H.B. No. 1463
1-1 AN ACT
1-2 relating to a lien in favor of a seller of agricultural chemicals,
1-3 agricultural seeds, or animal feed or of a provider of labor in
1-4 connection with the agricultural chemicals or agricultural seeds;
1-5 providing penalties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Title 5, Agriculture Code, is amended by adding
1-8 Subtitle H to read as follows:
1-9 SUBTITLE H. HORTICULTURAL LIENS
1-10 CHAPTER 128. AGRICULTURAL CHEMICAL AND SEED LIENS
1-11 SUBCHAPTER A. GENERAL PROVISIONS
1-12 Sec. 128.001. DEFINITIONS. In this chapter:
1-13 (1) "Agricultural chemical" includes fertilizer
1-14 material as defined under Section 63.001, pesticides as defined
1-15 under Section 76.001, plant regulators as defined under Section
1-16 76.001, lime, plant and soil amendments, plant food, herbicides,
1-17 and chemical compounds that are applied to crops or to land used
1-18 for growing crops.
1-19 (2) "Agricultural seed" has the meaning assigned under
1-20 Section 61.001.
1-21 (3) "Labor" means labor or services performed in the
1-22 application, delivery, or preparation of an agricultural chemical
1-23 or agricultural seed.
1-24 (4) "Reasonable or agreed charges" means:
2-1 (A) any agreed price for agricultural chemicals,
2-2 agricultural seeds, or labor sold or provided to a lien debtor at
2-3 the lien debtor's request; or
2-4 (B) the reasonable value of agricultural
2-5 chemicals, agricultural seeds, or labor, as of the date of
2-6 application, delivery, or preparation, if there is not an agreed
2-7 price or an agreed method for determining price.
2-8 Sec. 128.002. PROCEEDS. (a) For the purposes of this
2-9 chapter, proceeds are the amounts received by a lien debtor, before
2-10 a deduction for taxes, fees, or assessments or a deduction made
2-11 under a court order, from the sale of:
2-12 (1) the crop that existed at the time of application
2-13 on the land of the agricultural chemical sold by the lien claimant
2-14 or applied, delivered, or prepared by the lien claimant;
2-15 (2) the first crop produced on the land after the
2-16 agricultural chemical sold by the lien claimant or applied,
2-17 delivered, or prepared by the lien claimant was applied, if crops
2-18 did not exist on the land at the time the agricultural chemical was
2-19 applied; or
2-20 (3) the crop produced from the agricultural seed
2-21 supplied by the lien claimant or applied, delivered, or prepared by
2-22 the lien claimant.
2-23 (b) For the purposes of this chapter, the following are not
2-24 included as proceeds:
2-25 (1) amounts due or owing to a cooperative association
2-26 under Chapter 51 or 52; or
2-27 (2) amounts retained by a cooperative association
3-1 under Chapter 51 or 52.
3-2 (Sections 128.003-128.005 reserved for expansion
3-3 SUBCHAPTER B. AGRICULTURAL CHEMICAL AND SEED LIEN
3-4 Sec. 128.006. NOTICE BEFORE PURCHASE; REQUIRED NOTICE BEFORE
3-5 CLAIMING LIEN. (a) A person claiming a lien under this chapter
3-6 must have provided notice of the provisions of this chapter, before
3-7 purchase, either generally to purchasers of agricultural chemicals,
3-8 agricultural seeds, or labor as part of the lien claimant's normal
3-9 business practices or specifically to the lien debtor. Notice
3-10 provided under this subsection must read, to the extent applicable,
3-11 substantially as follows: "The sale of agricultural chemicals or
3-12 agricultural seed on credit and the provision of labor related to
3-13 agricultural chemicals or agricultural seed is subject to Chapter
3-14 128, Agriculture Code. Failure to pay the agreed or reasonable
3-15 charges for the chemicals, seed, or labor may result in the
3-16 attachment of a lien to the proceeds of the agricultural products
3-17 produced with the aid of the chemicals, seed, or labor." A
3-18 potential lien claimant may satisfy the requirements of this
3-19 subsection:
3-20 (1) by printing or stamping the notice on credit
3-21 applications filled out by purchasers; and
3-22 (2) for future purchases by purchasers who are not
3-23 notified on the credit application, by printing or stamping the
3-24 notice on an invoice or on a statement sent by separate cover.
