71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1464
C-Engrossed
House Bill 2051
Ordered by the Senate May 10
Including House Amendments dated February 12 and Senate
Amendments
dated April 26 and May 10
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Joint Interim Committee on
Water, Agriculture and Natural Resources for Representative
Jeff Kropf)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Requires Secretary of State to maintain agricultural services
lien in financing statement index. Specifies attachment date for
agricultural services lien. Limits name search and notice
requirement for agricultural services lien.
Changes lien availability for agricultural producers growing
agricultural produce not owned by producer. Expands applicability
of agricultural produce and grain producer lien laws. Changes
agricultural produce and grain producer lien security interest,
priority, duration, method of extension and notice requirements.
Prohibits contractual waiver of right to file agricultural
produce or grain producer lien. Consolidates filing of
agricultural liens and notices in Secretary of State's office.
Requires agricultural cooperative to give annual notice to
members that members may not file lien against cooperative.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to liens arising out of agricultural activities;
creating new provisions; amending ORS 87.142, 87.226, 87.242,
87.252, 87.346, 87.700, 87.705, 87.710, 87.715, 87.730, 87.735,
87.740, 87.750, 87.755, 87.762, 87.767, 87.772, 87.777, 205.246
and 596.371; repealing ORS 87.720; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS 87.700 to 87.740. + }
SECTION 2. { + (1) Notices filed with the Secretary of State
under ORS 87.710 and certificates filed with the Secretary of
State under ORS 87.735 must be in a form prescribed by the
Secretary of State. The Secretary of State shall include the
notices and certificates in the index maintained by the secretary
for filing financing statements pursuant to ORS chapter 79. The
secretary shall maintain the notices and certificates as public
records for a period of time established by the secretary.
(2) The Secretary of State shall establish fees pursuant to ORS
177.130 for filing notices and certificates and for furnishing
copies of notices or certificates. Fees established pursuant to
this subsection are nonrefundable. + }
SECTION 3. { + If the Secretary of State receives notice of a
lien created under ORS 87.226, 87.705 or 87.755, the Secretary of
State, upon request, shall furnish the person who filed the lien
with a list of persons who have filed a financing statement under
ORS 79.4010 that perfects a security interest in the inventory,
proceeds or accounts receivable of the lien debtor or purchaser.
The list must include:
(1) The name and address of the secured party for each
statement or notice;
(2) The filing number and date of filing for the financing
statement in the index maintained by the Secretary of State; and
(3) Other information that the Secretary of State considers
necessary or proper. + }
SECTION 4. { + An agricultural cooperative organized and
operating under ORS chapter 62 must send a notice to all members
of the cooperative annually. The cooperative shall send a member
the notice in February or with the member's contract. The notice
shall state that members may not file an agricultural produce
lien under ORS 87.700 to 87.740 against the cooperative. Failure
by a cooperative to send the notice does not give a member lien
rights against the cooperative. + }
SECTION 5. ORS 87.142 is amended to read:
87.142. As used in ORS 87.142 to 87.490 { - , 87.705,
87.710 - } and 87.910, unless the context otherwise requires:
(1) 'Animal' means any mammal, bird, fish, reptile, amphibian
or insect.
(2) 'Chattel' includes movable objects that are capable of
ownership, but does not include personal rights not reduced to
possession but recoverable by an action at law or suit in equity,
money, evidence of debt and negotiable instruments.
(3) 'Electric cooperative' means a cooperative corporation
organized under ORS chapter 62 the principal business of which is
the construction, maintenance and operation of an electric
transmission and distribution system for the benefit of the
members of that cooperative corporation and which has no other
principal business or purpose.
(4) 'Electric utility' means a corporation engaged in
distributing electricity, directly or indirectly, to or for the
public and regulated by the Public Utility Commission under ORS
chapter 757.
(5) 'Excavation' means a shaft, tunnel, incline, adit, drift or
other excavation designed for the use, working or draining of a
mine.
(6) 'Fair market value' means, with respect to a chattel sold
at a foreclosure sale under ORS 9.370, 87.142 to 87.490,
{ - 87.705, 87.710, - } 87.910 and 90.120, the price of
chattels of the same kind and condition prevailing in the county
of sale at the time of sale.
(7) 'Fungible chattels' means chattels of which any unit is the
equivalent of any other unit.
(8) 'Improvement' means a road, tramway, trail, flume, ditch,
pipeline, building, structure, superstructure or boardinghouse
used for or in connection with the working or development of a
mine.
(9) 'Irrigation' includes the use of canals, ditches, pipes,
pumps, spraying apparatus and other mechanical devices to water
land artificially.
(10) 'Mine' means a mine, lode, mining claim or deposit that
contains or may contain coal, metal or mineral of any kind.
(11) 'Mortgagee' means a person who has a valid subsisting
mortgage of record or trust deed of record securing a loan upon
any real property to be charged with a lien under ORS 87.352 to
87.362.
(12) 'Nursery stock' means fruit trees, fruit-tree stock, nut
trees, grapevines, fruit bushes, rose bushes, rose stock, forest
and ornamental trees, and shrubs both deciduous and evergreen,
florists' stock and cuttings, scions and seedlings of fruit or
ornamental trees and shrubs, and all other fruit-bearing plants
and parts thereof and plant products for propagation or planting.
(13) 'Owner' includes:
(a) A person who has title to a chattel or real property;
(b) A person who is in possession of a chattel or real property
under an agreement for the purchase thereof, whether the title
thereto is in the person or the vendor of the person; or
(c) A person who is in lawful possession of a chattel or real
property.
(14) 'Person' includes individuals, corporations, associations,
firms, partnerships and joint stock companies.
