1.1                          A bill for an act 
  1.2             relating to real estate; prohibiting restrictions on 
  1.3             real estate use that restrict display of flags; making 
  1.4             attorney fees for foreclosure of association 
  1.5             assessment liens consistent with those permitted for 
  1.6             mortgage foreclosures; amending Minnesota Statutes 
  1.7             2002, sections 515.07; 515A.2-103; 515A.3-102; 
  1.8             515A.3-115; 515B.2-103; 515B.3-102; Minnesota Statutes 
  1.9             2003 Supplement, section 515B.3-116; proposing coding 
  1.10            for new law in Minnesota Statutes, chapter 500. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [500.215] [LIMITS ON CERTAIN RESIDENTIAL 
  1.13  PROPERTY RIGHTS PROHIBITED.] 
  1.14     Subdivision 1.  [GENERAL RULE.] (a) The right of an owner 
  1.15  or tenant of residential property to display a United States 
  1.16  flag must not be limited by any deed restriction, subdivision 
  1.17  regulation, restrictive covenant, local ordinance, contract, 
  1.18  rental agreement or regulation, or homeowners association 
  1.19  document.  
  1.20     (b) "Homeowners association document" includes 
  1.21  declarations, articles of incorporation, bylaws, and rules and 
  1.22  regulations of:  (1) entities operating under chapters 515, 
  1.23  515A, and 515B; and (2) townhouse associations and other 
  1.24  entities that are common interest communities, as defined in 
  1.25  section 515B.1-103(10), that are eligible to elect to operate 
  1.26  under chapter 515B and have not chosen to do so. 
  1.27     Subd. 2.  [EXCEPTIONS.] (a) This section does not prohibit 
  1.28  limitations narrowly tailored to protect health or safety. 
  2.1      (b) This section does not prohibit reasonable limitations 
  2.2   that restrict the size of flags to a size customarily used on 
  2.3   residential property.  A limitation that prohibits installation 
  2.4   and use of a bracket for display of a flag is not reasonable, 
  2.5   except on multiunit rental properties.  
  2.6      (c) This section does not prohibit limitations that limit 
  2.7   or exclude use of a common area or common element, other than 
  2.8   one allocated exclusively to one residential unit, but this 
  2.9   paragraph does not permit limitations on the use of an exterior 
  2.10  surface, window, or door of a residential unit. 
  2.11     Subd. 3.  [APPLICABILITY.] (a) This section applies to all 
  2.12  limitations described in subdivision 1 and not excepted in 
  2.13  subdivision 2, regardless of whether adopted before or after the 
  2.14  effective date of this section. 
  2.15     (b) Provisions that violate this section are void and 
  2.16  unenforceable to the extent of the violation. 
  2.17     Subd. 4.  [RECOVERY OF ATTORNEY FEES.] If an owner or 
  2.18  tenant of residential property is denied the right provided by 
  2.19  this section, the owner or tenant is entitled to recover, from 
  2.20  the party who denied the right, reasonable attorney fees and 
  2.21  expenses incurred in connection with enforcing the right, 
  2.22  whether through litigation, negotiation, or otherwise.  
  2.23     Sec. 2.  Minnesota Statutes 2002, section 515.07, is 
  2.24  amended to read: 
  2.25     515.07 [COMPLIANCE WITH COVENANTS, BYLAWS, AND RULES.] 
  2.26     Each apartment owner shall comply strictly with the bylaws 
  2.27  and with the administrative rules adopted pursuant thereto, as 
  2.28  either of the same may be lawfully amended from time to time, 
  2.29  and with the covenants, conditions, and restrictions set forth 
  2.30  in the declaration or in the owner's deed to the apartment.  
  2.31  Failure to comply with any of the same shall be ground for an 
  2.32  action to recover sums due, for damages or injunctive relief or 
  2.33  both maintainable by the manager or board of directors on behalf 
  2.34  of the association of apartment owners or, in a proper case, by 
  2.35  an aggrieved apartment owner.  This chapter is subject to 
  2.36  section 500.215. 
  3.1      Sec. 3.  Minnesota Statutes 2002, section 515A.2-103, is 
  3.2   amended to read: 
  3.3      515A.2-103 [CONSTRUCTION AND VALIDITY OF DECLARATION AND 
  3.4   BYLAWS.] 
  3.5      (a) All provisions of the declaration and bylaws are 
  3.6   severable. 
