58-242. Agricultural production input lien; notification of lender by supplier; form of lien-notification statement; letter of commitment by lender; priorities. (a) A supplier may notify a lender of a lien by delivering a lien-notification statement to the lender in an envelope marked "IMPORTANT-LEGAL NOTICE," addressed to the lender. Delivery of the statement shall be by certified mail or another method evidencing date of receipt.
(b) The lien-notification statement must be in a form approved by the secretary 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 agricultural production input, a description of the input, and the retail cost, or anticipated retail costs of the agricultural production input;
(4) the name and residential address of the person to whom the agricultural production input was or is to be furnished;
(5) for crop production input, the name and residential address of the owner of the crops and a description of the real estate where the crops to which the lien attaches are growing or are to be grown and for livestock production input, a description of the livestock 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 or livestock are covered by the lien.
(c) Within five business days after receiving a lien-notification statement, 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 the lien-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 or all of the retail cost stated in the lien-notification statement, or a written refusal to furnish such a letter of commitment, the lien of the supplier shall not have priority over a previously perfected security interest of the lender.
(e) If the lender does not send the supplier a letter of commitment or a written refusal to furnish a letter of commitment within five business days after receiving the lien-notification statement, the lien for the unpaid retail cost of the agricultural production input stated in the lien-notification statement shall have priority over a perfected security interest 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 have priority over any and all other liens, except those created under K.S.A. 58-207 and 58-220, on the crops or livestock for which input is furnished.
(g) An agricultural production lien statement shall be used only in the manner described in this section and shall not otherwise be used as a substitute for a financing statement filed under part 4 of article 9 of the uniform commercial code.
History: L. 1985, ch. 4, ยง 2; Sept. 1.
Structure Kansas Statutes
Chapter 58 - Personal And Real Property
Article 2 - Liens On Personal Property
58-201 Liens for materials and services; filing statements with register of deeds, contents.
58-202 Same; enforcement and foreclosure; time restrictions; destruction of records.
58-203 Lien for threshing or husking.
58-204 Same; lien statement to be filed with register of deeds; fee.
58-205 Same; assignment; time for bringing action.
58-206 Same; selling, disposing or secreting grain with intent to defraud; penalty.
58-207 Lien for feed and care of livestock; sale for charges and expenses; assignment of lien.
58-209 Sale of animals or goods of perishable nature after thirty days.
58-210 Additional compensation for care of property taken from proceeds.
58-211 Sale of property; notice required; form and content of notice.
58-212 Public auction sale required.
58-214 Filing copies of notices, proof of publication and other papers with county clerk; evidence.
58-215 Voluntary delivery of property as abandonment of lien; waiver by special contract.
58-218 Liens for seeding and baling broomcorn and baling hay.
58-219 Perfection, duration and enforcement of such liens.
58-220 Agister's lien; recording notice with register of deeds; sale for charges and expenses.
58-221 Same; disposition of proceeds of sale.
58-224 Same; notice requirements; cost of posting.
58-225 Same; disposition of overplus from sale.
58-226 Same; posting notices in receiving offices.
58-243 Same; effect of lien; priority; what lien attaches to; when lien attaches.
58-244 Same; when perfected; priority of lien not perfected; duties of filing offices; fees.
58-246 Same; action to enforce lien in district court; when lien extinguished.