2003 Minnesota Statutes

     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. 

    HIST: 2001 c 57 s 5