Session of 1998
                   
HOUSE BILL No. 2606
         
By Special Committee on Judiciary
         
12-17
          09             AN ACT enacting the Kansas statutory lien act; repealing K.S.A. 42-119,
10             47-836, 58-201, 58-202, 58-203, 58-204, 58-205, 58-206, 58-207, 58-
11             208, 58-209, 58-210, 58-211, 58-212, 58-213, 58-214, 58-215, 58-218,
12             58-219, 58-220, 58-221, 58-222, 58-223, 58-224, 58-225, 58-226, 84-
13             7-209, 84-7-210, 84-7-307 and 84-7-308.
14            
15       Be it enacted by the Legislature of the State of Kansas:
16         Section 1. Sections 1 through 18 and amendments thereto, shall be
17       known and may be cited as the Kansas statutory lien act.
18         Sec. 2. (a) Except as otherwise provided in section 3 and amend-
19       ments thereto on excluded transactions, this act provides the sole means
20       for creating, perfecting and enforcing statutory liens arising under section
21       5 and amendments thereto on personal property, including leasehold in-
22       terests. This act applies to any transaction, regardless of its form, which
23       gives rise to a lien under section 5 and amendments thereto.
24         (b) This act is intended to replace all types of statutory liens referred
25       to in K.S.A. 84-9-310 and amendments thereto.
26         Sec. 3. (a) This act shall not apply to creation, perfection or en-
27       forcement of the following types of liens: (1) Any liens created by federal
28       statute;
29         (2) any lien created by state statute or attachment for the enforce-
30       ment of taxes owed by one or more owners of real or personal property
31       or special assessments for fees levied or charged by any governmental
32       entity or officer thereof which becomes liens or are collected as taxes;
33         (3) any lien under K.S.A. 7-108 and amendments thereto;
34         (4) any agricultural input liens created under K.S.A. 58-241 et seq.
35       and amendments thereto;
36         (5) any liens created by judicial attachment, levy or garnishment or
37       any judgment liens;
38         (6) any security interest arising under article 9 of the uniform com-
39       mercial code, K.S.A. 84-9-101, et seq. and amendments thereto;
40         (7) any liens created and perfected under laws of another state on
41       property moved into the state of Kansas after the lien is perfected;
42         (8) any possessory lien of salvage vehicle dealer created under K.S.A.
43       8-1,136 and amendments thereto;

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01         (9) any possessory lien for removal of abandoned vehicles created
02       under K.S.A. 8-1102 and amendments thereto;
03         (10) any lien for wrecker or towing service created under K.S.A. 8-
04       1103 and amendments thereto;
05         (11) any lien of lessor of safe deposit box created under K.S.A. 9-
06       1506 and amendments thereto;
07         (12) any grain storage lien related to grain storage created under
08       chapter 34 of the Kansas Statutes Annotated; or
09         (13) any lien of self-service storage operator created under K.S.A. 58-
10       816 et seq. and amendments thereto.
11         (b) Nothing in this act shall be construed to limit a court of this state's
12       inherent power to impose as a remedy an equitable mortgage or construc-
13       tive or resulting trust on property subject to its jurisdiction after due
14       process. The provisions of this act shall not apply to creation, attachment,
15       priority or enforcement of such remedies.
16         Sec. 4. (a) The following definitions found in the uniform com-
17       mercial code shall apply to this act and the sections in which they appear,
18       including any amendments thereto are:
19         (1) ``Agreement.''                           K.S.A. 84-1-201.
20         (2) ``Buyer in ordinary course of business.'' K.S.A. 84-1-201.
21         (3) ``Creditor.''                             K.S.A. 84-1-201.
22         (4) ``Good faith.''                           K.S.A. 84-1-201.
23         (5) ``Notice.''                               K.S.A. 84-1-201.
24         (6) ``Party.''                               K.S.A. 84-1-201.
25         (7) ``Person.''                               K.S.A. 84-1-201.
26         (8) ``Purchase.''                             K.S.A. 84-1-201.
27         (9) ``Purchaser.''                           K.S.A. 84-1-201.
28         (10) ``Remedy.''                             K.S.A. 84-1-201.
29         (11) ``Rights.''                             K.S.A. 84-1-201.
30         (12) ``Security interest.''                   K.S.A. 84-1-201.
31         (13) ``Signed.''                             K.S.A. 84-1-201.
32         (14) ``Value.''                               K.S.A. 84-1-201.
33         (15) ``Warehouse receipt.''                   K.S.A. 84-1-201.
34         (16) ``Written.''                             K.S.A. 84-1-201.
35         (17) ``Certificate of deposit.''             K.S.A. 84-3-104.
36         (18) ``Accounts.''                           K.S.A. 84-9-106.
37         (19) ``Attaches.''                           K.S.A. 84-9-203.
38         (20) ``Collateral.''                         K.S.A. 84-9-105.
39         (21) ``Consumer goods, except that consumer
40                   goods shall not include any vehicle or motor
41                   home or manufactured home.''
42                                                           K.S.A. 84-9-109.

