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Senate File 2096

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 PARAGRAPH.  c.  An agricultural lien perfected as
  1 19 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.  In order to perfect a The landlord's lien in farm
  1 32 products as defined in section 554.9102, which is created
  1 33 under this section, a is an agricultural lien as provided in
  1 34 section 554.9302.  In order to perfect the agricultural lien,
  1 35 the landlord must file a financing statement as required by
  2  1 section 554.9308, subsection 2.  Except as provided in
  2  2 chapters 571, 572, 579A, 579B, and 581, a perfected lien in
  2  3 the farm products has is superior to and shall have priority
  2  4 over a conflicting security interest or lien in the farm
  2  5 products, including a security interest or lien that was
  2  6 perfected prior to the creation of the lien under this
  2  7 section, if the lien created in this section is perfected on
  2  8 either of the following dates:
  2  9    a.  Prior to July 1, 2001.
  2 10    b.  When the debtor takes possession of the leased premises
  2 11 or within twenty days after the debtor takes possession of the
  2 12 leased premises.
  2 13    3.  A financing statement filed to perfect a lien in the
  2 14 farm products must include a statement that it is filed for
  2 15 the purpose of perfecting a landlord's lien.
  2 16    4.  a.  A lien that is perfected in farm products as
  2 17 provided in this section is extinguished one year from the
  2 18 date that year's rent falls due under the lease, or one year
  2 19 from the date that the rent for a shorter period falls due
  2 20 under the lease.  However, a lien that is perfected in farm
  2 21 products shall continue as if the landlord had filed a
  2 22 continuation statement pursuant to section 554.9515, if the
  2 23 lease is renewed and the parties to the lease and leased
  2 24 premises are the same.
  2 25    b.  Within twenty days after a landlord who has filed a
  2 26 financing statement receives a written demand, authenticated
  2 27 as provided in article 9 of chapter 554, from a tenant, the
  2 28 landlord shall file a termination statement, if the lien in
  2 29 the farm products has expired or if the tenant is no longer in
  2 30 possession of the leased premises and has performed all
  2 31 obligations under the lease.
  2 32    Sec. 6.  Section 570.2, Code 2001, is repealed.  
  2 33                           EXPLANATION
  2 34    This bill amends provisions in Code chapter 554 (article 9
  2 35 of the revised uniform commercial code) and Code chapter 570
  3  1 providing for landlord's liens.  The purpose of Code chapter
  3  2 570 is to protect the credit interests of landlords who lease
  3  3 their premises to farmers, by providing landlords a lien for
  3  4 the rent upon crops grown on the leased and other personal
  3  5 property of the tenant.
  3  6    In 2000, the general assembly enacted House File 2513 (2000
  3  7 Iowa Acts, chapter 1149) adopting revised article 9 of the
  3  8 uniform commercial code as proposed by the American law
  3  9 institute and the national conference of commissioners on
  3 10 uniform state laws, and conforming amendments to a number of
  3 11 articles within that chapter as well as other chapters
  3 12 providing for security interests and liens, including Code
  3 13 chapter 570.
  3 14    With limited exceptions, revised article 9 governs the
  3 15 creation, priority, and enforcement of creditors' consensual
  3 16 liens, which are defined as security interests in personal
  3 17 property and fixtures.  Revised article 9, like its
  3 18 predecessor, provides generally for the effectiveness of
  3 19 security agreements and the rights and duties of creditors
  3 20 (i.e., secured parties), including parties having possession
  3 21 and control of collateral.  Much of revised article 9 provides
  3 22 for perfecting a security interest, usually accomplished by
  3 23 filing a financing statement.  The revised article provides
  3 24 for the contents of financing statements and the location
  3 25 where such financing statements must be filed (e.g., with the
  3 26 secretary of state).  In perfecting a security interest, a
  3 27 debtor is generally assured rights in the collateral superior
  3 28 to a security interest perfected later in time.
  3 29    Prior to the revision of article 9, liens created in
  3 30 statutes outside Code chapter 554 were not affected by its
  3 31 provisions.  These liens include types of statutory liens such
  3 32 as the landlord's lien created in Code chapter 570.  Revised
  3 33 article 9 provides filing requirements for perfecting
  3 34 statutory liens referred to as "agricultural liens" and
  3 35 therefore may control issues relating to priority of
  4  1 conflicting security interests and liens.  Code chapter 570
  4  2 was amended to require a landlord to file a financing
  4  3 statement in order to perfect a lien in farm products (crops).
  4  4 The amendment to Code chapter 570 provided for the contents of
  4  5 the financing statement, and provided that if perfected it
  4  6 would enjoy priority over conflicting security interests or
  4  7 liens even if they were perfected earlier.  The amendments
  4  8 made exceptions for other super-priority liens created in
  4  9 other statutes, including Code chapters 571 (thresher's or
  4 10 cornsheller's lien), 572 (mechanic's lien), 579A (custom
  4 11 cattle feedlot lien), 579B (commodity production contract
  4 12 lien), and 581 (veterinarian's lien).
  4 13    The bill expressly amends provisions in both Code chapters
  4 14 554 and 570 to provide that a landlord's lien in farm products
  4 15 as created in Code section 570.1 is an agricultural lien.  It
  4 16 amends provisions in Code chapter 554 referring to security
  4 17 interests and agricultural liens by specifically referencing
  4 18 super-priority liens such as the landlord's lien.
  4 19    For purposes of readability, the bill moves and rewords
  4 20 provisions from Code section 570.2 that provides that the
  4 21 landlord's lien is extinguished one year from the date that a
  4 22 year's rent falls due under the lease, or one year from the
  4 23 date that the rent for a shorter period falls due under the
  4 24 lease (but must terminate six months after the date that the
  4 25 term of the lease expires).  The bill then repeals Code
  4 26 section 570.2.
  4 27    The bill provides that a lien that is perfected in farm
  4 28 products continues as if the landlord had filed a continuation
  4 29 statement pursuant to Code section 554.9515, if the lease is
  4 30 renewed and the parties to the lease and leased premises are
  4 31 the same.
  4 32    The bill keeps provisions from the 2000 amendments that
  4 33 maintain the super-priority status of the landlord's lien with
  4 34 the limited exceptions for the other super-priority liens that
  4 35 are perfected in accordance with the revised article 9 or
  5  1 their respective chapters.  
  5  2 LSB 5795SS 79
  5  3 da/cls/14
     

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