Office of the Revisor of Statutes
Minnesota Session Laws - 2001, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 57-H.F.No. 285
An act relating to liens; regulating agricultural
liens; revising and consolidating crop liens and
agricultural liens on livestock; amending Minnesota
Statutes 2000, section 514.19; proposing coding for
new law in Minnesota Statutes, chapter 514; repealing
Minnesota Statutes 2000, sections 514.23; 514.24;
514.25; 514.26; 514.27; 514.28; 514.29; 514.30;
514.31; 514.32; 514.33; 514.34; 514.62; 514.63;
514.65; 514.66; 514.92; 514.950; 514.952; 514.954;
514.956; 514.958; 514.959; 514.960; 557.12; and
559.2091; Minnesota Rules, parts 8271.0010; 8271.0020;
8271.0030; 8271.0040; 8271.0050; 8271.0060; 8271.0070;
8271.0080; 8271.0090; 8271.0100; 8271.0200; 8271.0300;
and 8271.0350.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2000, section 514.19, is
amended to read:
514.19 [RIGHT OF DETAINER.]
A lien and right of detainer exists for:
(1) transporting property, other than harvested crops or
livestock, from one place to another but not as a carrier under
article 7 of the Uniform Commercial Code;
(2) keeping or storing property, other than harvested crops
or livestock, as a bailee but not as a warehouse operator under
article 7 of the Uniform Commercial Code;
(3) Keeping, feeding, pasturing, or otherwise caring for
domestic animals or other beasts, including medical or surgical
treatment and shoeing;
(4) the use and storage of molds and patterns in the
possession of the fabricator belonging to the customer for the
balance due from the customer for fabrication work;
(5) (4) making, altering or repairing any article, other
than livestock, or expending any labor, skill or material on it;
(6) (5) reasonable charges for a vehicle rented as a
replacement for a vehicle serviced or repaired and being
retained as provided by this section.
The liens embrace all lawful charges against the property
paid to any other person by the person claiming the lien, and
the price or value of the care, storage or contribution and all
reasonable disbursements occasioned by the detention or sale of
the property.
Sec. 2. [514.963] [CROP LIEN DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of this section
and section 514.964, the terms defined in subdivisions 2 to 12
have the meanings given them.
Subd. 2. [AGRICULTURAL CHEMICAL.] "Agricultural chemical"
means fertilizers or agricultural chemicals that are applied to
crops or to land used for raising crops, including fertilizer
material, plant amendment, plant food. The term includes a soil
amendment as defined in section 18C.005, and a pesticide and a
plant regulator as defined in section 18B.01.
Subd. 3. [AGRICULTURAL LIEN.] "Agricultural lien" means an
agricultural lien as defined by section 336.9-102(a)(5), and
includes a landlord's lien, harvester's lien, and crop
production input lien under this section.
Subd. 4. [AGRICULTURAL LIENHOLDER.] "Agricultural
lienholder" means a person holding an agricultural lien.
Subd. 5. [CROP PRODUCTION INPUT.] "Crop production input"
means agricultural chemicals, seeds, petroleum products, the
custom application of agricultural chemicals and seeds, and
labor used in preparing the land for planting, cultivating,
growing, producing, harvesting, drying, and storing crops or
crop products.
Subd. 6. [FARM PRODUCTS.] "Farm products" means farm
products as defined in section 336.9-102(a)(34).
Subd. 7. [LENDER.] "Lender" means a secured party as
defined in section 336.9-102(a)(72), holding a perfected
security interest in the farm products of the obligor.
Subd. 8. [OBLIGOR.] "Obligor" means obligor as defined in
section 336.9-102(a)(59).
Subd. 9. [PERSON.] "Person" means an individual or an
organization as defined in section 336.1-201(30).
Subd. 10. [PETROLEUM PRODUCTS.] "Petroleum products" means
motor fuels and special fuels used in the production of crops
and livestock, including petroleum products as defined in
section 296A.01, and alcohol fuels, propane, lubes, and oils.
Subd. 11. [SEED.] "Seed" means agricultural seeds used to
produce crops, including agricultural seeds defined in section
21.72.
Subd. 12. [SUPPLIER.] "Supplier" means a person furnishing
crop production inputs.
Sec. 3. [514.964] [AGRICULTURAL LIEN ON CROPS.]
Subdivision 1. [LANDLORD'S LIEN.] A person leasing real
property for agricultural production has a lien for unpaid rent
on the crops produced on the real property in the crop year that
is the subject of the lease. A landlord's lien becomes
effective when the crops become growing crops.
Subd. 2. [HARVESTER'S LIEN.] (a) A person providing
combining, picking, harvesting, hauling, baling, drying, or
storing services in the ordinary course of business has a lien
upon the crops combined, picked, harvested, hauled, baled,
dried, or stored, as the case may be, for the reasonable amount
and kind of service provided.
