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Senate File 379

Partial Bill History

Bill Text

PAG LIN
  1  1                                              SENATE FILE 379
  1  2  
  1  3                             AN ACT
  1  4 RELATING TO CERTAIN AGRICULTURAL LIENS.  
  1  5 
  1  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  7 
  1  8                           DIVISION I
  1  9                AGRICULTURAL SUPPLY DEALERS LIEN
  1 10    Section 1.  Section 570A.1, Code 2003, is amended by adding
  1 11 the following new subsections:
  1 12    NEW SUBSECTION.  2A.  "Agricultural supply" means an
  1 13 agricultural chemical, seed, feed, or a petroleum product that
  1 14 is used for an agricultural purpose.
  1 15    NEW SUBSECTION.  3A.  "Agricultural supply dealer lien" or
  1 16 "lien" means the agricultural supply dealer lien created in
  1 17 section 570A.3.
  1 18    Sec. 2.  Section 570A.1, subsections 3, 4, 11, and 12, Code
  1 19 2003, are amended to read as follows:
  1 20    3.  "Agricultural supply dealer" or "dealer" means a person
  1 21 engaged in the retail sale of agricultural chemicals, seed,
  1 22 feed, or petroleum products used for an agricultural purpose.
  1 23    4.  "Certified request" means a request delivered by
  1 24 certified mail or registered or certified mail, or a request
  1 25 delivered in person if in writing and signed and dated by the
  1 26 respective parties, or in the manner provided by the Iowa
  1 27 rules of civil procedure for the personal service of original
  1 28 notice.
  1 29    11.  "Livestock" means cattle, sheep, swine, an animal
  1 30 belonging to the bovine, caprine, equine, ovine, or porcine
  1 31 species, ostriches, rheas, emus, poultry, or other animals or
  1 32 fowl fish or shellfish.
  1 33    12.  "Petroleum product" means a motor fuel or special fuel
  1 34 which is used in the production of crops and or livestock,
  1 35 including but not limited to motor fuel as defined in section
  2  1 452A.2.
  2  2    Sec. 3.  Section 570A.2, subsection 1, Code 2003, is
  2  3 amended to read as follows:
  2  4    1.  Upon the receipt of a certified request of an
  2  5 agricultural supply dealer, prior to or upon a sale on a
  2  6 credit basis of agricultural chemicals, seed, feed, or
  2  7 petroleum products an agricultural supply to a farmer, a
  2  8 financial institution which has either a security interest in
  2  9 collateral owned by the farmer or an outstanding loan to the
  2 10 farmer for an agricultural purpose shall issue within four
  2 11 business days a memorandum which states whether or not the
  2 12 farmer has a sufficient net worth or line of credit to assure
  2 13 payment of the purchase price on the terms of the sale.  The
  2 14 certified request submitted by the agricultural supply dealer
  2 15 shall state the amount of the purchase and the terms of sale
  2 16 and shall be accompanied by a waiver of confidentiality signed
  2 17 by the farmer, and a fifteen dollar fee.  The waiver of
  2 18 confidentiality and the certified request may be combined and
  2 19 submitted as one document.  If the financial institution
  2 20 states in its memorandum that the farmer has a sufficient net
  2 21 worth or line of credit to assure payment of the purchase
  2 22 price, the memorandum is an irrevocable and unconditional
  2 23 letter of credit to the benefit of the agricultural supply
  2 24 dealer for a period of thirty days following the date on which
  2 25 the final payment is due for the amount of the purchase price
  2 26 which remains unpaid.  If the financial institution does not
  2 27 state in its memorandum that the farmer has a sufficient net
  2 28 worth or line of credit to assure payment of the purchase
  2 29 price, the financial institution shall transmit the relevant
  2 30 financial history which it holds on the person.  This
  2 31 financial history shall remain confidential between the
  2 32 financial institution, the agricultural supply dealer, and the
  2 33 farmer.
  2 34    Sec. 4.  Section 570A.3, Code 2003, is amended to read as
  2 35 follows:
  3  1    570A.3  LIEN CREATED.
  3  2    1.  An agricultural supply dealer furnishing who provides
  3  3 an agricultural chemical, seed, or a petroleum product supply
  3  4 to a farmer has a lien shall have an agricultural lien as
  3  5 provided in section 554.9102.  The agricultural supply dealer
  3  6 is a secured party and the farmer is a debtor for purposes of
  3  7 chapter 554, article 9.  The amount of the lien shall be the
  3  8 amount owed to the agricultural supply dealer for the retail
  3  9 cost of the agricultural chemical, seed, or petroleum product
  3 10 supply, including labor furnished provided.  The lien attaches
  3 11 applies to all crops of the following:
  3 12    1.  Crops which are produced upon the land to which the
  3 13 agricultural chemical was applied, or produced from the seed
  3 14 furnished provided, or produced using the petroleum product
  3 15 furnished, for a period of sixteen months following the date
  3 16 of perfection of the lien pursuant to section 570A.4.