43         (22) ``Debtor.''                             K.S.A. 84-9-105.
44         (23) ``Document.''                           K.S.A. 84-9-105.

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01         (24) ``Encumbrance.''                         K.S.A. 84-9-105.
02         (25) ``Equipment.''                           K.S.A. 84-9-109.
03         (26) ``Fixture.''                             K.S.A. 84-9-313.
04         (27) ``Fixture filing.''                     K.S.A. 84-9-313.
05         (28) ``Farm products.''                       K.S.A. 84-9-109.
06         (29) ``Goods.''                               K.S.A. 84-9-105.
07         (30) ``Instrument.''                         K.S.A. 84-9-109.
08         (31) ``Inventory.''                           K.S.A. 84-9-109.
09         (32) ``Mortgage.''                           K.S.A. 84-9-105.
10         (33) ``Purchase money security interest.''   K.S.A. 84-9-107.
11         (34) ``Secured party.''                       K.S.A. 84-9-105.
12         (b) As used in this act, unless the context otherwise requires:
13       (1) ``Custom farming'' means any services or labor contracted for by the
14       owner or lessee of real estate or the agent of the owner or lessee, incident
15       to production of crops, including planting, harvesting or hauling of farm
16       products of all kinds on that real estate. Custom farming shall not include
17       the furnishing of agricultural inputs of any kind, including, but not limited
18       to, fuel, fertilizer, chemicals and medicines, seed or other supplies used
19       in the planting or production of crops or farm products. Custom farming
20       shall not include labor, services or materials provided or performed in
21       terracing, fencing, constructing buildings, storage facilities, fixtures or
22       other improvements, or any other work done to repair or improve the
23       real estate itself.
24         (2) ``Harvesting'' means all services, labor and materials furnished in
25       connection with the cutting, picking or gathering and transportation of
26       crops severed from the real estate on which they were grown. It does not
27       include any work or materials provided in connection with breeding, feed-
28       ing, finishing or transporting livestock.
29         (3) ``Leasehold'' does not include any oil and gas or other mineral or
30       mining leasehold.
31         (4) ``Lien'' means a charge on property created under this act to se-
32       cure payment of a debt or performance of an obligation.
33         (5) ``Lien holder'' means a person claiming a lien on personal prop-
34       erty under the provisions of this act. The assignee of a statutory lien is
35       also a lien holder.
36         (6) ``Lien statement'' means the written document necessary to per-
37       fect a nonpossessory statutory lien. Lien statement means the original
38       lien statement and any amendments thereto.
39         (7) ``Possession'' means physical control of personal property, other
40       than a leasehold interest. Where personal property is covered by a non-
41       negotiable instrument, the lien holder is deemed to have perfected its
42       lien by possession as of the time the lien holder serves written notice of
43       the claimed lien together with any required lien statement on the bailee.