3-25 (b) Before a person may claim a lien under this chapter, the
3-26 person must send to the debtor by certified mail written notice
3-27 that states:
4-1 (1) that the payment of the reasonable or agreed
4-2 charges is more than 30 days overdue;
4-3 (2) the amount that is overdue;
4-4 (3) that the debtor has the following three
4-5 alternatives:
4-6 (A) to allow the lien to be filed;
4-7 (B) to enter into an agreement granting a
4-8 security interest in the proceeds described by Section 128.002
4-9 under the Business & Commerce Code; or
4-10 (C) to pay the reasonable or agreed charges; and
4-11 (4) in at least 10-point type, that:
4-12 (A) the debtor has until the 10th day after the
4-13 date on which the notice is received to select an alternative under
4-14 Subdivision (3), notify the claimant of the alternative selected,
4-15 and satisfy all the requirements of the selected alternative; and
4-16 (B) the claimant may file the notice of claim of
4-17 lien at any time after the 10th day after the date on which the
4-18 debtor receives the notice if the debtor does not comply with the
4-19 requirements of Paragraph (A).
4-20 Sec. 128.007. ATTACHMENT OF LIEN. A lien established under
4-21 this chapter attaches to the proceeds described by Section
4-22 128.002.
4-23 Sec. 128.008. AMOUNT OF LIEN. The amount of a lien under
4-24 this chapter is equal to the sum of:
4-25 (1) the amount of the unpaid reasonable or agreed
4-26 charges for:
4-27 (A) agricultural chemicals, labor, or both, as
5-1 appropriate, furnished within the 60-day period ending on the day
5-2 the lien attaches; and
5-3 (B) agricultural seeds, labor, or both, as
5-4 appropriate, furnished within the 45-day period ending on the day
5-5 the lien attaches; and
5-6 (2) the filing fees for the lien as provided by this
5-7 chapter.
5-8 Sec. 128.009. PERSON ENTITLED TO FILE; EXCEPTION. (a)
5-9 Except as provided by Subsection (b) or by Section 128.047, a
5-10 person who provides an agricultural chemical, agricultural seed, or
5-11 labor may file a notice of claim of lien as provided by this
5-12 chapter.
5-13 (b) A claimant may not file a notice of claim of lien if the
5-14 arbitration of a dispute between the claimant and the debtor is
5-15 pending or has not been resolved under Chapter 64. A claimant may
5-16 not file a notice of claim of lien if the settlement of a dispute
5-17 between the claimant and the debtor is pending or has not been
5-18 resolved under Section 128.012.
5-19 Sec. 128.010. PERFECTION OF LIEN. A lien created under this
5-20 chapter is perfected on the filing of a notice of claim of lien
5-21 with the secretary of state as provided by this chapter.
5-22 Sec. 128.011. DURATION OF NOTICE OF CLAIM OF LIEN. (a)
5-23 Except as otherwise provided by this chapter, the notice of claim
5-24 of lien is effective, and a new notice of claim of lien is not
5-25 required to maintain the lien, as long as the person who provides
5-26 the agricultural chemical, agricultural seed, or labor either:
5-27 (1) remains unpaid for the amount secured by the lien;
6-1 or
6-2 (2) continues to provide an agricultural chemical,
6-3 agricultural seed, or labor on a regular basis to the lien debtor.
6-4 (b) For purposes of this section, providing an agricultural
6-5 chemical, agricultural seed, or labor is not considered to be made
6-6 on a regular basis if a period of more than 45 days elapses between
6-7 applications, deliveries, or preparations.
6-8 Sec. 128.012. PROCEDURES FOR SETTLEMENT OF DISPUTES. (a)
6-9 The commissioner of agriculture by rule shall establish a procedure
6-10 to settle a dispute between a claimant supplying agricultural
6-11 chemicals or labor in the application, delivery, or preparation of
6-12 agricultural chemicals and a debtor. The procedures must provide:
6-13 (1) a time requirement for submitting the dispute to
6-14 the department;
6-15 (2) a time requirement within which a notice of the
6-16 dispute must be submitted to each party; and
6-17 (3) a process for evaluating the dispute.
6-18 (b) Each party to the dispute is equally liable for the
6-19 reasonable costs incurred by the department in carrying out this
6-20 section.
