Subdivision 1. Mechanics' lien on personal property. Whoever, at the request of the owner or legal possessor of any personal property, shall store or care for or contribute in any of the modes mentioned in section 514.19 to its preservation, care, or to the enhancement of its value, shall have a lien upon such property for the price or value of such storage, care, or contribution, and for any legal charges against the same paid by such person to any other person, and the right to retain possession of the property until such lien is lawfully discharged.
Subd. 1a. Towed motor vehicles. A person who tows and stores a motor vehicle at the request of a law enforcement officer shall have a lien on the motor vehicle for the value of the storage and towing and the right to retain possession of the motor vehicle until the lien is lawfully discharged. This section does not apply to tows authorized in section 169.041, subdivision 4, clause (1).
Subd. 2. Nonpossessory lien; notice. Notwithstanding the voluntary surrender or other loss of possession of the property on which the lien is claimed, the person entitled thereto may preserve the lien upon giving notice of the lien at any time within 60 days after the surrender or loss of possession, by filing in the appropriate filing office under the Uniform Commercial Code, Minnesota Statutes, section 336.9-501 a verified statement and notice of intention to claim a lien. The statement shall contain a description of the property upon which the lien is claimed, the work performed or materials furnished and the amount due.
Subd. 3. Priority; security; interest; foreclosure. The lien shall be valid against everyone except a purchaser or encumbrancer in good faith without notice and for value whose rights were acquired prior to the filing of the lien statement and who has filed a statement of interest in the appropriate filing office. The lien shall be considered a security interest under the Uniform Commercial Code and foreclosure thereon shall be in the manner prescribed for security interests under article 9 of the Uniform Commercial Code.
Subd. 4. Motor vehicles excluded. Subdivisions 2 and 3 shall apply to machinery, implements and tools of all kinds but shall not apply to motor vehicles.
If any sum secured by such lien be not paid within 90 days after it becomes due, the lienholder may sell the property and out of the proceeds of such sale there shall be paid, first, the disbursements aforesaid; second, all charges against the property paid by such person to any other person; and, third, the total indebtedness then secured by the lien. The remainder, if any, shall be paid on demand to the owner or other person entitled thereto. If the property subject to the lien is a motor vehicle registered in this state and subject to a certificate of title, then the lienholder must provide written notice, by registered mail, to all secured creditors listed on the certificate of title 45 days before the lienholder's right to sell the motor vehicle is considered effective. The notice must state the name, address, and telephone number of the lienholder, the amount of money owed, and the rate at which storage charges, if any, are accruing. Costs for registered mail and other reasonable costs related to complying with this notice provision constitute "lawful charges" pursuant to section 514.19. Failure to comply with the notice provision in this section renders any lien created by this chapter ineffective against any secured party listed on the certificate of title of the motor vehicle involved.
514.21. Sale, when and where made; notice
The sale herein provided for shall be made at public auction between nine o'clock in the morning and five o'clock in the afternoon in the county where the property or some part thereof is situated. A notice stating the time and place of sale, the amount which will be due on the date of sale exclusive of the expenses of advertising and sale, and the grounds of the lien, giving a general description of the property to be sold, shall be served personally upon the owner of the property if the owner can be found within the county in which the property is stored, and if not, then it shall be mailed to the owner thereof at least three weeks before the time fixed for such sale if the place of residence or post office address of such owner is known by, or with due diligence can be learned by, the person claiming such lien, and shall be published once in each week for three successive weeks in a newspaper printed and published in the county where the property, or some part thereof, is situated, the last publication of such notice to be at least one week prior to the date of sale; or, if there is no newspaper printed and published in the county, then the notice of sale shall be posted in three of the most public places in the county at least three weeks before the time of sale. In case neither the place of residence nor the post office address of such owner is known to the person claiming such lien and cannot with reasonable diligence be learned, the publication or posting of notice, as herein provided, shall be sufficient to authorize such sale.
514.22. Conduct of sale
The property sold, as herein provided, shall be in view at the time of the sale. Under
the power of sale hereby given enough of the property may be sold to satisfy the amount
due at the time of sale, including expenses, and the property, if under cover, may be
offered for sale and sold in the original packages in the form and condition that the same
was received by the lienholder; but, after sufficient property has been so sold to satisfy
the amount so due, no more shall be sold. The lienholder, the lienholder's representatives
or assigns, may fairly and in good faith purchase any property sold under the provisions
of sections 514.18 to 514.22, provided the sale is conducted by the sheriff, the sheriff's
deputy, or any constable of the county where such sale is made.
