Senate File 379
SENATE FILE
BY COMMITTEE ON JUDICIARY
(SUCCESSOR TO SSB 1158)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to certain agricultural liens.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 DIVISION I
1 2 AGRICULTURAL SUPPLY DEALERS LIEN
1 3 Section 1. Section 570A.1, Code 2003, is amended by adding
1 4 the following new subsections:
1 5 NEW SUBSECTION. 2A. "Agricultural supply" means an
1 6 agricultural chemical, seed, feed, or a petroleum product that
1 7 is used for an agricultural purpose.
1 8 NEW SUBSECTION. 3A. "Agricultural supply dealer lien" or
1 9 "lien" means the agricultural supply dealer lien created in
1 10 section 570A.3.
1 11 Sec. 2. Section 570A.1, subsections 3, 4, 11, and 12, Code
1 12 2003, are amended to read as follows:
1 13 3. "Agricultural supply dealer" or "dealer" means a person
1 14 engaged in the retail sale of agricultural chemicals, seed,
1 15 feed, or petroleum products used for an agricultural purpose.
1 16 4. "Certified request" means a request delivered by
1 17 certified mail or registered or certified mail, or a request
1 18 delivered in person if in writing and signed and dated by the
1 19 respective parties, or in the manner provided by the Iowa
1 20 rules of civil procedure for the personal service of original
1 21 notice.
1 22 11. "Livestock" means cattle, sheep, swine, an animal
1 23 belonging to the bovine, caprine, equine, ovine, or porcine
1 24 species, ostriches, rheas, emus, poultry, or other animals or
1 25 fowl fish or shellfish.
1 26 12. "Petroleum product" means a motor fuel or special fuel
1 27 which is used in the production of crops and or livestock,
1 28 including but not limited to motor fuel as defined in section
1 29 452A.2.
1 30 Sec. 3. Section 570A.2, subsection 1, Code 2003, is
1 31 amended to read as follows:
1 32 1. Upon the receipt of a certified request of an
1 33 agricultural supply dealer, prior to or upon a sale on a
1 34 credit basis of agricultural chemicals, seed, feed, or
1 35 petroleum products an agricultural supply to a farmer, a
2 1 financial institution which has either a security interest in
2 2 collateral owned by the farmer or an outstanding loan to the
2 3 farmer for an agricultural purpose shall issue within four
2 4 business days a memorandum which states whether or not the
2 5 farmer has a sufficient net worth or line of credit to assure
2 6 payment of the purchase price on the terms of the sale. The
2 7 certified request submitted by the agricultural supply dealer
2 8 shall state the amount of the purchase and the terms of sale
2 9 and shall be accompanied by a waiver of confidentiality signed
2 10 by the farmer, and a fifteen dollar fee. The waiver of
2 11 confidentiality and the certified request may be combined and
2 12 submitted as one document. If the financial institution
2 13 states in its memorandum that the farmer has a sufficient net
2 14 worth or line of credit to assure payment of the purchase
2 15 price, the memorandum is an irrevocable and unconditional
2 16 letter of credit to the benefit of the agricultural supply
2 17 dealer for a period of thirty days following the date on which
2 18 the final payment is due for the amount of the purchase price
2 19 which remains unpaid. If the financial institution does not
2 20 state 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 financial institution shall transmit the relevant
2 23 financial history which it holds on the person. This
2 24 financial history shall remain confidential between the
2 25 financial institution, the agricultural supply dealer, and the
2 26 farmer.
2 27 Sec. 4. Section 570A.3, Code 2003, is amended to read as
2 28 follows:
2 29 570A.3 LIEN CREATED.