6-21 Sec. 128.013. CONTENTS OF NOTICE OF CLAIM OF LIEN. The
6-22 notice of claim of lien must include:
6-23 (1) the name and address of the lien claimant;
6-24 (2) the name and address of the lien debtor;
6-25 (3) the location of the property to which the
6-26 agricultural chemical, agricultural seed, or labor was provided;
6-27 (4) a statement that the payment of the reasonable or
7-1 agreed charges is more than 30 days overdue;
7-2 (5) the amount that is overdue;
7-3 (6) a statement, signed under penalty of perjury,
7-4 that:
7-5 (A) the lien claimant provided notice of the
7-6 provisions of this chapter, before purchase, either generally to
7-7 purchasers of agricultural chemicals, agricultural seeds, or labor
7-8 as part of the lien claimant's normal business practices or
7-9 specifically to the lien debtor, in the manner required by Section
7-10 128.006(a);
7-11 (B) the lien claimant sent to the lien debtor
7-12 the notice required by Section 128.006(b);
7-13 (C) more than 10 days have elapsed since the
7-14 date on which the notice was received by the lien debtor; and
7-15 (D) the lien debtor has not complied with the
7-16 requirements of an alternative set out by Section 128.006(b); and
7-17 (7) a statement that the lien claimant has an
7-18 agricultural chemical or agricultural seed lien under this chapter.
7-19 Sec. 128.014. SIGNATURE. The notice of claim of lien shall
7-20 be signed by the lien claimant or by a person authorized to sign
7-21 documents of a similar kind on behalf of the claimant.
7-22 Sec. 128.015. FORM. (a) The notice of claim of lien must
7-23 be filed on a form that satisfies the requirements of a financing
7-24 statement under Section 9.402, Business & Commerce Code, except
7-25 that:
7-26 (1) the lien claimant may be identified either as a
7-27 lien claimant or as a secured party;
8-1 (2) the form must be signed by the lien claimant and
8-2 is not required to be signed by the lien debtor; and
8-3 (3) in the space for the description of the
8-4 collateral, the information specified in Sections 128.013(3), (4),
8-5 (5), and (7) must be entered.
8-6 (b) A separately signed statement containing the information
8-7 specified in Section 128.013(6) shall be attached to the form
8-8 required under Subsection (a).
8-9 Sec. 128.016. FILING AND MARKING IN OFFICE OF SECRETARY OF
8-10 STATE; FEE. (a) The notice of claim of lien shall be filed and
8-11 marked in the office of the secretary of state in the same manner
8-12 as a financing statement is filed and marked under Section 9.403,
8-13 Business & Commerce Code.
8-14 (b) The uniform fee for filing and indexing and for stamping
8-15 a copy furnished by the secured party is the same as the fee
8-16 assessed under Section 9.403, Business & Commerce Code.
8-17 Sec. 128.017. TIME OF WRITTEN NOTICE. The lien claimant
8-18 shall provide written notice of the claim of lien to the lien
8-19 debtor not later than the 10th day after the date the notice of
8-20 claim of lien is filed with the office of the secretary of state.
8-21 Sec. 128.018. RECOGNITION OF NOTICE AS FINANCING STATEMENT.
8-22 The secretary of state shall recognize a notice of claim of lien
8-23 under this subchapter as a financing statement under Section 9.402,
8-24 Business & Commerce Code.
8-25 (Sections 128.019-128.025 reserved for expansion
8-26 SUBCHAPTER C. PRIORITY OF LIEN
8-27 Sec. 128.026. TIME OF FILING. (a) A lien created under
9-1 this chapter has the same priority as a security interest perfected
9-2 by the filing of a financing statement on the date the notice of
9-3 claim of lien was filed.
9-4 (b) A lien created under this chapter does not have priority
9-5 over labor claims for wages and salaries for personal services that
9-6 are provided by an employee to a lien debtor in connection with the
9-7 production of agricultural products, the proceeds of which are
9-8 subject to the lien.
9-9 (Sections 128.027-128.030 reserved for expansion
9-10 SUBCHAPTER D. INFORMATION CONCERNING LIEN
9-11 Sec. 128.031. ISSUANCE OF CERTIFICATE TO MEMBER OF PUBLIC;
9-12 FEE. (a) A person may obtain a certificate identifying any lien
9-13 on file and any notice of claim of lien naming a particular debtor
9-14 and stating the date and time of filing of each notice and the
9-15 names and addresses of each lienholder in the certificate.
