Chapter 11Dairy Cattle Supply Lien
Section § 57401
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.
Section § 57402
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.
Section § 57403
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.
Section § 57405
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.
Section § 57406
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.
Section § 57407
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.
Section § 57408
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.
Section § 57409
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.
Section § 57410
This section allows the Secretary of State to create any regulations and forms needed to fulfill their responsibilities as outlined in this chapter.
Section § 57411
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.
Section § 57413
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.
Section § 57414
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.