By Swinford H.B. No. 1463
74R2887 JRD-D
A BILL TO BE ENTITLED
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; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 5, Agriculture Code, is amended by adding
1-6 Subtitle H to read as follows:
1-7 SUBTITLE H. HORTICULTURAL LIENS
1-8 CHAPTER 128. AGRICULTURAL CHEMICAL AND SEED LIENS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 128.001. DEFINITIONS. In this chapter:
1-11 (1) "Agricultural chemical" includes fertilizer
1-12 material as defined under Section 63.001, pesticides as defined
1-13 under Section 76.001, plant regulators as defined under Section
1-14 76.001, lime, plant and soil amendments, plant food, herbicides,
1-15 and chemical compounds that are applied to crops or to land used
1-16 for growing crops.
1-17 (2) "Agricultural seed" has the meaning assigned under
1-18 Section 61.001.
1-19 (3) "Labor" means labor or services performed in the
1-20 application, delivery, or preparation of an agricultural chemical
1-21 or agricultural seed provided by the seller of the agricultural
1-22 chemical or agricultural seed.
1-23 (4) "Reasonable or agreed charges" means:
1-24 (A) any agreed price for agricultural chemicals
2-1 or agricultural seeds, including labor, sold to a lien debtor at
2-2 the lien debtor's request; or
2-3 (B) the reasonable value of agricultural
2-4 chemicals or agricultural seeds, including labor, as of the date of
2-5 application, delivery, or preparation, if there is not an agreed
2-6 price or an agreed method for determining price.
2-7 Sec. 128.002. PROCEEDS. (a) For the purposes of this
2-8 chapter, proceeds are the amounts received by a lien debtor, before
2-9 a deduction for taxes, fees, or assessments or a deduction made
2-10 under a court order, from the sale of:
2-11 (1) the crop that existed at the time of application
2-12 on the land of the agricultural chemical sold by the lien
2-13 claimant;
2-14 (2) the first crop produced on the land after the
2-15 agricultural chemical sold by the lien claimant was applied, if
2-16 crops did not exist on the land at the time the agricultural
2-17 chemical was applied; or
2-18 (3) the crop produced from the agricultural seed
2-19 supplied by the lien claimant.
2-20 (b) For the purposes of this chapter, the following are not
2-21 included as proceeds:
2-22 (1) amounts due or owing to a cooperative association
2-23 under Chapter 51 or 52; or
2-24 (2) amounts retained by a cooperative association
2-25 under Chapter 51 or 52.
2-26 (Sections 128.003-128.005 reserved for expansion
2-27 SUBCHAPTER B. AGRICULTURAL CHEMICAL AND SEED LIEN
3-1 Sec. 128.006. REQUIRED NOTICE. Before a person may claim a
3-2 lien under this chapter, the person must send to the debtor by
3-3 certified mail written notice that states:
3-4 (1) that the payment of the reasonable or agreed
3-5 charges is more than 30 days overdue;
3-6 (2) the amount that is overdue;
3-7 (3) that the debtor has the following three
3-8 alternatives:
3-9 (A) to allow the lien to be filed;
3-10 (B) to enter into an agreement granting a
3-11 security interest in the proceeds described by Section 128.002
3-12 under the Business & Commerce Code; or
3-13 (C) to pay the reasonable or agreed charges; and
3-14 (4) in at least 10-point type, that:
3-15 (A) the debtor has until the 10th day after the
3-16 date on which the notice is received to select an alternative under
3-17 Subdivision (3), notify the claimant of the alternative selected,
3-18 and satisfy all the requirements of the selected alternative; and
3-19 (B) the claimant may file the notice of claim of
3-20 lien at any time after the 10th day after the date on which the
3-21 debtor receives the notice if the debtor does not comply with the
3-22 requirements of Paragraph (A).
3-23 Sec. 128.007. ATTACHMENT OF LIEN. A lien established under
3-24 this chapter attaches to the proceeds described by Section
3-25 128.002.
3-26 Sec. 128.008. AMOUNT OF LIEN. The amount of a lien under
3-27 this chapter is equal to the sum of:
4-1 (1) the amount of the unpaid reasonable or agreed
4-2 charges for:
4-3 (A) agricultural chemicals furnished within the
4-4 60-day period ending on the day the lien attaches; and
4-5 (B) agricultural seeds furnished within the
4-6 45-day period ending on the day the lien attaches; and
4-7 (2) the costs of enforcing the lien as provided by
4-8 this chapter.