(b) A harvester's lien becomes effective upon the services
being provided the obligor by the harvester.
(c) A person asserting a harvester's lien may not assert a
crop production input lien for the same goods or services
provided the obligor.
Subd. 3. [CROP PRODUCTION INPUT LIEN.] (a) A supplier
furnishing crop production inputs in the ordinary course of
business has an agricultural lien for the unpaid retail cost of
the crop production inputs. The lien attaches to:
(1) the existing crops upon the land where a furnished
agricultural chemical was applied, or if crops are not planted,
to the next production crop within 16 months following the last
date on which the agricultural chemical was applied;
(2) the crops produced from furnished seed; or
(3) the crops produced, harvested, or processed using a
furnished petroleum product.
If the crops are grown on leased land and the lease
provides for payment in crops, the lien does not attach to the
lessor's portion of the crops. A crop production input lien
becomes effective when the crop production inputs are furnished
by the supplier to the purchaser.
(b) A supplier shall notify a lender of a crop production
input lien by providing a lien-notification statement to the
lender in an envelope marked "IMPORTANT - LEGAL NOTICE."
Delivery of the notice must be made by certified mail or another
verifiable method.
(c) The lien-notification statement must disclose the
following:
(1) the name and address of the lender that is to receive
notification;
(2) the name and address of the supplier claiming the lien;
(3) a description and the date or anticipated date or dates
of the transaction and the retail cost or anticipated costs of
the crop production input;
(4) the name and address of the person to whom the crop
production input was furnished; and
(5) the name and address of the owner.
(d) Within ten calendar days after receiving a
lien-notification statement, the lender must respond to the
supplier with either:
(1) a letter of commitment for part or all of the retail
cost or anticipated costs of the crop production input as set
forth in the lien-notification statement; or
(2) a written refusal to issue a letter of commitment.
A copy of the lender's response must be provided to the
person for whom the financing was requested.
(e) If a lender responds with a letter of commitment for
part or all of the amount in the lien-notification statement,
the supplier may not obtain a lien for the amount stated in the
letter of commitment. If a lender responds with a refusal to
provide a letter of commitment, the rights of the lender and the
supplier are not affected.
(f) If a lender does not respond under paragraph (d) to the
supplier within ten calendar days after receiving the
lien-notification statement, a perfected crop production input
lien corresponding to the lien-notification statement has
priority over any security interest of the lender in the same
crops or their proceeds for the lesser of:
(1) the amount stated in the lien-notification statement;
or
(2) the unpaid retail cost of the crop production input
identified in the lien-notification statement.
Subd. 4. [SCOPE.] A landlord's lien, harvester's lien, or
crop production input lien attaches to the crops serviced,
produced, or harvested by the agricultural lienholder, and the
products and proceeds thereof to the extent of the price or
value of the goods or services provided.
Subd. 5. [PERFECTION.] (a) A landlord's lien, harvester's
lien, or crop production input 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 (d).
(b) A landlord's lien must be perfected on or before 30
days after the crops become growing crops.
(c) A harvester's lien must be perfected on or before 15
days after the last date that harvesting services are provided
the obligor.
(d) A crop production input lien must be perfected by six
months after the last date that crop production inputs are
furnished the obligor.
Subd. 6. [GOVERNING LAW.] Except as otherwise provided in
this section, an agricultural lien is subject to the provisions
of the Uniform Commercial Code - Secured Transactions, sections
336.9-101 to 336.9-709.
Subd. 7. [PRIORITY.] (a) A perfected landlord's lien under
this section has priority over all competing security interests
and all agricultural liens in crops and the products or proceeds
thereof.
(b) Except as provided in paragraph (c), a perfected
harvester's lien under this section has priority over all
competing security interests and all agricultural liens except a
perfected landlord's lien in crops and the products or proceeds
thereof, and except for a perfected crop production input lien
for the reasonable cost of the seed in crops and products and
the proceeds thereof.
(c) If more than one harvester's lien is perfected under
this section, the conflicting perfected harvester's liens rank
equally in proportion to the value of the service provided.
(d) Except as provided in paragraph (e), a perfected crop
production lien under this section has priority against all
competing agricultural liens except a perfected landlord's lien
and a perfected harvester's lien in the crops and products or
proceeds thereof.
(e) If more than one crop production input lien is
perfected under this section, conflicting perfected crop
production input liens have priority in order of the
effectiveness of the liens.
(f) Except as provided in paragraph (g), a perfected crop
production input lien under this section has priority against
all competing security interest as provided in subdivision 3 in
crops and the products and proceeds thereof.
