Text: HF00376 Text: HF00378 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 CUSTOM CATTLE FEEDLOT LIEN 1 3 Section 1. Section 579A.1, Code 2001, is amended by adding 1 4 the following new subsection: 1 5 NEW SUBSECTION. 4A. "Lien" means a custom cattle feedlot 1 6 lien created in section 579A.2. 1 7 Sec. 2. Section 579A.1, subsection 5, Code 2001, is 1 8 amended to read as follows: 1 9 5. "Personal representative" means a person who is 1 10 authorized by the owner of a custom cattle feedlot to act on 1 11 behalf of the owner, including by executing an agreement, 1 12 managing a custom cattle feedlot,orfiling a financing 1 13 statement to perfect a lien, and enforcingliensa lien under 1 14 this chapter. 1 15 Sec. 3. Section 579A.2, Code 2001, is amended to read as 1 16 follows: 1 17 579A.2 ESTABLISHMENT OF LIEN – PRIORITY. 1 18 1. A custom cattle feedlot lien is created. The lien is 1 19 an agricultural lien as provided in section 554.9302. 1 20 2. A custom cattle feedlot operator shall have a lien upon 1 21 the cattle and the identifiable cash proceeds from the sale of 1 22 the cattle for the amount of the contract price for the feed 1 23 and care of the cattle at the custom cattle feedlot pursuant 1 24 to a written or oral agreement by the custom cattle feedlot 1 25 operator and the person who owns the cattle, which may be 1 26 enforced as provided in section 579A.3. The custom cattle 1 27 feedlot operator is a secured party and the owner of the 1 28 cattle is a debtor for purposes of chapter 554, article 9. 1 292.3.TheA custom cattle feedlot lienis createdbecomes 1 30 effective at the time the cattle arrive at the custom cattle 1 31 feedlotand continues for one year after the cattle have left1 32the custom cattle feedlot. In order topreserveperfect the 1 33 lien, the custom cattle feedlot operatormust, within twenty1 34days after the cattle arrive at the custom cattle feedlot,1 35filemust file a financing statement in the office of the 2 1 secretary of state, a lien statement on a form prescribed by2 2the secretary of stateas provided in section 554.9308 within 2 3 twenty days after the cattle arrive at the custom cattle 2 4 feedlot.The secretary of state shall charge a fee of not2 5more than ten dollars for filing the statement. The secretary2 6of state may adopt rules pursuant to chapter 17A for the2 7electronic filing of the statements. The statement must2 8include all of the following:2 9 a.An estimate of the amount of feed and care provided to2 10the cattle pursuant to the contract.The financing statement 2 11 shall meet the requirements of section 554.9502, subsection 1, 2 12 and include all applicable information described in section 2 13 554.9516. 2 14 b.The estimated duration of the period when the cattle2 15are subject to feed and care at the custom cattle feedlot.2 16 The lien terminates one year after the cattle have left the 2 17 custom cattle feedlot. Section 554.9515 shall not apply to a 2 18 financing statement perfecting the lien. The lien may be 2 19 terminated by the custom cattle feedlot operator who files a 2 20 termination statement as provided in chapter 554, article 9. 2 21c. The name of the party to the contract whose cattle are2 22subject to feed and care at the custom cattle feedlot.2 23d. The description of the location of the custom cattle2 24feedlot, by county and township.2 25e. The printed name and signature of the person filing the2 26form.2 27 4. Filing a financing statement as provided in this 2 28 section satisfies all requirements for perfection of an 2 29 agricultural lien as provided in chapter 554, article 9. 2 303.5. a. Except as provided inchapter 581this 2 31 paragraph, a custom cattle feedlot liencreatedthat is 2 32 perfected under this sectionuntil preserved and a lien2 33preserved under this sectionis superior to and shall have 2 34 priority over a conflicting lien or security interest in the 2 35 cattle, including a lien or security interest that was 3 1 perfected prior to thecreation of theperfection of the 3 2 custom cattle feedlot lienprovided under this section. 3 3 However, a custom cattle feedlot lien shall not be superior to 3 4 a veterinarian's lien created under chapter 581, that is 3 5 perfected as an agricultural lien as provided in chapter 554, 3 6 article 9. 3 7 b. A custom cattle feedlot lien that is effective but not 3 8 perfected under this section has priority as provided in 3 9 section 554.9322. 3 10 Sec. 4. Section 579A.4, Code 2001, is amended to read as 3 11 follows: 3 12 579A.4 WAIVERS UNENFORCEABLE. 3 13 A waiver of a right created by this chapter, including but 3 14 not limited to, a waiver of the right to file alienfinancing 3 15 statement pursuant to this chapter is void and unenforceable. 3 16 This section does not affect other provisions of a contract, 3 17 including a production contract or a related document, policy, 3 18 or agreement which can be given effect without the voided 3 19 provision. 3 20 Sec. 5. Section 579A.5, Code 2001, is amended to read as 3 21 follows: 3 22 579A.5 ALTERNATE LIEN PROCEDURE. 3 23 A person who is a custom cattle feedlot operator may file a 3 24 financing statement and enforce a lien as a contract producer 3 25 under this chapter or chapter 579B, but not both. 3 26 DIVISION II 3 27 COMMODITY PRODUCTION CONTRACT LIEN 3 28 Sec. 6. Section 579B.1, Code 2001, is amended by adding 3 29 the following new subsection: 3 30 NEW SUBSECTION. 8A. "Lien" means a commodity production 3 31 contract lien created in section 579B.3. 3 32 Sec. 7. Section 579B.1, subsection 11, Code 2001, is 3 33 amended to read as follows: 3 34 11. "Personal representative" means a person who is 3 35 authorized by a contract producer to act on behalf of the 4 1 contract producer, including by executing an agreement, 4 2 managing a contract operation, or filing a financing statement 4 3 perfecting a lien, and enforcing a lien as provided in this 4 4 chapter. 4 5 Sec. 8. Section 579B.3, unnumbered paragraph 1, Code 2001, 4 6 is amended to read as follows: 4 7 0A. A commodity production contract lien is created. The 4 8 lien is an agricultural lien as provided in section 554.9302. 4 9 0B. A contract producer who is a party to a production 4 10 contract executed pursuant to section 579B.2 shall have a lien 4 11 as provided in this section. The contract producer is a 4 12 secured party and the owner of the commodity is a debtor for 4 13 purposes of chapter 554, article 9. The amount of the lien 4 14 shall be the amount owed to the contract producer pursuant to 4 15 the terms of the production contract, which may be enforced as 4 16 provided in section 579B.5. 4 17 Sec. 9. Section 579B.3, subsection 1, paragraph b, Code 4 18 2001, is amended by striking the paragraph. 4 19 Sec. 10. Section 579B.3, subsection 2, paragraph b, Code 4 20 2001, is amended by striking the paragraph. 4 21 Sec. 11. Section 579B.4, Code 2001, is amended to read as 4 22 follows: 4 23 579B.4PRESERVINGPERFECTING THE LIEN – FILING 4 24 REQUIREMENTS. 4 25 1.In order to preserve a lien created pursuant to section4 26579B.3, a contract producer must file in the office of the4 27secretary of state a lien statement on a form prescribed by4 28the secretary of state.A commodity production contract lien 4 29 becomes effective and is perfected as follows: 4 30 a.If theFor a lienarisesarising out of producing 4 31 livestock or raw milk, the lien becomes effective thecontract4 32producer must file the lien within forty-five days after the4 33 day that the livestock first arrives at the contract livestock 4 34 facility. In order to perfect the lien, the contract producer 4 35 must file a financing statement in the office of the secretary 5 1 of state provided in section 554.9308 within forty-five days 5 2 after the livestock's arrival. The lien terminates one year 5 3 after the livestock is no longer under the authority of the 5 4 contract producer. For purposes of this section, livestock is 5 5 no longer under the authority of the contract producer when 5 6 the livestock leaves the contract livestock facility. Section 5 7 554.9515 shall not apply to a financing statement perfecting 5 8 the lien. The lien may be terminated by the contract producer 5 9 who files a termination statement as provided in chapter 554, 5 10 article 9. 5 11 b.If theFor a lienarisesarising out of producing a 5 12 crop,the contract producer must file the lien within forty-5 13five days afterthe lien becomes effective the day that the 5 14 crop is first planted. In order to perfect the lien, the 5 15 contract producer must file a financing statement in the 5 16 office of the secretary of state as provided in section 5 17 554.9308 within forty-five days after the crop is first 5 18 planted.The secretary of state shall charge a fee of not5 19more than ten dollars for filing the statement. The secretary5 20of state may adopt rules pursuant to chapter 17A for the5 21electronic filing of the statements.The lien terminates one 5 22 year after the crop is no longer under the authority of the 5 23 contract producer. For purposes of this section, a crop is no 5 24 longer under the authority of the contract producer when the 5 25 crop or a warehouse receipt issued by a warehouse operator 5 26 licensed under chapter 203C for grain from the crop is no 5 27 longer under the custody or control of the contract producer. 5 28 Section 554.9515 shall not apply to a financing statement 5 29 perfecting the lien. The lien may be terminated by the 5 30 contract producer who files a termination statement as 5 31 provided in chapter 554, article 9. 5 32 2.The statement must include all of the following:The 5 33 financing statement shall meet the requirements of section 5 34 554.9502, subsection 1, and include all applicable information 5 35 described in section 554.9516. 