4-9 Sec. 128.009. PERSON ENTITLED TO FILE; EXCEPTION. (a)
4-10 Except as provided by Subsection (b) or by Section 128.047, a
4-11 person who provides an agricultural chemical or agricultural seed
4-12 may file a notice of claim of lien as provided by this chapter.
4-13 (b) A claimant may not file a notice of claim of lien if the
4-14 arbitration of a dispute between the claimant and the debtor is
4-15 pending or has not been resolved under Chapter 64. A claimant may
4-16 not file a notice of claim of lien if the settlement of a dispute
4-17 between the claimant and the debtor is pending or has not been
4-18 resolved under Section 128.012.
4-19 Sec. 128.010. PERFECTION OF LIEN. A lien created under this
4-20 chapter is perfected on the filing of a notice of claim of lien
4-21 with the secretary of state as provided by this chapter.
4-22 Sec. 128.011. DURATION OF NOTICE OF CLAIM OF LIEN. (a)
4-23 Except as otherwise provided by this chapter, the notice of claim
4-24 of lien is effective, and a new notice of claim of lien is not
4-25 required to maintain the lien, as long as the person who provides
4-26 the agricultural chemical or agricultural seed, including labor,
4-27 either:
5-1 (1) remains unpaid for the amount secured by the lien;
5-2 or
5-3 (2) continues to provide an agricultural chemical or
5-4 agricultural seed on a regular basis to the lien debtor.
5-5 (b) For purposes of this section, providing an agricultural
5-6 chemical or agricultural seed, including labor, is not considered
5-7 to be made on a regular basis if a period of more than 45 days
5-8 elapses between applications, deliveries, or preparations.
5-9 Sec. 128.012. PROCEDURES FOR SETTLEMENT OF DISPUTES. (a)
5-10 The commissioner of agriculture by rule shall establish a procedure
5-11 to settle a dispute between a claimant supplying agricultural
5-12 chemicals and labor and a debtor. The procedures must provide:
5-13 (1) a time requirement for submitting the dispute to
5-14 the department;
5-15 (2) a time requirement within which a notice of the
5-16 dispute must be submitted to each party; and
5-17 (3) a process for evaluating the dispute.
5-18 (b) Each party to the dispute is equally liable for the
5-19 reasonable costs incurred by the department in carrying out this
5-20 section.
5-21 Sec. 128.013. CONTENTS OF NOTICE OF CLAIM OF LIEN. The
5-22 notice of claim of lien must include:
5-23 (1) the name and address of the lien claimant;
5-24 (2) the name and address of the lien debtor;
5-25 (3) the location of the property to which the
5-26 agricultural chemical or agricultural seed was provided;
5-27 (4) a statement that the payment of the reasonable or
6-1 agreed charges is more than 30 days overdue;
6-2 (5) the amount that is overdue;
6-3 (6) a statement, signed under penalty of perjury,
6-4 that:
6-5 (A) the lien claimant sent to the lien debtor
6-6 the notice required by Section 128.006;
6-7 (B) more than 10 days have elapsed since the
6-8 date on which the notice was received by the lien debtor; and
6-9 (C) the lien debtor has not complied with the
6-10 requirements of an alternative set out by Section 128.006; and
6-11 (7) a statement that the lien claimant has an
6-12 agricultural chemical or agricultural seed lien under this chapter.
6-13 Sec. 128.014. SIGNATURE. The notice of claim of lien shall
6-14 be signed by the lien claimant or by a person authorized to sign
6-15 documents of a similar kind on behalf of the claimant.
6-16 Sec. 128.015. FORM. (a) The notice of claim of lien must
6-17 be filed on a form that satisfies the requirements of a financing
6-18 statement under Section 9.402, Business & Commerce Code, except
6-19 that:
6-20 (1) the lien claimant may be identified either as a
6-21 lien claimant or as a secured party;
6-22 (2) the form must be signed by the lien claimant and
6-23 is not required to be signed by the lien debtor; and
6-24 (3) in the space for the description of the
6-25 collateral, the information specified in Sections 128.013(3), (4),
6-26 (5), and (7) must be entered.
6-27 (b) A separately signed statement containing the information
7-1 specified in Section 128.013(6) shall be attached to the form
7-2 required under Subsection (a).