9-16 (b) The fee for a certificate under Subsection (a) shall be
9-17 established by the secretary of state in an amount necessary to
9-18 cover the cost of administering this section.
9-19 Sec. 128.032. COPIES OF NOTICES OF CLAIM OF LIEN AND OTHER
9-20 NOTICES; FEE. (a) A person may obtain a copy of any notice of
9-21 claim of an agricultural chemical or seed lien filed.
9-22 (b) The fee for a copy of a notice of claim of lien obtained
9-23 under Subsection (a) shall be established by the secretary of
9-24 state in an amount necessary to cover the cost of administering
9-25 this section.
9-26 (Sections 128.033-128.035 reserved for expansion
9-27 SUBCHAPTER E. ENFORCEMENT OF LIEN
10-1 Sec. 128.036. WRITTEN NOTICE TO SECURED CREDITORS BY LIEN
10-2 CLAIMANT. (a) A lien claimant shall provide written notice to any
10-3 secured creditor at least 30 days before the date the lien claimant
10-4 enforces a claim of lien.
10-5 (b) For purposes of this section, "secured creditor" means
10-6 any entity named as a secured party in a financing statement that
10-7 is filed regarding the debtor and that covers:
10-8 (1) a farm product, an account, or a crop subject to
10-9 the lien;
10-10 (2) a crop growing or grown on the land on which the
10-11 agricultural chemical was applied or for which the agricultural
10-12 seed was supplied; or
10-13 (3) the next crop to be grown on that land, if a crop
10-14 is not planted.
10-15 Sec. 128.037. FORECLOSURE IN ACTION TO RECOVER REASONABLE OR
10-16 AGREED CHARGES. The lien claimant may foreclose on a lien under
10-17 this chapter only in an action to recover the reasonable or agreed
10-18 charges.
10-19 Sec. 128.038. TERMINATION STATEMENT. (a) If a lien
10-20 claimant receives payment for the total amount secured by a lien
10-21 under this chapter and the lien claimant has not furnished an
10-22 agricultural chemical, agricultural seed, or labor during the
10-23 45-day period before the date on which payment is received, the
10-24 lien claimant shall file a termination statement with the secretary
10-25 of state and shall send the lien debtor a copy of the statement as
10-26 provided by this section. The statement shall state that the lien
10-27 claimant no longer claims a security interest under the notice of
11-1 claim of lien.
11-2 (b) The notice of claim of lien must be identified in the
11-3 statement under Subsection (a) by the date, names of parties to the
11-4 agreement, and file number of the original lien.
11-5 (c) If the lien claimant does not send the termination
11-6 statement required by this section before the 11th day after the
11-7 date on which the lien claimant received payment, the lien claimant
11-8 is liable to the lien debtor for actual damages suffered by the
11-9 lien debtor as a result of the failure. If the lien claimant acts
11-10 in bad faith in failing to send the statement, the lien claimant is
11-11 liable for an additional penalty of $100.
11-12 (d) The filing officer in the secretary of state's office
11-13 shall mark each termination statement with the date and time of
11-14 filing and shall index the statement under the name of the lien
11-15 debtor and under the file number of the original lien. If the
11-16 filing officer has a microfilm or other photographic record of the
11-17 lien and related filings, the filing officer may destroy the filed
11-18 notice of claim of lien at any time after receiving the termination
11-19 statement. If the filing officer does not have a photographic
11-20 record, the filing officer may destroy the filed notice of claim of
11-21 lien at any time after the first anniversary of the date on which
11-22 the filing officer received the termination statement.
11-23 (e) The uniform filing fee for filing and indexing the
11-24 termination statement is the same as the fee assessed under Section
11-25 9.404(c), Business & Commerce Code.
11-26 Sec. 128.039. RIGHT OF ASSIGNMENT OR TRANSFER; FILING OF
11-27 STATEMENT. (a) A lien created under this chapter may be assigned
12-1 by the holder of the lien, with full rights of enforcement.
12-2 (b) The lienholder shall file a statement of assignment with
12-3 the secretary of state as provided by Section 9.405, Business &
12-4 Commerce Code.
12-5 (Sections 128.040-128.045 reserved for expansion
12-6 SUBCHAPTER F. MISCELLANEOUS
12-7 Sec. 128.046. RULES. The secretary of state may adopt rules
12-8 necessary to carry out the secretary's duties under this chapter,
12-9 including prescribing necessary forms.