  3 17 However, the lien does not attach to that portion of the crops
  3 18 of a farmer who has paid all amounts due from the farmer for
  3 19 the retail cost, including labor, of provided.  The lien shall
  3 20 not apply to any crops so produced upon the land after four
  3 21 hundred ninety days from the date that the farmer purchased
  3 22 the agricultural chemical, seed, or petroleum product provided
  3 23 supply.
  3 24    2.  An agricultural supply dealer furnishing feed to a
  3 25 farmer has a lien for the unpaid amount of the retail cost of
  3 26 the feed, including labor.  The lien attaches to all livestock
  3 27 Livestock consuming the feed.  However, the lien does not
  3 28 attach apply to that portion of the livestock of a farmer who
  3 29 has paid all amounts due from the farmer for the retail cost,
  3 30 including labor, of the feed.
  3 31    Sec. 5.  Section 570A.4, Code 2003, is amended by striking
  3 32 the section and inserting in lieu thereof the following:
  3 33    570A.4  PERFECTING THE LIEN – FILING REQUIREMENTS.
  3 34    Except as provided in this section, a financing statement
  3 35 filed to perfect an agricultural supply dealer lien shall be
  4  1 governed by chapter 554, article 9, part 5, in the same manner
  4  2 as any other financing statement.
  4  3    1.  The lien becomes effective at the time that the farmer
  4  4 purchases the agricultural supply.
  4  5    2.  In order to perfect the lien, the agricultural supply
  4  6 dealer must file a financing statement in the office of the
  4  7 secretary of state as provided in section 554.9308 within
  4  8 thirty-one days after the date that the farmer purchases the
  4  9 agricultural supply.  The financing statement shall meet the
  4 10 requirements of section 554.9502, subsection 1, and include
  4 11 all applicable information described in section 554.9516.
  4 12 Filing a financing statement as provided in this subsection
  4 13 satisfies all requirements for perfection of an agricultural
  4 14 lien as provided in chapter 554, article 9.
  4 15    Sec. 6.  Section 570A.5, Code 2003, is amended to read as
  4 16 follows:
  4 17    570A.5  PRIORITY OF LIEN.
  4 18    1.  A Except as provided in this section, an agricultural
  4 19 supply dealer's lien that is effective or perfected under this
  4 20 chapter is superior to a lien or security interest which
  4 21 attaches subsequent to the time the lien statement is filed
  4 22 with the secretary of state, except liens which arise under
  4 23 this chapter or under chapters 570 and 571 as provided in
  4 24 section 570A.4 shall be subject to the rules of priority as
  4 25 provided in section 554.9322.  For an agricultural supply
  4 26 dealer's lien that is perfected under section 570A.4, all of
  4 27 the following shall apply:
  4 28    2. 1.  A The lien shall have priority over a lien perfected
  4 29 under this chapter is equal to a lien or security interest
  4 30 which is of record or which is perfected prior to the time the
  4 31 lien statement is filed with the secretary of state except as
  4 32 provided in section 570A.2, subsection 3 that applies
  4 33 subsequent to the time that the agricultural supply dealer's
  4 34 lien is perfected.
  4 35    3. 2.  A Except as provided in section 570A.2, subsection
  5  1 3, the lien perfected under this chapter for the purposes of
  5  2 feed will continue to be perfected in the livestock and takes
  5  3 shall have equal priority to a lien or security interest which
  5  4 is perfected prior to the time that the agricultural supply
  5  5 dealer's lien is perfected.  However, a landlord's lien that
  5  6 is perfected pursuant to section 570.1 shall have priority
  5  7 over a conflicting agricultural supply dealer's lien as
  5  8 provided in section 570.1, and a harvester's lien that is
  5  9 perfected pursuant to section 571.3 shall have priority over a
  5 10 conflicting agricultural supply dealer's lien as provided in
  5 11 section 571.3A.
  5 12    3.  A lien in livestock feed shall have priority over an
  5 13 earlier perfected lien or security interest to the extent of
  5 14 the difference between the acquisition price of the livestock
  5 15 and the fair market value of the livestock at the time the
  5 16 lien attaches or the sale price of the livestock, whichever is
  5 17 greater.