7-3 Sec. 128.016. FILING AND MARKING IN OFFICE OF SECRETARY OF
7-4 STATE. The notice of claim of lien shall be filed and marked in
7-5 the office of the secretary of state in the same manner as a
7-6 financing statement is filed and marked under Section 9.403,
7-7 Business & Commerce Code.
7-8 Sec. 128.017. TIME OF WRITTEN NOTICE. The lien claimant
7-9 shall provide written notice of the claim of lien to the lien
7-10 debtor not later than the 10th day after the date the notice of
7-11 claim of lien is filed with the office of the secretary of state.
7-12 Sec. 128.018. RECOGNITION OF NOTICE AS FINANCING STATEMENT.
7-13 The secretary of state shall recognize a notice of claim of lien
7-14 under this subchapter as a financing statement under Section 9.402,
7-15 Business & Commerce Code.
7-16 (Sections 128.019-128.025 reserved for expansion
7-17 SUBCHAPTER C. PRIORITY OF LIEN
7-18 Sec. 128.026. TIME OF FILING. (a) A lien created under
7-19 this chapter has the same priority as a security interest perfected
7-20 by the filing of a financing statement on the date the notice of
7-21 claim of lien was filed.
7-22 (b) A lien created under this chapter does not have priority
7-23 over labor claims for wages and salaries for personal services that
7-24 are provided by an employee to a lien debtor in connection with the
7-25 production of agricultural products, the proceeds of which are
7-26 subject to the lien.
7-27 (Sections 128.027-128.030 reserved for expansion
8-1 SUBCHAPTER D. INFORMATION CONCERNING LIEN
8-2 Sec. 128.031. ISSUANCE OF CERTIFICATE TO MEMBER OF PUBLIC;
8-3 FEE. (a) A person may obtain a certificate identifying any lien
8-4 on file and any notice of claim of lien naming a particular debtor
8-5 and stating the date and time of filing of each notice and the
8-6 names and addresses of each lienholder in the certificate.
8-7 (b) The fee for a certificate under Subsection (a) shall be
8-8 established by the secretary of state in an amount necessary to
8-9 cover the cost of administering this section.
8-10 Sec. 128.032. COPIES OF NOTICES OF CLAIM OF LIEN AND OTHER
8-11 NOTICES; FEE. (a) A person may obtain a copy of any notice of
8-12 claim of an agricultural chemical or seed lien filed.
8-13 (b) The fee for a copy of a notice of claim of lien obtained
8-14 under Subsection (a) shall be established by the secretary of
8-15 state in an amount necessary to cover the cost of administering
8-16 this section.
8-17 (Sections 128.033-128.035 reserved for expansion
8-18 SUBCHAPTER E. ENFORCEMENT OF LIEN
8-19 Sec. 128.036. WRITTEN NOTICE TO SECURED CREDITORS BY LIEN
8-20 CLAIMANT. (a) A lien claimant shall provide written notice to any
8-21 secured creditor at least 30 days before the date the lien claimant
8-22 enforces a claim of lien.
8-23 (b) For purposes of this section, "secured creditor" means
8-24 any entity named as a secured party in a financing statement that
8-25 is filed regarding the debtor and that covers:
8-26 (1) a farm product, an account, or a crop subject to
8-27 the lien;
9-1 (2) a crop growing or grown on the land on which the
9-2 agricultural chemical was applied or for which the agricultural
9-3 seed was supplied; or
9-4 (3) the next crop to be grown on that land, if a crop
9-5 is not planted.
9-6 Sec. 128.037. FORECLOSURE IN ACTION TO RECOVER REASONABLE OR
9-7 AGREED CHARGES. The lien claimant may foreclose on a lien under
9-8 this chapter only in an action to recover the reasonable or agreed
9-9 charges.
9-10 Sec. 128.038. TERMINATION STATEMENT. (a) If a lien
9-11 claimant receives payment for the total amount secured by a lien
9-12 under this chapter and the lien claimant has not furnished an
9-13 agricultural chemical or agricultural seed during the 45-day period
9-14 before the date on which payment is received, the lien claimant
9-15 shall file a termination statement with the secretary of state and
9-16 shall send the lien debtor a copy of the statement as provided by
9-17 this section. The statement shall state that the lien claimant no
9-18 longer claims a security interest under the notice of claim of
9-19 lien.