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01       Where a third party, other than the owner/debtor or the lien holder is in
02       possession of personal property, other than a leasehold, the lien holder
03       may agree with the third party in writing that the third party has posses-
04       sion of the property subject to the lien as bailee for the lien holder.
05         (8) ``Proceeds'' means whatever is received upon the sale, exchange,
06       collection or other disposition of property subject to a statutory lien. In-
07       surance payable by reason of loss or damage to the collateral is proceeds,
08       except to the extent that it is payable to a person other than a party to
09       the transaction giving rise to the statutory lien. Money, checks, deposit
10       accounts and the like are cash proceeds. All other proceeds are noncash
11       proceeds.
12         (9) ``Statutory lien'' means a lien created by this act.
13         (10) ``Vehicle'' means any means of transportation of goods or persons
14       as defined under K.S.A. 8-126 and amendments thereto, and any vehicles
15       which move on stationary rails or tracks in interstate commerce.
16         (11) ``Work'' means any of the acts giving rise to a lien under section
17       5 and amendments thereto.
18         Sec. 5. (a) Any person who, at the request of, or with the consent
19       of the owner of personal property or the agent of the owner of such
20       property, shall perform labor, including custom farming and harvesting;
21       furnish accessions, material, equipment, parts, supplies, feed, including
22       pasturage, seed or veterinary services; or provide transportation, bail-
23       ment, warehousing or storage for or make improvements or repairs to
24       personal property shall:
25         (1) In the case of a leasehold, have a lien on the whole of such lease-
26       hold to secure the payment of the charges for such labor, equipment,
27       parts, supplies, feed, seed, services, transportation, bailment, warehous-
28       ing or storage; and
29         (2) in the case of all other personal property, have a lien on that
30       property to secure the payment of the charges for such labor, equipment,
31       parts, supplies, feed, seed, services, transportation, bailment, warehous-
32       ing or storage.
33         (b) Except as this act otherwise provides, a statutory lien continues
34       in property subject to the lien notwithstanding sale, exchange or other
35       disposition of such property unless the disposition was authorized by the
36       holder of the lien in writing, and also continues in an identifiable proceeds
37       including collections received by the debtor. The statutory lien in pro-
38       ceeds terminates 10 days after receipt of the proceeds by the debtor
39       unless the proceeds are identifiable cash proceeds.
40         Sec. 6. (a) The statutory lien created by this act shall attach to the
41       property on which the lien holder performed work or provided goods or
42       services at the time the work, goods or services are first performed or
43       provided. The lien for custom harvesting, farming, repairs to fixtures,

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01       equipment and accessions located on real property where the debtor is a
02       lessee shall not attach to the real property but only to the debtor's interest
03       in the leasehold or the farm products produced on the leasehold.
04         (b) A statutory lien continues in identifiable proceeds of the property
05       subject to the lien as provided in subsection (b) of section 5 and amend-
06       ments thereto.
07         Sec. 7. (a) (1) Except as otherwise provided, any statutory lien cre-
08       ated under this act may be perfected by possession of personal property
09       or the filing of a lien statement, as provided in this section and section 8
10       and amendments thereto, in a form approved by the secretary of state.
11         (2) A person holding a statutory lien on personal property may perfect
12       the lien by retaining possession thereof. A statutory lien on consumer
13       goods having a fair market value of $1,000 or less at the time of the
14       attachment of the lien may only be perfected by possession.
15         (3) A person holding a statutory lien on personal property, other than
16       an interest in a leasehold or consumer goods having a fair market value
17       of $1,000 or less at the time of the attachment of the lien may continue
18       perfection of that lien by filing a lien statement, within the time pre-
19       scribed by section 8 and amendments thereto, as follows:
20         (A) If the personal property is a titled motor vehicle, a lien statement
21       shall be filed with the secretary of state in a form prescribed by the
22       secretary of state.
23         (B) If the personal property is consumer goods having a fair market
24       value of greater than $1,000 as of the date the lien attaches, the lien
25       statement shall be filed with the register of deeds in the county of the
26       owner's residence if the debtor is a Kansas resident or in the county where
27       the property is located if the debtor is not a resident of Kansas. If the
28       lien holder is unable to determine where the owner is resident, the lien
29       statement shall be filed in the county where the property is located when
30       the lien attaches.
31         (C) If the personal property is farm products, other than growing or
32       harvested crops, the lien statement shall be filed with the register of deeds
33       in the county where the debtor is resident as of the date of attachment
34       and with the secretary of state. If the debtor is not a resident of Kansas,
35       the lien statement shall be filed with the register of deeds in the county
36       where the farm products are located as of the date of attachment of the
37       lien and with the secretary of state. If the lien holder is unable to deter-
38       mine where the owner is resident, the lien statement shall be filed with
39       the register of deeds in the county where the property is located when
40       the lien attaches and with the secretary of state.
41         (D) If the personal property is growing or harvested crops the lien
42       statement shall be filed with the register of deeds in the county where
43       the crops are located as of the date of attachment and with the secretary

