Text: HF302            Text: HF304
Complete Bill History


House File 303

HOUSE FILE BY ALONS, MERTZ, and S. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to agricultural liens, by providing for secured 2 property and the financing statements covering secured 3 property. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1813HH 82 6 da/cf/24 PAG LIN 1 1 Section 1. Section 570.1, subsection 2, paragraph b, Code 1 2 2007, is amended to read as follows: 1 3 b. When the debtor takes possession of the leased premises 1 4 or within twenty sixty days after the debtor takes possession 1 5 of the leased premises. 1 6 Sec. 2. Section 570A.4, subsection 2, Code 2007, is 1 7 amended to read as follows: 1 8 2. In order to perfect the lien, the agricultural supply 1 9 dealer must file a financing statement in the office of the 1 10 secretary of state as provided in section 554.9308 within 1 11 thirty=one sixty days after the date that the farmer purchases 1 12 the agricultural supply. The financing statement shall meet 1 13 the requirements of section 554.9502, subsection 1, and 1 14 include all applicable information described in section 1 15 554.9516. Filing a financing statement as provided in this 1 16 subsection satisfies all requirements for perfection of an 1 17 agricultural lien as provided in chapter 554, article 9. 1 18 Sec. 3. Section 571.1A, subsection 3, Code 2007, is 1 19 amended to read as follows: 1 20 3. "Harvesting services" means baling, chopping, 1 21 combining, cutting, husking, picking, shelling, stacking, 1 22 threshing, or winnowing windrowing a crop, regardless of the 1 23 means or method employed. 1 24 Sec. 4. Section 571.3, subsection 2, Code 2007, is amended 1 25 to read as follows: 1 26 2. In order to perfect the lien, the harvester must file a 1 27 financing statement in the office of the secretary of state as 1 28 provided in section 554.9308 within ten sixty days after the 1 29 last date that the harvesting services were rendered. The 1 30 financing statement shall meet the requirements of section 1 31 554.9502, subsection 1, and include all applicable information 1 32 described in section 554.9516. Filing a financing statement 1 33 as provided in this subsection satisfies all requirements for 1 34 perfection of an agricultural lien as provided in chapter 554, 1 35 article 9. 2 1 Sec. 5. Section 579A.2, subsection 3, unnumbered paragraph 2 2 1, Code 2007, is amended to read as follows: 2 3 A custom cattle feedlot lien becomes effective at the time 2 4 the cattle arrive at the custom cattle feedlot. In order to 2 5 perfect the lien, the custom cattle feedlot operator must file 2 6 a financing statement in the office of the secretary of state 2 7 as provided in section 554.9308 within twenty sixty days after 2 8 the cattle arrive at the custom cattle feedlot. 2 9 Sec. 6. Section 579B.4, subsection 1, paragraphs a and b, 2 10 Code 2007, are amended to read as follows: 2 11 a. For a lien arising out of producing livestock or raw 2 12 milk, the lien becomes effective the day that the livestock 2 13 first arrives at the contract livestock facility. In order to 2 14 perfect the lien, the contract producer must file a financing 2 15 statement in the office of the secretary of state as provided 2 16 in section 554.9308. Unless the production contract provides 2 17 for continuous arrival, the contract producer must file the 2 18 financing statement for the livestock within forty=five sixty 2 19 days after the livestock's arrival. If the production 2 20 contract provides for continuous arrival, the contract 2 21 producer must file the financing statement for the livestock 2 22 within one hundred eighty days after the livestock's arrival. 2 23 The lien terminates one year after the livestock is no longer 2 24 under the authority of the contract producer. For purposes of 2 25 this section, livestock is no longer under the authority of 2 26 the contract producer when the livestock leaves the contract 2 27 livestock facility. Section 554.9515 shall not apply to a 2 28 financing statement perfecting the lien. The lien may be 2 29 terminated by the contract producer who files a termination 2 30 statement as provided in chapter 554, article 9. 2 31 b. For a lien arising out of producing a crop, the lien 2 32 becomes effective the day that the crop is first planted. In 2 33 order to perfect the lien, the contract producer must file a 2 34 financing statement in the office of the secretary of state as 2 35 provided in section 554.9308. The contract producer must file 3 1 a financing statement for the crop within forty=five sixty 3 2 days after the crop is first planted. The lien terminates one 3 3 year after the crop is no longer under the authority of the 3 4 contract producer. For purposes of this section, a crop is no 3 5 longer under the authority of the contract producer when the 3 6 crop or a warehouse receipt issued by a warehouse operator 3 7 licensed under chapter 203C for grain from the crop is no 3 8 longer under the custody or control of the contract producer. 