(15) 'Security interest' means an interest in a chattel
reserved or created by an agreement that secures payment or
performance of an obligation as more particularly defined by ORS
71.2010 (37).
(16) 'Timbers' means sawlogs, spars, piles, felled logs and
other wood growth that has been cut or separated from land.
(17) 'Wood products' includes lumber, slabwood, plywood and
other wood products produced from timbers. The term does not
include paper or products made from paper.
SECTION 6. ORS 87.226 is amended to read:
87.226. (1) A person who performs labor, supplies materials or
provides services on farmland, range, ranch, orchard or in that
person's place of business to aid the growing or harvesting of
crops or the raising of animals has a lien upon the crops or
animals for the reasonable or agreed charges for labor, materials
or services. The lien upon crops or animals created by this
section { - shall also attach - } { + also attaches + } to
the proceeds of the crops or animals and to the unborn progeny of
the animals { - which - } { + that + } are in utero on the
date a notice of claim of lien is filed.
(2) If the lien claimed under subsection (1) of this section is
for stud or artificial insemination services, the lien attaches
only to the female animal to which the male animal is let or
which is artificially inseminated, and the offspring.
{ + (3) The lien on crops and the proceeds thereof attaches
on the date a person performs labor, delivers materials or
provides services to aid the growing or harvesting of crops. The
lien on animals and the proceeds thereof attaches on the date a
person performs labor, delivers materials or provides services to
aid the raising of animals, or in the case of unborn progeny,
attaches on the date the claim of lien is filed. + }
{ - (3) - } { + (4) + } As used in this section:
(a) 'Growing and harvesting' includes tilling, sowing,
planting, cultivating, irrigating, pruning, thinning,
fertilizing, spraying, dusting, cutting, harvesting, reaping,
threshing, gathering, transporting, securing or otherwise
performing or furnishing labor, service or materials to aid the
production of any agricultural crop.
(b) 'Materials' includes seed, fertilizer, pesticide, petroleum
products and other products used in agricultural practice to aid
the growing or harvesting of crops, and any mixtures or
preparation for feeding animals, any of the constituent nutrients
of an animal ration and any other food for animals.
(c) 'Performs labor or provides services' includes personal
labor and the use of machinery, equipment or animals rendered by
the lien claimant or by the agent of the lien claimant, employee
or subcontractor.
(d) 'Raising animals' includes feeding, herding, pasturing,
shoeing, artificially inseminating, providing male animals for
the breeding of female animals, caring for and managing animals
kept or raised for use or profit.
SECTION 7. ORS 87.242 is amended to read:
87.242. (1) A person claiming a lien created by ORS 87.216,
87.222 or 87.232 shall file a written notice of claim of lien
with the recording officer of the county in which the lien debtor
resides, or, if the lien debtor is a business, the county in
which the lien debtor has its principal place of business, not
later than 60 days after the close of the furnishing of the
labor, services or materials. A person claiming a lien created by
ORS 87.226 { - , for all claims of lien filed on or after
January 1, 1988, - } shall file a written notice of claim of
lien with the Secretary of State not later than 75 days after the
close of the furnishing of the labor, services or materials.
{ - A person claiming a lien created by ORS 87.226, for all
claims of lien filed on or before December 31, 1987, shall file a
written notice of claim of lien with the recording officer of the
county in which the lien debtor resides, or, if the lien debtor
is a business, in the county in which the lien debtor has its
principal place of business, not later than 75 days after the
close of the furnishing of the labor, services or materials. - }
{ + The Secretary of State shall include a notice of claim of
lien that is filed with the secretary under this subsection in
the index maintained by the secretary for filing financing
statements pursuant to ORS chapter 79. + }
(2) The notice of claim of lien required under subsection (1)
of this section shall be a statement in writing verified by the
oath of the lien claimant and must contain:
(a) A true statement of the lien claimant's demand after
deducting all credits and offsets;
(b) The name of the owner of the chattel to be charged with the
lien;
(c) A description of the labor services or materials provided
by the lien claimant for the benefit of the owner of the chattel
to be charged with the lien;
(d) A description of the chattel to be charged with the lien
sufficient for identification;
(e) A statement that the amount claimed is a true and bona fide
existing debt as of the date of the filing of notice of claim of
lien;
(f) The date on which payment was due to the lien claimant for
labor, services or materials;
(g) The terms of extended payment; and
(h) Such other information as the Secretary of State may
require for the written notice of claim of lien created by ORS
87.226.
(3) If the person entitled to a lien under ORS 87.216 to 87.232
does not properly file a notice of claim of lien within the time
required by subsection (1) of this section, the person waives the
right to the lien.
SECTION 8. ORS 87.252 is amended to read:
87.252. (1) When a lien claimant files a notice of claim of
lien as required by ORS 87.242, the lien claimant shall send
forthwith a copy of the notice to the owner of the chattel to be
charged with the lien by registered or certified mail sent to the
owner at the owner's last-known address.
(2) When a lien claimant files a notice of claim of lien as
required by ORS 87.242, the lien claimant shall send a copy of
the notice to all holders of security interests in the chattel to
be charged with the lien who duly perfected such security
interests by filing notice thereof with the Secretary of State.
The notice shall be mailed to holders of perfected security
interests within 30 days after the date of filing.
(3) No costs, disbursements or attorney fees otherwise
allowable as provided by ORS 87.336 shall be allowed to any party
failing to comply with subsections (1) and (2) of this section.