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01       of state.
02         (E) If the property is an interest in a leasehold, the lien statement
03       shall be filed with the register of deeds in the county where the real estate
04       subject to the lease is located and with the secretary of state.
05         (F) In all other cases, the lien statement shall be filed with the sec-
06       retary of state.
07         (4) Perfection of a statutory lien in personal property by possession
08       continues in the property upon the filing of the lien statement.
09         (b) A person holding a statutory lien on fixtures shall file the lien
10       statement required by this act with the secretary of state and the register
11       of deeds in the county where the real property is located.
12         Sec. 8. (a) A lien holder claiming a lien on personal property shall
13       file a lien statement as provided in this act not later than 90 days after
14       the later of: (1) Delivery of possession of the property subject to the lien
15       to the debtor or some other person entitled to possession; or (2) the date
16       material, equipment or supplies were last furnished or work was last per-
17       formed.
18         (b) A lien holder claiming a lien on an interest in fixtures or a lease-
19       hold shall file a lien statement as provided in this act not later than 90
20       days after material was last furnished or labor last performed by the lien
21       claimant.
22         Sec. 9. (a) A lien statement shall conform substantially to a form pre-
23       scribed by the secretary of state and shall contain: (1) The names of the
24       debtor and the lien holder; (2) an address of the lien holder from which
25       information concerning the lien may be obtained; (3) a mailing address
26       of the debtor; (4) the debtor's social security number (SSN) or federal
27       employer identification number (FEIN); (5) a statement of the date the
28       lien attached; (6) a statement describing the property subject to the lien;
29       (7) a reasonably itemized statement of the amount of the lien and the
30       work, storage and materials for which the lien is claimed; but if the
31       amount of the claim is evidenced by a written instrument, a copy thereof
32       may be attached to the claim in lieu of the itemized statement; (8) a legal
33       description of the real estate when the lien statement covers an interest
34       in a leasehold or fixtures; (9) the name of the record owner of the real
35       estate where the debtor is a lessee of the real estate; (10) a serial or vehicle
36       identification number for the vehicle subject to the lien when the lien
37       statement covers a titled vehicle, mobile or manufactured home, and shall
38       be signed by the lien holder under penalty of perjury pursuant to K.S.A.
39       53-601 and amendments thereto.
40         (b) For the purposes of this section: (1) A description of the location
41       of the property subject to the lien is not necessary except where a de-
42       scription of location is specifically required by this act.
43         (2) When the lien statement covers growing crops, the statement shall

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01       contain a description of the real estate concerned. When the lien state-
02       ment covers a leasehold interest or fixtures, as defined in K.S.A. 84-9-
03       313 and amendments thereto, the statement shall contain a legal descrip-
04       tion of the real property concerned.
05         (c) The secretary of state shall prescribe a form substantially as fol-
06       lows to comply with subsections (a) and (b) of this section:
07       Name or debtor (or assignor)
08       _______________________
09       Address _______________________
10       Social security number (SSN) _______________________ ; or
11       Federal employer identification number (FEIN) _______________________
12       Name of lien holder (or assignee)
13       _______________________
14       Address _______________________
15       1. This lien statement covers the following property:
16       (Describe)
17       _______________________
18       __________________ [VIN __________________]
19       2. (If collateral is growing crops, describe real estate) _______________________
20       _______________________
21       3. This lien statement covers fixtures, or a leasehold interest located on: (Legal description
22       of real estate)
23       _______________________
24       4. (Name(s) of record owner(s))
25       _______________________
26       5. Date of attachment of lien: __________________.
27       6. Amount of lien claimed: $__________________. (Attached is a statement of the service,
28       repair, labor, storage or material charges)
29       Pursuant to K.S.A. 53-601 and amendments thereto, I declare under penalty of perjury
30       under the laws of the state of Kansas that the foregoing is true and correct and reflects work
31       performed, storage provided or material furnished and that the lien holder identified above
32       is entitled to a lien on the property described.
33       Signature of lien holder (or assignor) _______________________
34       Date __________________
35       (d) A lien statement may be amended by filing a writing signed by
36       the lien holder or the lien holder's assignee. An amendment does not
37       extend the period of effectiveness of a lien statement and does not relate
38       back to the date of the original lien statement. If any amendment adds
39       property subject to the lien, it is effective as to the added property only
40       from the filing date of the amendment.
41         (e) A lien statement sufficiently shows the name of the debtor if it
42       gives the individual, partnership or corporate name of the debtor as of