3 9 The lien may be terminated by the contract producer who files 3 10 a termination statement as provided in chapter 554, article 9. 3 11 EXPLANATION 3 12 BACKGROUND. In 2000, the general assembly enacted H.F. 3 13 2513 (2000 Iowa Acts, chapter 1149) adopting revised article 9 3 14 of the uniform commercial code (Code chapter 554). With 3 15 certain limited exceptions, new article 9 governs the 3 16 creation, priority, and enforcement of creditors' consensual 3 17 liens, which are defined as security interests in personal 3 18 property and fixtures. Revised article 9, like its 3 19 predecessor, provides generally for the effectiveness of 3 20 security agreements and the rights and duties of creditors. 3 21 Much of revised article 9 provides for perfecting a security 3 22 interest, usually accomplished by filing a financing 3 23 statement. The article provides for the contents of financing 3 24 statements and the location where such financing statements 3 25 must be filed (e.g., with the secretary of state). In 3 26 perfecting a security interest, a debtor is generally assured 3 27 rights in the collateral superior to a security interest 3 28 perfected later in time. 3 29 Prior to the revision of article 9, liens created in 3 30 statutes outside Code chapter 554 were not affected by the 3 31 provisions of Code chapter 554. These liens include types of 3 32 agricultural liens such as those for landlords (Code chapter 3 33 570), agricultural supply dealers (Code chapter 570A), 3 34 threshers and cornshellers now referred to as harvesters (Code 3 35 chapter 571), custom cattle feedlot operators (Code chapter 4 1 579A), contract producers (Code chapter 579B), and 4 2 veterinarians (Code chapter 581). These Code chapters provide 4 3 that persons perfecting these liens enjoy superior priority 4 4 over other creditors even if the other creditors perfected 4 5 their interests prior in time. However, revised article 9 4 6 provides filing requirements for perfecting agricultural 4 7 liens, and therefore may control issues relating to priority 4 8 of conflicting security interests and liens. 4 9 As part of the 2000 legislation, the general assembly 4 10 amended Code chapter 570 providing for landlord liens; in 4 11 2001, the general assembly enacted H.F. 549 (2001 Iowa Acts, 4 12 chapter 25) amending Code chapters 579A providing for custom 4 13 cattle feedlot operator liens and 579B providing for contract 4 14 producer liens; and in 2003 the general assembly enacted S.F. 4 15 379 (2003 Iowa Acts, chapter 82), amending Code chapters 570A, 4 16 571, and 581, providing for other agricultural liens. In all 4 17 these cases, the legislation eliminated requirements for 4 18 filing that were inconsistent with the requirements contained 4 19 in revised article 9, replaced references to lien statements 4 20 with financing statements, and maintained their priority 4 21 status over other security interests and liens to the extent 4 22 that these liens also have been perfected, including as 4 23 agricultural liens under revised article 9. 4 24 NUMBER OF DAYS TO FILE A FINANCING STATEMENT. Under each 4 25 Code chapter, there are different periods by when a secured 4 26 party must file a financing statement in order to perfect 4 27 their agricultural lien. For a landlord, it is 20 days after 4 28 the debtor takes possession of the leased premises; for an 4 29 agricultural supply dealer, it is 31 days after a farmer 4 30 purchases the agricultural supply; for a harvester, it is 10 4 31 days after the harvesting services were rendered; for a custom 4 32 cattle feedlot operator, it is 20 days after the cattle arrive 4 33 at the custom cattle feedlot; for a contract producer, it is 4 34 45 days after the livestock's arrival (unless there is 4 35 continuous arrival) or 45 days after a crop is first planted; 5 1 and for a veterinarian, it is 60 days after treating the 5 2 livestock. This bill amends all these Code chapters (with the 5 3 exception of Code chapter 581) to change the number of days to 5 4 60 days which is the same as the time period for 5 5 veterinarians. 5 6 HARVESTING SERVICES. Code section 571.1A provides a 5 7 definition of services covered under a harvester lien, 5 8 including winnowing a crop (removing the useless parts, or 5 9 "chaff" from grain). This bill replaces the term with 5 10 "windrowing" (creating a cut row of crops presumably to gather 5 11 them up in a swath). 5 12 LSB 1813HH 82 5 13 da:nh/cf/24
Text: HF302            Text: HF304 Complete Bill History