9-20 (b) The notice of claim of lien must be identified in the
9-21 statement under Subsection (a) by the date, names of parties to the
9-22 agreement, and file number of the original lien.
9-23 (c) If the lien claimant does not send the termination
9-24 statement required by this section before the 11th day after the
9-25 date on which the lien claimant received payment, the lien claimant
9-26 is liable to the lien debtor for actual damages suffered by the
9-27 lien debtor as a result of the failure. If the lien claimant acts
10-1 in bad faith in failing to send the statement, the lien claimant is
10-2 liable for an additional penalty of $100.
10-3 (d) The filing officer in the secretary of state's office
10-4 shall mark each termination statement with the date and time of
10-5 filing and shall index the statement under the name of the lien
10-6 debtor and under the file number of the original lien. If the
10-7 filing officer has a microfilm or other photographic record of the
10-8 lien and related filings, the filing officer may destroy the filed
10-9 notice of claim of lien at any time after receiving the termination
10-10 statement. If the filing officer does not have a photographic
10-11 record, the filing officer may destroy the filed notice of claim of
10-12 lien at any time after the first anniversary of the date on which
10-13 the filing officer received the termination statement.
10-14 Sec. 128.039. RIGHT OF ASSIGNMENT OR TRANSFER; FILING OF
10-15 STATEMENT. (a) A lien created under this chapter may be assigned
10-16 by the holder of the lien, with full rights of enforcement.
10-17 (b) The lienholder shall file a statement of assignment with
10-18 the secretary of state as provided by Section 9.405, Business &
10-19 Commerce Code.
10-20 (Sections 128.040-128.045 reserved for expansion
10-21 SUBCHAPTER F. MISCELLANEOUS
10-22 Sec. 128.046. RULES. The secretary of state may adopt rules
10-23 necessary to carry out the secretary's duties under this chapter,
10-24 including prescribing necessary forms.
10-25 Sec. 128.047. MAXIMUM NUMBER OF LIENS. Not more than four
10-26 liens may be enforced under this chapter against the same proceeds
10-27 of a lien debtor even if the liens are filed by different lien
11-1 claimants.
11-2 Sec. 128.048. APPLICABILITY OF OTHER LAW. Chapter 9,
11-3 Business & Commerce Code, applies to a lien created under this
11-4 chapter to the extent Chapter 9 is consistent with this chapter.
11-5 SECTION 2. Title 6, Agriculture Code, is amended by adding
11-6 Subtitle E to read as follows:
11-7 SUBTITLE E. LIENS ON ANIMAL PRODUCTS
11-8 CHAPTER 188. LIENS FOR ANIMAL FEED
11-9 SUBCHAPTER A. GENERAL PROVISIONS
11-10 Sec. 188.001. DEFINITIONS. In this chapter:
11-11 (1) "Animal feed" includes:
11-12 (A) commercial feed as described by Section
11-13 141.002(a), including a substance listed by Section 141.002(c) if
11-14 used as a feed for animals; or
11-15 (B) customer-formula feed as defined under
11-16 Section 141.001.
11-17 (2) "Labor" means labor or services performed in the
11-18 delivery or preparation of animal feed provided by the seller of
11-19 the animal feed.
11-20 (3) "Livestock" means cattle, sheep, goats, hogs, and
11-21 horses.
11-22 (4) "Reasonable or agreed charges" means:
11-23 (A) any agreed price for animal feed, including
11-24 labor, sold to a lien debtor at the lien debtor's request; or
11-25 (B) the reasonable value of animal feed,
11-26 including labor, as of the date of delivery or preparation, if
11-27 there is not an agreed price or an agreed method for determining
12-1 price.
12-2 Sec. 188.002. PROCEEDS. (a) For the purposes of this
12-3 chapter, proceeds are the amounts received by a lien debtor, before
12-4 a deduction for taxes, fees, or assessments or a deduction made
12-5 under a court order, from the sale of:
12-6 (1) the livestock for which the animal feed was used;
12-7 (2) meat, milk, skins, wool, or other products derived
12-8 from that livestock; or
12-9 (3) issue born to that livestock.
12-10 (b) For the purposes of this chapter, proceeds do not
12-11 include amounts:
12-12 (1) due or owing to a cooperative association under
12-13 Chapter 51 or 52; or
12-14 (2) retained by a cooperative association under
12-15 Chapter 51 or 52.