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01       the date of attachment, whether or not it adds other trade names or the
02       names of all partners. A filing listing only the trade names of the debtor
03       is insufficient as against third parties.
04         (f) A filed lien statement remains effective with respect to property
05       transferred by the debtor unless the lien holder consents to the transfer
06       in writing.
07         (g) A description of property subject to the lien is adequate if it rea-
08       sonably identifies the personal property subject to the lien. A legal de-
09       scription of real property is sufficient if it identifies the property or affords
10       the means of identification within the instrument itself or by specific
11       reference to other instruments recorded in the office of the register of
12       deeds where the lien statement is filed.
13         (h) A lien statement substantially complying with the requirements
14       of this section is effective even though it contains minor errors which are
15       not seriously misleading.
16         Sec. 10. (a) Presentation for filing of a lien statement and tender of
17       the filing fee to the filing officer constitutes filing under this act.
18         (b) Except as provided in subsection (d), a filed lien statement cov-
19       ering an interest in a leasehold or fixtures is effective for a period of one
20       year from the date of filing. If a promissory note has been attached to
21       the lien statement in lieu of an itemized statement, the lien statement
22       shall be effective for a period of one year from the maturity of the note.
23         (c) Except as provided in subsection (d), a filed lien statement cov-
24       ering an interest in personal property is effective for a period of 90 days
25       from the date of filing.
26         (d) The effectiveness of a filed lien statement lapses on the expiration
27       of the period specified in subsection (b) or (c) unless the lien holder has
28       commenced an action to foreclose the lien prior to the lapse. If a statutory
29       lien perfected by filing exists at the time insolvency proceedings are com-
30       menced by or against the debtor, the lien remains perfected until ter-
31       mination of the insolvency proceedings and thereafter for a period of 60
32       days. Upon lapse the lien becomes unperfected, unless it is perfected
33       without filing. If the lien becomes unperfected upon lapse, it is deemed
34       to have been unperfected as against a person who became a purchaser
35       or lien creditor before lapse.
36         (e) Where a lien statement must be filed with both a register of deeds
37       and the secretary of state to perfect a lien under this act, if the filing with
38       the second office is accomplished within 20 days of the filing with the
39       first office to receive the lien statement, perfection relates back to the
40       date the first lien statement was received for filing. In all other cases,
41       perfection is effective from the date the lien statement is received by the
42       second office.
43         (f) The fee for filing and indexing and for stamping a copy furnished

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01       by the lien holder to show the date and place of filing for an original lien
02       statement, or for any amendments thereto shall be $6, plus $1 for each
03       additional page, or an amount fixed by rules and regulations adopted by
04       the secretary of state on or after the effective date of this act of not to
05       exceed $10, plus $1 for each additional page.
06         (g)(1) A filing officer shall mark each lien statement with a file num-
07       ber and with the date and hour of filing and shall hold the statement or
08       a microfilm or other photographic copy thereof for public inspection.
09         (2) In addition the filing officer shall index all statements according
10       to the names of the debtors but shall not index the names of corporate
11       officers or signatures of the debtors, shall note in the index the file num-
12       ber, the address of the debtor given in the statement, the date of filing
13       and general description of the collateral and shall cause the index to be
14       accessible to the public.
15         (3) In addition the filing officer shall index all statements by legal
16       description where the lien statement contains a legal description and shall
17       note in the index the file number, the address of the debtor given in the
18       statement, the date of filing and the legal description of the collateral and
19       shall cause the index to be accessible to the public.
20         (4) When a lien statement covers goods which are or are to become
21       fixtures and contains the information required by K.S.A. 84-9-402 and
22       amendments thereto, the filing officer shall also index the statement ac-
23       cording to the name of the record owner of the real estate and shall cause
24       the index to be accessible to the public.
25         Sec. 11. (a) The holder of a statutory lien on personal property per-
26       fected by the filing of a lien statement shall serve a file stamped copy of
27       the lien statement on the debtor by first class mail, postage prepaid, by
28       mailing the file stamped copy to the individual debtor's dwelling, resi-
29       dence or place where the debtor conducts a business or profession, or if
30       the debtor is an entity, to either the place where the debtor conducts its
31       business or profession or the debtor's registered agent.
32         (b) The holder of a statutory lien on fixtures or a leasehold perfected
33       by filing a lien statement shall: (1) Cause a file stamped copy of the lien
34       statement to be served upon any one owner and any party obligated to
35       pay the lien by any of the methods provided by K.S.A. 60-303 and amend-
36       ments thereto, for the service of process within the state, or by K.S.A.
37       60-308 and amendments thereto, for service outside of the state; or (2)
38       if the address of any one owner or such party is unknown and cannot be
39       ascertained with reasonable diligence, post a copy of the lien statement
40       in a conspicuous place on the premises.
41         (c) The provisions of this section requiring that the claimant serve a
42       copy of the lien statement shall be deemed to have been complied with,
43       notwithstanding some irregularity or omission, if it is proven that the

