LIEN JUMPING
STATUTES
Presented by:
Thomas H. Sellnow
Sellnow Law Office, P.A.
229 Central Ave Long Prairie, MN 56347
Tel: 320-732-1919
Email: sellnowt@sellnowlaw.com
Slides available at www.sellnowlaw.com
PERSONALITY IN POSSESSION

Lien jumping attribute
Yes If possession
 Maybe - If possession lost, subject to purchaser or
encumbrancer in good faith w/o notice whose rights
were acquired prior to filing and who has filed.
514.18 subd. 3


Attorney fees permitted?


Yes -
514.18 Subd. 1.
Notice § 336.9-501

Within 60 days of loss of possession.
PERSONALITY IN POSSESSION: POINT
OF INTEREST
Elements Subd. 1




Non-possessory lien




Motor vehicles (Subd. 1(a)
Does not apply to snow emergency tow.
Subd. 1 and 2 do not apply to motor vehicles.
Surrender or loses possession.
File immediately!!
Verified statement
Conseco – They had a claim (but not a lien) for reasonable
costs and expenses incurred in storing for an abandoned
manufactured home on the rental premises. The PMSI
remained superior.
The court recognized that 514.18 would take priority over a
previously perfected security interest in the property.
 But – manufactured home was not stored at the request of
owner or legal possessor.
 No bailment was created.

NONPOSSESSORY AIRCRAFT
MECHANIC’S LIEN

Lien jumping attribute
Yes? - As long as in possession per 514.18.
 No 514.221 Subd. 3 except those filed in the
appropriate filing office.


Attorney fees permitted


No
Notice § 336.9-501

Within 90 days after performing work verified
statement.
LOGS TIMBER

Lien jumping attribute


Attorney fees permitted


Yes Except as to State of MN. and
owner/occupant from which timber was unlawfully
removed.
No
Notice
Commissioner of Natural Resources, if mark
 Court Administration, if no marks

WAGES

Lien jumping attribute


Attorney fees permitted


Yes As to mortgages, judgments, or liens which
attach after the beginning of labor or services.
No
Notice
Notice to sheriff within 5 days after levy.
 (As against any attachment or execution levied.)

MACHINERY LIEN DURING
MEDIATION

Lien jumping attribute


Attorney fees permitted


Yes In crops produced by debtor during
calendar year in which mediation occurs, creditor
must participate in mediation.
No
Notice § 336.9-501

Within 30 days after the conclusion of mediation;
void after 18 months.
GOVERNMENT SERVICES

Lien jumping attribute


Attorney fees permitted


Yes Shall constitute and be a first and prior lien
from the date of inspection, examination or service.
No
Notice

No record of such lien shall be deemed necessary,
must be presented or proven in bankruptcy,
insolvency, receivership or other similar proceeding
or be barred thereby.
POINTS OF INTEREST
Utility charges associated with real property,
sewer, water, garbage, assessments.
 Sheriff fees incurred in sale.
 Assessments for improvement to the real
property.

ENVIRONMENTAL LIEN

Lien jumping attribute


Attorney fees permitted


No Subject to rights of prior perfected owner,
purchaser, holder of mortgage or security interest or
judgment creditor.
No
Notice § 514.673

File with recorder/registrar.
HOSPITAL CHARGES

Lien jumping attribute


Subject to attorney liens.
Attorney fees permitted


Yes -
No
Notice

Court administration, county of hospital within 10
days of discharge.
GENERAL PROVISIONS 514.73 – 514.76
Lien is assignable
 Not affected by inaccuracies in the particulars of
the lien statement, but the lien shall not exceed
the lessor of amount claimed or justly due.

LAUNDERERS

Lien jumping attribute


Retain possession until paid.
Attorney fees permitted


Yes -
No
Notice

Owner, by certified mail after 90 days, can sell at
public or private sale 10 days later.
VETERINARIAN UNCLAIMED
ANIMALS

Lien jumping attribute


Attorney fees permitted


Yes
No
Notice

10 days after completion of care, written notice to
owner or lawful possessor or publication at least 10
days prior to sale.
AGRICULTURAL PRODUCERS
LIEN

Lien jumping attribute


Priority over all other liens.
Attorney fees permitted


Yes -
Yes -
To prevailing party.
Notice 20 days then § 336.9-501
Until 20 days after delivered without filing;
 Under 336.9-501 by filing 20 days.

