§ 44-69.3. Liens on tangible and intangible assets of milk distributors.
§ 44‑69.3. Liens ontangible and intangible assets of milk distributors.
(a) A producer, or anassociation of producers who supplies milk either through an agreement of saleor on consignment to a distributor shall, upon complying with the provisions ofthis section, have a lien upon the tangible and intangible assets, includingbut not limited to the accounts receivable of the distributor to secure paymentfor such milk. For the purposes of this section, "milk" means thelacteal secretion of cows and includes all skim, butterfat, or otherconstituents obtained from separation or other process.
(b) The lien claimed bythe producer or association of producers must be filed in the office of theclerk of court for the county of the distributor's principal place of business.Provided that if the distributor is not a resident of the State a filing mustbe made with the clerk of superior court for the county in which thedistributor's registered office is located. The clerk shall note the claim oflien on the judgment docket and index the same under the name of thedistributor at the time the claim is filed.
(c) A producer orassociation of producers claiming nonpayment for milk sold to a distributorshall file with the clerk a notarized statement of nonpayment. The statementshall contain at a minimum all of the following information:
(1) The name of thedistributor who received the milk.
(2) The date andquantity of milk shipped for which payment has not been received.
(3) Repealed by SessionLaws 2004‑199, s. 27(f), effective August 17, 2004.
The producer or association ofproducers shall furnish a copy of the statement as provided by this subsectionto the distributor, which shall constitute a notice of claim of lien. Thenotice shall be served personally by a person authorized by law to serveprocess or by certified mail. The lien granted by this section shall beeffective as of the time it is filed with the clerk of court. Provided thedistributor shall have the right to contest the validity of such lien by filing,with the clerk of court and serving on the producer within 10 days after hereceives notice that the producer has filed a claim of lien, a notice that thedistributor contest the amount due thereunder. In the event the distributorfails to contest the lien or is unsuccessful in obtaining a discharge of thelien, the lien shall be perfected as of the date of filing with the clerk ofcourt.
(d) The lien created bythis section may be discharged in any of the following manner:
(1) Repealed by SessionLaws 2004‑199, s. 27(f), effective August 17, 2004.
(2) By depositing withthe clerk of superior court money equal to the amount of the claim, which moneyshall be held for the benefit of the producer.
(3) By an entry in thelien docket that the action on the part of the lien claimant to enforce thelien has been dismissed or a judgment has been rendered against the claimant insuch action.
(4) By filing with theclerk a sworn statement signed by the producer or an official of an associationof producers that the lien or claim of lien has been satisfied.
(e) Action to enforcethe lien created by this section may be instituted in any court of competentjurisdiction in the county where the lien was filed not later than 90 daysfollowing the maturity of the distributor's obligation to pay for the milk. Inthe event no action to enforce the lien is commenced within the 90‑dayperiod the lien created hereby shall no longer be valid. (1985, c. 678, s. 1; 2004‑199,s. 27(f).)