If a state budget has not been passed by 11:59 p.m. on June 30, 2011, there will be a shutdown of most state government functions. Although there was a partial state government shutdown in 2005, the Office of the Secretary of State’s budget had already been passed, so it did not shut down. To date there has never been a shut down of the Office of the Secretary of State. This year, unfortunately, that may come to pass.
It has not yet been determined whether the business services provided by the Office of the Secretary of State and the Department of Vehicle Services will be excepted from the shutdown. And, it is not possible to speculate about how long any shutdown will continue. In an abundance of caution, we suggest planning for a shutdown of indefinite duration.
Remember, the UCC does not contain government closure exceptions to its perfection rules.
As a result, out of an abundance of caution, we would suggest the following:
Finally, we would suggest you not wait until June 30 to make any required filings or conduct any searches. We anticipate the online central filing system will be swamped on that date as lenders realize the critical nature of the shutdown. And the desk in the St. Paul office will likely be extremely busy on that date.
If you have any questions concerning any of these issues, feel free to contact us at Gray Plant Mooty.
This article is provided for general informational purposes only and should not be construed as legal advice or legal opinion on any specific facts or circumstances. You are urged to consult a lawyer concerning any specific legal questions you may have.
Gray Plant Mooty is recognized as one of the leading corporate law firms in Minnesota and one of the top franchise firms in the world. Our roots go back to 1866. Today, we are a full-service firm with nearly 180 attorneys and offices in Minneapolis and St. Cloud, Minnesota; Washington, D.C.; and Fargo, North Dakota.