12-10 Sec. 128.047. MAXIMUM NUMBER OF LIENS. Not more than four
12-11 liens may be enforced under this chapter against the same proceeds
12-12 of a lien debtor even if the liens are filed by different lien
12-13 claimants.
12-14 Sec. 128.048. APPLICABILITY OF OTHER LAW. Chapter 9,
12-15 Business & Commerce Code, applies to a lien created under this
12-16 chapter to the extent Chapter 9 is consistent with this chapter.
12-17 SECTION 2. Title 6, Agriculture Code, is amended by adding
12-18 Subtitle E to read as follows:
12-19 SUBTITLE E. LIENS ON ANIMAL PRODUCTS
12-20 CHAPTER 188. LIENS FOR ANIMAL FEED
12-21 SUBCHAPTER A. GENERAL PROVISIONS
12-22 Sec. 188.001. DEFINITIONS. In this chapter:
12-23 (1) "Animal feed" includes:
12-24 (A) commercial feed as described by Section
12-25 141.002(a), including a substance listed by Section 141.002(c) if
12-26 used as a feed for animals; or
12-27 (B) customer-formula feed as defined under
13-1 Section 141.001.
13-2 (2) "Labor" means labor or services performed in the
13-3 delivery or preparation of animal feed provided by the seller of
13-4 the animal feed.
13-5 (3) "Livestock" means beef cattle, dairy cattle,
13-6 sheep, goats, hogs, horses, poultry, and ratites.
13-7 (4) "Reasonable or agreed charges" means:
13-8 (A) any agreed price for animal feed, including
13-9 labor, sold to a lien debtor at the lien debtor's request; or
13-10 (B) the reasonable value of animal feed,
13-11 including labor, as of the date of delivery or preparation, if
13-12 there is not an agreed price or an agreed method for determining
13-13 price.
13-14 Sec. 188.002. PROCEEDS. (a) For the purposes of this
13-15 chapter, proceeds are the amounts received by a lien debtor, before
13-16 a deduction for taxes, fees, or assessments or a deduction made
13-17 under a court order, from the sale of:
13-18 (1) the livestock for which the animal feed was used;
13-19 (2) meat, milk, skins, wool, or other products derived
13-20 from that livestock; or
13-21 (3) issue born to that livestock.
13-22 (b) For the purposes of this chapter, proceeds do not
13-23 include amounts:
13-24 (1) due or owing to a cooperative association under
13-25 Chapter 51 or 52; or
13-26 (2) retained by a cooperative association under
13-27 Chapter 51 or 52.
14-1 (Sections 188.003-188.005 reserved for expansion
14-2 SUBCHAPTER B. ANIMAL FEED LIEN
14-3 Sec. 188.006. NOTICE BEFORE PURCHASE; REQUIRED NOTICE BEFORE
14-4 CLAIMING LIEN. (a) A person claiming a lien under this chapter
14-5 must have provided notice of the provisions of this chapter, before
14-6 purchase, either generally to purchasers of animal feed as part of
14-7 the lien claimant's normal business practices or specifically to
14-8 the lien debtor. Notice provided under this subsection must read,
14-9 to the extent applicable, substantially as follows: "The sale of
14-10 animal feed on credit is subject to Chapter 188, Agriculture Code.
14-11 Failure to pay the agreed or reasonable charges for the feed may
14-12 result in the attachment of a lien to the proceeds of the livestock
14-13 for which the feed is used or the proceeds of the animal products
14-14 produced from the livestock." A potential lien claimant may
14-15 satisfy the requirements of this subsection:
14-16 (1) by printing or stamping the notice on credit
14-17 applications filled out by purchasers; and
14-18 (2) for future purchases by purchasers who are not
14-19 notified on the credit application, by printing or stamping the
14-20 notice on an invoice or on a statement sent by separate cover.