12-16 (Sections 188.003-188.005 reserved for expansion
12-17 SUBCHAPTER B. ANIMAL FEED LIEN
12-18 Sec. 188.006. REQUIRED NOTICE. Before a person may claim a
12-19 lien under this chapter, the person must send to the debtor by
12-20 certified mail written notice that states:
12-21 (1) that the payment of the reasonable or agreed
12-22 charges is more than 30 days overdue;
12-23 (2) the amount that is overdue;
12-24 (3) that the debtor has the following three
12-25 alternatives:
12-26 (A) to allow the lien to be filed;
12-27 (B) to enter into an agreement granting a
13-1 security interest in the proceeds described by Section 188.002
13-2 under the Business & Commerce Code; or
13-3 (C) to pay the reasonable or agreed charges; and
13-4 (4) in at least 10-point type, that:
13-5 (A) the debtor has until the 10th day after the
13-6 date on which the notice is received to select an alternative under
13-7 Subdivision (3), notify the claimant of the alternative selected,
13-8 and satisfy all the requirements of the selected alternative; and
13-9 (B) the claimant may file the notice of claim of
13-10 lien at any time after the 10th day after the date on which the
13-11 debtor receives the notice if the debtor does not comply with the
13-12 requirements of Paragraph (A).
13-13 Sec. 188.007. ATTACHMENT OF LIEN. A lien established under
13-14 this chapter attaches to the proceeds described by Section 188.002.
13-15 Sec. 188.008. AMOUNT OF LIEN. The amount of a lien under
13-16 this chapter is equal to the sum of:
13-17 (1) the amount of the unpaid reasonable or agreed
13-18 charges for animal feed furnished within the 45-day period ending
13-19 on the day the lien attaches; and
13-20 (2) the costs of enforcing the lien as provided by
13-21 this chapter.
13-22 Sec. 188.009. PERSON ENTITLED TO FILE; EXCEPTION. (a)
13-23 Except as provided by Subsection (b) or by Section 188.047, a
13-24 person who provides animal feed may file a notice of claim of lien
13-25 as provided by this chapter.
13-26 (b) The claimant may not file a notice of claim of lien if
13-27 the settlement of a dispute between the claimant and the debtor is
14-1 pending or has not been resolved under Section 188.012.
14-2 Sec. 188.010. PERFECTION OF LIEN. A lien created under this
14-3 chapter is perfected on the filing of a notice of claim of lien
14-4 with the secretary of state as provided by this chapter.
14-5 Sec. 188.011. DURATION OF NOTICE OF CLAIM OF LIEN. (a)
14-6 Except as otherwise provided by this chapter, the notice of claim
14-7 of lien is effective, and a new notice of claim of lien is not
14-8 required to maintain the lien, as long as the person who provides
14-9 the animal feed, including labor, either:
14-10 (1) remains unpaid for the amount secured by the lien;
14-11 or
14-12 (2) continues to provide animal feed on a regular
14-13 basis to the lien debtor.
14-14 (b) For purposes of this section, providing animal feed,
14-15 including labor, is not considered to be made on a regular basis if
14-16 a period of more than 45 days elapses between deliveries or
14-17 preparations.
14-18 Sec. 188.012. PROCEDURES FOR SETTLEMENT OF DISPUTES. (a)
14-19 The commissioner of agriculture by rule shall establish a procedure
14-20 to settle a dispute between a claimant supplying animal feed and
14-21 labor and a debtor. The procedures must provide:
14-22 (1) a time requirement for submitting the dispute to
14-23 the department;
14-24 (2) a time requirement within which a notice of the
14-25 dispute must be submitted to each party; and
14-26 (3) a process for evaluating the dispute.
14-27 (b) Each party to the dispute is equally liable for the
15-1 reasonable costs incurred by the department in carrying out this
15-2 section.
