PRINTER'S NO. 56
No. 57 Session of 1997
INTRODUCED BY HOLL, JANUARY 17, 1997
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, JANUARY 17, 1997
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. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Producer lien." A first priority statutory lien which shall
13 be deemed to be perfected on the date a producer delivers any
14 farm product to a commission merchant, dealer, broker or
15 processor and shall from such date be good as against a bona
16 fide purchaser for value. The producer lien shall continue until
17 20 days after payment, in accordance with the prompt payment
1 provisions of this act, is due and remains unpaid, without
2 filing any notice of lien, for the payment of the contract
3 price, if any, or the fair market value of the products
4 delivered. The producer lien shall attach to the farm products
5 delivered, to the commission merchant's, dealer's, broker's or
6 processor's inventory and to the commission merchant's,
7 dealer's, broker's or processor's accounts receivable. The lien
8 shall continue if a filing is made in accordance with the
9 provisions of this act.
10 Section 3. Provisions for producer lien.
11 (a) Filing of lien.--A producer claiming a producer lien in
12 accordance with the provisions of 13 Pa.C.S. (relating to
13 commercial code) may file a statement evidencing this lien in
14 the office of the filing officer designated according to the
15 provisions of Title 13 in the county where the dealer, broker,
16 processor or commission merchant has facilities for receiving,
17 handling or processing farm products after payment from the
18 commission merchant, dealer, broker or processor is due and
19 remains unpaid. Payment is due in accordance with the prompt
20 payment provisions of this act.
21 (b) Information needed.--The statement shall be in writing,
22 verified by the producer and shall contain the following
23 information:
24 (1) A true statement of the amount demanded, after
25 deducting all credits and offsets.
26 (2) The name of the commission merchant, dealer, broker
27 or processor who received the farm product to be charged with
28 the lien and accounts receivable.
29 (3) A description sufficient to identify the farm
30 product to be charged with the lien.
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1 (4) A statement that the amount claimed is a true and
2 bona fide existing debt as of the date of the filing of the
3 notice evidencing the lien.
4 (5) The date on which payment was due for the farm
5 product to be charged with the lien.
6 Section 4. Priority of producer lien.
7 (a) General rule.--If a statement is filed according to
8 section 3 within 20 days of the date upon which payment from the
9 commission merchant, dealer, broker or processor is due and
10 remains unpaid, the producer lien evidenced by the statement
11 continues its priority over all other liens or security
12 interests upon farm products, inventory and accounts receivable
13 except as provided in subsection (b). Priority is without regard
14 to whether the other liens or security interests attached before
15 or after the date on which the producer lien attached. Whenever
16 the commission merchant has paid a producer's claim under the
17 security provisions, the commission merchant shall be subrogated
18 to the lienor's rights under this section to the extent of the
19 payment. The producer lien shall be subordinate to liens for
20 taxes or labor perfected before the filing of the producer lien
21 and to a prior security interest which was fully perfected on
22 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 the provisions of section 6.
7 (b) Discharge.--If a statement has been filed as provided in
8 section 3 and the producer has received payment for the
9 obligation secured by the lien, the producer shall promptly file
10 with the filing officer with whom the statement of lien was
11 filed a notice declaring that full payment has been received and
12 that the lien is discharged. If, after the payment, the producer
13 fails to file such a statement of discharge within ten days
14 following a request to do so, the producer shall be liable to
15 the commission merchant, broker, dealer or processor for the sum
16 of $100 plus actual damages caused by the failure.
17 Section 6. Enforcement of liens.
18 (a) Civil action.--The producer lien may be foreclosed and
19 enforced by civil action brought in any court, of record or not
20 of record, which would have jurisdiction to render a judgment,
21 in an action founded upon a contract, for a sum equal to the
22 amount of the lien.
23 (b) Costs for filing and recording.--In all suits to enforce
24 producer liens, the court shall, upon entering judgment, allow
25 the prevailing party, as part of the costs, all moneys paid for
26 the filing and the recording of the lien.
27 Section 7. Severability.
28 The provisions of this act are severable. If any provision of
29 this act or its application to any person or circumstance is
30 held invalid, the invalidity shall not affect other provisions
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1 or applications of this act which can be given effect without
2 the invalid provision or application.
3 Section 8. Effective date.
4 This act shall take effect in 60 days.
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