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01       person to be served actually received a copy of the lien statement.
02         Sec. 12. (a) Within one month, or within 10 days following written
03       demand by the debtor, after satisfaction of the debt, the lien holder must
04       file with each filing officer with whom the lien statement was filed, a
05       termination statement identified by file number thereof to the effect that
06       the lien holder no longer claims a lien under the statement. A termination
07       statement signed by a person other than the lien holder of record must
08       be accompanied by a separate written statement of assignment signed by
09       the lien holder of record. If the lien holder fails to file such a termination
10       statement as required by this subsection within 10 days after proper de-
11       mand therefore the lien holder shall be liable to the debtor for $500, and
12       in addition for any loss caused to the debtor by such failure.
13         (b) On presentation of such a termination statement, the filing officer
14       must note it in the index. If the filing officer has received the termination
15       statement in duplicate, the filing officer shall return one copy of the ter-
16       mination statement to the lien holder stamped to show the time of receipt
17       thereof. If the filing officer has a microfilm or other photographic record
18       of the lien statement, and of any related amendment, statement of as-
19       signment and statement of release, the filing officer may remove the
20       originals from the files at any time after receipt of the termination state-
21       ment, or if the filing officer has no such record, the filing officer may
22       remove them from the files at any time after one year after receipt of the
23       termination statement.
24         (c) Termination statements may be destroyed after such statements
25       have been on file for five years.
26         Sec. 13. (a) An assignment of a statutory lien shall contain the name
27       and address of the assignee, shall identify the file or other number of the
28       lien statement and shall contain the signature of the assignor. The assign-
29       ment shall be filed in all locations where the original lien statement was
30       filed. On presentation to the filing officer of an assignment, the filing
31       officer shall mark the same as provided in this act. The fee for filing,
32       indexing and furnishing filing data for a lien statement so indicating an
33       assignment shall be the amount fixed for filing original lien statements.
34         (b) After the filing of an assignment under this section, the assignee
35       is the lien holder of record.
36         Sec. 14. (a) If the person filing any lien statement, termination state-
37       ment, statement of assignment or statement of release furnishes the filing
38       officer a copy thereof, the filing officer shall upon request note upon the
39       copy the file number and date and hour of the filing of the original and
40       deliver or send the copy to such person.
41         (b) Upon written or electronic request of any person and tender of
42       the proper fee, the filing officer shall inform the person, in writing or
43       electronically, of whether there is on file on the date and hour stated, any