(g) A perfected crop production input lien has priority
over a competing security interest in the crops and proceeds and
products thereof if the crop production input lien is effective
before the secured party has given value to the debtor.
Subd. 8. [DEFAULT.] Default occurs when an obligor fails
to perform any obligation, whether written or oral, owed to the
agricultural lienholder.
Subd. 9. [ENFORCEMENT.] The holder of an agricultural lien
under this section may enforce the lien in the manner provided
in sections 336.9-601 to 336.9-628.
Sec. 4. [514.965] [LIVESTOCK LIEN DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of this section
and section 514.966, the terms defined in subdivisions 2 to 11
have the meanings given them.
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, and feeder's lien under this section.
Subd. 3. [AGRICULTURAL LIENHOLDER.] "Agricultural
lienholder" means a person holding an agricultural lien.
Subd. 4. [EMERGENCY VETERINARY SERVICES.] "Emergency
veterinary services" includes surgical procedures, administering
vaccines, antisera, and antibiotics, and other veterinary
medicines, treatments, and services performed primarily to
protect human health, prevent the spread of animal diseases, or
preserve the health of the animal or animals treated.
Subd. 5. [FARM PRODUCTS.] "Farm products" means farm
products as defined in section 336.9-102(a)(34).
Subd. 6. [FEED.] "Feed" means commercial feeds, feed
ingredients, mineral feeds, drugs, animal health products, or
customer-formula feeds used for feeding livestock, including
commercial feed as defined in section 25.33.
Subd. 7. [LENDER.] "Lender" means a secured party as
defined in section 336.9-102(a)(72) holding a perfected security
interest in the farm products of the obligor.
Subd. 8. [LIVESTOCK PRODUCTION INPUT.] "Livestock
production input" means feed and labor used in raising livestock.
Subd. 9. [OBLIGOR.] "Obligor" means an obligor as defined
in section 336.9-102(a)(59).
Subd. 10. [PERSON.] "Person" means an individual or an
organization as defined in section 336.1-201(30).
Subd. 11. [SUPPLIER.] "Supplier" means a person furnishing
agricultural production inputs.
Sec. 5. [514.966] [AGRICULTURAL LIEN ON LIVESTOCK.]
Subdivision 1. [VETERINARIAN'S LIEN.] A licensed
veterinarian performing emergency veterinary services in the
ordinary course of business that cost more than $25 for animals
at the request of the owner or a person in possession of the
animals has a lien on the animals for the value of the
services. A lien under this section does not secure any
veterinary services performed more than one year before the date
on which the last item of the veterinary service is performed.
A veterinarian's lien becomes effective upon the services being
provided the obligor by the veterinarian.
Subd. 2. [BREEDER'S LIEN.] The owner of any livestock used
for breeding services in the ordinary course of business, or any
provider, in the ordinary course of business, of semen or ova
used in fertilizer, artificial insemination, or any other
artificial means of impregnating livestock, has a lien upon the
livestock bred and any resulting offspring for the price or
value of the service provided. A breeder's lien becomes
effective when the services are provided the obligor by the
breeder.
Subd. 3. [LIVESTOCK PRODUCTION INPUT LIEN.] (a) A supplier
furnishing livestock production inputs in the ordinary course of
business 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 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.
(b) A supplier shall notify a lender of a livestock
production input lien by providing a lien-notification statement
to the lender in an envelope marked "IMPORTANT-LEGAL NOTICE."
Delivery of the notice must be made by certified mail or another
verifiable method.
(c) The lien-notification statement must be in a form
approved by the secretary of state and disclose the following:
(1) the name and business address of the lender that is to
receive notification;
(2) the name and address of the supplier claiming the lien;
(3) a description and the date or anticipated date or dates
of the transaction and the retail cost or anticipated costs of
the livestock production input;
(4) the name, residential address, and signature of the
person to whom the livestock production input was furnished;
(5) the name and residential address of the owner of the
livestock, the location where the livestock will be raised, and
a description of the livestock; and
(6) a statement that products and proceeds of the livestock
are covered by the livestock input lien.
(d) Within ten calendar days after receiving a
lien-notification statement, the lender must respond to the
supplier with either:
(1) a letter of commitment for part or all of the amount in
the lien-notification statement; or
(2) a written refusal to issue a letter of commitment.
A copy of the response must be mailed to the person for whom the
financing was requested.
(e) If a lender responds with a letter of commitment for
part or all of the amount in the lien-notification statement,
the supplier may not obtain a lien for the amount stated in the
letter of commitment. If a lender responds with a refusal to
provide a letter of commitment, the rights of the lender and the
supplier are not affected.