2 30 1. An agricultural supply dealer furnishing who provides
2 31 an agricultural chemical, seed, or a petroleum product supply
2 32 to a farmer has a lien shall have an agricultural lien as
2 33 provided in section 554.9102. The agricultural supply dealer
2 34 is a secured party and the farmer is a debtor for purposes of
2 35 chapter 554, article 9. The amount of the lien shall be the
3 1 amount owed to the agricultural supply dealer for the retail
3 2 cost of the agricultural chemical, seed, or petroleum product
3 3 supply, including labor furnished provided. The lien attaches
3 4 applies to all crops of the following:
3 5 1. Crops which are produced upon the land to which the
3 6 agricultural chemical was applied, or produced from the seed
3 7 furnished provided, or produced using the petroleum product
3 8 furnished, for a period of sixteen months following the date
3 9 of perfection of the lien pursuant to section 570A.4.
3 10 However, the lien does not attach to that portion of the crops
3 11 of a farmer who has paid all amounts due from the farmer for
3 12 the retail cost, including labor, of provided. The lien shall
3 13 not apply to any crops so produced upon the land after four
3 14 hundred ninety days from the date that the farmer purchased
3 15 the agricultural chemical, seed, or petroleum product provided
3 16 supply.
3 17 2. An agricultural supply dealer furnishing feed to a
3 18 farmer has a lien for the unpaid amount of the retail cost of
3 19 the feed, including labor. The lien attaches to all livestock
3 20 Livestock consuming the feed. However, the lien does not
3 21 attach apply to that portion of the livestock of a farmer who
3 22 has paid all amounts due from the farmer for the retail cost,
3 23 including labor, of the feed.
3 24 Sec. 5. Section 570A.4, Code 2003, is amended by striking
3 25 the section and inserting in lieu thereof the following:
3 26 570A.4 PERFECTING THE LIEN == FILING REQUIREMENTS.
3 27 Except as provided in this section, a financing statement
3 28 filed to perfect an agricultural supply dealer lien shall be
3 29 governed by chapter 554, article 9, part 5, in the same manner
3 30 as any other financing statement.
3 31 1. The lien becomes effective at the time that the farmer
3 32 purchases the agricultural supply.
3 33 2. In order to perfect the lien, the agricultural supply
3 34 dealer must file a financing statement in the office of the
3 35 secretary of state as provided in section 554.9308 within
4 1 thirty=one days after the date that the farmer purchases the
4 2 agricultural supply. The financing statement shall meet the
4 3 requirements of section 554.9502, subsection 1, and include
4 4 all applicable information described in section 554.9516.
4 5 Filing a financing statement as provided in this subsection
4 6 satisfies all requirements for perfection of an agricultural
4 7 lien as provided in chapter 554, article 9.
4 8 Sec. 6. Section 570A.5, Code 2003, is amended to read as
4 9 follows:
4 10 570A.5 PRIORITY OF LIEN.
4 11 1. A Except as provided in this section, an agricultural
4 12 supply dealer's lien that is effective or perfected under this
4 13 chapter is superior to a lien or security interest which
4 14 attaches subsequent to the time the lien statement is filed
4 15 with the secretary of state, except liens which arise under
4 16 this chapter or under chapters 570 and 571 as provided in
4 17 section 570A.4 shall be subject to the rules of priority as
4 18 provided in section 554.9322. For an agricultural supply
4 19 dealer's lien that is perfected under section 570A.4, all of
4 20 the following shall apply:
4 21 2. 1. A The lien shall have priority over a lien perfected
4 22 under this chapter is equal to a lien or security interest
4 23 which is of record or which is perfected prior to the time the
4 24 lien statement is filed with the secretary of state except as
4 25 provided in section 570A.2, subsection 3 that applies
4 26 subsequent to the time that the agricultural supply dealer's
4 27 lien is perfected.
4 28 3. 2. A Except as provided in section 570A.2, subsection
4 29 3, the lien perfected under this chapter for the purposes of
4 30 feed will continue to be perfected in the livestock and takes
4 31 shall have equal priority to a lien or security interest which
4 32 is perfected prior to the time that the agricultural supply
4 33 dealer's lien is perfected. However, a landlord's lien that
4 34 is perfected pursuant to section 570.1 shall have priority
4 35 over a conflicting agricultural supply dealer's lien as
5 1 provided in section 570.1, and a harvester's lien that is
5 2 perfected pursuant to section 571.3 shall have priority over a
5 3 conflicting agricultural supply dealer's lien as provided in
5 4 section 571.3A.