15-3 Sec. 188.013. CONTENTS OF NOTICE OF CLAIM OF LIEN. The
15-4 notice of claim of lien must include:
15-5 (1) the name and address of the lien claimant;
15-6 (2) the name and address of the lien debtor;
15-7 (3) the location of the livestock for which the animal
15-8 feed was provided;
15-9 (4) a statement that the payment of the reasonable or
15-10 agreed charges is more than 30 days overdue;
15-11 (5) the amount that is overdue;
15-12 (6) a statement, signed under penalty of perjury,
15-13 that:
15-14 (A) the lien claimant sent to the lien debtor
15-15 the notice required by Section 188.006;
15-16 (B) more than 10 days have elapsed since the
15-17 date on which the notice was received by the lien debtor; and
15-18 (C) the lien debtor has not complied with the
15-19 requirements of an alternative set out by Section 188.006; and
15-20 (7) a statement that the lien claimant has an animal
15-21 feed lien under this chapter.
15-22 Sec. 188.014. SIGNATURE. The notice of claim of lien shall
15-23 be signed by the lien claimant or by a person authorized to sign
15-24 documents of a similar kind on behalf of the claimant.
15-25 Sec. 188.015. FORM. (a) The notice of claim of lien must
15-26 be filed on a form that satisfies the requirements of a financing
15-27 statement under Section 9.402, Business & Commerce Code, except
16-1 that:
16-2 (1) the lien claimant may be identified either as a
16-3 lien claimant or as a secured party;
16-4 (2) the form must be signed by the lien claimant and
16-5 is not required to be signed by the lien debtor; and
16-6 (3) in the space for the description of the
16-7 collateral, the information specified in Sections 188.013(3), (4),
16-8 (5), and (7) must be entered.
16-9 (b) A separately signed statement containing the information
16-10 specified in Section 188.013(6) shall be attached to the form
16-11 required under Subsection (a).
16-12 Sec. 188.016. FILING AND MARKING IN OFFICE OF SECRETARY OF
16-13 STATE. The notice of claim of lien shall be filed and marked in
16-14 the office of the secretary of state in the same manner as a
16-15 financing statement is filed and marked under Section 9.403,
16-16 Business & Commerce Code.
16-17 Sec. 188.017. TIME OF WRITTEN NOTICE. The lien claimant
16-18 shall provide written notice of the claim of lien to the lien
16-19 debtor not later than the 10th day after the date the notice of
16-20 claim of lien is filed with the office of the secretary of state.
16-21 Sec. 188.018. RECOGNITION OF NOTICE AS FINANCING STATEMENT.
16-22 The secretary of state shall recognize a notice of claim of lien
16-23 under this subchapter as a financing statement under Section 9.402,
16-24 Business & Commerce Code.
16-25 (Sections 188.019-188.025 reserved for expansion
16-26 SUBCHAPTER C. PRIORITY OF LIEN
16-27 Sec. 188.026. TIME OF FILING. (a) A lien created under
17-1 this chapter has the same priority as a security interest perfected
17-2 by the filing of a financing statement on the date the notice of
17-3 claim of lien was filed.
17-4 (b) A lien created under this chapter does not have priority
17-5 over labor claims for wages and salaries for personal services that
17-6 are provided by an employee to a lien debtor in connection with the
17-7 livestock, the production of animal products derived from the
17-8 livestock, or issue born to the livestock, the proceeds of which
17-9 are subject to the lien.
17-10 (Sections 188.027-188.030 reserved for expansion
17-11 SUBCHAPTER D. INFORMATION CONCERNING LIEN
17-12 Sec. 188.031. ISSUANCE OF CERTIFICATE TO MEMBER OF PUBLIC;
17-13 FEE. (a) A person may obtain a certificate identifying any lien
17-14 on file and any notice of claim of lien naming a particular debtor
17-15 and stating the date and time of filing of each notice and the
17-16 names and addresses of each lienholder in the certificate.
17-17 (b) The fee for a certificate under Subsection (a) shall be
17-18 established by the secretary of state in an amount necessary to
17-19 cover the cost of administering this section.
17-20 Sec. 188.032. COPIES OF NOTICES OF CLAIM OF LIEN AND OTHER
17-21 NOTICES; FEE. (a) A person may obtain a copy of any notice of
17-22 claim of an agricultural chemical or seed lien filed.
17-23 (b) The fee for a copy of a notice of claim of lien obtained
17-24 under Subsection (a) shall be established by the secretary of state
17-25 in an amount necessary to cover the cost of administering this
17-26 section.
