House Journal: Page 1796: Wednesday, April 28, 1999

40     Sec. 14. NEW SECTION.  579B.2  LIEN DEPENDS UPON

41   PRODUCTION CONTRACTS.
42     1.  A lien established under section 579B.3 depends
43   upon the execution of a production contract that
44   provides for producing a commodity owned by a
45   contractor by a contract producer at the contract
46   producer's contract operation.
47     2.  A production contract is executed when it is
48   signed or orally agreed to by each party to the
49   contract or by a person authorized by a party to act
50   on the party's behalf, including the contract
Page 7
 1   producer's personal representative.
 2     3.  This chapter applies to any production contract
 3   that is in force on or after the effective date of
 4   this Act, regardless of the date that the production
 5   contract is executed.
 6     Sec. 15. NEW SECTION.  579B.3  ESTABLISHMENT OF
 7   LIEN - PRIORITY.
 8     A contract producer who is a party to a production
 9   contract executed pursuant to section 579B.2 shall
10   have a lien as provided in this section.  The amount
11   of the lien shall be the amount owed to the contract
12   producer pursuant to the terms of the production
13   contract, which may be enforced as provided in section
14   579B.5.
15     1.  a.  If the production contract is for the
16   production of livestock or raw milk, all of the
17   following shall apply:
18     (1)  For livestock, the lien shall apply to all of
19   the following:
20     (a)  If the livestock is not sold or slaughtered by
21   the contract producer, the lien shall be on the
22   livestock.
23     (b)  If the livestock is sold by the contractor,
24   the lien shall be on cash proceeds from the sale.  For
25   purposes of this subparagraph, cash held by the
26   contractor shall be deemed to be cash proceeds from
27   the sale regardless of whether it is identifiable cash
28   proceeds.
29     (c)  If the livestock is slaughtered by the
30   contractor, the lien shall be on any property of the
31   contractor that may be subject to a security interest
32   as provided in section 554.9102.
33     (2)  For raw milk, the lien shall apply to all of
34   the following:
35     (a)  If the raw milk is not sold or processed by
36   the contract producer, the lien shall be on the raw
37   milk.
38     (b)  If the raw milk is sold by the contractor, the

© 1999 Cornell College and League of Women Voters of Iowa

Comments about this site or page? hjourn@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Apr 29 13:40:03 CDT 1999
URL: /DOCS/GA/78GA/Session.1/HJournal/01700/01796.html
jhf