  3.7      (b) The rule against perpetuities may not be applied to 
  3.8   defeat any provision of the declaration or sections 515A.1-101 
  3.9   to 515A.4-117, or any instrument executed pursuant to the 
  3.10  declaration or sections 515A.1-101 to 515A.4-117. 
  3.11     (c) In the event of a conflict between the provisions of 
  3.12  the declaration and the bylaws, the declaration prevails except 
  3.13  to the extent that the declaration is inconsistent with sections 
  3.14  515A.1-101 to 515A.4-117. 
  3.15     (d) This chapter is subject to section 500.215. 
  3.16     Sec. 4.  Minnesota Statutes 2002, section 515A.3-102, is 
  3.17  amended to read: 
  3.18     515A.3-102 [POWERS OF UNIT OWNERS' ASSOCIATION.] 
  3.19     (a) Unless limited by the provisions of the declaration, 
  3.20  the association may: 
  3.21     (1) adopt and amend rules and regulations; 
  3.22     (2) adopt and amend budgets for revenues, expenditures, and 
  3.23  reserves and collect assessments for common expenses from unit 
  3.24  owners; 
  3.25     (3) hire and terminate managing agents and other employees, 
  3.26  agents, and independent contractors; 
  3.27     (4) institute, defend, or intervene in litigation or 
  3.28  administrative proceedings in its own name on behalf of itself 
  3.29  or two or more unit owners on matters affecting the condominium; 
  3.30     (5) regulate the use, maintenance, repair, replacement and 
  3.31  modification of common elements; 
  3.32     (6) cause improvements to be made as a part of the common 
  3.33  elements; 
  3.34     (7) grant leases, licenses, and concessions not to exceed 
  3.35  one year and utility easements through or over the common 
  3.36  elements; provided, however, that after conveyance to owners 
  4.1   other than the declarant or affiliate of a declarant of units to 
  4.2   which more than 50 percent of the voting power is allocated, the 
  4.3   association may by resolution of a meeting of the members duly 
  4.4   called grant leases, licenses, and concessions in excess of one 
  4.5   year and easements through or over the common elements; 
  4.6      (8) impose and receive any payments, fees, or charges for 
  4.7   the use, rental, or operation of the common elements other than 
  4.8   limited common elements described in section 515A.2-102(2) and 
  4.9   (4); 
  4.10     (9) impose reasonable charges including reasonable costs 
  4.11  and attorneys' fees, for the evaluation, preparation and 
  4.12  recordation of amendments to the declaration, resale 
  4.13  certificates required by section 515A.4-107, or statements of 
  4.14  unpaid assessments; 
  4.15     (10) provide for the indemnification of its officers and 
  4.16  board and maintain directors' and officers' liability insurance; 
  4.17     (11) impose charges for late payment of assessments and, 
  4.18  after notice and an opportunity to be heard, levy reasonable 
  4.19  fines for violations of the declaration, bylaws, and rules and 
  4.20  regulations of the association; 
  4.21     (12) exercise any other powers conferred by state law, the 
  4.22  declaration, or bylaws. 
  4.23     (b) Notwithstanding subsection (a), the declaration may not 
  4.24  impose limitations on the power of the association to deal with 
  4.25  the declarant that are more restrictive than the limitations 
  4.26  imposed on the power of the association to deal with other 
  4.27  persons. 
  4.28     (c) Actions taken under this section must not violate 
  4.29  section 500.215. 
  4.30     Sec. 5.  Minnesota Statutes 2002, section 515A.3-115, is 
  4.31  amended to read: 
  4.32     515A.3-115 [LIEN FOR ASSESSMENTS.] 
  4.33     (a) The association has a lien on a unit for any assessment 
  4.34  levied against that unit from the time the assessment becomes 
  4.35  payable.  The association's lien may be foreclosed as provided 
  4.36  by the laws of this state as if it were a lien under a mortgage 
  5.1   containing a power of sale but the association shall give 
  5.2   reasonable notice of its action to all lienholders of the unit 
  5.3   whose interest would be affected.  The rights of the parties 
  5.4   shall be the same as those provided by law except that the 
  5.5   period of redemption for unit owners shall be six months from 
  5.6   the date of sale.  Unless the declaration otherwise provides, 
  5.7   fees, charges, late charges, and interest charges pursuant to 
  5.8   section 515A.3-102(a), (9), and (11) are enforceable as 
  5.9   assessments under this section.  