5 5 3. A lien in livestock feed shall have priority over an
5 6 earlier perfected lien or security interest to the extent of
5 7 the difference between the acquisition price of the livestock
5 8 and the fair market value of the livestock at the time the
5 9 lien attaches or the sale price of the livestock, whichever is
5 10 greater.
5 11 Sec. 7. Section 570A.6, Code 2003, is amended by striking
5 12 the section and inserting in lieu thereof the following:
5 13 570A.6 ENFORCEMENT OF LIEN.
5 14 An agricultural supply dealer may enforce an agricultural
5 15 supply dealer's lien in the manner provided for agricultural
5 16 liens pursuant to chapter 554, article 9, part 6.
5 17 Sec. 8. Sections 570A.7 through 570A.11, Code 2003, are
5 18 repealed.
5 19 DIVISION II
5 20 HARVESTER'S LIEN
5 21 Sec. 9. NEW SECTION. 571.1A DEFINITIONS.
5 22 As used in this chapter, unless the context otherwise
5 23 requires:
5 24 1. "Crop" includes but is not limited to corn, soybeans,
5 25 hay, straw, and crops produced on trees, vines, or bushes.
5 26 2. "Harvester" means a person who performs harvesting
5 27 services.
5 28 3. "Harvesting services" means baling, chopping,
5 29 combining, cutting, husking, picking, shelling, stacking,
5 30 threshing, or winnowing a crop, regardless of the means or
5 31 method employed.
5 32 4. "Harvester's lien" or "lien" means the harvester's lien
5 33 created in section 571.1B.
5 34 Sec. 10. NEW SECTION. 571.1B LIEN CREATED.
5 35 A harvester shall have an agricultural lien as provided in
6 1 section 554.9102 for the reasonable value of harvesting
6 2 services. The harvester is a secured party and the person for
6 3 whom the harvester renders such harvesting services is a
6 4 debtor for purposes of chapter 554, article 9. The lien
6 5 applies to crops harvested by the harvester.
6 6 Sec. 11. Section 571.3, Code 2003, is amended by striking
6 7 the section and inserting in lieu thereof the following:
6 8 571.3 PERFECTING THE LIEN == FILING REQUIREMENTS.
6 9 Except as provided in this section, a financing statement
6 10 filed to perfect a harvester's lien shall be governed by
6 11 chapter 554, article 9, part 5, in the same manner as any
6 12 other financing statement.
6 13 1. The lien becomes effective at the time that the
6 14 harvesting services provided under section 571.1B are
6 15 rendered.
6 16 2. In order to perfect the lien, the harvester must file a
6 17 financing statement in the office of the secretary of state as
6 18 provided in section 554.9308 within ten days after the last
6 19 date that the harvesting services were rendered. The
6 20 financing statement shall meet the requirements of section
6 21 554.9502, subsection 1, and include all applicable information
6 22 described in section 554.9516. Filing a financing statement
6 23 as provided in this subsection satisfies all requirements for
6 24 perfection of an agricultural lien as provided in chapter 554,
6 25 article 9.
6 26 Sec. 12. NEW SECTION. 571.3A PRIORITY OF LIEN.
6 27 Except as provided in this section, section 554.9322 shall
6 28 govern the priority of a harvester's lien that is effective or
6 29 perfected as provided in section 571.3.
6 30 1. A harvester's lien that is effective but not perfected
6 31 under section 571.3 shall have priority as provided in section
6 32 554.9322.
6 33 2. A harvester's lien that is perfected under section
6 34 571.3 shall have priority over a conflicting security interest
6 35 in harvested crops regardless of when such security interest
7 1 is perfected. A perfected harvester's lien shall have
7 2 priority over a conflicting landlord's lien as provided in
7 3 chapter 570, regardless of when such landlord's lien is
7 4 perfected.
7 5 Sec. 13. Section 571.5, Code 2003, is amended to read as
7 6 follows:
7 7 571.5 ENFORCEMENT OF LIEN.
