Sec. 70.406. EFFECT OF LIEN; RECOVERY. (a) A buyer in ordinary course of business of an agricultural crop, including a person who buys any portion of an agricultural crop from a warehouse or a contract purchaser, whether or not the agricultural crop has been commingled, takes the agricultural crop free of a lien created under this subchapter, and the lien created by this subchapter does not pass to any subsequent claimant of the agricultural crop.
(b) An unequal pro rata recovery between agricultural producers is not prohibited under this subchapter if the inequality results from a lien on accounts receivable.
Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 6, eff. September 1, 2017.
Structure Texas Statutes
Title 5 - Exempt Property and Liens
Chapter 70 - Miscellaneous Liens
Subchapter E. Agricultural Liens
Section 70.403. When Lien Attaches
Section 70.404. Applicability of Other Law; Effect on Other Law
Section 70.4045. Perfection and Priority of Agricultural Lien on Crops
Section 70.405. Duration of Lien
Section 70.406. Effect of Lien; Recovery
Section 70.407. Discharge of Lien
Section 70.408. Joinder of Actions