17-27 (Sections 188.033-188.035 reserved for expansion
18-1 SUBCHAPTER E. ENFORCEMENT OF LIEN
18-2 Sec. 188.036. WRITTEN NOTICE TO SECURED CREDITORS BY LIEN
18-3 CLAIMANT. (a) A lien claimant shall provide written notice to any
18-4 secured creditor at least 30 days before the date the lien claimant
18-5 enforces a claim of lien.
18-6 (b) For purposes of this section, "secured creditor" means
18-7 any entity named as a secured party in a financing statement that
18-8 is filed regarding the debtor and that covers an animal product, an
18-9 account, or livestock subject to the lien.
18-10 Sec. 188.037. FORECLOSURE IN ACTION TO RECOVER REASONABLE OR
18-11 AGREED CHARGES. The lien claimant may foreclose on a lien under
18-12 this chapter only in an action to recover the reasonable or agreed
18-13 charges.
18-14 Sec. 188.038. TERMINATION STATEMENT. (a) If a lien
18-15 claimant receives payment for the total amount secured by a lien
18-16 under this chapter and the lien claimant has not furnished animal
18-17 feed during the 45-day period before the date on which payment is
18-18 received, the lien claimant shall file a termination statement with
18-19 the secretary of state and shall send the lien debtor a copy of the
18-20 statement as provided by this section. The statement shall state
18-21 that the lien claimant no longer claims a security interest under
18-22 the notice of claim of lien.
18-23 (b) The notice of claim of lien must be identified in the
18-24 statement under Subsection (a) by the date, names of parties to the
18-25 agreement, and file number of the original lien.
18-26 (c) If the lien claimant does not send the termination
18-27 statement required by this section before the 11th day after the
19-1 date on which the lien claimant received payment, the lien claimant
19-2 is liable to the lien debtor for actual damages suffered by the
19-3 lien debtor as a result of the failure. If the lien claimant acts
19-4 in bad faith in failing to send the statement, the lien claimant is
19-5 liable for an additional penalty of $100.
19-6 (d) The filing officer in the secretary of state's office
19-7 shall mark each termination statement with the date and time of
19-8 filing and shall index the statement under the name of the lien
19-9 debtor and under the file number of the original lien. If the
19-10 filing officer has a microfilm or other photographic record of the
19-11 lien and related filings, the filing officer may destroy the filed
19-12 notice of claim of lien at any time after receiving the termination
19-13 statement. If the filing officer does not have a photographic
19-14 record, the filing officer may destroy the filed notice of claim of
19-15 lien at any time after the first anniversary of the date on which
19-16 the filing officer received the termination statement.
19-17 Sec. 188.039. RIGHT OF ASSIGNMENT OR TRANSFER; FILING OF
19-18 STATEMENT. (a) A lien created under this chapter may be assigned
19-19 by the holder of the lien, with full rights of enforcement.
19-20 (b) The lienholder shall file a statement of assignment with
19-21 the secretary of state as provided by Section 9.405, Business &
19-22 Commerce Code.
19-23 (Sections 188.040-188.045 reserved for expansion
19-24 SUBCHAPTER F. MISCELLANEOUS
19-25 Sec. 188.046. RULES. The secretary of state may adopt rules
19-26 necessary to carry out the secretary's duties under this chapter,
19-27 including prescribing necessary forms.
20-1 Sec. 188.047. MAXIMUM NUMBER OF LIENS. Not more than four
20-2 liens may be enforced under this chapter against the same proceeds
20-3 of a lien debtor even if the liens are filed by different lien
20-4 claimants.
20-5 Sec. 188.048. APPLICABILITY OF OTHER LAW. Chapter 9,
20-6 Business & Commerce Code, applies to a lien created under this
20-7 chapter to the extent Chapter 9 is consistent with this chapter.
20-8 SECTION 3. (a) Chapter 128, Agriculture Code, as added by
20-9 this Act, applies to an agricultural chemical or agricultural seed
20-10 and labor supplied on or after the effective date of this Act.
20-11 (b) Chapter 188, Agriculture Code, as added by this Act,
20-12 applies to animal feed and labor supplied on or after the effective
20-13 date of this Act.
20-14 SECTION 4. This Act takes effect September 1, 1995.
20-15 SECTION 5. The importance of this legislation and the
20-16 crowded condition of the calendars in both houses create an
20-17 emergency and an imperative public necessity that the
20-18 constitutional rule requiring bills to be read on three several
20-19 days in each house be suspended, and this rule is hereby suspended.