Bill Text: TX HB1848 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the perfection and priority of an agricultural lien on an agricultural crop.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2015-04-22 - Comm. report sent to Local & Consent Calendar [HB1848 Detail]
Download: Texas-2015-HB1848-Comm_Sub.html
84R19953 NC-F | |||
By: Burrows, Springer | H.B. No. 1848 | ||
Substitute the following for H.B. No. 1848: | |||
By: González | C.S.H.B. No. 1848 |
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relating to the perfection and priority of an agricultural lien on | ||
an agricultural crop. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 70.401(4), Property Code, is amended to | ||
read as follows: | ||
(4) "Contract purchaser" means a person who[ |
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contract to purchase an agricultural [ |
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the agricultural producer for growing, producing, or harvesting the | ||
agricultural crop. The term does not include a person who, as to | ||
the transaction in question, is licensed and bonded under Chapter | ||
14, Agriculture Code, or the United States Warehouse Act (7 U.S.C. | ||
Section 241 et seq.). | ||
SECTION 2. Sections 70.402(a) and (b), Property Code, are | ||
amended to read as follows: | ||
(a) An agricultural producer who, under a [ |
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contract with a contract purchaser, is to receive consideration for | ||
selling an agricultural crop grown, produced, or harvested by the | ||
producer has a lien for the amount owed under the contract, or for | ||
the reasonable value of the crop on the date of transfer or delivery | ||
if there is no agreement [ |
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under the contract [ |
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(b) A lien created under this subchapter is on every | ||
agricultural crop, either in raw or processed form, that has been | ||
transferred or delivered by the agricultural producer and is in the | ||
possession of the contract purchaser, and if the contract purchaser | ||
sells all or part of the crop, on the proceeds of the sale. If the | ||
agricultural crop is commingled after the crop has been transferred | ||
or delivered, a lien created under this subchapter applies only to | ||
that portion of the contract purchaser's inventory in an amount | ||
that is equal to the amount of the crop transferred or delivered by | ||
the agricultural producer. | ||
SECTION 3. Section 70.403, Property Code, is amended to | ||
read as follows: | ||
Sec. 70.403. WHEN LIEN ATTACHES. A lien created under this | ||
subchapter attaches [ |
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physical possession of the agricultural crop is delivered or | ||
transferred by the agricultural producer to the contract purchaser | ||
or the purchaser's agent, or if there is to be a series of | ||
deliveries to the contract purchaser or purchaser's agent, on the | ||
date of the first [ |
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contract purchaser or purchaser's agent. | ||
SECTION 4. Section 70.404, Property Code, is amended to | ||
read as follows: | ||
Sec. 70.404. APPLICABILITY OF OTHER LAW. Except as provided | ||
by Section 70.4045, Chapter 9, Business & Commerce Code, including | ||
applicable filing and perfection requirements, applies to a lien | ||
created under this subchapter. | ||
SECTION 5. Subchapter E, Chapter 70, Property Code, is | ||
amended by adding Section 70.4045 to read as follows: | ||
Sec. 70.4045. PERFECTION AND PRIORITY OF AGRICULTURAL LIEN | ||
ON CROPS. (a) Notwithstanding Chapter 9, Business & Commerce Code, | ||
a lien created under this subchapter is perfected at the time the | ||
lien attaches under Section 70.403 and continues to be perfected if | ||
a financing statement covering the agricultural crop is filed on or | ||
before the 90th day after the date: | ||
(1) the physical possession of the crop is delivered | ||
or transferred by the agricultural producer to the contract | ||
purchaser or the purchaser's agent, if there is only one delivery | ||
under the contract; or | ||
(2) of the last delivery of the crop to the contract | ||
purchaser or the purchaser's agent, if there is a series of | ||
deliveries under the contract. | ||
(b) If a financing statement covering the agricultural crop | ||
is not filed within the time prescribed by Subsection (a)(1) or (2), | ||
as applicable, the lien is considered unperfected on the date the | ||
lien attached until the date the financing statement is filed or the | ||
lien is perfected under Chapter 9, Business & Commerce Code. | ||
(c) Notwithstanding Chapter 9, Business & Commerce Code, a | ||
lien created and perfected under this subchapter has priority over | ||
a conflicting security interest in or lien on the agricultural crop | ||
or the proceeds from the sale of the crop created by the contract | ||
purchaser in favor of a third party, other than a cotton ginner's | ||
lien created under Section 70.003(d), regardless of the date the | ||
security interest or lien created by the contract purchaser | ||
attached. This subsection does not affect a security interest or | ||
lien created and perfected to secure a loan directly to the | ||
agricultural producer. | ||
SECTION 6. The changes in law made by this Act apply only to | ||
a lien that attaches under Section 70.403, Property Code, as | ||
amended by this Act, on or after the effective date of this Act. A | ||
lien that attaches before the effective date of this Act is governed | ||
by the law as it existed immediately before that date, and that law | ||
is continued in effect for that purpose. | ||
SECTION 7. This Act takes effect September 1, 2015. |