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House File 2149

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 554.9109, subsection 4, paragraph a,
  1  2 Code Supplement 2001, is amended to read as follows:
  1  3    a.  a landlord's lien,; other than an agricultural lien,
  1  4 including but not limited to an agricultural lien provided in
  1  5 chapter 570;
  1  6    Sec. 2.  Section 554.9310, subsection 2, paragraphs i and
  1  7 j, Code Supplement 2001, are amended to read as followed:
  1  8    i.  in proceeds which is perfected under section 554.9315;
  1  9 or
  1 10    j.  that is perfected under section 554.9316.; or
  1 11    Sec. 3.  Section 554.9310, subsection 2, Code Supplement
  1 12 2001, is amended by adding the following new paragraph:
  1 13    NEW PARAGRAPH.  k.  that is a landlord's lien which is an
  1 14 agricultural lien effective and perfected as provided in
  1 15 section 570.1.
  1 16    Sec. 4.  Section 554.9317, subsection 1, Code Supplement
  1 17 2001, is amended by adding the following new paragraph:
  1 18    NEW UNNUMBERED PARAGRAPH.  c.  An agricultural lien
  1 19 perfected as provided in chapters 570 and 579A.
  1 20    Sec. 5.  Section 570.1, Code Supplement 2001, is amended to
  1 21 read as follows:
  1 22    570.1  LIEN CREATED – PERFECTION AND PRIORITY –
  1 23 TERMINATION.
  1 24    1.  A landlord's lien is established under this chapter.  A
  1 25 landlord shall have a lien for the rent upon all crops grown
  1 26 upon the landlord's leased premises, and upon any other
  1 27 personal property of the landlord's tenant which has been used
  1 28 or kept thereon on the leased premises during the term and
  1 29 which of the lease, if the crops or other property is not
  1 30 exempt from execution.
  1 31    2.  The landlord's lien is created when the term of the
  1 32 lease commences and is extinguished one year from the date
  1 33 that a year's rent falls due under the lease, or one year from
  1 34 the date that the rent for a shorter period falls due under
  1 35 the lease.  However, the landlord's lien shall not continue
  2  1 for more than six months after the date that term of the lease
  2  2 expires.
  2  3    3.  In order to perfect a lien The landlord's lien in farm
  2  4 products as defined in section 554.9102, which is created
  2  5 under this section, a landlord must file a financing statement
  2  6 as required by section 554.9308, subsection 2 is an
  2  7 agricultural lien as provided in section 554.9302.  Except as
  2  8 provided in chapters this subsection, the agricultural lien
  2  9 that is perfected under this section is superior to and shall
  2 10 have priority over a conflicting lien or security interest in
  2 11 the farm products, including a lien or security interest that
  2 12 was perfected prior to the creation of the landlord's lease.
  2 13 However, the agricultural lien shall not be superior to a lien
  2 14 created in chapter 571, 572, 579A, 579B, and or 581, a
  2 15 perfected lien in the farm products has priority over a
  2 16 conflicting security interest or lien, including a security
  2 17 interest or lien that was perfected prior to the creation of
  2 18 the lien under this section, if the lien created in this
  2 19 section is perfected on either of the following dates: that is
  2 20 perfected as required in section 554.9310.
  2 21    a.  Prior to July 1, 2001.
  2 22    b.  When the debtor takes possession of the leased premises
  2 23 or within twenty days after the debtor takes possession of the
  2 24 leased premises.
  2 25    A financing statement filed to perfect a lien in the farm
  2 26 products must include a statement that it is filed for the
  2 27 purpose of perfecting a landlord's lien.  Within twenty days
  2 28 after a landlord who has filed a financing statement receives
  2 29 a written demand, authenticated as provided in article 9 of
  2 30 chapter 554, from a tenant, the landlord shall file a
  2 31 termination statement, if the lien in the farm products has
  2 32 expired or if the tenant is no longer in possession of the
  2 33 leased premises and has performed all obligations under the
  2 34 lease.
  2 35    Sec. 6.  Section 570.2, Code 2001, is repealed.  
  3  1                           EXPLANATION
  3  2    This bill amends provisions in Code chapter 554 (article 9
  3  3 of the revised uniform commercial code) and Code chapter 570
  3  4 providing for landlord's liens.  The purpose of Code chapter
