Section § 57401

Explanation

This section provides definitions for terms used in the chapter. 'Feed or materials' includes anything used for feeding dairy cattle. 'Person obligated on any proceeds' refers to handlers with funds from milk sales. 'Proceeds' are funds from milk sales minus certain deductions such as taxes and fees. 'Raising or maintaining dairy cattle' covers all aspects of caring for and managing dairy cattle. 'Reasonable or agreed charges' are the costs for feed or materials, agreed upon or based on reasonable value at delivery.

(a)CA Food and Agriculture Code § 57401(a) The definitions in this section govern the construction of this chapter.
(b)CA Food and Agriculture Code § 57401(b) “Feed or materials” means commercial feed, grain, forage, feed ingredients, mineral feed, drugs, animal health products, customer-formula feed, any mixture or preparation for feeding animals, any of the constituent nutrients of an animal ration, or any other food which is used for the feeding of dairy cattle.
(c)CA Food and Agriculture Code § 57401(c) “Person obligated on any proceeds” means a handler, as defined in Section 61826, who is in possession of proceeds.
(d)CA Food and Agriculture Code § 57401(d) “Proceeds” means funds derived from the sale of milk or milk products which are payable to the lien debtor by the possessor of the funds, except for any of the following:
(1)CA Food and Agriculture Code § 57401(d)(1) Deductions for taxes, fees, and assessments.
(2)CA Food and Agriculture Code § 57401(d)(2) Funds due or owing milk processing cooperative associations organized and operating pursuant to Chapter 1 (commencing with Section 54001).
(3)CA Food and Agriculture Code § 57401(d)(3) Funds retained by the cooperative association.
(4)CA Food and Agriculture Code § 57401(d)(4) Deductions made pursuant to a court order.
(5)CA Food and Agriculture Code § 57401(d)(5) Deductions due or owing the buyer of the milk for hauling services provided by the buyer pursuant to subdivision (e) of Section 62096 and deductions due or owing the buyer for the testing of milk for purposes of payment pursuant to Section 34231.
(e)CA Food and Agriculture Code § 57401(e) “Raising or maintaining of dairy cattle” means feeding, pasturing, caring for, and managing dairy cattle kept or raised for use or profit.
(f)CA Food and Agriculture Code § 57401(f) “Reasonable or agreed charges” means the agreed price, if any, for the feed and materials sold to the lien debtor, at the lien debtor’s request. If there is no agreed price or a method for determining price which is agreed upon, “reasonable or agreed charges” means the reasonable value of the feed or materials as of the date of delivery.

Section § 57402

Explanation

If you supply feed or materials to help raise or care for dairy cattle, you can claim a lien, which is a legal right, on the money earned from the milk or dairy products that those cattle produce. This covers what you are owed for the supplies and any costs to enforce the lien. However, the lien is limited to the value of feed or supplies provided within the last 60 days, and at any time, only two providers are allowed to have this lien according to priority rules.

Furthermore, each dairy farmer can have only one lien from a business they are connected with.

A person who provides feed or materials to aid the raising or maintaining of dairy cattle or offspring therefrom has a lien upon the proceeds of the milk or milk products produced from the dairy cattle, for the reasonable or agreed charges for the feed or materials provided and for the costs of enforcing the lien. However, the amount of charges secured by the lien cannot exceed an amount equal to the reasonable or agreed charges for feed or material provided within a 60-day period, and only two providers of feed or materials shall have an enforceable lien at any time according to the priority set forth in Section 57406. Only one lien under this chapter per dairy producer is available per affiliated business supplier.

Section § 57403

Explanation

This law explains that a lien, which is a legal claim on someone's property, can be applied to proceeds (money made from selling the property). Once a lien is claimed, the notice of this lien stays active without needing a new notice, as long as two conditions are met: either the person providing feed or materials hasn't been paid, or they continue to supply the feed or materials regularly. Regular supply is defined as no more than 30 days between deliveries. If it goes beyond 30 days, it's not considered regular anymore.

(a)CA Food and Agriculture Code § 57403(a) The lien created pursuant to this chapter attaches to proceeds.
(b)CA Food and Agriculture Code § 57403(b) Except as otherwise provided in this chapter, the notice of claim of lien shall remain in effect, and no new notice of claim of lien shall be required in order to maintain the lien, as long as the person who provides feed or materials either (1) remains unpaid for amounts secured by the lien, or (2) continues to provide feed or materials on a regular basis to the lien debtor. For purposes of this section, providing feed or materials shall not be deemed to be made on a regular basis if a period of more than 30 days elapses between deliveries.

Section § 57405

Explanation

This law explains how someone who provides feed or materials to a dairy can protect their right to be paid through a lien—a kind of legal claim—on the dairy cattle. To do this, they must file a 'notice of claim of lien' with the Secretary of State, containing specific details like the names and addresses of the claimant and debtor, and the location of the dairy. This notice must be filed using a specific form similar to a financing statement.

