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Minnesota
Lien Law.pdf
Courtesy of:
StorageLaws.net
Minnesota Lien Law
514.970 Title.
Sections 514.970 to 514.979 may be cited as the
�Minnesota Liens on Personal Property in Self-Service Storage Act."
HIST: 1988 c 425 s 1
514.971 Definitions.
Subdivision 1. Scope. For the purposes of sections
514.970 to 514.979, the terms defined in this section have the meanings given
them.
Subdivision 2. Self-service storage facility.
"Self-service storage facility" means real property
that is designed and used only for renting or leasing individual storage space
in the facility under the following conditions:
(1) the occupants have access to their individual
storage space only for the purpose of storing and removing their personal
property;
(2) the owner does not issue a warehouse receipt,
bill of lading, or other document of title for the personal property stored in
the storage space; and
(3) the property has two or more individual storage
spaces. The term does not include a garage used principally for parking motor
vehicles or any property of a financial institution that contains vaults, safe
deposit boxes, or other receptacles for the uses, purposes, and benefits of the
financial institution's customers.
Subdivision 3. Owner. "Owner" means one or more
persons, jointly or severally, who are either the owner of a self-service
storage facility, or the lessor of an entire self-service storage facility, and
who receive rent from an occupant under a rental agreement entered into with the
occupant.
Subdivision 4. Occupant. "Occupant" means a person
who rents storage space at a self-service storage facility under a rental
agreement entered into with the owner.
Subdivision 5. Rental agreement. "Rental agreement"
means a written agreement that is entered into by the owner and the occupant and
that establishes the terms and conditions of the occupant's use of storage space
at a self-service storage facility.
Subdivision 6. Personal property. "Personal
property" means money and every inanimate tangible thing that is the subject of
ownership. The term does not include anything forming part of a parcel of real
estate and agricultural commodities.
Subdivision 7. Default. "Default" means failure of
the occupant to pay the rent and other charges becoming due under the rental
agreement within 15 days after the rents and other charges become due under the
terms of the rental agreement.
Subdivision 8. Storage space. "Storage space" means
an enclosure, cubicle, or room that is fully enclosed and equipped with a door
designed to be locked for security by the occupant.
Subdivision 9. Security deposit. "Security deposit"
means any deposit of money with the owner used to secure performance under the
rental agreement.
HIST: 1988 c 425 s 2
514.972 Lien against property.
Subdivision 1. Creation. The owner of a self-service
storage facility has a lien against the occupant on the personal property stored
under a rental agreement in a storage space at the self-service storage
facility, or on the proceeds of the personal property subject to the defaulting
occupant's rental agreement in the owner's possession. The lien is for rent,
labor, and other charges in relation to the personal property specified in the
rental agreement that have become due and for expenses necessary for the
preservation of the personal property or expenses reasonably incurred in the
sale or other disposition of the personal property under law. The lien provided
for in this section is superior to other security interests except those
perfected before the date the lien attaches.
Subdivision 2. Attachment. The owner's lien created
by this section attaches as of the date the occupant is in default unless the
occupant obtains a court order to recover possession of personal property in the
self-service storage facility. No lien is created under subdivision 1 or shall
attach under this subdivision to any personal property listed under subdivision
5, unless the occupant fails to remove the personal property before the sale
authorized by section 514.973. An owner loses the lien on personal property that
the owner permits to be removed from the self-service storage facility or
unjustifiably refuses to permit to be removed from the facility.
Subdivision 3. Security deposits. No lien is created
under subdivision 1 if the owner has possession of a security deposit sufficient
to cover rents and other charges at the time of an alleged default.
Subdivision 4. Denial of access. Upon default the
owner shall mail notice of default to the occupant at the last known address of
the occupant. The owner may deny the occupant access to the personal property
contained in the self-service storage facility after default, service of the
notice of default, expiration of the date stated for denial of access, and
application of any security deposit to unpaid rent. The notice of default must
state the date that the occupant will be denied access to the occupant's
personal property in the self-service storage facility and that access will be
denied until the owner's claim has been satisfied. The notice of default must
state that any dispute regarding denial of access can be raised by the occupant
beginning legal action in court. Notice of default must further state the rights
of the occupant contained in subdivision 5.