  3  5 570 is to protect the credit interests of landlords who lease
  3  6 their premises to farmers, by providing landlords a lien for
  3  7 the rent upon crops grown on the leased and other personal
  3  8 property of the tenant.
  3  9    In 2000, the general assembly enacted House File 2513 (2000
  3 10 Iowa Acts, chapter 1149) adopting revised article 9 of the
  3 11 uniform commercial code as proposed by the American law
  3 12 institute and the national conference of commissioners on
  3 13 uniform state laws, and conforming amendments to a number of
  3 14 articles within that chapter as well as other chapters
  3 15 providing for security interests and liens, including Code
  3 16 chapter 570.
  3 17    With limited exceptions, revised article 9 governs the
  3 18 creation, priority, and enforcement of creditors' consensual
  3 19 liens, which are defined as security interests in personal
  3 20 property and fixtures.  Revised article 9, like its
  3 21 predecessor, provides generally for the effectiveness of
  3 22 security agreements and the rights and duties of creditors
  3 23 (i.e., secured parties), including parties having possession
  3 24 and control of collateral.  Much of revised article 9 provides
  3 25 for perfecting a security interest, usually accomplished by
  3 26 filing a financing statement.  The revised article provides
  3 27 for the contents of financing statements and the location
  3 28 where such financing statements must be filed (e.g., with the
  3 29 secretary of state).  In perfecting a security interest, a
  3 30 debtor is generally assured rights in the collateral superior
  3 31 to a security interest perfected later in time.
  3 32    Prior to the revision of article 9, liens created in
  3 33 statutes outside Code chapter 554 were not affected by its
  3 34 provisions.  These liens include types of statutory liens such
  3 35 as the landlord's lien created in Code chapter 570.  Revised
  4  1 article 9 provides filing requirements for perfecting
  4  2 statutory liens referred to as "agricultural liens" and
  4  3 therefore may control issues relating to priority of
  4  4 conflicting security interests and liens.  Code chapter 570
  4  5 was amended to require a landlord to file a financing
  4  6 statement in order to perfect a lien in farm products (crops).
  4  7 The amendment to Code chapter 570 provided for the contents of
  4  8 the financing statement, and provided that if perfected it
  4  9 would enjoy priority over conflicting security interests or
  4 10 liens even if they were perfected earlier.  The amendments
  4 11 made exceptions for other super-priority liens created in
  4 12 other statutes, including Code chapters 571 (thresher's or
  4 13 cornsheller's lien), 572 (mechanic's lien), 579A (custom
  4 14 cattle feedlot lien), 579B (commodity production contract
  4 15 lien), and 581 (veterinarian's lien).
  4 16    The bill expressly amends provisions in both Code chapters
  4 17 554 and 570 to provide that a landlord's lien in farm products
  4 18 as created in Code section 570.1 is an agricultural lien.  It
  4 19 amends provisions in Code chapter 554 referring to security
  4 20 interests and agricultural liens by specifically referencing
  4 21 super-priority liens such as the landlord's lien.  The bill
  4 22 eliminates the filing requirement by landlords required to
  4 23 perfect their interest.  The bill provides that the landlord's
  4 24 lien is created when the term of the lease commences.  For
  4 25 purposes of readability, the bill moves and rewords provisions
  4 26 from Code section 570.2 that provides that the landlord's lien
  4 27 is extinguished one year from the date that a year's rent
  4 28 falls due under the lease, or one year from the date that the
  4 29 rent for a shorter period falls due under the lease (but must
  4 30 terminate six months after the date that term of the lease
  4 31 expires).  The bill then repeals Code section 570.2.  The bill
  4 32 keeps provisions from the 2000 amendments that maintain the
  4 33 super-priority status of the landlord's lien with the limited
  4 34 exceptions for the other super-priority liens that are
  4 35 perfected in accordance with the revised article 9 or their
  5  1 respective chapters.  
  5  2 LSB 5105HH 79
  5  3 da/cls/14
     

Text: HF02148                           Text: HF02150
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Bills and Amendments: General Index     Bill History: General Index

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