Minnesota Session Laws - 2010, Regular Session

CHAPTER 211--H.F.No. 2828

An act

relating to real property; clarifying requirements for an instrument intended to secure debt;

amending Minnesota Statutes 2008, section 287.03.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 287.03, is amended to read:

287.03 INSTRUMENTS VALID SECURITY FOR DEBT.

No instrument, other than a decree of marriage dissolution or an instrument made pursuant to it, relating to real estate deleted text begin shall be valid deleted text end new text begin may be enforced new text end as security for any debt, unless the fact that it is new text begin so new text end intended deleted text begin and the initial known amount of the debt are deleted text end new text begin is new text end expressed in it. new text begin Except as provided in section 287.05, an instrument may not be enforced as security for a debt amount in excess of: (1) the initial known amount of the debt expressed in the instrument if the instrument secures that entire debt amount; or (2) the portion of the initial known amount of the debt expressed in the instrument if the instrument secures only a portion of that debt amount. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, and applies to any instrument executed or recorded before, on, or after that date. new text end

Sec. 2.

new text begin APPLICATION. new text end

new text begin Section 1 shall not affect any action, case, or proceeding commenced before the effective date of section 1 in any court in this state, provided a notice of lis pendens of the action is recorded with the county recorder or registrar of titles before the effective date of section 1. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Presented to the governor March 29, 2010

Signed by the governor April 1, 2010, 10:15 a.m.