514.965. Livestock lien definitions
Subdivision 1. Scope. For the purposes of this section and section 514.966, the terms defined in subdivisions 2 to 11 have the meanings given them.
Subd. 2. Agricultural lien. "Agricultural lien" means an agricultural lien as defined in section 336.9-102(a)(5) and includes a veterinarian's lien, breeder's lien, livestock production input lien, and feeder's lien under this section.
Subd. 3. Agricultural lienholder. "Agricultural lienholder" means a person holding an agricultural lien.
Subd. 4. Emergency veterinary services. "Emergency veterinary services" includes surgical procedures, administering vaccines, antisera, and antibiotics, and other veterinary medicines, treatments, and services performed primarily to protect human health, prevent the spread of animal diseases, or preserve the health of the animal or animals treated.
Subd. 5. Farm products. "Farm products" means farm products as defined in section 336.9-102(a)(34).
Subd. 6. Feed. "Feed" means commercial feeds, feed ingredients, mineral feeds, drugs, animal health products, or customer-formula feeds used for feeding livestock, including commercial feed as defined in section 25.33.
Subd. 7. Lender. "Lender" means a secured party as defined in section 336.9- 102(a)(72) holding a perfected security interest in the farm products of the obligor.
Subd. 8. Livestock production input. "Livestock production input" means feed and labor used in raising livestock.
Subd. 9. Obligor. "Obligor" means an obligor as defined in section 336.9- 102(a)(59).
Subd. 10. Person. "Person" means an individual or an organization as defined in section 336.1-201(30).
Subd. 11. Supplier. "Supplier" means a person furnishing agricultural production inputs.
514.966. Agricultural lien on livestock
Subdivision 1. Veterinarian's lien. A licensed veterinarian performing emergency veterinary services in the ordinary course of business that cost more than $25 for animals at the request of the owner or a person in possession of the animals has a lien on the animals for the value of the services. A lien under this section does not secure any veterinary services performed more than one year before the date on which the last item of the veterinary service is performed. A veterinarian's lien becomes effective upon the services being provided the obligor by the veterinarian.
Subd. 2. Breeder's lien. The owner of any livestock used for breeding services in the ordinary course of business, or any provider, in the ordinary course of business, of semen or ova used in fertilizer, artificial insemination, or any other artificial means of impregnating livestock, has a lien upon the livestock bred and any resulting offspring for the price or value of the service provided. A breeder's lien becomes effective when the services are provided the obligor by the breeder.
Subd. 3. Livestock production input lien. (a) A supplier furnishing livestock production inputs in the ordinary course of business has a livestock production input lien for the unpaid retail cost of the livestock production input. A perfected livestock production input lien that attaches to livestock may not exceed the amount, if any, that the sales price of the livestock exceeds the greater of the fair market value of the livestock at the time the lien attaches or the acquisition price of the livestock. A livestock production input lien becomes effective when the agricultural production inputs are furnished by the supplier to the purchaser.
(b) A supplier shall notify a lender of a livestock production input lien by providing a lien-notification statement to the lender in an envelope marked "IMPORTANT-LEGAL NOTICE." Delivery of the notice must be made by certified mail or another verifiable method.
(c) The lien-notification statement must be in a form approved by the secretary of state and disclose the following:
(1) the name and business address of the lender that is to receive notification;
(2) the name and address of the supplier claiming the lien;
(3) a description and the date or anticipated date or dates of the transaction and the retail cost or anticipated costs of the livestock production input;
(4) the name, residential address, and signature of the person to whom the livestock production input was furnished;
(5) the name and residential address of the owner of the livestock, the location where the livestock will be raised, and a description of the livestock; and
(6) a statement that products and proceeds of the livestock are covered by the livestock input lien.
(d) Within ten calendar days after receiving a lien-notification statement, the lender must respond to the supplier with either:
(1) a letter of commitment for part or all of the amount in the lien- notification statement; or
(2) a written refusal to issue a letter of commitment. A copy of the response must be mailed to the person for whom the financing was requested.