AGRICULTURAL LIENS LANDLORD
STAT. 514.964 SUBD. 1

Lien jumping attribute


Attorney fees permitted


Yes Over all competing security interest and all
agricultural liens with crops, products and proceeds
for unpaid rents on crops produced upon landlord’s
real property in crop year subject to the lease.
No But see 336.9-615(a)(1)…reasonable
attorney’s fees and legal expenses incurred by the
secured party.
Notice § 336.9-501

On or before 30 days after crops become growing
crops.
AGRICULTURAL LIENS HARVESTER’S
STAT. 514.964 SUBD. 2

Lien jumping attribute


Attorney fees permitted


Yes Over all competing security interest and all
agricultural liens except a landlord’s lien and except
a perfected crop production input lien for seed.
No But see 336.9-615(a)(1)…reasonable
attorney’s fees and legal expenses incurred by the
secured party.
Notice § 336.9-501 and 514.964 Subd. 3

15 days after last date furnished
AGRICULTURAL LIENS CROP PRODUCTION
INPUT STAT. 514.964 SUBD. 3

Lien jumping attribute
Yes – maybe. If perfected, has priority against all
competing agricultural liens except landlord’s and
harvester’s.
 Has priority over competing security interest in crops
and proceeds if lien is effective before the secured
party has given value to debtor.


Attorney fees permitted


No – but see 336.9-615(a)(1)…reasonable attorney’s
fees and legal expenses incurred by the secured
party.
Notice § 336.9-501 and 336.9-530

6 months after the last date that inputs are
furnished. Plus notice 514.964 Subd. 3(c) (1-5) to
LENDER’S RESPONSE TO CROP
PRODUCTION INPUT LIENS

Ten day clock
Commitment to all or part of cost.
 Written refusal.

Practice Tip – When in doubt deny in time (10
days).
 Keep the envelope “IMPORTANT LEGAL
NOTICE”

LIVESTOCK LIENS VETERINARIAN’S
LIEN § 514.966 SUBD. 1

Lien jumping attribute


Attorney fees permitted


Yes Over all competing security interest and
agricultural liens on same animals.
No But see 336.9-615(a)(1)…reasonable
attorney’s fees and legal expenses incurred by the
secured party.
Notice § 336.9-501 to 336.9-530

Within 180 days after the last item of veterinarian
service is provided.
LIVESTOCK LIENS BREEDER’S LIEN §
514.966 SUBD. 2

Lien jumping attribute


Attorney fees permitted


Yes Over all competing security interest and all
agricultural liens except a perfected vet lien and
feeder’s lien.
No -But see 336.9-615(a)(1)…reasonable attorney’s
fees and legal expenses incurred by the secured
party.
Notice § 336.9-501 to 336.9-530

Within 6 months after last day that breeding
services are furnished.
LIVESTOCK LIENS FEEDER’S LIEN §
514.966 SUBD. 4

Lien jumping attribute


Attorney fees permitted


Yes Over all competing security interest and all
agricultural liens except a perfected veterinarians
lien.
No But see 336.9-615(a)(1)…reasonable
attorney’s fees and legal expenses incurred by the
secured party.
Notice § 336.9-501 to 336.9-530

Within 60 days after the last day that feeding
services are furnished.
LIVESTOCK LIENS LIVESTOCK
PRODUCTION INPUT LIEN § 514.966 SUBD.
3

Lien jumping attributes
Yes - Maybe
 If perfected, has priority against all agricultural liens
except vet liens, feeders liens and breeders liens.
 Has priority over a competing security interest in livestock
and proceeds if lien is effective before the secured party
gave value to debtor.


Attorney fees permitted


No But see 336.9-615(a)(1)…reasonable attorney’s
fees and legal expenses incurred by the secured party.
Notice § 336.9-501 to 336.9-530
6 months after last inputs are furnished plus notice to
lender.
 Plus notice 514.966 Subd. 3(c)(1-6) to lender.