14-21 (b) Before a person may claim a lien under this chapter, the
14-22 person must send to the debtor by certified mail written notice
14-23 that states:
14-24 (1) that the payment of the reasonable or agreed
14-25 charges is more than 30 days overdue;
14-26 (2) the amount that is overdue;
14-27 (3) that the debtor has the following three
15-1 alternatives:
15-2 (A) to allow the lien to be filed;
15-3 (B) to enter into an agreement granting a
15-4 security interest in the proceeds described by Section 188.002
15-5 under the Business & Commerce Code; or
15-6 (C) to pay the reasonable or agreed charges; and
15-7 (4) in at least 10-point type, that:
15-8 (A) the debtor has until the 10th day after the
15-9 date on which the notice is received to select an alternative under
15-10 Subdivision (3), notify the claimant of the alternative selected,
15-11 and satisfy all the requirements of the selected alternative; and
15-12 (B) the claimant may file the notice of claim of
15-13 lien at any time after the 10th day after the date on which the
15-14 debtor receives the notice if the debtor does not comply with the
15-15 requirements of Paragraph (A).
15-16 Sec. 188.007. ATTACHMENT OF LIEN. A lien established under
15-17 this chapter attaches to the proceeds described by Section 188.002.
15-18 Sec. 188.008. AMOUNT OF LIEN. The amount of a lien under
15-19 this chapter is equal to the sum of:
15-20 (1) the amount of the unpaid reasonable or agreed
15-21 charges for animal feed furnished within the 45-day period ending
15-22 on the day the lien attaches; and
15-23 (2) the filing fees for the lien as provided by this
15-24 chapter.
15-25 Sec. 188.009. PERSON ENTITLED TO FILE; EXCEPTION. (a)
15-26 Except as provided by Subsection (b) or by Section 188.047, a
15-27 person who provides animal feed may file a notice of claim of lien
16-1 as provided by this chapter.
16-2 (b) The claimant may not file a notice of claim of lien if
16-3 the settlement of a dispute between the claimant and the debtor is
16-4 pending or has not been resolved under Section 188.012.
16-5 Sec. 188.010. PERFECTION OF LIEN. A lien created under this
16-6 chapter is perfected on the filing of a notice of claim of lien
16-7 with the secretary of state as provided by this chapter.
16-8 Sec. 188.011. DURATION OF NOTICE OF CLAIM OF LIEN. (a)
16-9 Except as otherwise provided by this chapter, the notice of claim
16-10 of lien is effective, and a new notice of claim of lien is not
16-11 required to maintain the lien, as long as the person who provides
16-12 the animal feed, including labor, either:
16-13 (1) remains unpaid for the amount secured by the lien;
16-14 or
16-15 (2) continues to provide animal feed on a regular
16-16 basis to the lien debtor.
16-17 (b) For purposes of this section, providing animal feed,
16-18 including labor, is not considered to be made on a regular basis if
16-19 a period of more than 45 days elapses between deliveries or
16-20 preparations.
16-21 Sec. 188.012. PROCEDURES FOR SETTLEMENT OF DISPUTES. (a)
16-22 The commissioner of agriculture by rule shall establish a procedure
16-23 to settle a dispute between a claimant supplying animal feed and
16-24 labor and a debtor. The procedures must provide:
16-25 (1) a time requirement for submitting the dispute to
16-26 the department;
16-27 (2) a time requirement within which a notice of the
17-1 dispute must be submitted to each party; and
17-2 (3) a process for evaluating the dispute.
17-3 (b) Each party to the dispute is equally liable for the
17-4 reasonable costs incurred by the department in carrying out this
17-5 section.
17-6 Sec. 188.013. CONTENTS OF NOTICE OF CLAIM OF LIEN. The
17-7 notice of claim of lien must include:
17-8 (1) the name and address of the lien claimant;
17-9 (2) the name and address of the lien debtor;
17-10 (3) the location of the livestock for which the animal
17-11 feed was provided;
17-12 (4) a statement that the payment of the reasonable or
17-13 agreed charges is more than 30 days overdue;
17-14 (5) the amount that is overdue;
17-15 (6) a statement, signed under penalty of perjury,
17-16 that:
17-17 (A) the lien claimant provided notice of the
17-18 provisions of this chapter, before purchase, either generally to
17-19 purchasers of animal feed as part of the lien claimant's normal
17-20 business practices or specifically to the lien debtor, in the
17-21 manner required by Section 188.006(a);
17-22 (B) the lien claimant sent to the lien debtor
17-23 the notice required by Section 188.006(b);
17-24 (C) more than 10 days have elapsed since the
17-25 date on which the notice was received by the lien debtor; and
17-26 (D) the lien debtor has not complied with the
17-27 requirements of an alternative set out by Section 188.006(b); and
18-1 (7) a statement that the lien claimant has an animal
18-2 feed lien under this chapter.
