Session of 1998
HOUSE BILL No. 2606
By Special Committee on Judiciary
12-17
9
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;
HB 2606
2
1 (9) any possessory lien
for removal of abandoned vehicles created
2 under K.S.A. 8-1102 and amendments
thereto;
3 (10) any lien for
wrecker or towing service created under K.S.A. 8-
4 1103 and amendments thereto;
5 (11) any lien of lessor
of safe deposit box created under K.S.A. 9-
6 1506 and amendments thereto;
7 (12) any grain storage
lien related to grain storage created under
8 chapter 34 of the Kansas Statutes
Annotated; or
9 (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.
HB 2606
3
1 (24) ``Encumbrance.''
K.S.A.
84-9-105.
2 (25) ``Equipment.''
K.S.A. 84-9-109.
3 (26) ``Fixture.''
K.S.A. 84-9-313.
4 (27) ``Fixture
filing.''
K.S.A. 84-9-313.
5 (28) ``Farm products.''
K.S.A. 84-9-109.
6 (29) ``Goods.''
K.S.A. 84-9-105.
7 (30) ``Instrument.''
K.S.A. 84-9-109.
8 (31) ``Inventory.''
K.S.A. 84-9-109.
9 (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.
HB 2606
4
1 Where a third party, other than the
owner/debtor or the lien holder is in
2 possession of personal property,
other than a leasehold, the lien holder
3 may agree with the third party in
writing that the third party has posses-
4 sion of the property subject to the
lien as bailee for the lien holder.
5 (8) ``Proceeds'' means
whatever is received upon the sale, exchange,
6 collection or other disposition of
property subject to a statutory lien. In-
7 surance payable by reason of loss or
damage to the collateral is proceeds,
8 except to the extent that it is
payable to a person other than a party to
9 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,
HB 2606
5
1 equipment and accessions located on
real property where the debtor is a
2 lessee shall not attach to the real
property but only to the debtor's interest
3 in the leasehold or the farm products
produced on the leasehold.
4 (b) A statutory lien
continues in identifiable proceeds of the property
5 subject to the lien as provided in
subsection (b) of section 5 and amend-
6 ments thereto.
7 Sec. 7. (a) (1) Except
as otherwise provided, any statutory lien cre-
8 ated under this act may be perfected
by possession of personal property
9 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
HB 2606
6
1 of state.
2 (E) If the property is
an interest in a leasehold, the lien statement
3 shall be filed with the register of
deeds in the county where the real estate
4 subject to the lease is located and
with the secretary of state.
5 (F) In all other cases,
the lien statement shall be filed with the sec-
6 retary of state.
7 (4) Perfection of a
statutory lien in personal property by possession
8 continues in the property upon the
filing of the lien statement.
9 (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
HB 2606
7
1 contain a description of the real
estate concerned. When the lien state-
2 ment covers a leasehold interest or
fixtures, as defined in K.S.A. 84-9-
3 313 and amendments thereto, the
statement shall contain a legal descrip-
4 tion of the real property
concerned.
5 (c) The secretary of
state shall prescribe a form substantially as fol-
6 lows to comply with subsections (a)
and (b) of this section:
7 Name or debtor (or assignor)
8
9 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
HB 2606
8
1 the date of attachment, whether or
not it adds other trade names or the
2 names of all partners. A filing
listing only the trade names of the debtor
3 is insufficient as against third
parties.
4 (f) A filed lien
statement remains effective with respect to property
5 transferred by the debtor unless the
lien holder consents to the transfer
6 in writing.
7 (g) A description of
property subject to the lien is adequate if it rea-
8 sonably identifies the personal
property subject to the lien. A legal de-
9 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
HB 2606
9
1 by the lien holder to show the date
and place of filing for an original lien
2 statement, or for any amendments
thereto shall be $6, plus $1 for each
3 additional page, or an amount fixed
by rules and regulations adopted by
4 the secretary of state on or after
the effective date of this act of not to
5 exceed $10, plus $1 for each
additional page.
6 (g)(1) A filing officer
shall mark each lien statement with a file num-
7 ber and with the date and hour of
filing and shall hold the statement or
8 a microfilm or other photographic
copy thereof for public inspection.
9 (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
HB 2606
10
1 person to be served actually received
a copy of the lien statement.
2 Sec. 12. (a) Within one
month, or within 10 days following written
3 demand by the debtor, after
satisfaction of the debt, the lien holder must
4 file with each filing officer with
whom the lien statement was filed, a
5 termination statement identified by
file number thereof to the effect that
6 the lien holder no longer claims a
lien under the statement. A termination
7 statement signed by a person other
than the lien holder of record must
8 be accompanied by a separate written
statement of assignment signed by
9 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
HB 2606
11
1 presently effective lien statement
naming a particular debtor and any
2 related statement and, if there is,
the date and hour of filing of each such
3 statement and the names and addresses
of each lien holder therein. The
4 fee for providing the information
shall be $8 or an amount, not to exceed
5 $10, fixed by rules and regulations
adopted by the secretary of state. Upon
6 request, the filing officer shall
furnish a copy of any filed lien statement
7 or related statement after payment of
a fee of $1 per page except that, if
8 the filing officer is the secretary
of state, the fee shall be in an amount
9 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
HB 2606
12
1 filing officers, and their employees
and agents, are immune from liability
2 for damages resulting from errors or
omissions in information supplied
3 pursuant to this section.
4 (f) Any fees in effect
on the day preceding the effective date of this
5 act shall continue in effect until
the secretary of state or the register of
6 deeds establishes different fees, as
the case may be.
7 Sec. 16. (a) The
secretary of state shall provide information con-
8 cerning filings under the Kansas
statutory lien act upon request by tele-
9 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.
HB 2606
13
1 (2) A perfected
statutory lien in fixtures, has priority over: (A) Any
2 interest created through attachment
by judicial process after the statutory
3 lien attaches; and (B) any interest
created by a mortgage or deed of trust
4 unrecorded as of the time of the
attachment of the statutory lien.
5 (3) Conflicting
perfected statutory liens in fixtures have equal prior-
6 ity.
7 Sec. 18. Statutory
liens shall be enforced as follows:
8 (a) (1) A perfected
statutory lien in personal property with a fair mar-
9 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
HB 2606
14
1 of this act.
2 (3) The lien statement
may be amended by leave of the judge in
3 furtherance of justice, except to
increase the amount claimed.
4 (4) If the proceeds of
the sale be insufficient to pay all the claimants,
5 then the court shall order them to be
paid in proportion to the amount
6 due each.
7 (5) After sale of
property pursuant to foreclosure of a statutory lien
8 on a leasehold interest, there shall
be no redemption and the sheriff shall
9 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