7 8 A harvester may enforce a harvester's lien as provided in
7 9 this chapter may be enforced in the manner provided for
7 10 agricultural liens pursuant to the uniform commercial code,
7 11 chapter 554, article 9, part 6.
7 12 Sec. 14. Sections 571.1, 571.2, 571.4, and 571.6, Code
7 13 2003, are repealed.
7 14 DIVISION III
7 15 VETERINARIAN'S LIEN
7 16 Sec. 15. NEW SECTION. 581.1A DEFINITIONS.
7 17 As used in this chapter, unless the context otherwise
7 18 requires:
7 19 1. "Livestock" means an animal belonging to the bovine,
7 20 caprine, equine, ovine, or porcine species, ostriches, rheas,
7 21 emus, poultry, or fish or shellfish.
7 22 2. "Veterinarian" means a person who practices veterinary
7 23 medicine under a valid license or temporary permit as provided
7 24 in chapter 169.
7 25 3. "Veterinarian's lien" or "lien" means a veterinarian's
7 26 lien created under section 581.2A.
7 27 Sec. 16. Section 581.2, Code 2003, is amended by striking
7 28 the section and inserting in lieu thereof the following:
7 29 581.2 PRIORITY.
7 30 Except as provided in this section, section 554.9322 shall
7 31 govern the priority of a veterinarian's lien that is effective
7 32 or perfected as provided in section 581.3.
7 33 1. A veterinarian's lien that is effective but not
7 34 perfected under section 581.3 shall have priority as provided
7 35 in section 554.9322.
8 1 2. A veterinarian's lien that is perfected under section
8 2 581.3 shall have priority over any conflicting security
8 3 interest or lien in livestock treated by a veterinarian,
8 4 regardless of when such security interest or lien is
8 5 perfected.
8 6 Sec. 17. NEW SECTION. 581.2A LIEN CREATED.
8 7 A veterinarian shall have an agricultural lien as provided
8 8 in section 554.9102 for the actual and reasonable value of
8 9 treating livestock, including the cost of any product used and
8 10 the actual and reasonable value of any professional service
8 11 rendered by the veterinarian. The veterinarian is a secured
8 12 party and the owner of the livestock is a debtor for purposes
8 13 of chapter 554, article 9. The lien applies to the livestock
8 14 treated by the veterinarian.
8 15 Sec. 18. Section 581.3, Code 2003, is amended by striking
8 16 the section and inserting in lieu thereof the following:
8 17 581.3 PERFECTING THE LIEN == FILING REQUIREMENTS.
8 18 Except as provided in this section, a financing statement
8 19 filed to perfect a veterinarian's lien shall be governed by
8 20 chapter 554, article 9, part 5, in the same manner as any
8 21 other financing statement.
8 22 1. The lien becomes effective at the time that the
8 23 veterinarian treats the livestock.
8 24 2. In order to perfect the lien, the veterinarian must
8 25 file a financing statement in the office of the secretary of
8 26 state as provided in section 554.9308 within sixty days after
8 27 the day that the veterinarian treats the livestock. The
8 28 financing statement shall meet the requirements of section
8 29 554.9502, subsection 1, and include all applicable information
8 30 described in section 554.9516. Filing a financing statement
8 31 as provided in this subsection satisfies all requirements for
8 32 perfection of an agricultural lien as provided in chapter 554,
8 33 article 9.
8 34 Sec. 19. Section 581.4, Code 2003, is amended to read as
8 35 follows:
9 1 581.4 ENFORCEMENT.
9 2 The lienholder A veterinarian may enforce the a
9 3 veterinarian's lien by a suit in equity in the manner provided
9 4 for agricultural liens pursuant to the uniform commercial
9 5 code, chapter 554, article 9, part 6.
9 6 Sec. 20. Section 602.8102, subsection 82, Code 2003, is
9 7 amended to read as follows:
9 8 82. Carry out duties relating to liens as provided in
9 9 chapters 249A, 570, 571, 572, 574, 580, 581, 582, and 584.
9 10 Sec. 21. Section 581.1, Code 2003, is repealed.
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