  5.10     (b) A lien under this section is prior to all other liens 
  5.11  and encumbrances on a unit except (1) liens and encumbrances 
  5.12  recorded before the recordation of the declaration, (2) any 
  5.13  recorded mortgage on the unit securing a first mortgage holder, 
  5.14  and (3) liens for real estate taxes and other governmental 
  5.15  assessments or charges against the unit.  This subsection does 
  5.16  not affect the priority of mechanics' or material suppliers' 
  5.17  liens. 
  5.18     (c) Recording of the declaration constitutes record notice 
  5.19  and perfection of the lien, and no further recordation of any 
  5.20  claim of lien for assessment under this section is required. 
  5.21     (d) Proceedings to enforce an assessment must be instituted 
  5.22  within three years after the last installment of the assessment 
  5.23  becomes payable.  
  5.24     (e) Unit owners at the time an assessment is payable are 
  5.25  personally liable to the association for payment of the 
  5.26  assessments.  
  5.27     (f) A foreclosure sale, judgment, or decree in any action, 
  5.28  proceeding, or suit brought under this section shall include 
  5.29  costs and reasonable attorney's fees for the prevailing party, 
  5.30  in compliance with section 582.01. 
  5.31     (g) The association shall furnish to a unit owner or the 
  5.32  owner's authorized agent upon written request of the unit owner 
  5.33  or the authorized agent a recordable statement setting forth the 
  5.34  amount of unpaid assessments currently levied against the 
  5.35  owner's unit.  The statement shall be furnished within ten 
  5.36  business days after receipt of the request and is binding on the 
  6.1   association and every unit owner. 
  6.2      Sec. 6.  Minnesota Statutes 2002, section 515B.2-103, is 
  6.3   amended to read: 
  6.4      515B.2-103 [CONSTRUCTION AND VALIDITY OF DECLARATION AND 
  6.5   BYLAWS.] 
  6.6      (a) All provisions of the declaration and bylaws are 
  6.7   severable. 
  6.8      (b) The rule against perpetuities may not be applied to 
  6.9   defeat any provision of the declaration or this chapter, or any 
  6.10  instrument executed pursuant to the declaration or this chapter. 
  6.11     (c) In the event of a conflict between the provisions of 
  6.12  the declaration and the bylaws, the declaration prevails except 
  6.13  to the extent that the declaration is inconsistent with this 
  6.14  chapter. 
  6.15     (d) The declarations and bylaws must comply with section 
  6.16  500.215. 
  6.17     Sec. 7.  Minnesota Statutes 2002, section 515B.3-102, is 
  6.18  amended to read: 
  6.19     515B.3-102 [POWERS OF UNIT OWNERS' ASSOCIATION.] 
