Session of 1999
         
SENATE BILL No. 281
         
By Committee on Agriculture
          
2-10
          
  9             AN  ACT concerning liens; providing liens on crops.
10      
11       Be it enacted by the Legislature of the State of Kansas:
12             Section  1. A person, including a firm or corporation, who shall con-
13       tract or agree with another to:
14             (a) Furnish seed to be sown or planted shall have a lien upon all crops
15       produced from the seed furnished to secure the payment of the purchase
16       price of the seed;
17             (b)  (1) furnish any fertilizer, soil conditioner or agricultural chemical;
18       (2) furnish machinery and equipment for the application of such products;
19       or (3) to perform work or labor in the application of such products shall
20       have a lien for the agreed charges, or in the absence of an agreement, for
21       the reasonable charges and costs of satisfying such lien, upon the crops
22       produced within one year upon the land where such product was applied,
23       the machinery or equipment for application was used, or the work or
24       labor of application was performed, and upon the proceeds from the sale
25       of the crops; and
26             (c) furnish machinery or equipment for the purpose of planting, cul-
27       tivating, growing, producing, harvesting, drying and storing crops or crop
28       products shall have a lien upon all crops or crop products produced with
29       such machinery or equipment to secure the payment of the purchase or
30       lease price of such machinery or equipment.
31             Sec.  2. Any lien under section 1, and amendments thereto, shall be
32       perfected by filing a notice of lien with the county clerk of the county
33       where the land is located upon which the crops are growing or are to be
34       planted. The notice of lien shall state:
35             (a) The name and address and the social security number or federal
36       tax identification number, if known, of the person to whom any seed,
37       product, machinery or equipment was furnished or for whom work or
38       labor was done; (b) the name and address and the social security number
39       or federal tax identification number of the person claiming the lien; (c)
40       the last date upon which such seed, product, machinery or equipment
41       was furnished or work or labor done under the contract; (d) the amount
42       due for the seed, product, machinery or equipment furnished or work or
43       labor done; (e) for a lien under subsection (a) of section 1, and amend-

SB 281

2

  1       ments thereto, the contract price or reasonable value of the seed, the type
  2       and amount of seed, and the date of the delivery of the seed; and (f) the
  3       legal description of the land upon which the crops are growing or are to
  4       be planted. The failure to include the social security number or federal
  5       tax identification number shall not render any filing unperfected. At the
  6       time the lien is filed, the lienholder shall send a copy to the person to
  7       whom the seed, product, machinery or equipment was furnished or for
  8       whom the work or labor was done. The fee for filing, amending or re-
  9       leasing such lien shall be the same as set forth in K.S.A. 84-9-403, and
10       amendments thereto.
11             Sec.  3. In order to be valid against subsequent lienholders, any lien
12       under section 1, and amendments thereto, shall be filed within 120 days
13       of the last date upon which the seed product, machinery or equipment
14       was furnished, or work or labor was performed, under the contract, but
15       in no event shall it have priority over prior lienholders unless prior lien-
16       holders have agreed to the contract in writing. Such lien shall attach as
17       of the date of filing and may be foreclosed in the manner and form pro-
18       vided for the foreclosure of secured transactions as provided in article 9,
19       Uniform Commercial Code.
20             Sec.  4. When a lien provided by section 1, and amendments thereto,
21       is satisfied, the lienholder shall file in the office where the lien is filed a
22       termination statement to the effect that the lienholder no longer claims
23       an interest under the lien, which shall be identified by file number. A
24       termination statement signed by a person other than the lienholder of
25       record shall be accompanied by a separate written statement of assign-
26       ment signed by the lienholder of record complying with subsection (2) of
27       K.S.A. 84-9-405, and amendments thereto, including payment of the re-
28       quired fee. If the affected lienholder fails to file such a termination state-
29       ment within 30 days after such lienholder no longer claims an interest,
30       such lienholder shall be liable to the person to whom the seed, product,
31       machinery or equipment was furnished or for whom the work or labor
32       was done for any losses caused to such person by such failure and for
33       reasonable attorney fees and court costs.
34             On presentation to the filing officer of such a termination statement,
35       the filing officer shall note such termination statement in the index. If
36       the filing officer has received the termination statement in duplicate, the
37       filing officer shall return one copy of the termination statement to the
38       lienholder stamped to show the time of receipt.
39        Sec.  5. This act shall take effect and be in force from and after its
40       publication in the statute book.