The law outlines who needs to be notified about the lien, including the lien debtor, and any other parties with an interest in the proceeds. Notice must be given within 10 days of filing. The statute also describes how these notices must be filed and indexed, as well as how to terminate the lien if it's no longer needed. The Secretary of State's office plays a key role in maintaining these records.

The lien created by this chapter shall be perfected by the filing of a notice of claim of lien with the Secretary of State and service of the notice of claim of lien pursuant to subdivision (e).
(a)CA Food and Agriculture Code § 57405(a) The person who provides feed or materials may, at any time, file in the manner and at the place set forth in this section, the notice of claim of lien.
(b)CA Food and Agriculture Code § 57405(b) The notice of claim of lien shall, at a minimum, set forth all of the following information:
(1)CA Food and Agriculture Code § 57405(b)(1) The name and address of the lien claimant.
(2)CA Food and Agriculture Code § 57405(b)(2) The last known name and address of the lien debtor.
(3)CA Food and Agriculture Code § 57405(b)(3) The location of the dairy to which the feed and materials were provided.
(4)CA Food and Agriculture Code § 57405(b)(4) That the lien claimant has a dairy cattle supply lien pursuant to Section 57402.
(c)CA Food and Agriculture Code § 57405(c) The notice of claim of lien shall be filed on a form which is the standard form of original financing statement prescribed by the Secretary of State pursuant to Section 9521 of the Commercial Code. The standard form shall be completed with the following changes:
(1)CA Food and Agriculture Code § 57405(c)(1) The lien claimant may be identified either as lien claimant or as secured party.
(2)CA Food and Agriculture Code § 57405(c)(2) In the space for the description of the collateral there shall instead be entered the statement substantially as set forth in paragraphs (3) and (4) of subdivision (b).
(d)CA Food and Agriculture Code § 57405(d) The notice of claim of lien shall be filed, indexed, and marked in the office of the Secretary of State in the same manner as a financing statement is filed, indexed, and marked pursuant to Section 9519 of the Commercial Code.
(e)Copy CA Food and Agriculture Code § 57405(e)
(1)Copy CA Food and Agriculture Code § 57405(e)(1) The lien claimant shall provide written notice of the claim of lien to the following persons within 10 days of the date of the filing with the office of the Secretary of State:
(A)CA Food and Agriculture Code § 57405(e)(1)(A) The lien debtor.
(B)CA Food and Agriculture Code § 57405(e)(1)(B) Any person from which the lien claimant has received, before the lien claimant files the notice, notification of a claim of an interest in the proceeds.
(C)CA Food and Agriculture Code § 57405(e)(1)(C) Any other secured party or lienholder that, 10 days before the filing of the notice, held a security interest in or other lien on the proceeds perfected by the filing of a financing statement that satisfied all of the following conditions:
(i)CA Food and Agriculture Code § 57405(e)(1)(C)(i) The statement identified the proceeds by referring to all assets, all personal property, goods, farm products, milk, or milk products, or otherwise identified the proceeds by any other description sufficient pursuant to Section 9108 of the Commercial Code.
(ii)CA Food and Agriculture Code § 57405(e)(1)(C)(ii) The statement was indexed under the debtor’s name as of that date.
(iii)CA Food and Agriculture Code § 57405(e)(1)(C)(iii) The statement was filed against the debtor covering the proceeds as of that date and was filed in the office or offices in which a financing statement may be filed pursuant to Section 9501 of the Commercial Code.
(D)CA Food and Agriculture Code § 57405(e)(1)(D) Any other secured party that, 10 days before the filing of the notice, held a security interest in the proceeds perfected by compliance with a statute, regulation, or treaty described in subdivision (a) of Section 9311 of the Commercial Code.
(2)CA Food and Agriculture Code § 57405(e)(2) If the lien debtor is an entity, notice shall be given to the lien debtor’s registered agent for service of process. If the lien debtor is an individual or general partnership, the notice shall be given at any address at which the individual conducts business.
(3)CA Food and Agriculture Code § 57405(e)(3) Any notice to be given to a person pursuant to subparagraph (B) of paragraph (1) shall be given to that person at the address set forth in the notification of claim of interest given by that person or, if no address is set forth, to the person’s registered agent for service of process if the person is an entity or at any address at which the person does business if the person is an individual or general partnership.
(4)CA Food and Agriculture Code § 57405(e)(4) Notice given to a secured party pursuant to subparagraph (C) of paragraph (1) shall be given to the secured party at the address set forth in the financing statement on file for the secured party.
(5)CA Food and Agriculture Code § 57405(e)(5) Notice to be given to a secured party pursuant to subparagraph (D) of paragraph (1) shall be given to the secured party at the address set forth in the document creating the perfection and compliance or, if no address is set forth, to the secured party’s registered agent for service of process if the secured party is an entity or at an address at which the secured party does business if the secured party is an individual or general partnership.
(f)CA Food and Agriculture Code § 57405(f) For the purpose of the Secretary of State’s index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall identify a notice pursuant to this section as a financing statement.
(g)CA Food and Agriculture Code § 57405(g) Within 20 days after a lien claimant receives a demand from a lien debtor, the lien claimant shall send to the lien debtor a termination statement for the notice of claim of lien or file the termination statement in the office of the Secretary of State, if the lien perfected by the notice of claim of lien has terminated pursuant to the provisions of Section 57403. Upon the filing of a termination statement with the office of the Secretary of State, the notice of claim of lien to which the termination statement relates ceases to be effective.