LIEN ON PERSONAL PROPERTY
IN SELF STORAGE

Lien jumping attribute


Attorney fees permitted


Yes Except those perfected before the lien
attaches. Normally attaches is equal to date of
default.
Perhaps look at agreement “…other charges in
relation to the personal property specified in the
rental agreement…”
Notice § 514.974 and 514.975

Rental agreement must include a disclosure of lien
rights upon failure of occupant to pay rent including
the right to deny access to certain personal property
contained in unit.
MEDICAL ASSISTANCE LIEN

Lien jumping attribute

No Subject to the rights of any person whose
interest in real property in perfected before a lien notice
has been filed under 514.982 including:




Attorney fees permitted


An owner other than recipient or recipient’s spouse;
Purchase or holder of mortgage or security interest;
Judgment lien creditor.
No
Notice § 514.982

County recorder or registrar of titles, as appropriate in
county where real property is located.
POINTS OF INTEREST
A lien in favor of the agency upon all real
property that is owned by the M.A. recipient on
or after institutionalized.
 Attaches and becomes enforceable against
specific real property






Payments made by an agency for M.A.
Notice and opportunity to be heard (due process)
A lien notice has been filed § 514.982
If registered property – memorialized on COT
Restrictions against enforcement have ceased have
ceased to apply
LIEN FILING RESTRICTIONS § 514.981
SUBD. 2


M.A. recipient or legal representative has been sent by
certified or registered mail, w/ notice of rights and
agency determines by medically verified by attending
physician that M.A. recipient cannot reasonably be
expected to be discharged and return home.
May not file notice while it is the home of recipient’s
spouse or
Child under 21 or blind or permanently and totally disabled
 Child resided in homestead for 2 yrs before M.A. recipient
received medical institution services AND child provided
care that permitted the recipient to live w/o medical
institution services
 A sibling of M.A. recipient if the sibling has an equity
interest in property and resided in the property for one year
immediately before recipient began receiving medical
institution services


Lien applies only to the specific real property described
in the lien notice
CONTINUATION OF LIEN NOTICE AND
LIEN § 514.981 SUBD. 3
Effective from time of filed until discharged
 M.A. lien that has attached to specific real
property continues until satisfied, becomes
unenforceable under § 514.981 Subd. 6 (10 years)
or is released or discharge under Subd. 5.

LIEN PRIORITY § 514.981 SUBD. 4

A M.A. lien that attaches to specific real property
is subject to the prior perfected interests
including:





Owner (other than recipient or recipient’s spouse)
Purchaser
Holder of a MTG or security interest or
Judgment creditor
Inferior to a lien for taxes or special assessments or
other lien that would be superior to the perfected lien
of a judgment creditor
TIME & CLAIM LIMITS § 514.981 SUBD. 6
Ten years, but agency may renew
 Not enforceable against real property if the court
determines that are insufficient asserts of the
estate in while or in part because:

Homestead exemption § 256B.15 Subd. 4
 Rights of surviving spouse or minor children § 524.2403(a) & (b)
 Claims w/ priority § 524.3-805(a) (1-4)

LIFE ESTATES AND JOINT TENANCIES





If subject to a M.A. lien, shall not end but merge into
the remainder interest or other interest
M.A. lien attaches to the extent of M.A. recipients
interest at the time of death.
Life estate – lien is percentage factor based upon
recipient's age on the date of death as listed in Life
Estate mortality table in health care program manual
If Joint Tenancy – portion of that interest equal to
fractional interest the M.A. would have owned as T/C
on date of M.A. recipient’s death (i.e. 4 owners of J.T.
– M.A. recipient's interest is ¼)
Statutes modifies common law w/ respect to L.E. &
J.T.’s.
LIMITATION OF LIFE ESTATE AND JOINT
TENANCY LIENS
Does not apply to J.T. homestead owned with
spouse and owned of record on date of recipient’s
death
 An affidavit may be used to prove homestead –
prima facie evidence
 Lien is effective only against L.E.’s & J.T.’s
established after August 1, 2003.

NONCONSENUAL COMMON LAW
LIENS

Lien jumping attribute


Invalid lien
Attorney fees permitted


No -
Yes To owner of real property plus $5,000.00 or
actual damage, whichever is greater.
Notice § 514.99 Subd. 3

No earlier than 6 nor later than 21 days following
service of petition and order.
FINAL SLIDE
Questions?
 Contact Information

Thomas H. Sellnow
 Email: sellnowt@sellnowlaw.com
 Phone: 320-732-1919
