Chapter 612 Oregon Laws 1999

Session Law

AN ACT

HB 3622

Relating to agricultural produce liens; amending ORS 87.700, 87.705, 87.710, 87.735 and 87.740.

Be It Enacted by the People of the State of Oregon:

SECTION 1. 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 fruit, berries, vegetables or meat animals sold or delivered to a food processor and Christmas trees sold or delivered to a Christmas tree dealer.

(2) "Agricultural producer" means a person who grows or raises agricultural 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.

[(3)] (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.

[(4)] (6) "Meat animal" has the meaning for that term provided in ORS 603.010.

SECTION 2. ORS 87.705 is amended to read:

87.705. An agricultural producer who delivers any agricultural produce to a food processor or Christmas tree dealer has a lien for the contract price of such produce, or for its reasonable value 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. If the agricultural produce delivered to the food processor consists of meat animals, the lien also attaches to accounts receivable by the food processor. The lien attaches to the produce, inventory or accounts receivable on the date on which the agricultural producer delivers the agricultural produce to the food processor or Christmas tree dealer.

SECTION 3. 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.

(2) An agricultural producer claiming a lien under ORS 87.705 shall file with the recording officer of the county where the food is processed or the Christmas trees are grown, 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:

(a) A true statement of the producer's demand after deducting all credits and offsets; and

(b) The name of the food processor or Christmas tree dealer who received the produce to be charged with the lien; and

(d) A statement that the amount claimed is a true and bona fide existing debt as of the date of the filing of notice evidencing the lien; and

(e) The date on which payment was due for the produce to be charged with the lien.

(3) When an agricultural producer files notice evidencing the lien, an agricultural producer claiming a lien under ORS 87.705 shall notify all other persons who 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. The notice to other lien claimants and secured parties shall provide the same information contained in the statement required by subsection (2) of this section and shall be sent by certified mail, return receipt requested.

(4) If the notice required by subsection (3) of this section is not given, the lien created by ORS 87.705 is 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 perfected security interest in the agricultural produce, inventory or accounts receivable.

(5) For purposes of this section, 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 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 takes delivery of the agricultural produce.

SECTION 4. 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 filed a claim of lien on such agricultural produce under ORS 87.705 and 87.710, the agricultural producer shall file with 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 food processor or Christmas tree dealer and that the claim of lien is discharged.

(2) Upon receiving the certificate, the recording officer shall enter it in full length in the book kept to record such liens.

(3) If any agricultural producer, after full payment for agricultural produce, within 10 days after being requested thereto, fails to discharge the claim of lien, the agricultural producer is liable to the food processor or Christmas tree dealer in the sum of $100 damages and for all actual damages caused by such failure, to be recovered in an action at law.

SECTION 5. ORS 87.740 is amended to read:

87.740. The lien created by ORS 87.226 shall not attach to a crop or the proceeds of the sale of a crop in the possession of a food processor or Christmas tree dealer if the food processor or Christmas tree dealer pays the agricultural producer in full for such crop and the claim for such lien is not filed under ORS 87.242 prior to the date of such payment.

Approved by the Governor July 12, 1999

Filed in the office of Secretary of State July 12, 1999

Effective date October 23, 1999

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