(f) If a lender does not respond under paragraph (d) to the
supplier within ten calendar days after receiving the
lien-notification statement, a perfected 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:
(1) the amount stated in the lien-notification statement;
or
(2) the unpaid retail cost of the livestock production
input identified in the lien-notification statement, subject to
any limitation in paragraph (a).
Subd. 4. [FEEDER'S LIEN.] (a) A person has a feeder's lien
on livestock if the person (1) stores, cares for, or contributes
to the keeping, feeding, pasturing, or other care of livestock,
including medical or surgical treatment and shoeing, and (2)
does so in the ordinary course of business, at the request of
the owner or legal possessor of the livestock.
(b) A feeder's lien is a lien upon the livestock for the
price or value of the storage, care, or contribution, and for
any legal charges against the same paid by the person to any
other person.
(c) A feeder's lien becomes effective when the services or
contributions are provided the obligor.
Subd. 5. [SCOPE.] A veterinarian's lien, breeder's lien,
livestock production input lien, or feeder's lien attaches to
the livestock serviced by the agricultural lienholder, and
products and proceeds thereof to the extent of the price or
value of the service provided.
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) 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.
Subd. 7. [GOVERNING LAW.] Except as otherwise provided in
this section, an agricultural lien is subject to the provisions
of the Uniform Commercial Code - Secured Transactions, sections
336.9-101 to 336.9-709.
Subd. 8. [PRIORITY.] (a) Except as provided in paragraph
(b), a perfected veterinarian's lien under this section has
priority over all competing security interests and all
agricultural liens on the same animals.
(b) If more than one veterinarian's lien is perfected under
this section, the conflicting perfected veterinarian's liens
have priority in order of the effectiveness of the liens.
(c) Except as provided in paragraph (d), a perfected
feeder's lien under this section has priority over all competing
security interests and all agricultural liens except a perfected
veterinarian's lien in the livestock and the products or
proceeds thereof.
(d) If more than one feeder's lien is perfected under this
section, the conflicting perfected feeder's liens have priority
in order of the effectiveness of the liens.
(e) A perfected breeder's lien under this section has
priority over all competing security interests and all
agricultural liens except a perfected veterinarian's lien and a
perfected feeder's lien in the livestock and the products and
proceeds thereof.
(f) Except as provided in paragraph (g), a perfected
livestock production input lien under this section has priority
against all agricultural liens except a perfected veterinarian's
lien, feeder's lien, and breeder's lien in the livestock and the
products or proceeds thereof.
(g) If more than one livestock production input lien is
perfected under this section, conflicting perfected livestock
production input liens have priority in order of the
effectiveness of the liens.
(h) Except as provided in paragraph (i), a perfected
livestock production input lien under this section has priority
against all competing security interests as provided in
subdivision 3 in livestock and the products and proceeds thereof.
(i) A perfected livestock production input lien has
priority over a competing security interest in the livestock and
proceeds and products thereof if the livestock production input
lien is effective before the secured party has given value to
the debtor.
Subd. 9. [DEFAULT.] Default occurs when an obligor fails
to perform any obligation, whether written or oral, owed to the
agricultural lienholder.
Subd. 10. [ENFORCEMENT.] The holder of an agricultural
lien under this section may enforce the lien in the manner
provided in sections 336.9-601 to 336.9-628.
Sec. 6. [TRANSITION RULE FOR LIVESTOCK AND CROP STATUTES.]
(a) Agricultural liens in crops or livestock or the
products or proceeds thereof created before July 1, 2001, based
on statutes repealed by this act, or based on Minnesota
Statutes, section 514.19, prior to its amendment by this act,
remain in effect for the duration provided by the law in effect
before July 1, 2001.
(b) Lien statements properly filed prior to July 1, 2001,
under statutes repealed by this act remain effective for the
period of time allowed under those statutes.
(c) Records of agricultural liens based upon statutes
repealed by this act will exist in the central filing system
operated by the office of the secretary of state.
Sec. 7. [REPEALER.]
(a) Minnesota Statutes 2000, sections 514.23; 514.24;
514.25; 514.26; 514.27; 514.28; 514.29; 514.30; 514.31; 514.32;
514.33; 514.34; 514.62; 514.63; 514.65; 514.66; 514.92; 514.950;
514.952; 514.954; 514.956; 514.958; 514.959; 514.960; 557.12;
and 559.2091, are repealed.
(b) Minnesota Rules, parts 8271.0010; 8271.0020; 8271.0030;
8271.0040; 8271.0050; 8271.0060; 8271.0070; 8271.0080;
8271.0090; 8271.0100; 8271.0200; 8271.0300; and 8271.0350, are
repealed.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective July 1, 2001.
Presented to the governor April 26, 2001
Signed by the governor April 30, 2001, 3:02 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes