58-242. Agricultural production input lien; notification of lender by supplier; form of lien-notification statement; letter of commitment by lender; priorities.
58-242
58-242. Agricultural production input lien; notification of lender bysupplier; form of lien-notification statement; letter of commitment bylender; priorities.(a) A supplier may notify a lender of alien by delivering a lien-notification statement to thelender in an envelope marked "IMPORTANT-LEGAL NOTICE," addressed to the lender.Delivery of the statement shall be by certified mail or another method evidencingdate of receipt.
(b) The lien-notification statement must be in a form approved by thesecretary of state, be signed by the purchaser, and state the following:
(1) The name and business address of the lender;
(2) the name and address of the supplier claiming the lien;
(3) the date or anticipated date or dates of furnishing agriculturalproduction input, a description of the input, and the retail cost, oranticipated retail costs ofthe agricultural production input;
(4) the name and residential address of the person to whomthe agricultural production input was or is to be furnished;
(5) for crop production input, the name and residential address of theowner of the crops and a description ofthe real estate where the crops to which the lien attaches are growing orare to be grown and for livestock production input, a description of thelivestock and the location where the livestock will be or are being raised or fed; and
(6) a statement that the products and proceeds of the crops orlivestock are covered by the lien.
(c) Within five business days after receiving a lien-notificationstatement, the lender must, by certified mail, furnish the supplier with either:
(1) A letter of commitment to advance part or all of the retail cost stated in thelien-notification statement; or
(2) a written refusal to furnish such a letter of commitment.
(d) If the lender furnishes a letter of commitment to advance part orall of the retail cost stated in the lien-notification statement, or awritten refusal to furnish such a letter of commitment, the lien of thesupplier shall not have priority over a previously perfected securityinterest of the lender.
(e) If the lender does not send the supplier a letter of commitment or awritten refusal to furnish a letter of commitment within five business daysafter receiving the lien-notification statement, the lien for the unpaidretail cost of the agricultural production input stated in thelien-notification statement shall have priority over a perfected securityinterest of the lender in collateral subject to the lien and proceeds thereof.
(f) Subject to the limitation of subsection (d) liens established under this act havepriority over any and all otherliens, except those created under K.S.A. 58-207 and 58-220, on the crops orlivestock for which input is furnished.
(g) An agricultural production lien statement shall be used only in themanner described in this section and shall not otherwise be used as asubstitute for a financing statement filed under part 4 of article 9 of theuniform commercial code.
History: L. 1985, ch. 4, § 2; Sept. 1.