  5 18    Sec. 7.  Section 570A.6, Code 2003, is amended by striking
  5 19 the section and inserting in lieu thereof the following:
  5 20    570A.6  ENFORCEMENT OF LIEN.
  5 21    An agricultural supply dealer may enforce an agricultural
  5 22 supply dealer's lien in the manner provided for agricultural
  5 23 liens pursuant to chapter 554, article 9, part 6.
  5 24    Sec. 8.  Sections 570A.7 through 570A.11, Code 2003, are
  5 25 repealed.  
  5 26                           DIVISION II
  5 27                        HARVESTER'S LIEN
  5 28    Sec. 9.  NEW SECTION.  571.1A  DEFINITIONS.
  5 29    As used in this chapter, unless the context otherwise
  5 30 requires:
  5 31    1.  "Crop" includes but is not limited to corn, soybeans,
  5 32 hay, straw, and crops produced on trees, vines, or bushes.
  5 33    2.  "Harvester" means a person who performs harvesting
  5 34 services.
  5 35    3.  "Harvesting services" means baling, chopping,
  6  1 combining, cutting, husking, picking, shelling, stacking,
  6  2 threshing, or winnowing a crop, regardless of the means or
  6  3 method employed.
  6  4    4.  "Harvester's lien" or "lien" means the harvester's lien
  6  5 created in section 571.1B.
  6  6    Sec. 10.  NEW SECTION.  571.1B  LIEN CREATED.
  6  7    A harvester shall have an agricultural lien as provided in
  6  8 section 554.9102 for the reasonable value of harvesting
  6  9 services.  The harvester is a secured party and the person for
  6 10 whom the harvester renders such harvesting services is a
  6 11 debtor for purposes of chapter 554, article 9.  The lien
  6 12 applies to crops harvested by the harvester.
  6 13    Sec. 11.  Section 571.3, Code 2003, is amended by striking
  6 14 the section and inserting in lieu thereof the following:
  6 15    571.3  PERFECTING THE LIEN – FILING REQUIREMENTS.
  6 16    Except as provided in this section, a financing statement
  6 17 filed to perfect a harvester's lien shall be governed by
  6 18 chapter 554, article 9, part 5, in the same manner as any
  6 19 other financing statement.
  6 20    1.  The lien becomes effective at the time that the
  6 21 harvesting services provided under section 571.1B are
  6 22 rendered.
  6 23    2.  In order to perfect the lien, the harvester must file a
  6 24 financing statement in the office of the secretary of state as
  6 25 provided in section 554.9308 within ten days after the last
  6 26 date that the harvesting services were rendered.  The
  6 27 financing statement shall meet the requirements of section
  6 28 554.9502, subsection 1, and include all applicable information
  6 29 described in section 554.9516.  Filing a financing statement
  6 30 as provided in this subsection satisfies all requirements for
  6 31 perfection of an agricultural lien as provided in chapter 554,
  6 32 article 9.
  6 33    Sec. 12.  NEW SECTION.  571.3A  PRIORITY OF LIEN.
  6 34    Except as provided in this section, section 554.9322 shall
  6 35 govern the priority of a harvester's lien that is effective or
  7  1 perfected as provided in section 571.3.
  7  2    1.  A harvester's lien that is effective but not perfected
  7  3 under section 571.3 shall have priority as provided in section
  7  4 554.9322.
  7  5    2.  A harvester's lien that is perfected under section
  7  6 571.3 shall have priority over a conflicting security interest
  7  7 in harvested crops regardless of when such security interest
  7  8 is perfected.  A perfected harvester's lien shall have
  7  9 priority over a conflicting landlord's lien as provided in
  7 10 chapter 570, regardless of when such landlord's lien is
  7 11 perfected.
  7 12    Sec. 13.  Section 571.5, Code 2003, is amended to read as
  7 13 follows:
  7 14    571.5  ENFORCEMENT OF LIEN.
  7 15    A harvester may enforce a harvester's lien as provided in
  7 16 this chapter may be enforced in the manner provided for
  7 17 agricultural liens pursuant to the uniform commercial code,
  7 18 chapter 554, article 9, part 6.
  7 19    Sec. 14.  Sections 571.1, 571.2, 571.4, and 571.6, Code
  7 20 2003, are repealed.  
  7 21                          DIVISION III
  7 22                       VETERINARIAN'S LIEN
  7 23    Sec. 15.  NEW SECTION.  581.1A  DEFINITIONS.