18-3 Sec. 188.014. SIGNATURE. The notice of claim of lien shall
18-4 be signed by the lien claimant or by a person authorized to sign
18-5 documents of a similar kind on behalf of the claimant.
18-6 Sec. 188.015. FORM. (a) The notice of claim of lien must
18-7 be filed on a form that satisfies the requirements of a financing
18-8 statement under Section 9.402, Business & Commerce Code, except
18-9 that:
18-10 (1) the lien claimant may be identified either as a
18-11 lien claimant or as a secured party;
18-12 (2) the form must be signed by the lien claimant and
18-13 is not required to be signed by the lien debtor; and
18-14 (3) in the space for the description of the
18-15 collateral, the information specified in Sections 188.013(3), (4),
18-16 (5), and (7) must be entered.
18-17 (b) A separately signed statement containing the information
18-18 specified in Section 188.013(6) shall be attached to the form
18-19 required under Subsection (a).
18-20 Sec. 188.016. FILING AND MARKING IN OFFICE OF SECRETARY OF
18-21 STATE; FEE. (a) The notice of claim of lien shall be filed and
18-22 marked in the office of the secretary of state in the same manner
18-23 as a financing statement is filed and marked under Section 9.403,
18-24 Business & Commerce Code.
18-25 (b) The uniform fee for filing and indexing and for stamping
18-26 a copy furnished by the secured party is the same as the fee
18-27 assessed under Section 9.403, Business & Commerce Code.
19-1 Sec. 188.017. TIME OF WRITTEN NOTICE. The lien claimant
19-2 shall provide written notice of the claim of lien to the lien
19-3 debtor not later than the 10th day after the date the notice of
19-4 claim of lien is filed with the office of the secretary of state.
19-5 Sec. 188.018. RECOGNITION OF NOTICE AS FINANCING STATEMENT.
19-6 The secretary of state shall recognize a notice of claim of lien
19-7 under this subchapter as a financing statement under Section 9.402,
19-8 Business & Commerce Code.
19-9 (Sections 188.019-188.025 reserved for expansion
19-10 SUBCHAPTER C. PRIORITY OF LIEN
19-11 Sec. 188.026. TIME OF FILING. (a) A lien created under
19-12 this chapter has the same priority as a security interest perfected
19-13 by the filing of a financing statement on the date the notice of
19-14 claim of lien was filed.
19-15 (b) A lien created under this chapter does not have priority
19-16 over:
19-17 (1) labor claims for wages and salaries for personal
19-18 services that are provided by an employee to a lien debtor in
19-19 connection with the livestock, the production of animal products
19-20 derived from the livestock, or issue born to the livestock, the
19-21 proceeds of which are subject to the lien; or
19-22 (2) claims for charges for the care of the livestock,
19-23 the proceeds of which are subject to the lien.
19-24 (Sections 188.027-188.030 reserved for expansion
19-25 SUBCHAPTER D. INFORMATION CONCERNING LIEN
19-26 Sec. 188.031. ISSUANCE OF CERTIFICATE TO MEMBER OF PUBLIC;
19-27 FEE. (a) A person may obtain a certificate identifying any lien
20-1 on file and any notice of claim of lien naming a particular debtor
20-2 and stating the date and time of filing of each notice and the
20-3 names and addresses of each lienholder in the certificate.
20-4 (b) The fee for a certificate under Subsection (a) shall be
20-5 established by the secretary of state in an amount necessary to
20-6 cover the cost of administering this section.
20-7 Sec. 188.032. COPIES OF NOTICES OF CLAIM OF LIEN AND OTHER
20-8 NOTICES; FEE. (a) A person may obtain a copy of any notice of
20-9 claim of an animal feed lien filed.
20-10 (b) The fee for a copy of a notice of claim of lien obtained
20-11 under Subsection (a) shall be established by the secretary of state
20-12 in an amount necessary to cover the cost of administering this
20-13 section.
20-14 (Sections 188.033-188.035 reserved for expansion
20-15 SUBCHAPTER E. ENFORCEMENT OF LIEN
20-16 Sec. 188.036. WRITTEN NOTICE TO SECURED CREDITORS BY LIEN
20-17 CLAIMANT. (a) A lien claimant shall provide written notice to any
20-18 secured creditor at least 30 days before the date the lien claimant
20-19 enforces a claim of lien.
