Senate
Study
Bill
3169
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
a
landlord’s
lien
on
farm
products
and
1
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
554.7209,
Code
2020,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
2A.
A
warehouse’s
lien
created
in
3
subsection
1
is
not
effective
against
a
landlord
perfecting
an
4
agricultural
lien
as
provided
in
section
570.1.
5
Sec.
2.
Section
570.1,
subsections
1
and
2,
Code
2020,
are
6
amended
to
read
as
follows:
7
1.
A
landlord
shall
have
a
lien
for
the
rent
upon
all
crops
8
grown
farm
products
as
defined
in
section
554.9102,
produced
9
upon
the
leased
premises,
and
upon
any
other
personal
property
10
of
the
tenant
which
has
been
used
or
kept
thereon
during
the
11
term
and
which
is
not
exempt
from
execution.
12
2.
In
order
to
perfect
a
lien
in
farm
products
as
defined
13
in
section
554.9102
,
which
is
created
under
this
section
,
a
14
landlord
must
file
a
financing
statement
as
required
by
section
15
554.9308,
subsection
2
.
Except
as
provided
in
chapters
571
,
16
chapter
572
,
579A
,
579B
,
and
581
,
a
perfected
lien
in
the
17
farm
products
has
priority
over
a
any
conflicting
security
18
interest
or
lien,
including
a
security
interest
or
lien
that
19
was
perfected
prior
to
the
creation
of
the
lien
under
this
20
section,
if
the
lien
created
in
this
section
is
perfected
on
21
either
of
the
following
dates:
22
a.
Prior
to
July
1,
2001.
23
b.
When
when
the
debtor
takes
possession
of
the
leased
24
premises
or
within
twenty
days
after
the
debtor
takes
25
possession
of
the
leased
premises.
26
Sec.
3.
Section
571.3A,
subsection
2,
Code
2020,
is
amended
27
to
read
as
follows:
28
2.
A
harvester’s
lien
that
is
perfected
under
section
571.3
29
shall
have
priority
over
a
conflicting
security
interest
in
30
harvested
crops
regardless
of
when
such
security
interest
is
31
perfected.
A
However,
a
perfected
harvester’s
lien
shall
not
32
have
priority
over
a
conflicting
landlord’s
lien
as
provided
33
in
chapter
570
,
regardless
of
when
such
landlord’s
lien
is
34
perfected
.
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Sec.
4.
Section
579A.2,
subsection
5,
paragraph
b,
Code
1
2020,
is
amended
to
read
as
follows:
2
b.
Notwithstanding
paragraph
“a”
,
a
custom
cattle
feedlot
3
lien
shall
not
be
superior
to
a
any
of
the
following:
4
(1)
A
court-ordered
lien
provided
in
section
717.4
.
5
(2)
A
landlord’s
lien
created
under
chapter
570
or
a
6
veterinarian’s
lien
created
under
chapter
581
,
if
such
lien
is
7
perfected
as
an
agricultural
lien
as
provided
in
chapter
554,
8
article
9
.
9
Sec.
5.
Section
579B.4,
subsection
4,
paragraph
a,
10
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
11
(2)
Notwithstanding
subparagraph
(1),
a
commodity
12
production
contract
lien
shall
not
be
superior
to
a
any
of
the
13
following:
14
(a)
A
court-ordered
lien
provided
in
section
717.4
.
15
(b)
A
landlord’s
lien
created
under
chapter
570
or
a
16
veterinarian’s
lien
created
under
chapter
581
,
if
such
lien
is
17
perfected
as
an
agricultural
lien.
18
Sec.
6.
Section
581.2,
subsection
2,
paragraph
b,
Code
2020,
19
is
amended
to
read
as
follows:
20
b.
Notwithstanding
paragraph
“a”
,
a
veterinarian’s
lien
21
shall
not
be
superior
to
a
any
of
the
following:
22
(1)
A
court-ordered
lien
provided
in
section
717.4
,
if
such
23
lien
is
perfected
as
an
agricultural
lien.
24
(2)
A
landlord’s
lien
created
under
chapter
570,
if
such
25
lien
is
perfected
as
an
agricultural
lien.
26
Sec.
7.
APPLICABILITY.
This
Act
applies
to
leases
entered
27
into
on
and
after
July
1,
2020.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
GENERAL.
This
bill
provides
that
a
landlord’s
lien
has
32
priority
over
security
interests
and
other
agricultural
33
liens
covering
farm
products
produced
on
the
leased
farmland,
34
including
a
security
interest
perfected
under
Iowa’s
version
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of
the
uniform
commercial
code
(UCC)
(Code
chapter
554,
1
article
9),
a
warehouse
lien
under
the
uniform
commercial
code
2
(Code
section
554.7209),
and
an
agricultural
lien
including
a
3
harvester’s
lien
(Code
chapter
571),
a
custom
cattle
feedlot
4
lien
(Code
chapter
579A),
a
commodity
production
contract
lien
5
(Code
chapter
579B),
and
a
veterinarian’s
lien
(Code
chapter
6
581).
7
BACKGROUND.
Under
Iowa’s
version
of
the
UCC,
article
9,
8
a
security
interest
is
created
by
a
contract
referred
to
as
9
a
security
agreement
executed
by
a
creditor
and
debtor
that
10
creates
a
financial
obligation
(Code
section
554.9201).
The
11
security
interest
attaches
to
the
debtor’s
collateral
(Code
12
section
554.9203)
and
based
on
that
agreement
the
creditor
13
may
perfect
the
security
interest
by
filing
a
financing
14
statement
with
the
secretary
of
state
(Code
section
554.9310).
15
Possession
is
also
a
means
to
perfect
a
security
interest,
16
including
general
warehouse
lien
allowed
under
the
UCC,
17
article
7
(Code
section
554.7209).
In
addition,
various
Code
18
chapters
existing
outside
the
UCC
create
agricultural
liens
in
19
commodities
produced
by
a
farming
operation.
An
agricultural
20
lien
is
a
statutory
lien
that
may
secure
the
payment
of
a
21
financial
obligation
associated
with
commodity
production,
and
22
is
not
necessarily
possessory,
meaning
that
it
may
continue
to
23
cover
the
commodity
after
harvest
and
delivery
(Code
section
24
554.9102(1)(e)).
However,
an
agricultural
lien
must
be
25
perfected
by
filing
a
financing
statement
with
the
secretary
26
of
state
(Code
section
554.9310).
Once
a
lien
is
created,
it
27
receives
a
degree
of
priority
over
the
covered
collateral
among
28
competing
creditors
seeking
to
enforce
a
debt.
Generally,
29
under
the
UCC,
article
9,
the
status
of
a
creditor’s
priority
30
is
based
on
the
date
of
the
security
interest’s
perfection.
31
However,
certain
statutes
outside
the
UCC,
article
9,
provide
32
a
special
status
to
lienholders,
including
those
holding
33
agricultural
liens.
34
APPLICABILITY.
The
bill
applies
to
leases
entered
into,
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renewed,
or
otherwise
continued
on
and
after
July
1,
2020.
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