{ - (4) If the total amount claimed by the lien claimant
under ORS 87.226 exceeds $20,000, and if the lien claimant fails
to comply with subsection (2) of this section, then, unless the
lien claimant sends a copy of the notice of claim of lien to
affected security interest holders disclosed by a search of the
Secretary of State's lien records under the account name supplied
to the lien claimant by the lien debtor or such other name or
assumed business names previously supplied by the lien debtor in
writing to the lien claimant, that part of the lien claimed under
ORS 87.226 that exceeds $20,000 shall be subordinate to any
security interest in the crops or animals to be charged with the
lien if the security interest was duly perfected before the date
on which the lien claimant filed a notice of claim of lien and if
the holder of the security interest did not receive a notice due
to the lien claimant's failure to comply with subsection (2) of
this section. - }
{ + (4) If the total amount of a lien under ORS 87.226
exceeds $20,000, that part of the lien exceeding $20,000 is
subordinate to any security interest in the crops, animals or
proceeds to be charged with the lien, if:
(a) The holder of the security interest does not receive notice
because of the lien claimant's failure to comply with subsection
(2) of this section; and
(b) The holder of the security interest duly perfects the
interest before the date on which the lien claimant files a
notice of claim of lien. + }
SECTION 9. ORS 87.346 is amended to read:
87.346. (1) When a person claiming a lien under ORS 87.216 to
87.232 receives full payment of the claim including costs of
making, filing and recording the lien and expenses incurred in
commencing to foreclose it, the person shall file with the
Secretary of State or the recording officer of the county in
which the claim of lien is recorded a certificate declaring that
full payment has been received from the lien debtor and that the
claim of lien is discharged.
(2) Upon receiving the certificate, the Secretary of State or
recording officer shall enter it in full length in the index of
liens upon chattels.
(3) If any lien claimant, after full payment of the claim,
within 10 days after being requested thereto, fails to discharge
the claim of lien, the person is liable to the owner of the
chattel formerly subject to the lien in the sum of $100 damages
and for all actual damages caused by the failure of the lien
claimant to discharge the claim of lien. The owner of the chattel
shall recover those damages by an action at law.
(4) Upon the expiration of the 18-month time period allowed by
ORS 87.266 (2) for filing either a suit to foreclose or a
proceeding under ORS 87.272 to 87.306 to foreclose a lien created
by ORS 87.226, the owner of chattels subject to a claim of lien
{ - which - } { + that + } has ceased to exist pursuant to
ORS 87.266 (2) may file with the Secretary of State { - or
recording officer of the county in which the claim of lien is
recorded - } a notarized certificate indicating:
(a) The date and location where the claim of lien was filed
with the Secretary of State { - or county recorder - } ;
(b) That the lien has expired and is discharged because no suit
to foreclose or proceeding under ORS 87.272 to 87.306 has been
initiated with respect to such lien claim; and
(c) That the person filing such certificate has personally
contacted the clerk of the circuit court in such county to
determine that no suit to foreclose or proceeding under ORS
87.272 to 87.306 has been filed prior to the expiration of the
time period set forth in ORS 87.266 (2).
(5) Within 10 days after filing a certificate under subsection
(4) of this section, the person filing the certificate shall mail
or deliver a true copy thereof to all persons having perfected
security interests under ORS chapter 79 in the chattel which is
the subject of the lien to which the certificate applies.
SECTION 10. ORS 87.700 is amended to read:
87.700. As used in ORS 87.700 to 87.740, unless the context
otherwise requires:
(1) 'Agricultural produce' means { + horticultural products,
viticultural products, + } fruit, berries, vegetables
{ - or - } { + , hops, mint oil, hazelnuts or other nuts, dairy
products, bee products, hay or straw baled and prepared for
market, + } meat animals { - sold or delivered to a food
processor - } and Christmas trees { - sold or delivered to a
Christmas tree dealer - } { + as defined in ORS 571.505 + }.
(2) 'Agricultural producer' means a person { - who grows or
raises agricultural produce. - } { + that engages in or has
engaged in the business of growing or producing agricultural
produce for market or for delivery or transfer to others owning
or holding title to the produce. 'Agricultural producer' includes
a landowner, producer, landlord, tenant, sharecropper or other
person who participates in the growing of agricultural produce
and receives a share of the produce. + }
{ - (3) 'Christmas tree' has the meaning given that term in
ORS 571.505. - }
{ - (4) 'Christmas tree dealer' means a person who purchases
Christmas trees for resale. - }
{ - (5) 'Food processor' includes a packing plant, cannery,
creamery or other processing plant that processes agricultural
produce and is owned or operated by any person other than a
cooperative corporation. - }
{ - (6) - } { + (3) + } 'Meat animal' has the meaning for
that term provided in ORS 603.010.
{ + (4) 'Person' means individual, corporation, partnership,
association, joint stock company, trust, limited liability
company, limited liability partnership, cooperative, government
entity, unincorporated organization or other business entity.
(5) 'Purchaser' does not include a cooperative organized and
operating under ORS chapter 62, including a foreign cooperative
authorized to do business in this state under ORS chapter 60, if
the agricultural producer is a member of the cooperative.