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01       presently effective lien statement naming a particular debtor and any
02       related statement and, if there is, the date and hour of filing of each such
03       statement and the names and addresses of each lien holder therein. The
04       fee for providing the information shall be $8 or an amount, not to exceed
05       $10, fixed by rules and regulations adopted by the secretary of state. Upon
06       request, the filing officer shall furnish a copy of any filed lien statement
07       or related statement after payment of a fee of $1 per page except that, if
08       the filing officer is the secretary of state, the fee shall be in an amount
09       fixed by the secretary of state and approved by the director of accounts
10       and reports under K.S.A. 45-219 and amendments thereto.
11         (c) Except with respect to willful misconduct, the state, counties and
12       filing officers, and their employees and agents, are immune from liability
13       for damages resulting from errors or omissions in information supplied
14       pursuant to this section.
15         Sec. 15. (a) The secretary of state shall provide information concern-
16       ing filings under the Kansas statutory lien act to persons with an interest
17       in the information that is related exclusively to the purposes of that act.
18         (b) The secretary of state or a register of deeds may adopt one or
19       more of the following methods of providing information concerning fil-
20       ings under the Kansas statutory lien act to persons with an interest in the
21       information that is related exclusively to the purposes of that act: (1)
22       Telecopier access by interested parties and offices of registers of deeds
23       to filings in the office of the secretary of state; (2) subscription periodic
24       written summaries; (3) copies of microfilm; (4) data storage material; (5)
25       access to data processing functions; or (6) any other appropriate method
26       of disseminating the information.
27         (c) The secretary of state or a register of deeds may charge a reason-
28       able fee for the information on file in that office provided pursuant to
29       this section. In establishing the fees, the secretary of state or register of
30       deeds may take into account the costs incurred in establishing and main-
31       taining the information system as well as other costs.
32         (d) If information regarding filings in the office of the secretary of
33       state is provided by a register of deeds pursuant to this section, the fee
34       to be collected from the customer shall be an amount fixed by rules and
35       regulations adopted by the secretary of state. The rules and regulations
36       adopted by the secretary of state shall specify the amount the register of
37       deeds shall remit to the county treasurer for deposit into the county gen-
38       eral fund. The register of deeds shall remit at least monthly the remainder
39       of all such fees collected to the state treasurer. The state treasurer shall
40       deposit the entire amount in the state treasury and shall credit 20% of
41       the amount to the state general fund and the remainder to the uniform
42       commercial code fee fund.
43         (e) Except with respect to willful misconduct, the state, counties and

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01       filing officers, and their employees and agents, are immune from liability
02       for damages resulting from errors or omissions in information supplied
03       pursuant to this section.
04         (f) Any fees in effect on the day preceding the effective date of this
05       act shall continue in effect until the secretary of state or the register of
06       deeds establishes different fees, as the case may be.
07         Sec. 16. (a) The secretary of state shall provide information con-
08       cerning filings under the Kansas statutory lien act upon request by tele-
09       phone to persons who have received prior approval of the secretary of
10       state.
11         (b) Information provided under this section shall not include the text
12       descriptive of the collateral.
13         (c) The secretary of state may charge a reasonable fee in addition to
14       the fee specified in section 14 and amendments thereto to the requesting
15       party for information provided pursuant to this section.
16         (d) Except with respect to willful misconduct, the state and its em-
17       ployees and agents are immune from liability for damages resulting from
18       errors or omissions in information supplied pursuant to this section.
19         Sec. 17. (a) A perfected statutory lien in personal property with a fair
20       market value of $1,000 or less has priority over a person who has or takes
21       a security interest in the property.
22         (b) (1) A perfected statutory lien in a leasehold interest is subordi-
23       nate to any assignment of the leasehold interest and any interest created
24       in a mortgage or deed of trust duly filed of record in the appropriate
25       county prior to attachment of the statutory lien.
26         (2) A perfected statutory lien in a leasehold interest, has priority over:
27       (A) Any interest created through attachment by judicial process after the
28       statutory lien attaches; and (B) any interest created by an assignment,
29       mortgage or deed of trust unrecorded as of the time of attachment of the
30       statutory lien.
31         (3) Conflicting perfected statutory liens in a leasehold interest have
32       equal priority.
33         (c) (1) A perfected statutory lien in other personal property has pri-
34       ority over: (A) Any perfected or unperfected security interest in the prop-
35       erty even where the lien holder had actual or constructive notice of the
36       security interest; and (B) any interest created through attachment by ju-
37       dicial process after the statutory lien attaches.
38         (2) Conflicting perfected statutory liens in other personal property
39       have equal priority.
40         (d) (1) A perfected statutory lien in fixtures is subordinate to any
41       assignment of the leasehold interest and any interest created in a mort-
42       gage or deed of trust duly filed of record in the appropriate county at the
43       time of the attachment of the statutory lien.