20-20 (b) For purposes of this section, "secured creditor" means
20-21 any entity named as a secured party in a financing statement that
20-22 is filed regarding the debtor and that covers an animal product, an
20-23 account, or livestock subject to the lien.
20-24 Sec. 188.037. FORECLOSURE IN ACTION TO RECOVER REASONABLE OR
20-25 AGREED CHARGES. The lien claimant may foreclose on a lien under
20-26 this chapter only in an action to recover the reasonable or agreed
20-27 charges.
21-1 Sec. 188.038. TERMINATION STATEMENT. (a) If a lien
21-2 claimant receives payment for the total amount secured by a lien
21-3 under this chapter and the lien claimant has not furnished animal
21-4 feed during the 45-day period before the date on which payment is
21-5 received, the lien claimant shall file a termination statement with
21-6 the secretary of state and shall send the lien debtor a copy of the
21-7 statement as provided by this section. The statement shall state
21-8 that the lien claimant no longer claims a security interest under
21-9 the notice of claim of lien.
21-10 (b) The notice of claim of lien must be identified in the
21-11 statement under Subsection (a) by the date, names of parties to the
21-12 agreement, and file number of the original lien.
21-13 (c) If the lien claimant does not send the termination
21-14 statement required by this section before the 11th day after the
21-15 date on which the lien claimant received payment, the lien claimant
21-16 is liable to the lien debtor for actual damages suffered by the
21-17 lien debtor as a result of the failure. If the lien claimant acts
21-18 in bad faith in failing to send the statement, the lien claimant is
21-19 liable for an additional penalty of $100.
21-20 (d) The filing officer in the secretary of state's office
21-21 shall mark each termination statement with the date and time of
21-22 filing and shall index the statement under the name of the lien
21-23 debtor and under the file number of the original lien. If the
21-24 filing officer has a microfilm or other photographic record of the
21-25 lien and related filings, the filing officer may destroy the filed
21-26 notice of claim of lien at any time after receiving the termination
21-27 statement. If the filing officer does not have a photographic
22-1 record, the filing officer may destroy the filed notice of claim of
22-2 lien at any time after the first anniversary of the date on which
22-3 the filing officer received the termination statement.
22-4 (e) The uniform filing fee for filing and indexing the
22-5 termination statement is the same as the fee assessed under Section
22-6 9.404(c), Business & Commerce Code.
22-7 Sec. 188.039. RIGHT OF ASSIGNMENT OR TRANSFER; FILING OF
22-8 STATEMENT. (a) A lien created under this chapter may be assigned
22-9 by the holder of the lien, with full rights of enforcement.
22-10 (b) The lienholder shall file a statement of assignment with
22-11 the secretary of state as provided by Section 9.405, Business &
22-12 Commerce Code.
22-13 (Sections 188.040-188.045 reserved for expansion
22-14 SUBCHAPTER F. MISCELLANEOUS
22-15 Sec. 188.046. RULES. The secretary of state may adopt rules
22-16 necessary to carry out the secretary's duties under this chapter,
22-17 including prescribing necessary forms.
22-18 Sec. 188.047. MAXIMUM NUMBER OF LIENS. Not more than four
22-19 liens may be enforced under this chapter against the same proceeds
22-20 of a lien debtor even if the liens are filed by different lien
22-21 claimants.
22-22 Sec. 188.048. APPLICABILITY OF OTHER LAW. Chapter 9,
22-23 Business & Commerce Code, applies to a lien created under this
22-24 chapter to the extent Chapter 9 is consistent with this chapter.
22-25 SECTION 3. (a) Chapter 128, Agriculture Code, as added by
22-26 this Act, applies to an agricultural chemical, agricultural seed,
22-27 or labor supplied on or after the effective date of this Act.
23-1 (b) Chapter 188, Agriculture Code, as added by this Act,
23-2 applies to animal feed and labor supplied on or after the effective
23-3 date of this Act.
23-4 SECTION 4. This Act takes effect September 1, 1995.
23-5 SECTION 5. The importance of this legislation and the
23-6 crowded condition of the calendars in both houses create an
23-7 emergency and an imperative public necessity that the
23-8 constitutional rule requiring bills to be read on three several
23-9 days in each house be suspended, and this rule is hereby suspended.