6 1a. An estimate of the amount owed pursuant to the6 2production contract.6 3b. The date when the livestock arrives at the contract6 4livestock facility or the date when the crop was planted.6 5c. The estimated duration of the period when the commodity6 6will be under the authority of the contract producer.6 7d. The name of the party to the production contract whose6 8commodity is produced pursuant to the production contract.6 9e. The description of the location of the contract6 10operation, by county and township.6 11f. The printed name and signature of the person filing the6 12form.6 13 3. Filing a financing statement as provided in this 6 14 section satisfies all requirements for perfection of an 6 15 agricultural lien as provided in chapter 554, article 9. 6 163.4. a. Except as provided inchapter 581this 6 17 paragraph, a commodity production contract liencreatedthat 6 18 is perfected under this section579B.3 and a lien preserved6 19under this section areis superior to and shall have priority 6 20 over a conflicting lien or security interest in the commodity, 6 21 including a lien or security interest that was perfected prior 6 22 to thecreationperfection of the commodity production 6 23 contract lien under this chapter. However, a commodity 6 24 production contract lien shall not be superior to a 6 25 veterinarian's lien created under chapter 581 that is 6 26 perfected as an agricultural lien. 6 27 b. A commodity production contract lien that is effective 6 28 but not perfected under this section has priority as provided 6 29 in section 554.9322. 6 30 EXPLANATION 6 31 In 1999, the general assembly enacted House File 322 (1999 6 32 Iowa Acts, chapter 169) that regulated the relationship 6 33 between an agricultural producer (contract producer) and the 6 34 owner of a commodity (contractor) in which the producer 6 35 produced a commodity under contract. In part, the Act created 7 1 Code chapter 579B providing for a lien upon commodities 7 2 produced at a contractor producer's contract operation in 7 3 favor of the contract producer. The chapter was based on Code 7 4 chapter 579A which allows a custom cattle feedlot operator to 7 5 file a lien on cattle produced at a custom cattle feedlot. 7 6 Under both chapters the contract producer or custom cattle 7 7 feedlot operator must file a lien statement with the secretary 7 8 of state. The lien becomes effective prior to filing. 7 9 Generally a lien created under these chapters is superior to 7 10 and has priority over conflicting liens or security interests. 7 11 In 2000, the general assembly enacted House File 2513 (2000 7 12 Iowa Acts, chapter 1149) adopting revised article 9 of the 7 13 uniform commercial code (Code chapter 554) as proposed by the 7 14 American law institute and the national conference of 7 15 commissioners on uniform state laws, and conforming amendments 7 16 to a number of articles within that chapter as well as other 7 17 chapters providing for security interests and liens. This Act 7 18 goes into effect on July 1, 2001. 7 19 With limited exceptions, new article 9 governs the 7 20 creation, priority, and enforcement of creditors' consensual 7 21 liens, which are defined as security interests in personal 7 22 property and fixtures. Revised article 9, like its 7 23 predecessor, provides generally for the effectiveness of 7 24 security agreements and the rights and duties of creditors 7 25 (i.e., secured parties), including parties having possession 7 26 and control of collateral. Much of revised article 9 provides 7 27 for perfecting a security interest, usually accomplished by 7 28 filing a financing statement. The article provides for the 7 29 contents of financing statements and the location where such 7 30 financing statements must be filed (e.g., with the secretary 7 31 of state). In perfecting a security interest, a debtor is 7 32 generally assured rights in the collateral superior to a 7 33 security interest perfected later in time. 7 34 Prior to the revision of article 9, liens created in 7 35 statutes outside Code chapter 554 were not affected by its 8 1 provisions. These liens include types of agricultural liens 8 2 such as those created in Code chapters 579A and 579B. Revised 8 3 article 9 provides filing requirements for perfecting 8 4 agricultural liens and therefore may control issues relating 8 5 to priority of conflicting security interests and liens. 8 6 The bill amends both Code chapters 579A and 579B by 8 7 eliminating requirements for filing that are inconsistent with 8 8 the requirements contained in revised article 9. The bill 8 9 expressly states that the two types of liens are agricultural 8 10 liens, replaces references to lien statements to financing 8 11 statements, and provides for their super-priority status over 8 12 other security interests and liens with the exception of 8 13 veterinarian liens to the extent that these liens also have 8 14 been perfected as agricultural liens under revised article 9. 8 15 The bill provides for the priority of competing liens 8 16 perfected as required under revised article 9, or effective 8 17 but not perfected under the article by following the first-in- 8 18 time rule adopted under the uniform commercial code. 8 19 LSB 2377HH 79 8 20 da/pj/5.1
Text: HF00376 Text: HF00378 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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