  6.20     (a) Except as provided in subsection subsections (b) and 
  6.21  (c), and subject to the provisions of the declaration or bylaws, 
  6.22  the association shall have the power to: 
  6.23     (1) adopt, amend and revoke rules and regulations not 
  6.24  inconsistent with the articles of incorporation, bylaws and 
  6.25  declaration, as follows:  (i) regulating the use of the common 
  6.26  elements; (ii) regulating the use of the units, and conduct of 
  6.27  unit occupants, which may jeopardize the health, safety or 
  6.28  welfare of other occupants, which involves noise or other 
  6.29  disturbing activity, or which may damage the common elements or 
  6.30  other units; (iii) regulating or prohibiting animals; (iv) 
  6.31  regulating changes in the appearance of the common elements and 
  6.32  conduct which may damage the common interest community; (v) 
  6.33  regulating the exterior appearance of the common interest 
  6.34  community, including, for example, balconies and patios, window 
  6.35  treatments, and signs and other displays, regardless of whether 
  6.36  inside a unit; (vi) implementing the articles of incorporation, 
  7.1   declaration and bylaws, and exercising the powers granted by 
  7.2   this section; and (vii) otherwise facilitating the operation of 
  7.3   the common interest community; 
  7.4      (2) adopt and amend budgets for revenues, expenditures and 
  7.5   reserves, and levy and collect assessments for common expenses 
  7.6   from unit owners; 
  7.7      (3) hire and discharge managing agents and other employees, 
  7.8   agents, and independent contractors; 
  7.9      (4) institute, defend, or intervene in litigation or 
  7.10  administrative proceedings (i) in its own name on behalf of 
  7.11  itself or two or more unit owners on matters affecting the 
  7.12  common elements or other matters affecting the common interest 
  7.13  community or, (ii) with the consent of the owners of the 
  7.14  affected units on matters affecting only those units; 
  7.15     (5) make contracts and incur liabilities; 
  7.16     (6) regulate the use, maintenance, repair, replacement and 
  7.17  modification of the common elements and the units; 
  7.18     (7) cause improvements to be made as a part of the common 
  7.19  elements, and, in the case of a cooperative, the units; 
  7.20     (8) acquire, hold, encumber, and convey in its own name any 
  7.21  right, title, or interest to real estate or personal property, 
  7.22  but (i) common elements in a condominium or planned community 
  7.23  may be conveyed or subjected to a security interest only 
  7.24  pursuant to section 515B.3-112, or (ii) part of a cooperative 
  7.25  may be conveyed, or all or part of a cooperative may be 
  7.26  subjected to a security interest, only pursuant to section 
  7.27  515B.3-112; 
  7.28     (9) grant public utility easements through, over or under 
  7.29  the common elements, and, subject to approval by resolution of 
  7.30  unit owners other than declarant or its affiliates at a meeting 
  7.31  duly called, grant other public or private easements, leases and 
  7.32  licenses through, over or under the common elements; 
  7.33     (10) impose and receive any payments, fees, or charges for 
  7.34  the use, rental, or operation of the common elements, other than 
  7.35  limited common elements, and for services provided to unit 
  7.36  owners; 
  8.1      (11) impose charges for late payment of assessments and, 
  8.2   after notice and an opportunity to be heard, levy reasonable 
  8.3   fines for violations of the declaration, bylaws, and rules and 
  8.4   regulations of the association; 
  8.5      (12) impose reasonable charges for the review, preparation 
  8.6   and recordation of amendments to the declaration, resale 
  8.7   certificates required by section 515B.4-107, statements of 
  8.8   unpaid assessments, or furnishing copies of association records; 
  8.9      (13) provide for the indemnification of its officers and 
  8.10  directors, and maintain directors' and officers' liability 
  8.11  insurance; 
  8.12     (14) provide for reasonable procedures governing the 
  8.13  conduct of meetings and election of directors; 
  8.14     (15) exercise any other powers conferred by law, or by the 
  8.15  declaration, articles of incorporation or bylaws; and 
  8.16     (16) exercise any other powers necessary and proper for the 
  8.17  governance and operation of the association. 
  8.18     (b) Notwithstanding subsection (a) the declaration or 
  8.19  bylaws may not impose limitations on the power of the 
  8.20  association to deal with the declarant which are more 
  8.21  restrictive than the limitations imposed on the power of the 
  8.22  association to deal with other persons. 
  8.23     (c) Notwithstanding subsection (a), powers exercised under 
  8.24  this section must comply with section 500.215. 
  8.25     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  8.26  515B.3-116, is amended to read: 
  8.27     515B.3-116 [LIEN FOR ASSESSMENTS.] 
  8.28     (a) The association has a lien on a unit for any assessment 
  8.29  levied against that unit from the time the assessment becomes 
  8.30  due.  If an assessment is payable in installments, the full 
  8.31  amount of the assessment is a lien from the time the first 
  8.32  installment thereof becomes due.  Unless the declaration 
  8.33  otherwise provides, fees, charges, late charges, fines and 
  8.34  interest charges pursuant to section 515B.3-102(a)(10), (11) and 
  8.35  (12) are liens, and are enforceable as assessments, under this 
  8.36  section.  
