1.1 	A bill for an act
1.2 	relating to creditors' remedies; changing the type of mailed notification to secured 
1.3 	creditors required in connection with foreclosure of a mechanics lien on a motor 
1.4 	vehicle;amending Minnesota Statutes 2008, section 514.20.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 514.20, is amended to read:
1.7 	514.20 SALE.
1.8 	If any sum secured by such lien be not paid within 90 days after it becomes due, the 
1.9 	lienholder may sell the property and out of the proceeds of such sale there shall be paid, 
1.10 	first, the disbursements aforesaid; second, all charges against the property paid by such 
1.11 	person to any other person; and, third, the total indebtedness then secured by the lien. The 
1.12 	remainder, if any, shall be paid on demand to the owner or other person entitled thereto. If 
1.13 	the property subject to the lien is a motor vehicle registered in this state and subject to a 
1.14 	certificate of title, then the lienholder must provide written notice, by registered certified
1.15 	mail, to all secured creditors listed on the certificate of title 45 days before the lienholder's 
1.16 	right to sell the motor vehicle is considered effective. The notice must state the name, 
1.17 	address, and telephone number of the lienholder, the amount of money owed, and the rate 
1.18 	at which storage charges, if any, are accruing. Costs for registered certified mail and 
1.19 	other reasonable costs related to complying with this notice provision constitute "lawful 
1.20 	charges" pursuant to section 514.19. Failure to comply with the notice provision in this 
1.21 	section renders any lien created by this chapter ineffective against any secured party listed 
1.22 	on the certificate of title of the motor vehicle involved.  

1.23 	EFFECTIVE DATE. This section is effective the day following final enactment, 
1.24 	and applies to notices mailed on or after that date, provided however that it is also 
2.1 	permissible to send notices under this section by registered mail prior to August 1, 2009, 
2.2 	and the costs of those notices are lawful charges under this section.