SF 2465

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 03/11/2010 02:08pm

A bill for an act
relating to agriculture; allowing a temporary lien for livestock production inputs
for 45 days following a mediation request; amending Minnesota Statutes 2008,
sections 514.965, subdivision 2; 514.966, subdivision 6, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 514.965, subdivision 2, is amended to read:

Subd. 2.

Agricultural lien.

"Agricultural lien" means an agricultural lien as defined
in section 336.9-102(a)(5) and includes a veterinarian's lien, breeder's lien, livestock
production input lien, new text begin temporary livestock production input lien, new text end and feeder's lien under
this section new text begin and section 514.966 new text end .

Sec. 2.

Minnesota Statutes 2008, section 514.966, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Temporary livestock production input lien; debtor in mediation. new text end

new text begin (a)
A supplier furnishing livestock production inputs in the ordinary course of business to a
debtor who has filed a mediation request under chapter 583 has a livestock production
input lien for the unpaid retail cost of the livestock production input. A perfected livestock
production input lien that attaches to livestock may not exceed the amount, if any, that the
sales price of the livestock for which the inputs were received exceeds the greater of the
fair market value of the livestock at the time the lien attaches or the acquisition price of
the livestock. A livestock production input lien becomes effective when the agricultural
production inputs are furnished by the supplier to the purchaser.
new text end

new text begin (b) A temporary livestock production input lien under this subdivision applies to
livestock production inputs provided that meet the needs of the debtor's livestock during
the 45 days following a mediation request under chapter 583.
new text end

new text begin (c) A person who supplies livestock production inputs under this subdivision shall
provide a lien-notification statement as required under subdivision 3, paragraphs (b)
and (c), but is not subject to subdivision 3, paragraphs (d) to (f). A perfected temporary
livestock production input lien corresponding to the lien-notification statement has priority
over any security interest of the lender in the same livestock or their proceeds for the
lesser of:
new text end

new text begin (1) the amount stated in the lien-notification statement; or
new text end

new text begin (2) the unpaid retail cost of the livestock production input identified in the
lien-notification statement, subject to any limitation in paragraph (a).
new text end

Sec. 3.

Minnesota Statutes 2008, section 514.966, subdivision 6, is amended to read:

Subd. 6.

Perfection.

(a) An agricultural lien under this section is perfected if a
financing statement is filed pursuant to sections 336.9-501 to 336.9-530 and within the
time periods set forth in paragraphs (b) to (e).

(b) A veterinarian's lien must be perfected on or before 180 days after the last item
of the veterinary service is performed.

(c) A breeder's lien must be perfected by six months after the last date that breeding
services are provided the obligor.

(d) new text begin Except as provided in paragraph (f), new text end a livestock production input lien must be
perfected by six months after the last date that livestock production inputs are furnished
the obligor.

(e) A feeder's lien must be perfected on or before 60 days after the last date that
feeding services are furnished the obligor.

new text begin (f) A temporary livestock production input lien, under subdivision 3a, must be
perfected on or before 60 days after the last date that livestock production inputs are
furnished the obligor.
new text end