(6) 'Security interest' has the meaning given that term in ORS
71.2010 (37). + }
SECTION 11. ORS 87.705 is amended to read:
87.705. { + (1) + } An agricultural producer { - who - }
{ + that + }delivers
{ - any - } { + or transfers + } agricultural produce
{ + for consideration + }to a
{ - food processor or Christmas tree dealer - } { +
purchaser + } has a lien for the contract price of { - such - }
{ + that + } produce, or for { - its - } { + the + }
reasonable value { + of the produce + } if there is no contract
price. The lien created by this section attaches to all
agricultural produce, whether in a raw or processed condition,
delivered { - to the food processor or Christmas tree dealer by
the agricultural producer and to all other inventory of the food
processor or Christmas tree dealer. - } { + or transferred to
the purchaser by any agricultural producer and to all other
inventory of the purchaser. The lien also attaches to proceeds
received by the purchaser from the sale by the purchaser to a
third party of any raw or processed agricultural produce. + }If
the agricultural produce { - delivered - } { + that an
agricultural producer delivers + } to the { - food
processor - } { + purchaser + } consists of meat animals, the
lien also attaches to { + all + } accounts receivable by the
{ - food processor - } { + purchaser from the sale of any
agricultural produce to a third party + }. The lien
{ - attaches to - } { + on + } the { + agricultural + }
produce, inventory { + , proceeds + } or accounts receivable
{ + attaches + } on the date { - on which the agricultural
producer delivers - } { + physical possession of + }the
agricultural produce { + is delivered or transferred by the
agricultural producer + }to the { - food processor or
Christmas tree dealer - } { + purchaser or an agent of the
purchaser + }.
{ + (2) An agricultural producer that claims a lien under
subsection (1) of this section need not file any notice in order
to perfect the lien. The agricultural producer must file a notice
of lien as provided in ORS 87.710 to extend the lien beyond the
normal expiration date.
(3) The lien created by this section is subject to the
provisions of ORS 79.3070 (1).
(4) An agreement by an agricultural producer purporting to
waive the right to file notice under ORS 87.710 of a lien created
by this section is void as contrary to public policy. + }
SECTION 12. ORS 87.710 is amended to read:
87.710. { - (1) An agricultural producer shall file a notice
evidencing the lien under ORS 87.705 only if a food processor or
Christmas tree dealer fails to pay the agricultural producer for
such agricultural produce by the date on which payment from the
food processor or Christmas tree dealer to the agricultural
producer for the agricultural produce is due. - }
{ + (1) A lien created under ORS 87.705 expires no later than
the end of the 45th day after the date that the final payment to
the agricultural producer is originally due, unless the producer
extends the lien as provided in subsection (2) of this section.
If the agricultural producer extends the lien, the lien expires
no later than the 225th day after the date that the final payment
to the producer is originally due. + }
(2) An agricultural producer { - claiming - } { + may
extend + } a lien { + created + } under ORS 87.705 { - shall
file - } { + by filing a notice of lien + } with the
{ - recording officer of the county where the food is processed
or the Christmas trees are grown - } { + Secretary of
State. + } { - , within 20 days of the date on which the
payment from the food processor or Christmas tree dealer to the
agricultural producer for agricultural produce is due or, in the
case of meat animals, within 20 days of the date the meat animals
are delivered to the food processor. The statement shall be in
writing verified by the oath of the agricultural producer and
shall contain: - } { + The agricultural producer may file the
notice only during the period after the date that payment for the
agricultural produce is originally due and no later than the 45th
day after the date that the final payment for the produce is due.
The notice must be supported by affidavit and contain: + }
(a) A true statement of the { + agricultural + } producer's
demand after deducting all credits and offsets; { - and - }
(b) The name of the { - food processor or Christmas tree
dealer who - } { + purchaser that + } received the
{ + agricultural + } produce to be charged with the lien;
{ - and - }
(c) A description of the produce { - to be charged with the
lien sufficient for identification; and - } { + delivered or
transferred by the producer sufficient to identify the basis for
the lien; + }
(d) A statement that the amount claimed is a true and bona fide
existing debt as of the date of the filing of { + the + } notice
{ - evidencing the - } { + of + } lien; { - and - }
(e) The date { - on which - } { + that the final + }
payment { + to the producer + } was { + originally + } due
{ - for the produce to be charged with the lien - } { + ; and
(f) Such other information as the Secretary of State may
require + }.
(3) { - When - } { + If + } an agricultural producer files
{ - notice evidencing the lien, an agricultural producer
claiming a lien under ORS 87.705 - } { + a notice of lien under
this section, the producer + } shall { - notify - } { + send
notice to + } all { - other - } persons { - who - } { +
that + } have filed { - a claim of lien on the inventory of the
food processor or Christmas tree dealer or who have filed - } a
financing statement under ORS chapter 79 that perfects a security
interest in { - the inventory of the food processor or
Christmas tree dealer. If the lien for which an agricultural
producer files notice under this section attaches to accounts
receivable, the agricultural producer shall notify all other
persons who have filed a claim of lien on the accounts receivable
of the food processor or who have filed a financing statement
under ORS chapter 79 that perfects a security interest in the
accounts receivable of the food processor. - } { + all or part
of the same inventory, proceeds or accounts receivable. + } The
notice to { - other lien claimants and secured parties
shall - } { + those persons must + } provide the same
information contained in the { - statement - } { + notice of
lien + } required by subsection (2) of this section and
{ - shall - } be sent by certified mail, return receipt
requested.
(4) { - If - } The { + agricultural producer must send
+ }notice { + to other persons as + } required by subsection
(3) of this section { - is not given, - } { + no later than
the 20th day after filing the notice of lien. If the agricultural
producer does not send a person notice within the required time,
+ }the lien created { - by - } { + under + } ORS 87.705
{ - is - } { + becomes + } subordinate { - , with respect to
a person not notified, to: - }
{ - (a) A lien that has attached to the agricultural produce,
inventory or accounts receivable prior to the date on which the
lien created under ORS 87.705 attaches; or - }
{ - (b) A - } { + to that person's + } perfected security
interest in the agricultural produce, { - inventory - } { +
proceeds + } or accounts receivable { + of the purchaser + }.
(5) For purposes of this section, { + final + } payment
{ - from a food processor or Christmas tree dealer - } to the
agricultural producer for agricultural produce is due:
(a) On the date specified for payment in the contract between
the { - food processor or Christmas tree dealer - } { +
purchaser + } and the
{ - agricultural - } producer; or
(b) If there is no contract or no date of payment is specified
in the contract, two business days after the { - food processor
or Christmas tree dealer - } { + purchaser + } takes delivery
of the { - agricultural - } produce.
{ + (6) Notwithstanding ORS 174.120, for purposes of this
section and ORS 87.730 and 87.735, if the last day of the period
for performing an act is a Saturday, or a legal holiday as
specified in ORS 187.010 and 187.020, the period runs until the
end of the next day that is not a Saturday or legal holiday. + }
SECTION 13. ORS 87.715 is amended to read:
87.715. Except for tax liens, and except as provided in ORS
{ + 87.146 (1)(c) and + } 87.710 (4), the { + class of + }
lien created by ORS 87.705 is prior and superior to all other
{ + classes of + } { - liens created by chattel mortgage, bill
of sale, conditional contract - } { + lien + } or any { +
classes of + } security interest { - upon agricultural
produce - } { + in the inventory, proceeds or accounts
receivable of a purchaser + }, without regard to whether
{ - such - } { + those + } other liens or security
{ - interest - } { + interests + } attached to the
{ - produce - } { + inventory, proceeds or accounts
receivable + } before or after { - the date on which - } a
lien created by ORS 87.705 attaches. { + Except as provided in
ORS 87.710 (4), all liens of the class created under ORS 87.705,
regardless of the date of attachment or the date of notice of
lien, are of equal priority and payable pro rata in proportion to
the size of each lien. This section does not prohibit an unequal
pro rata recovery between agricultural producers supplying meat
animals and other agricultural producers if the inequality
results from a lien on accounts receivable created under ORS
87.705. + }
SECTION 14. ORS 87.730 is amended to read:
87.730. { + A lien created under ORS 87.705 expires + } unless
suit to foreclose the lien is brought in an appropriate court
{ - within six months after claim of lien is filed under ORS
87.710, or if a credit is given, then within six months after the
expiration of such credit, a lien created by ORS 87.705 shall
cease to exist. - } { + no later than the 45th day after the
date final payment to the agricultural producer is originally due
or, if the producer extends the lien by filing a notice of lien
under ORS 87.710, no later than the 225th day after the date
final payment to the producer is originally due. + }
SECTION 15. ORS 87.735 is amended to read:
87.735. (1) When an agricultural producer receives full payment
for agricultural produce { + , + } { - from the food processor
or Christmas tree dealer to which such agricultural produce is
delivered, - } if the { - agricultural - } producer
{ + has + } filed { - a claim of lien on such agricultural
produce under ORS 87.705 and 87.710 - } { + a notice under ORS
87.710 (2) to extend a lien or under ORS 87.725 to foreclose a
lien + }, the { - agricultural - } producer shall file with
the { - recording officer of the county in which the claim of
lien is recorded - } { + Secretary of State + } a certificate
declaring that full payment has been received from the { - food
processor or Christmas tree dealer - } { + purchaser + } and
that the { - claim of - } lien is discharged.
(2) Upon receiving the certificate, the { - recording
officer - } { + Secretary of State + } shall enter { - it in
full length - } { + the certificate + } in the { - book kept
to record such liens - } { + index maintained by the secretary
for filing financing statements pursuant to ORS chapter 79 + }.
(3) If { - any - } { + an + } agricultural producer { - ,
after - } { + that receives + } full payment for agricultural
produce { - , within 10 days after being requested thereto, - }
fails to { - discharge the claim of lien, - } { + file the
certificate described in subsection (1) of this section on or
before the 10th day after receiving a request for filing from a
purchaser, + } the { - agricultural - } producer is liable to
the { - food processor or Christmas tree dealer - } { +
purchaser + } in the sum of $100 damages and for all actual
damages caused by { - such - } { + the + } failure, to be
recovered in an action at law.
SECTION 16. ORS 87.740 is amended to read:
87.740. { - The - } { + A + } lien created by ORS 87.226
{ - shall not - } { + ceases to + } attach to a crop { - or
the proceeds of the sale of a crop - } { + that is agricultural
produce as defined in ORS 87.700 and is + } in the possession of
a { - food processor or Christmas tree dealer - } { +
purchaser, or to the proceeds of the sale of the crop to a third
party, + } if the { - food processor or Christmas tree
dealer - } { + purchaser + } pays the agricultural producer in
full for { - such - } { + the + } crop and the claim for
{ - such - } { + the + } lien is not filed under ORS 87.242
prior to the date of { - such - } { + that + } payment.
SECTION 17. ORS 87.750 is amended to read:
87.750. As used in ORS 87.750 to 87.777, unless the context
otherwise requires:
(1) 'Agricultural producer' means a person { - who grows or
raises grain - } { + that engages in or has engaged in the
business of growing or producing grain for market or for delivery
or transfer to others owning or holding title to the grain.
'Agricultural producer' includes a landowner, producer, landlord,
tenant, sharecropper or other person who participates in the
growing of grain and receives a share of the grain + }.
(2) 'Grain' means wheat, { + seed + } corn, { + corn used for
animal feed, + } oats, barley, rye, flaxseed, certified alfalfa
seed, agricultural seed as defined in ORS 633.511 (1), vegetable
seed as defined in ORS 633.511, the seed of any cereal grain,
soybeans, grain sorghum, dry beans and { + dry + } peas and any
other grain for which standards are established { - by the
state or the federal government - } { + or followed by the
State Department of Agriculture + }.
{ + (3) 'Inventory' means all grain purchased or received
from agricultural producers, whether in bulk lots or in blended
or packaged form. 'Inventory' does not include the equipment or
supplies of the person holding or owning the grain. + }
{ - (3) - } { + (4) + } 'Person' means individual,
corporation, partnership, association, joint stock company,
business trust
{ - or - } { + , limited liability company, limited liability
partnership, cooperative, government entity, + } unincorporated
organization { + or other business entity + }.
SECTION 18. ORS 87.755 is amended to read:
87.755. (1) { - When - } An agricultural producer
{ - sells - } { + that delivers or transfers + } grain { - ,
the agricultural producer shall have - } { + for consideration
has + } a lien on the { - grain - } { + inventory of the
purchaser + } and { - the - } proceeds { - thereof for a
period not to exceed 90 days from the date the lien attaches. - }
{ + received by the purchaser from the selling of the
inventory. + }
(2) The lien created by subsection (1) of this section
{ - shall attach - } { + attaches + } to the { - grain - }
{ + inventory + } and { - to the - } proceeds
{ - thereof - } on the date { - the agricultural producer
sells - } { + physical possession of + }the grain { + is
delivered or transferred by the agricultural producer + }to the
purchaser { - or on the date the agricultural producer
physically delivers the grain to the purchaser, whichever last
occurs. - } { + or an agent of the purchaser. If grain is
delivered or transferred by an agricultural producer to a person
other than the purchaser for cleaning or storage, the lien
attaches when the grain is physically delivered or transferred to
the purchaser or an agent of the purchaser for agreed
consideration. + }
(3) { + Except as provided under ORS 87.146 (1)(c) and 87.762
(4), + } the { + class of + } lien created by subsection (1) of
this section
{ - shall be preferred to any - } { + is prior and superior
to all other classes of + } lien or { + any classes of + }
security interest { - in favor of any creditor of the
purchaser - } { + in the inventory or proceeds + }, regardless
of whether the creditor's lien or security interest attached to
the { - grain or - } { + inventory or + } proceeds before or
after
{ - the date on which - } the agricultural producer's lien
attached under subsection (2) of this section. { + Except as
provided in ORS 87.762 (4), all liens of the class created under
subsection (1) of this section, regardless of the date of
attachment or the date of notice of lien, are of equal priority
and payable pro rata in proportion to the size of each lien. + }
(4) An agricultural producer who claims a lien under subsection
(1) of this section need not file any notice { - of the
lien - } in order to perfect the lien. { + The agricultural
producer must file a notice of lien as provided under ORS 87.762
to extend the lien beyond the normal expiration date. + }
(5) The lien created by subsection (1) of this section
{ - shall be - } { + is + } subject to the provisions of ORS
79.3070 (1).
(6) The lien created by subsection (1) of this section is
discharged { - , except as to the proceeds therefrom, upon sale
of the grain by the purchaser - } { + with regard to inventory
that is sold by the purchaser or an agent of the purchaser + }to
a third party
{ - purchaser - } . { + Notwithstanding a discharge with
regard to inventory sold to a third party, an agricultural
producer continues to hold a lien on the proceeds from the sale
to a third party and on all remaining inventory of the purchaser.
(7) An agreement by an agricultural producer purporting to
waive the right to file notice under ORS 87.762 of a lien created
by subsection (1) of this section is void as contrary to public
policy. An agricultural producer may waive the right to file
notice under ORS 87.762 if the purchaser is an association of
which the agricultural producer is a member. + }
SECTION 19. ORS 87.762 is amended to read:
87.762. { - (1) At any time within 90 days following the date
on which the lien provided for in ORS 87.755 (1) attaches, the
agricultural producer may extend the duration of the lien by
completing all of the following within that 90-day period: - }
{ + (1) A lien created under ORS 87.755 expires no later than
the end of the 180th day after the date the lien attaches, unless
the agricultural producer extends the lien by filing a notice of
lien as provided in this section. If the agricultural producer
extends the lien, the lien expires no later than 18 months after
the date the lien attaches. + }
{ - (a) Filing with the Secretary of State a written
statement, verified by the oath of the agricultural producer, and
containing: - }
{ + (2) At any time prior to expiration of the initial lien
period, an agricultural producer may extend a lien created under
ORS 87.755 by filing a notice of lien with the Secretary of
State. The notice must be supported by affidavit and
contain: + }
{ - (A) - } { + (a) + } A true statement of the demand of
the agricultural producer after deducting all credits and
offsets;
{ - (B) - } { + (b) + } The name of the person
{ - who - } { + that + } purchased the grain from the
{ - agricultural - } producer;
{ - (C) - } { + (c) + } A description { - sufficient for
identification - } of the grain { - charged with - } { +
delivered or transferred by the producer sufficient to identify
the basis for + } the lien;
{ - (D) - } { + (d) + } A statement that the amount claimed
is a true and bona fide existing debt as of the date of filing
{ - of - } the notice
{ - evidencing the - } { + of + } lien;
{ - (E) - } { + (e) + } The date { - on which - }
payment { + to the producer + } was { + originally + } due
{ - to the agricultural producer for the grain charged with the
lien - } ; and
{ - (F) - } { + (f) + } Such other information as the
Secretary of State may require.
{ - (b) Sending, by certified mail, return receipt requested,
a copy of the notice described in paragraph (a) of this
subsection to all other persons who have filed a claim of lien on
the inventory or accounts receivable of the purchaser of the
grain or who have filed a financing statement under ORS chapter
79 perfecting a security interest in the inventory or accounts
receivable of the purchaser. - }
{ - (2) If the agricultural producer complies with all of the
provisions of subsection (1) of this section, the lien of the
agricultural producer shall not expire at the end of 90 days
following the date of its attachment but shall continue without
interruption to be effective and shall continue to be accorded
the priority established under ORS 87.755 (3), until six months
after the date it attached under ORS 87.755 (2). - }
{ + (3) If an agricultural producer files a notice of lien
under this section, the producer shall send notice to all persons
that have filed a financing statement under ORS chapter 79 that
perfects a security interest in all or part of the inventory of
the purchaser or the proceeds from the sale of the inventory. The
notice to the secured parties must provide the same information
contained in the notice required by subsection (2) of this
section and be sent by certified mail, return receipt requested.
(4) The agricultural producer must send notice to other persons
as required by subsection (3) of this section no later than the
20th day after filing the notice of lien. If the agricultural
producer does not send a person notice within the required time,
the lien created under ORS 87.755 becomes subordinate to that
person's perfected security interest in the inventory or proceeds
of the purchaser.
(5) Notwithstanding ORS 174.120, for purposes of this section
and ORS 87.772 and 87.777, if the last day of the period for
performing an act is a Saturday, or a legal holiday as specified
in ORS 187.010 and 187.020, the period runs until the end of the
next day that is not a Saturday or legal holiday. + }
SECTION 20. ORS 87.767 is amended to read:
87.767. (1) Notices filed with the Secretary of State under ORS
87.750 to 87.777 { - shall: - }
{ - (a) - } { + must + } be in a form prescribed by the
Secretary of State { + . + }
{ - ; and - }
{ - (b) Be maintained - } { + The Secretary of State shall
include the notice of lien that is filed under ORS 87.762 (2) in
the index maintained by the secretary for filing financing
statements pursuant to ORS chapter 79. The Secretary of State
shall maintain the notices + }as public records for a period of
time established by the secretary { - of State - } .
(2) { + The Secretary of State shall establish + }fees
{ + pursuant to ORS 177.130 + } for filing notices and requests
for copies of notices
{ - shall be established by the Secretary of State pursuant to
ORS 177.130 - } . Fees { - described in - } { + established
pursuant to + } this subsection { - shall be - } { + are + }
nonrefundable.
SECTION 21. ORS 87.772 is amended to read:
87.772. (1) { - The - } { + A + } lien created { - by - }
{ + under + } ORS 87.755 (1)
{ - shall cease to exist - } { + expires + } unless suit to
foreclose the lien is brought in an appropriate court { - : - }
{ - (a) Within 90 days after the date the lien attached under
ORS 87.755 (2) if the lien has not been extended by filing and
giving notice under ORS 87.762; or - }
{ - (b) Within six months after the date the lien attached
under ORS 87.755 (2) if the lien has been extended by filing and
giving notice under ORS 87.762. - } { + no later than the 180th
day after the date that the lien attaches, or if the agricultural
producer extends the lien by filing a notice of lien under ORS
87.762, no later than 18 months after the date the lien
attaches. + }
(2) Regardless of whether the lien created { - by - }
{ + under + } ORS 87.755 (1) has been extended by filing and
giving notice under ORS 87.762, the lien shall be foreclosed in
the manner provided by law for the foreclosure of liens
generally.
(3) In all suits under ORS 87.750 to 87.777, the court shall,
upon entering judgment for the plaintiff, allow as a part of the
costs all moneys paid for the filing and recording of the lien
and a reasonable amount for attorney fees.
SECTION 22. ORS 87.777 is amended to read:
87.777. (1) If an agricultural producer { - filed a claim - }
{ + files a notice + } of lien under ORS 87.762, when the
{ - agricultural - } producer receives full payment for the
grain, the { - agricultural - } producer shall file with the
Secretary of State a certificate declaring that full payment has
been received and that the { - claim of - } lien is
discharged.
(2) Upon receiving the certificate, the Secretary of State
shall enter it in the { - book kept to record such liens - }
{ + index maintained by the secretary for filing financing
statements pursuant to ORS chapter 79 + }.
(3) If { - any - } { + an + } agricultural producer { - ,
after - } { + that receives + } full payment for grain { - ,
within 10 days after being requested thereto - } fails to
{ - discharge the claim of lien - } { + file a certificate
described in this section on or before the 10th day after
receiving a request for filing from a purchaser + }, the
{ - agricultural - } producer is liable to the purchaser of
the grain in the sum of $100 damages and for all actual damages
caused by
{ - such - } { + the + } failure { + , + } to be recovered in
an action at law.