  9.1      (b) A lien under this section is prior to all other liens 
  9.2   and encumbrances on a unit except (i) liens and encumbrances 
  9.3   recorded before the declaration and, in a cooperative, liens and 
  9.4   encumbrances which the association creates, assumes, or takes 
  9.5   subject to, (ii) any first mortgage encumbering the fee simple 
  9.6   interest in the unit, or, in a cooperative, any first security 
  9.7   interest encumbering only the unit owner's interest in the unit, 
  9.8   and (iii) liens for real estate taxes and other governmental 
  9.9   assessments or charges against the unit.  If a first mortgage on 
  9.10  a unit is foreclosed, the first mortgage was recorded after June 
  9.11  1, 1994, and no owner redeems during the owner's period of 
  9.12  redemption provided by chapter 580, 581, or 582, the holder of 
  9.13  the sheriff's certificate of sale from the foreclosure of the 
  9.14  first mortgage shall take title to the unit subject to a lien in 
  9.15  favor of the association for unpaid assessments for common 
  9.16  expenses levied pursuant to section 515B.3-115(a), (e)(1) to 
  9.17  (3), (f), and (i) which became due, without acceleration, during 
  9.18  the six months immediately preceding the first day following the 
  9.19  end of the owner's period of redemption.  If a first security 
  9.20  interest encumbering a unit owner's interest in a cooperative 
  9.21  unit which is personal property is foreclosed, the secured party 
  9.22  or the purchaser at the sale shall take title to the unit 
  9.23  subject to unpaid assessments for common expenses levied 
  9.24  pursuant to section 515B.3-115(a), (e)(1) to (3), (f), and (i) 
  9.25  which became due, without acceleration, during the six months 
  9.26  immediately preceding the first day following either the 
  9.27  disposition date pursuant to section 336.9-610 or the date on 
  9.28  which the obligation of the unit owner is discharged pursuant to 
  9.29  section 336.9-622.  This subsection shall not affect the 
  9.30  priority of mechanics' liens. 
  9.31     (c) Recording of the declaration constitutes record notice 
  9.32  and perfection of any lien under this section, and no further 
  9.33  recordation of any notice of or claim for the lien is required. 
  9.34     (d) Proceedings to enforce an assessment lien shall be 
  9.35  instituted within three years after the last installment of the 
  9.36  assessment becomes payable, or shall be barred. 
 10.1      (e) The unit owner of a unit at the time an assessment is 
 10.2   due shall be personally liable to the association for payment of 
 10.3   the assessment levied against the unit.  If there are multiple 
 10.4   owners of the unit, they shall be jointly and severally liable. 
 10.5      (f) This section does not prohibit actions to recover sums 
 10.6   for which subsection (a) creates a lien nor prohibit an 
 10.7   association from taking a deed in lieu of foreclosure.  The 
 10.8   commencement of an action to recover the sums is not an election 
 10.9   of remedies if it is dismissed before commencement of 
 10.10  foreclosure of the lien provided for by this section.  
 10.11     (g) The association shall furnish to a unit owner or the 
 10.12  owner's authorized agent upon written request of the unit owner 
 10.13  or the authorized agent a statement setting forth the amount of 
 10.14  unpaid assessments currently levied against the owner's unit.  
 10.15  If the unit owner's interest is real estate, the statement shall 
 10.16  be in recordable form.  The statement shall be furnished within 
 10.17  ten business days after receipt of the request and is binding on 
 10.18  the association and every unit owner. 
 10.19     (h) The association's lien may be foreclosed as provided in 
 10.20  this subsection. 
 10.21     (1) In a condominium or planned community, the 
 10.22  association's lien may be foreclosed in a like manner as a 
 10.23  mortgage containing a power of sale pursuant to chapter 580, or 
 10.24  by action pursuant to chapter 581.  The association shall have a 
 10.25  power of sale to foreclose the lien pursuant to chapter 580.  
 10.26     (2) In a cooperative whose unit owners' interests are real 
 10.27  estate, the association's lien shall be foreclosed in a like 
 10.28  manner as a mortgage on real estate as provided in paragraph (1).