(e) If a lender responds with a letter of commitment for part or all of the amount in the lien-notification statement, the supplier may not obtain a lien for the amount stated in the letter of commitment. If a lender responds with a refusal to provide a letter of commitment, the rights of the lender and the supplier are not affected.
(f) If a lender does not respond under paragraph (d) to the supplier within ten calendar days after receiving the lien-notification statement, a perfected livestock production input lien corresponding to the lien-notification statement has priority over any security interest of the lender in the same livestock or their proceeds for the lesser of:
(1) the amount stated in the lien-notification statement; or
(2) the unpaid retail cost of the livestock production input identified in the lien-notification statement, subject to any limitation in paragraph (a).
Subd. 4. Feeder's lien. (a) A person has a feeder's lien on livestock if the person (1) stores, cares for, or contributes to the keeping, feeding, pasturing, or other care of livestock, including medical or surgical treatment and shoeing, and (2) does so in the ordinary course of business, at the request of the owner or legal possessor of the livestock.
(b) A feeder's lien is a lien upon the livestock for the price or value of the storage, care, or contribution, and for any legal charges against the same paid by the person to any other person.
(c) A feeder's lien becomes effective when the services or contributions are provided the obligor.
Subd. 5. Scope. A veterinarian's lien, breeder's lien, livestock production input lien, or feeder's lien attaches to the livestock serviced by the agricultural lienholder, and products and proceeds thereof to the extent of the price or value of the service provided.
Subd. 6. Perfection. (a) An agricultural lien under this section is perfected if a financing statement is filed pursuant to sections 336.9-501 to 336.9-530 and within the time periods set forth in paragraphs (b) to (e).
(b) A veterinarian's lien must be perfected on or before 180 days after the last item of the veterinary service is performed.
(c) A breeder's lien must be perfected by six months after the last date that breeding services are provided the obligor.
(d) A livestock production input lien must be perfected by six months after the last date that livestock production inputs are furnished the obligor.
(e) A feeder's lien must be perfected on or before 60 days after the last date that feeding services are furnished the obligor.
Subd. 7. Governing law. Except as otherwise provided in this section, an agricultural lien is subject to the provisions of the Uniform Commercial Code - Secured Transactions, sections 336.9-101 to 336.9-709.
Subd. 8. Priority. (a) Except as provided in paragraph (b), a perfected veterinarian's lien under this section has priority over all competing security interests and all agricultural liens on the same animals.
(b) If more than one veterinarian's lien is perfected under this section, the conflicting perfected veterinarian's liens have priority in order of the effectiveness of the liens.
(c) Except as provided in paragraph (d), a perfected feeder's lien under this section has priority over all competing security interests and all agricultural liens except a perfected veterinarian's lien in the livestock and the products or proceeds thereof.
(d) If more than one feeder's lien is perfected under this section, the conflicting perfected feeder's liens have priority in order of the effectiveness of the liens.
(e) A perfected breeder's lien under this section has priority over all competing security interests and all agricultural liens except a perfected veterinarian's lien and a perfected feeder's lien in the livestock and the products and proceeds thereof.
(f) Except as provided in paragraph (g), a perfected livestock production input lien under this section has priority against all agricultural liens except a perfected veterinarian's lien, feeder's lien, and breeder's lien in the livestock and the products or proceeds thereof.
(g) If more than one livestock production input lien is perfected under this section, conflicting perfected livestock production input liens have priority in order of the effectiveness of the liens.
(h) Except as provided in paragraph (i), a perfected livestock production input lien under this section has priority against all competing security interests as provided in subdivision 3 in livestock and the products and proceeds thereof.
(i) A perfected livestock production input lien has priority over a competing security interest in the livestock and proceeds and products thereof if the livestock production input lien is effective before the secured party has given value to the debtor.
Subd. 9. Default. Default occurs when an obligor fails to perform any obligation, whether written or oral, owed to the agricultural lienholder.
Subd. 10. Enforcement. The holder of an agricultural lien under this section may enforce the lien in the manner provided in sections 336.9-601 to 336.9-628.
Amended in 2001.
Reviewed by AAHS in June 2001.
Reviewed and updated by AAHS in May 2003.
Return to Top of This Page
Return to Horse Liens Page