SECTION 23. ORS 205.246 is amended to read:
205.246. (1) The county clerk shall record the following
instruments required or permitted by law to be recorded and
entered in the office of the county clerk:
(a) Fixture filings recorded in the office of the county clerk
under ORS 79.3130 (1)(b);
(b) Hospital and physician liens recorded under ORS 87.565;
(c) Federal tax liens and certificates and notices affecting
federal tax liens recorded under ORS 87.806;
(d) Cooperative contracts recorded under ORS 62.360;
(e) Special district assessments attaching to real property;
(f) Lien foreclosure statements recorded under ORS 87.202;
(g) A certified copy of the judgment or a lien record abstract
or other liens affecting the title to real property;
(h) Building code exemptions required under ORS 455.320 and
455.345;
(i) Construction liens recorded under ORS 87.050;
(j) Liens upon chattels recorded under ORS 87.246;
(k) Liens on real property recorded under ORS 87.372;
(L) Employee benefit plan liens recorded under ORS 87.860;
(m) Attorney liens recorded under ORS 87.455 and 87.460;
(n) Long term care liens recorded under ORS 87.517;
(o) Ambulance services liens recorded under ORS 87.623;
{ - (p) Agricultural producers liens recorded under ORS
87.720; - }
{ - (q) - } { + (p) + } Community property records recorded
under ORS 108.530;
{ - (r) - } { + (q) + } Sheriff transfer of records
recorded under ORS 206.100;
{ - (s) - } { + (r) + } Corrected instruments required
under ORS 205.244;
{ - (t) - } { + (s) + } Mineral and mining records required
under ORS 517.030, 517.052, 517.160, 517.180, 517.210, 517.220,
517.280, 517.310 and 517.320;
{ - (u) - } { + (t) + } Copies of records certified by a
county clerk or court clerk;
{ - (v) - } { + (u) + } Subdivision and partition plats
recorded under ORS 92.140;
{ - (w) - } { + (v) + } Authority to solemnize marriage
recorded under ORS 106.120; and
{ - (x) - } { + (w) + } Condominiums recorded under ORS
chapter 100.
(2) The county clerk shall charge and collect fees specified in
ORS 205.320, 205.327 and 205.350 for recording any instrument
required to be recorded under subsection (1) of this section.
(3) Indexes may be maintained for instruments recorded under
subsection (1) of this section in the same manner as provided in
ORS 205.160.
SECTION 24. ORS 596.371 is amended to read:
596.371. (1) Whenever the owner or person having control of
livestock receives notice from the State Department of
Agriculture that the livestock must be treated for disease, the
owner or person having control shall, within the time prescribed
in the notice, cause the livestock to be treated in the manner
prescribed by the department.
(2) If any person fails to comply with the notice, the
department may cause the livestock to be treated and, where
necessary to carry out the treatment, cause its removal to a more
convenient location.
(3) No person shall fail to treat livestock owned or controlled
by the person in the manner prescribed by rule of the department.
(4) The department shall have a lien on any livestock treated
under this section for the value of the labor, materials,
medicines or services furnished in connection with the treatment.
The lien shall be perfected and enforced as provided in ORS
87.216 to 87.346, except that:
(a) The { + department shall file a written + }notice { + of
claim of lien as + } provided in ORS 87.242 { - shall be
filed - } { + with the Secretary of State + } within 30 days
from the date of furnishing the labor, materials, medicines or
services. { + The Secretary of State shall include a notice of
claim of lien that is filed with the secretary under this
subsection in the index maintained by the secretary for filing
financing statements pursuant to ORS chapter 79. + }
(b) The lien created by this subsection shall have priority
over all other liens upon such livestock, except tax liens.
(5) The department shall not charge as an item of expense in
connection with such treatment for any services rendered by an
assistant state veterinarian or the State Veterinarian relative
thereto, nor shall the department have a lien for such services
upon any livestock as provided in this section.
SECTION 25. { + ORS 87.720 is repealed. + }
SECTION 26. { + (1) Except as provided in subsection (3) of
this section, sections 2 to 4 of this 2001 Act and the amendments
to Oregon Revised Statutes by sections 5 to 24 of this 2001 Act
apply to liens:
(a) Arising out of the performance of labor, delivery of
materials or provision of services on or after the effective date
of this 2001 Act to aid the growing and harvesting of crops or
the raising of animals;
(b) Attaching to agricultural produce or grain that is
physically delivered or transferred to a purchaser or an agent of
a purchaser on or after the effective date of this 2001 Act; or
(c) Attaching to grain that is delivered or transferred to a
person other than the purchaser for cleaning and storage that is
both sold and physically delivered to the purchaser on or after
the effective date of this 2001 Act.
(2) Notwithstanding the amendments to ORS 87.715 by section 13
of this 2001 Act and the repeal of ORS 87.720 by section 25 of
this 2001 Act, subject to differences in subordination under ORS
87.710 (1999 Edition) and ORS 87.710 as amended by section 12 of
this 2001 Act, an unexpired lien perfected under ORS 87.710 (1999
Edition) prior to the effective date of this 2001 Act, or under
subsection (3) of this section prior to January 1, 2002, is equal
in priority to a lien perfected under ORS 87.710 as amended by
section 12 of this 2001 Act.
(3) Notwithstanding section 3 of this 2001 Act and the
amendments to ORS 87.710 and 87.735 by sections 12 and 15 of this
2001 Act:
(a) An agricultural producer filing a notice of lien under ORS
87.710 after the effective date of this 2001 Act and prior to
January 1, 2002, shall file the notice of lien with the recording
officer of the county where the agricultural produce is processed
or, if the produce consists of Christmas trees, where the produce
is grown. The notice of lien shall contain the information
described in ORS 87.710 (2)(a) to (d) as amended by section 12 of
this 2001 Act. Except as specified in this subsection, the lien
shall comply with the requirements for perfecting a lien under
ORS 87.710 as amended by section 12 of this 2001 Act.
(b) An agricultural producer who files a notice of lien under
ORS 87.710 prior to January 1, 2002, shall file any certificate
under ORS 87.735 declaring payment of the lien with the recording
officer of the county where the notice of lien was filed.
(c) The Secretary of State may not, prior to January 1, 2002,
accept a notice of lien pursuant to ORS 87.710 for filing.
(d) The secretary is not required to supply a list of persons
as described in section 3 of this 2001 Act to a person who has a
lien created under ORS 87.226, 87.705 or 87.755, if notice of the
lien is filed prior to January 1, 2002. + }
SECTION 27. { + This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2001 Act takes effect on
its passage. + }
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