PRINTER'S NO. 103
No. 110 Session of 1999
INTRODUCED BY HOLL, JANUARY 11, 1999
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, JANUARY 11, 1999
AN ACT
1 Providing a first priority lien for the producer of farm
2 products.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Farm Product
7 Producer Lien Act.
8 Section 2. Producer lien.
9 (a) Date of perfection and duration of lien.--A first
10 priority statutory lien which shall be deemed to be perfected on
11 the date a producer delivers any farm product to a commission
12 merchant, dealer, broker or processor and shall from such date
13 be good as against a bona fide purchaser for value. The producer
14 lien shall continue until 20 days after payment is due and
15 remains unpaid, without filing any notice of lien, for the
16 payment of the contract price, if any, or the fair market value
17 of the products delivered.
1 (b) Property attached to lien.--The producer lien shall
2 attach to the farm products delivered, to the commission
3 merchant's, dealer's, broker's or processor's inventory and to
4 the commission merchant's, dealer's, broker's or processor's
5 accounts receivable.
6 (c) Continuation of lien.--The lien shall continue if a
7 filing is made in accordance with section 3.
8 Section 3. Filing requirements.
9 (a) Filing of lien.--A producer claiming a producer lien in
10 accordance with the provisions of 13 Pa.C.S. (relating to
11 commercial code) may file a statement evidencing this lien in
12 the office of the filing officer designated according to the
13 provisions of Title 13 in the county where the dealer, broker,
14 processor or commission merchant has facilities for receiving,
15 handling or processing farm products after payment from the
16 commission merchant, dealer, broker or processor is due and
17 remains unpaid.
18 (b) Information needed.--The statement shall be in writing,
19 verified by the producer and shall contain the following
20 information:
21 (1) A true statement of the amount demanded, after
22 deducting all credits and offsets.
23 (2) The name of the commission merchant, dealer, broker
24 or processor who received the farm product to be charged with
25 the lien and accounts receivable.
26 (3) A description sufficient to identify the farm
27 product to be charged with the lien.
28 (4) A statement that the amount claimed is a true and
29 bona fide existing debt as of the date of the filing of the
30 notice evidencing the lien.
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1 (5) The date on which payment was due for the farm
2 product to be charged with the lien.
3 Section 4. Priority of producer lien.
4 (a) Nature of priority.--
5 (1) If a statement is filed according to section 3
6 within 20 days of the date upon which payment from the
7 commission merchant, dealer, broker or processor is due and
8 remains unpaid, the producer lien evidenced by the statement
9 shall continue its priority over all other liens or security
10 interests upon farm products, inventory and accounts
11 receivable except as provided in subsection (b). Priority
12 shall be without regard to whether the other liens or
13 security interests attached before or after the date on which
14 the producer lien attached.
15 (2) Whenever the commission merchant has paid a
16 producer's claim under the security provisions, the
17 commission merchant shall be subrogated to the lienor's
18 rights under this section to the extent of the payment.
19 (3) The producer lien shall be subordinate to liens for
20 taxes or labor perfected before the filing of the producer
21 lien and to any prior security interest which was fully
22 perfected on the effective date of this act.
23 (b) Exception.--If the statement provided for in section 3
24 is not filed within 20 days of the date payment is due and
25 remains unpaid, the producer lien shall thereupon become
26 subordinate to:
27 (1) A lien that has attached to the farm produce,
28 inventory or accounts receivable before the date on which the
29 producer lien attaches.
30 (2) A perfected security interest in the farm product,
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1 inventory or accounts receivable.
2 Section 5. Termination of lien.
3 (a) General rule.--The producer lien shall terminate 90 days
4 after the date of attachment of filing, whichever is later,
5 unless a suit to foreclose the lien has been filed before that
6 time in accordance with section 6.
7 (b) Discharge.--
8 (1) If a statement has been filed as provided in section
9 3 and the producer has received payment for the obligation
10 secured by the lien, the producer shall promptly file with
11 the filing officer with whom the statement of lien was filed
12 a notice declaring that full payment has been received and
13 that the lien is discharged.
14 (2) If, after the payment, the producer fails to file
15 such a statement of discharge within ten days following a
16 request to do so, the producer shall be liable to the
17 commission merchant, broker, dealer or processor for the sum
18 of $100 plus actual damages caused by the failure.
19 Section 6. Enforcement of liens.
20 (a) Civil action.--A producer lien may be foreclosed and
21 enforced by civil action brought in any court, of record or not
22 of record, which would have jurisdiction to render a judgment,
23 in an action founded upon a contract, for a sum equal to the
24 amount of the lien.
25 (b) Costs for filing and recording.--In a suit to enforce a
26 producer lien, the court shall, upon entering judgment, allow
27 the prevailing party, as part of the costs, all moneys paid for
28 the filing and the recording of the lien.
29 Section 7. Severability.
30 The provisions of this act are severable. If any provision of
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1 this act or its application to any person or circumstance is
2 held invalid, the invalidity shall not affect other provisions
3 or applications of this act which can be given effect without
4 the invalid provision or application.
5 Section 8. Effective date.
6 This act shall take effect in 60 days.
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