  7 24    As used in this chapter, unless the context otherwise
  7 25 requires:
  7 26    1.  "Livestock" means an animal belonging to the bovine,
  7 27 caprine, equine, ovine, or porcine species, ostriches, rheas,
  7 28 emus, poultry, or fish or shellfish.
  7 29    2.  "Veterinarian" means a person who practices veterinary
  7 30 medicine under a valid license or temporary permit as provided
  7 31 in chapter 169.
  7 32    3.  "Veterinarian's lien" or "lien" means a veterinarian's
  7 33 lien created under section 581.2A.
  7 34    Sec. 16.  Section 581.2, Code 2003, is amended by striking
  7 35 the section and inserting in lieu thereof the following:
  8  1    581.2  PRIORITY.
  8  2    Except as provided in this section, section 554.9322 shall
  8  3 govern the priority of a veterinarian's lien that is effective
  8  4 or perfected as provided in section 581.3.
  8  5    1.  A veterinarian's lien that is effective but not
  8  6 perfected under section 581.3 shall have priority as provided
  8  7 in section 554.9322.
  8  8    2.  A veterinarian's lien that is perfected under section
  8  9 581.3 shall have priority over any conflicting security
  8 10 interest or lien in livestock treated by a veterinarian,
  8 11 regardless of when such security interest or lien is
  8 12 perfected.
  8 13    Sec. 17.  NEW SECTION.  581.2A  LIEN CREATED.
  8 14    A veterinarian shall have an agricultural lien as provided
  8 15 in section 554.9102 for the actual and reasonable value of
  8 16 treating livestock, including the cost of any product used and
  8 17 the actual and reasonable value of any professional service
  8 18 rendered by the veterinarian.  The veterinarian is a secured
  8 19 party and the owner of the livestock is a debtor for purposes
  8 20 of chapter 554, article 9.  The lien applies to the livestock
  8 21 treated by the veterinarian.
  8 22    Sec. 18.  Section 581.3, Code 2003, is amended by striking
  8 23 the section and inserting in lieu thereof the following:
  8 24    581.3  PERFECTING THE LIEN – FILING REQUIREMENTS.
  8 25    Except as provided in this section, a financing statement
  8 26 filed to perfect a veterinarian's lien shall be governed by
  8 27 chapter 554, article 9, part 5, in the same manner as any
  8 28 other financing statement.
  8 29    1.  The lien becomes effective at the time that the
  8 30 veterinarian treats the livestock.
  8 31    2.  In order to perfect the lien, the veterinarian must
  8 32 file a financing statement in the office of the secretary of
  8 33 state as provided in section 554.9308 within sixty days after
  8 34 the day that the veterinarian treats the livestock.  The
  8 35 financing statement shall meet the requirements of section
  9  1 554.9502, subsection 1, and include all applicable information
  9  2 described in section 554.9516.  Filing a financing statement
  9  3 as provided in this subsection satisfies all requirements for
  9  4 perfection of an agricultural lien as provided in chapter 554,
  9  5 article 9.
  9  6    Sec. 19.  Section 581.4, Code 2003, is amended to read as
  9  7 follows:
  9  8    581.4  ENFORCEMENT.
  9  9    The lienholder A veterinarian may enforce the a
  9 10 veterinarian's lien by a suit in equity in the manner provided
  9 11 for agricultural liens pursuant to the uniform commercial
  9 12 code, chapter 554, article 9, part 6.
  9 13    Sec. 20.  Section 602.8102, subsection 82, Code 2003, is
  9 14 amended to read as follows:
  9 15    82.  Carry out duties relating to liens as provided in
  9 16 chapters 249A, 570, 571, 572, 574, 580, 581, 582, and 584.
  9 17    Sec. 21.  Section 581.1, Code 2003, is repealed.  
  9 18 
  9 19 
  9 20                                                             
  9 21                               MARY E. KRAMER
  9 22                               President of the Senate
  9 23 
  9 24 
  9 25                                                             
  9 26                               CHRISTOPHER C. RANTS
  9 27                               Speaker of the House
  9 28 
  9 29    I hereby certify that this bill originated in the Senate and
  9 30 is known as Senate File 379, Eightieth General Assembly.
  9 31 
  9 32 
  9 33                                                             
  9 34                               MICHAEL E. MARSHALL
  9 35                               Secretary of the Senate
 10  1 Approved                , 2003
 10  2 
 10  3 
 10  4                                
 10  5 THOMAS J. VILSACK
 10  6 Governor
     

Text: SF00378                           Text: SF00380
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