 10.29     (3) In a cooperative whose unit owners' interests in the 
 10.30  units are personal property, the association's lien shall be 
 10.31  foreclosed in a like manner as a security interest under article 
 10.32  9 of chapter 336.  In any disposition pursuant to section 
 10.33  336.9-610 or retention pursuant to sections 336.9-620 to 
 10.34  336.9-622, the rights of the parties shall be the same as those 
 10.35  provided by law, except (i) notice of sale, disposition, or 
 10.36  retention shall be served on the unit owner 90 days prior to 
 11.1   sale, disposition, or retention, (ii) the association shall be 
 11.2   entitled to its reasonable costs and attorney fees not exceeding 
 11.3   the amount provided by section 582.01, subdivision 1a, (iii) the 
 11.4   amount of the association's lien shall be deemed to be adequate 
 11.5   consideration for the unit subject to disposition or retention, 
 11.6   notwithstanding the value of the unit, and (iv) the notice of 
 11.7   sale, disposition, or retention shall contain the following 
 11.8   statement in capital letters with the name of the association or 
 11.9   secured party filled in: 
 11.10     "THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of 
 11.11  association or secured party) HAS BEGUN PROCEEDINGS UNDER 
 11.12  MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST 
 11.13  IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE.  YOUR 
 11.14  INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF 
 11.15  THIS NOTICE ON YOU UNLESS BEFORE THEN: 
 11.16     (a) THE PERSON AUTHORIZED BY (fill in the name of 
 11.17  association or secured party) AND DESCRIBED IN THIS NOTICE TO 
 11.18  RECEIVE PAYMENTS RECEIVES FROM YOU: 
 11.19     (1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS 
 11.20     (2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS 
 11.21     (3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR 
 11.22  INCURRED; PLUS 
 11.23     (4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO 
 11.24  (fill in name of association or secured party) AFTER THE DATE OF 
 11.25  THIS NOTICE; OR 
 11.26     (b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE 
 11.27  FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR 
 11.28  CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR 
 11.29  SETTLEMENT.  YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND 
 11.30  GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES. 
 11.31     IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS 
 11.32  WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP 
 11.33  RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU 
 11.34  WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL 
 11.35  LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR 
 11.36  RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND 
 12.1   YOU WILL BE EVICTED.  IF YOU HAVE ANY QUESTIONS ABOUT THIS 
 12.2   NOTICE, CONTACT AN ATTORNEY IMMEDIATELY." 
 12.3      (4) In any foreclosure pursuant to chapter 580, 581, or 
 12.4   582, the rights of the parties shall be the same as those 
 12.5   provided by law, except (i) the period of redemption for unit 
 12.6   owners shall be six months from the date of sale or a lesser 
 12.7   period authorized by law, (ii) in a foreclosure by advertisement 
 12.8   under chapter 580, the foreclosing party shall be entitled to 
 12.9   costs and disbursements of foreclosure and attorneys fees 
 12.10  authorized by the declaration or bylaws, notwithstanding the 
 12.11  provisions of section 582.01, subdivisions 1 and 1a, (iii) in a 
 12.12  foreclosure by action under chapter 581, the foreclosing party 
 12.13  shall be entitled to costs and disbursements of foreclosure and 
 12.14  attorneys fees as the court shall determine, and (iv) (iii) the 
 12.15  amount of the association's lien shall be deemed to be adequate 
 12.16  consideration for the unit subject to foreclosure, 
 12.17  notwithstanding the value of the unit. 
 12.18     (i) If a holder of a sheriff's certificate of sale, prior 
 12.19  to the expiration of the period of redemption, pays any past due 
 12.20  or current assessments, or any other charges lienable as 
 12.21  assessments, with respect to the unit described in the sheriff's 
 12.22  certificate, then the amount paid shall be a part of the sum 
 12.23  required to be paid to redeem under section 582.03. 
 12.24     (j) In a cooperative, following foreclosure, the 
 12.25  association may bring an action for eviction against the unit 
 12.26  owner and any persons in possession of the unit, and in that 
 12.27  case section 504B.291 shall not apply. 
 12.28     (k) An association may assign its lien rights in the same 
 12.29  manner as any other secured party. 
 12.30     Sec. 9.  [EFFECTIVE DATE; APPLICATION.] 
 12.31     Sections 1 to 8 are effective August 1, 2004.  Sections 5 
 12.32  and 8 apply to foreclosures commenced on or after that date.