Section § 57406

Explanation

This law explains that when there are conflicting claims or interests, including agricultural liens, the rules for deciding which claim takes priority are outlined in another section of the law, specifically Section 9322 of the Commercial Code.

The priority of conflicting interests, agricultural liens, and the agricultural lien created under this chapter shall be governed by subdivisions (a) to (f), inclusive, of Section 9322 of the Commercial Code.

Section § 57407

Explanation

This law states that the lien mentioned in this chapter follows the rules outlined in Division 9 of the Commercial Code, which starts at Section 9101. Essentially, it means the lien is subject to the general rules for secured transactions unless this chapter says otherwise.

Except to the extent specifically set forth in this chapter, the lien created by this chapter shall be subject to Division 9 (commencing with Section 9101) of the Commercial Code.

Section § 57408

Explanation

If you're a member of the public, you can request a certificate to find out if there is a lien filed against a specific debtor. This certificate will show details like the date and time each lien notice was filed, plus the names and addresses of the lienholders. The cost for obtaining this certificate is the same as what's charged for a similar document under another part of the law, specifically Section 9525 of the Commercial Code.

A member of the public may obtain a certificate identifying whether there is a lien on file and any notice of claim of lien naming a particular debtor, and if so, giving the date and time of filing of each notice, and the names and addresses of each lienholder therein. The fee for the certificate is the same as the fee for a certificate issued pursuant to Section 9525 of the Commercial Code.

Section § 57409

Explanation

If you're a member of the public, you can get a copy of any lien notice filed according to this chapter, including any related notices. You'll have to pay a fee that's the same as the one set in Section 9525 of the Commercial Code.

A member of the public may obtain a copy of any notice of claim of lien filed pursuant to this chapter, including notices affecting the notices. The fee for these copies shall be the same as that prescribed in Section 9525 of the Commercial Code.

Section § 57410

Explanation

This section allows the Secretary of State to create any regulations and forms needed to fulfill their responsibilities as outlined in this chapter.

The Secretary of State may adopt any regulations necessary to carry out his or her duties pursuant to this chapter, including prescribing necessary forms.

Section § 57411

Explanation

The law states that if you hold a lien, meaning a legal claim on someone else's property until a debt owed by them is paid, you can pass on or transfer this lien to someone else. When you do this, you still retain full rights to enforce it. To make the transfer official, you need to file a statement with the Secretary of State in a specific way, similar to how it's done in another legal process involving secured interests.

A lien created pursuant to this chapter is assignable or transferable by the holder of the lien, with full rights of enforcement. A lienholder’s statement of assignment or transfer shall be filed with the Secretary of State in the same manner as a secured party’s statement of assignment or transfer as prescribed in Section 9514 of the Commercial Code.

Section § 57413

Explanation

This law outlines the actions a lien claimant can take if a debtor fails to pay. The claimant can either foreclose on the lien through a legal action to recover costs or notify involved parties to redirect payments to the claimant, given a 15-day notice period. Moreover, the claimant can enforce the rights associated with the lien.

Any surplus from received payments must be returned to the debtor, who remains responsible for any shortfall. The claimant can also seek additional court orders for protections or payments through attachment procedures. If prior liens or assignments exist, those take precedence over obligations to the current claimant.

To resolve the lien, the debtor can pay the owed amount or provide a surety bond to ensure payment. If the debtor doesn’t settle the claim within 35 days of a court judgment, the surety must cover the amount.

