a person that becomes a lien creditor at that time:

§490:9-705 Effectiveness of action taken before effective date. (a) If action, other than the filing of a financing statement, is taken before this article takes effect and the action would have resulted in priority of a security interest over the rights of a person that becomes …

§490:9-706 When initial financing statement suffices to continue effectiveness of financing statement. (a) The filing of an initial financing statement in the office specified in section 490:9-501 continues the effectiveness of a financing statement filed before this article take…

§490:9-707 Amendment of pre-effective-date financing statement. (a) In this section, "pre-effective-date financing statement" means a financing statement filed before this article takes effect. (b) After this article takes effect, a person may add or delete collateral covered by,…

§490:9-708 Persons entitled to file initial financing statement or continuation statement. A person may file an initial financing statement or a continuation statement under this part if:

§490:9-709 Priority. (a) This article determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before this article takes effect, the former article 9 determines priority. (b) For purposes of section 490:9-322(…

PART 8. TRANSITION PROVISIONS FOR 2010 AMENDMENTS §490:9-801 Effective date. This part shall take effect on July 1, 2013. [L 2012, c 33, pt of §1]

§490:9-802 Savings clause. (a) Except as otherwise provided in this part, this part applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2013. (b) This part does not affect an action, case, or proceeding com…

§490:9-804 Security interest unperfected before July 1, 2013. A security interest that is an unperfected security interest prior to July 1, 2013, shall be a perfected security interest:

§490:9-806 When initial financing statement suffices to continue effectiveness of financing statement. (a) The filing of an initial financing statement in the office specified in section 490:9-501 continues the effectiveness of a financing statement filed prior to July 1, 2013, i…

§490:9-807 Amendment of pre-effective-date financing statement. (a) For purposes of this section, "pre-effective-date financing statement" means a financing statement filed before July 1, 2013. (b) On or after July 1, 2013, a person may add or delete collateral covered by, contin…

§490:9-808 Person entitled to file initial financing statement or continuation statement. A person may file an initial financing statement or a continuation statement under this part if:

§490:9-809 Priority. This article determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2013, this article as it existed before July 1, 2013, shall determine priority. [L 2012, c 33, pt of §1…