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01         (2) A perfected statutory lien in fixtures, has priority over: (A) Any
02       interest created through attachment by judicial process after the statutory
03       lien attaches; and (B) any interest created by a mortgage or deed of trust
04       unrecorded as of the time of the attachment of the statutory lien.
05         (3) Conflicting perfected statutory liens in fixtures have equal prior-
06       ity.
07         Sec. 18. Statutory liens shall be enforced as follows:
08         (a) (1) A perfected statutory lien in personal property with a fair mar-
09       ket value of $1,000 or less may be enforced by the lien holder in any
10       manner specified in K.S.A. 84-9-504 and amendments thereto and pro-
11       ceeds of any sale shall be applied first to satisfaction of the sale expenses
12       and thereafter to the statutory lien. Any surplus shall be applied to junior
13       liens and security interests in the order they are perfected.
14         (2) Goods which are subject to rapid deterioration may be sold with-
15       out advance notice to the owner if sold in a recognized public market for
16       goods of that type and proceeds of any sale shall be applied first to sat-
17       isfaction of the sale expenses and thereafter to the statutory lien. Any
18       surplus shall be applied to junior liens and security interests in the order
19       they are perfected.
20         (3) In all other instances, statutory liens in personal property shall be
21       foreclosed in the manner prescribed for judicial foreclosure under K.S.A.
22       60-1006 et seq. and amendments thereto.
23         (b) (1) In actions to foreclose statutory liens on leasehold interests
24       and fixtures, all persons whose liens are filed as provided in this act, and
25       other encumbrancers of record, shall be made parties, and issues shall be
26       made and trials had as in other cases. Where such an action is brought
27       by a subcontractor, or person other than the original contractor, such
28       original contractor shall be made a party defendant, and shall at the con-
29       tractor's own expense defend against the claim of every subcontractor, or
30       other person claiming a lien under this act, and if the contractor fails to
31       make such defense the owner may make the same at the expense of such
32       contractor. Until all such claims, costs and expenses are finally adjudi-
33       cated, and defeated or satisfied, the owner shall be entitled to retain from
34       the contractor the amount thereof, and such costs and expenses as the
35       owner may be required to pay. If the sheriff of the county in which such
36       action is pending shall make return that the sheriff is unable to find such
37       original contractor, the court may proceed to adjudicate the liens upon
38       the land and render judgment to enforce the same with costs.
39         (2) In any action to foreclose a lien under this subsection if the build-
40       ing or other improvement is still in course of construction, the judge on
41       application of any party engaged in furnishing labor or materials for such
42       building or improvement, may stay the trial thereof for a reasonable time
43       to permit the filing of a lien statement by such party under the provisions

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01       of this act.
02         (3) The lien statement may be amended by leave of the judge in
03       furtherance of justice, except to increase the amount claimed.
04         (4) If the proceeds of the sale be insufficient to pay all the claimants,
05       then the court shall order them to be paid in proportion to the amount
06       due each.
07         (5) After sale of property pursuant to foreclosure of a statutory lien
08       on a leasehold interest, there shall be no redemption and the sheriff shall
09       make a formal conveyance of all the property so sold to the purchaser, in
10       one leasehold assignment.
11         (6) If any lien or liens are filed under the provisions of this act and
12       no action to foreclose any of such liens is commenced, the owner of the
13       land may file such owner's petition in the district court of the county in
14       which such land is situated, making such lien claimants defendants
15       therein, and praying for an adjudication of such lien or liens so claimed.
16       If any such lien claimant shall fail to establish such claimant's lien, the
17       court may tax against such claimant the whole or such portion of the costs
18       of such action as may be just. If no action to foreclose or adjudicate any
19       lien filed under the provisions of this act shall be instituted within the
20       time provided in section 10 and amendments thereto, the lien shall be
21       considered canceled by limitation of law.
22         Sec. 19. K.S.A. 42-119, 47-836, 58-201, 58-202, 58-203, 58-204, 58-
23       205, 58-206, 58-207, 58-208, 58-209, 58-210, 58-211, 58-212, 58-213, 58-
24       214, 58-215, 58-218, 58-219, 58-220, 58-221, 58-222, 58-223, 58-224, 58-
25       225, 58-226, 84-7-209, 84-7-210, 84-7-307 and 84-7-308 are hereby
26       repealed.
27         Sec. 20. This act shall take effect and be in force from and after its
28       publication in the statute book.
29