Senate
Study
Bill
1067
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
AGRICULTURE
BILL
BY
CHAIRPERSON
ZUMBACH)
A
BILL
FOR
An
Act
increasing
the
time
period
within
which
a
financing
1
statement
may
be
filed
to
perfect
a
custom
cattle
feedlot
2
lien.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
579A.2,
subsection
3,
unnumbered
1
paragraph
1,
Code
2017,
is
amended
to
read
as
follows:
2
A
custom
cattle
feedlot
lien
becomes
effective
at
the
time
3
the
cattle
arrive
at
the
custom
cattle
feedlot.
In
order
to
4
perfect
the
lien,
the
custom
cattle
feedlot
operator
must
file
5
a
financing
statement
in
the
office
of
the
secretary
of
state
6
as
provided
in
section
554.9308
within
twenty
sixty
days
after
7
the
cattle
arrive
at
the
custom
cattle
feedlot.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
GENERAL.
This
bill
extends
the
time
period
from
20
to
60
12
days
within
which
the
owner
of
a
custom
cattle
feedlot
or
the
13
owner’s
personal
representative
may
file
a
financing
statement
14
under
article
9
of
Code
chapter
554,
the
uniform
commercial
15
code
(UCC),
to
perfect
an
agricultural
lien
attaching
to
the
16
cattle
and
identifiable
cash
proceeds
from
the
sale
of
the
17
cattle
for
the
amount
incurred
in
feeding
and
caring
for
the
18
cattle
as
specified
in
a
contract
between
the
owner
of
the
19
feedlot
and
the
owner
of
the
cattle.
20
BACKGROUND.
Article
9
of
the
UCC
provides
for
the
rights
and
21
duties
of
a
creditor
and
debtor
regarding
the
debtor’s
personal
22
property
used
to
collateralize
a
debt,
including
prioritizing
23
the
status
of
different
creditors
exercising
rights
to
the
same
24
collateral.
In
order
to
obtain
such
status,
a
creditor
must
25
file
a
financing
statement
(UCC-1)
with
the
secretary
of
state
26
and
thereby
perfect
the
creditor’s
security
interest.
The
UCC
27
also
recognizes
a
number
of
agricultural
liens
existing
in
28
Code
chapters
outside
the
article,
including
the
custom
cattle
29
feedlot
lien
(Code
chapter
579A),
subject
to
the
same
filing
30
requirements.
For
each
type
of
agricultural
lien,
the
creditor
31
has
a
unique
time
period
within
which
to
file
a
financing
32
statement.
Once
the
financing
statement
is
timely
filed
and
33
the
lien
is
thereby
perfected,
the
creditor’s
priority
is
based
34
on
the
type
of
agricultural
lien
attaching
to
the
collateral
35
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rather
than
the
date
of
filing
the
financing
statement
as
1
ordinarily
required
in
article
9.
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