Subdivision 5. Access to certain items. The occupant
may remove from the self-service storage facility personal papers, health aids,
personal clothing of the occupant and the occupant's dependents, and personal
property that is necessary for the livelihood of the occupant, that has a market
value of less than $50 per item, if demand is made to any of the persons listed
in section 514.976, subdivision 1. The occupant shall present a list of the
items, and may remove them during the facility's ordinary business hours prior
to the sale authorized by section 514.973. If the owner unjustifiably denies the
occupant access for the purpose of removing the items specified in this
subdivision, the occupant is entitled to an order allowing access to the storage
unit for removal of the specified items. The self-service storage facility is
liable to the occupant for the costs, disbursements and attorney fees expended
by the occupant to obtain this order.
HIST: 1988 c 425 s 3
514.973 Enforcement of lien.
An owner's lien established under sections 514.970
to 514.979 for a claim that has become due must be enforced in the same manner
as warehouse's liens under section 336.7-210.
HIST: 1988 c 425 s 4; 2004 c 162 art 6 s 2
514.974 Additional notification requirement.
In addition to the requirements of section
336.7-210, the notification of the proposed sale of personal property must
include a notice of denial of access to the personal property until the owner's
claim has been satisfied. Any notice the owner is required to mail to the
occupant under sections 514.970 to 514.979 shall be sent to the mailing address
and the alternate mailing address provided by the occupant in the rental
agreement.
HIST: 1988 c 425 s 5
514.975 Rental agreements.
The rental agreement between the owner and the
occupant must include a disclosure of the lien rights of the owner upon failure
of the occupant to pay rent including the right to deny access to certain
personal property contained in the self-service storage facility, and the extent
and the limits of insurance carried by the owner covering the occupant's
personal property stored in the leased premises. A rental agreement may not
exempt an owner from liability for damages to an occupant's personal property
caused by the owner's negligence. The rental agreement must request the occupant
to insert an alternate mailing address.
HIST: 1988 c 425 s 6
514.976 Disclosure and actions.
Subdivision 1. Disclosure. There shall be disclosed
to the occupant either in the rental agreement or otherwise in writing prior to
commencement of the occupancy the name and address of:
(1) the person authorized to manage the premises;
and
(2) an owner of the premises or an agent authorized
by the owner to accept service of process and receive and give receipt for
notices and demands. Either in the rental agreement or otherwise in writing the
occupant shall also be notified that the owner prohibits the storage of
hazardous materials.
Subdivision 2. Posting of notice. A printed or
typewritten notice containing the information that must be disclosed under
subdivision 1 must be placed in a conspicuous place on the premises.
Subdivision 3. Alternate service. If subdivisions 1
and 2 have not been complied with and an occupant desiring to make service of
process upon or give a notice or demand to the owner does not know the name and
address of the owner or the owner's agent, as that term is used in subdivision
1, then a caretaker or manager of the premises or an individual to whom rental
payments for the premises are made is deemed to be an agent authorized to accept
service of process and receive and give receipt for notices and demands on
behalf of the owner.
Subdivision 4. Action. Except as otherwise provided
in this subdivision, an owner may not maintain an action to recover rent or
possession of the premises unless the information required by this section has
been disclosed to the occupant, or unless the information is known by or has
been disclosed to the occupant at least 30 days prior to the initiation of the
action. Failure by the owner to post a notice required by subdivision 2 does not
prevent any action to recover rent or possession of the premises. Any action
begun by the owner or occupant shall be venued in the county where the facility
is located. If an action to recover possession of personal property in the
facility is begun by the occupant, the burden of proof shall be borne by the
owner that default has occurred and the provisions of sections 514.970 to
514.979 have been followed.
Subdivision 5. Application. This section applies to
any successor owner, caretaker, manager, or individual to whom rental payments
for the storage space are made.
HIST: 1988 c 425 s 7
514.977 Default.
If an occupant defaults in the payment of rent or
otherwise breaches the rental agreement, the owner may commence an unlawful
detainer action under section 504B.281.
HIST: 1988 c 425 s 8; 1999 c 199 art 2 s 29
514.978 Waiver or modification prohibited.
The owner and occupant may not waive or modify the
provisions of sections 514.970 to 514.979.
HIST: 1988 c 425 s 9
514.979 Advertising.
No owner shall advertise or represent its services,
or permit its services to be advertised or represented, in a manner that uses
the word "warehouse" unless the owner is licensed and bonded as provided in
chapter 231. Nothing in this section prohibits the use of the term "self-service
storage facility" in an advertisement or representation.
HIST: 1988 c 425 s 10ccc
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