(a)CA Food and Agriculture Code § 57413(a) After payment default by the lien debtor, the lien claimant may foreclose on a lien created by this chapter in the following manners:
(1)CA Food and Agriculture Code § 57413(a)(1) The lien claimant may foreclose in an action to recover the reasonable or agreed charges for feed and materials delivered. In such an action, the final judgment may be enforced pursuant to Title 9 (commencing with Section 680.010) of Part 2 of the Code of Civil Procedure.
(2)CA Food and Agriculture Code § 57413(a)(2) Provided that the lien claimant provides concurrent notice to the lien debtor and the parties set forth in subdivision (e) of Section 57405, the lien claimant may notify any person obligated on any proceeds subject to the lien created under this chapter to make payment to, or otherwise render performance to or for the benefit of, the lien claimant, provided that the lien claimant may not demand that payment or performance be made at any time prior to 15 calendar days following the date of notice.
(3)CA Food and Agriculture Code § 57413(a)(3) The lien claimant may enforce the obligations of any person obligated on any proceeds subject to the lien created under this chapter and exercise the rights of the lien debtor with respect to the proceeds and any property that secures the right to the proceeds subject to the lien created under this chapter.
(b)CA Food and Agriculture Code § 57413(b) A lien claimant that receives proceeds pursuant to a notice provided pursuant to paragraph (2) of subdivision (a) shall account to, and pay the lien debtor for, any surplus, and the lien debtor shall be liable for any deficiency.
(c)CA Food and Agriculture Code § 57413(c) Nothing in this chapter shall prohibit a lien claimant from applying pursuant to Title 6.5 (commencing with Section 481.010) of Part 2 of the Code of Civil Procedure for a right to attach order and a writ of attachment, or temporary protective order, by filing an application for the order, writ, or temporary protective order with the court in which the action is brought.
(d)CA Food and Agriculture Code § 57413(d) Notwithstanding the receipt of a notice pursuant to paragraph (2) of subdivision (a), a person obligated on any proceeds subject to a lien created under this chapter shall have no liability to a lien claimant for failure to comply with that notice to the extent that the person obligated on the proceeds pays the proceeds subject to the notice as follows:
(1)CA Food and Agriculture Code § 57413(d)(1) To a person holding a lien or security interest that is prior to the lien of the lien claimant issuing the notice.
(2)CA Food and Agriculture Code § 57413(d)(2) In satisfaction of a contractual assignment or valid notice provided pursuant to Section 9607 of the Commercial Code has been received from the person obligated on the proceeds prior to the receipt of the notice pursuant to paragraph (2) of subdivision (a).
(e)CA Food and Agriculture Code § 57413(e) A person obligated on any proceeds subject to the lien created under this chapter and who makes payment pursuant to the notice required by paragraph (2) of subdivision (a) shall not be deemed, to the extent of that payment, to be in violation of the applicable provisions of law relating to failure to pay the amounts to the lien debtor and shall not be deemed to have engaged in an unlawful trade practice.
(f)CA Food and Agriculture Code § 57413(f) A lien debtor may secure a release of a lien created under this chapter by doing one of the following:
(1)CA Food and Agriculture Code § 57413(f)(1) Paying the amount secured by the lien.
(2)CA Food and Agriculture Code § 57413(f)(2) Depositing with the Secretary of Food and Agriculture a surety bond that is executed by the lien debtor as principal and by a surety company that is qualified and authorized to do business in this state as a surety in an amount that equals the current amount secured by the lien. If the lien debtor fails to pay the claims, up to the amount of the bond, of the lien claimant within 35 days after entry of final judgment in favor of the lien claimant, the surety shall pay all lawful claims that are covered by the amount of the lien, up to the amount of the bond, if an action is filed on the bond.

Section § 57414

Explanation

If someone who placed a lien on your property gets paid and hasn't provided services or materials for 30 days straight, they have to send you a statement saying they no longer have a claim, if you ask them to in writing. If they fail to send this statement within 10 days of your request, they have to pay for any damages you suffer. If they ignore your request on purpose, they owe you a $100 penalty.

The office that handles these filings must mark the end statement with the date and time it was filed and keep track of it. If they have a photographic record, they can destroy the original lien documents; if not, they must keep them for a year before destroying them.

(a)CA Food and Agriculture Code § 57414(a) When a lien claimant receives payment for amounts secured by the lien and the lien claimant has not been providing feed or materials for a period of 30 consecutive days, the lien claimant shall, on written demand by the debtor, send the debtor a statement that he or she no longer claims a security interest under the statement, which shall be identified by date, names of parties thereto, and file number. If the affected lienholder of record fails to send such a termination statement within 10 days after proper demand therefor, he or she shall be liable to the debtor for all actual damages suffered by the debtor by reason of this failure, and, if the failure is in bad faith, for a penalty of one hundred dollars ($100).
(b)CA Food and Agriculture Code § 57414(b) The filing officer shall mark each termination statement with the date and time of filing and shall index the statement under the name of the debtor and under the file number of the original lien. If the filing officer has a microfilm or other photographic record of the lien and related filings, he or she may remove the originals from the files at any time after receipt of the termination statement and destroy them, or if he or she does not have the record, he or she may remove them from those files at any time after one year after receipt of the termination statement and destroy them.