0001| HOUSE BILL 1307 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| BRETT D. JOHNSON | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO SUPPLIERS OF LIVESTOCK FEED; PROVIDING FOR A LIEN. | 0012| | 0013| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0014| Section 1. SHORT TITLE.--This act may be cited as the | 0015| "Livestock Feed Supplier Lien Act". | 0016| Section 2. DEFINITIONS.--As used in the Livestock Feed | 0017| Supplier Lien Act: | 0018| A. "animal feed" includes commercial feeds, | 0019| customer formula feeds and labor required in the preparation | 0020| and delivery of the feed for livestock; | 0021| B. "customer" means any person, business, | 0022| association or corporation buying animal feed for livestock; | 0023| C. "livestock" means beef cattle, dairy cattle, | 0024| sheep, goats, hogs, horses and poultry; and | 0025| D. "supplier" means a person, business, corporation | 0001| or other entity engaged in the business of selling animal feed. | 0002| Section 3. EXTENT OF LIEN--PROPERTY SUBJECT TO LIEN-- | 0003| ATTACHMENT AND COMPLETION.-- | 0004| A. In addition to all other rights and remedies | 0005| that are provided by law, every supplier who sells animal feed | 0006| to a customer for livestock under contract, express or implied, | 0007| has a lien upon the livestock to which the feed was provided | 0008| and the meat, milk, skins or wool derived from the livestock | 0009| and the issue or increase from the livestock. | 0010| B. The lien shall be to the extent of the agreed | 0011| price for the animal feed sold and shall attach to the amount | 0012| due and owing at the date of filing the lien. Any portion of | 0013| the livestock or livestock product in excess of the amount | 0014| necessary to satisfy the total amount owed under contract to a | 0015| customer shall be free and clear of the lien. | 0016| C. Unless the lien is released by payment or | 0017| security as provided in Section 8 of the Livestock Feed | 0018| Supplier Lien Act, the lien is complete when payment of | 0019| reasonable or agreed charges are more than thirty days overdue | 0020| from the date of delivery of the animal feed or from the date | 0021| of the last delivery if there is a series of deliveries. | 0022| Section 4. NOTICE AND INFORMATION REQUIREMENT.-- | 0023| A. Before a lien can be applied, notice shall be | 0024| provided to the customer at the time of any sale on credit in | 0025| substantially the following form: | 0001| "The sale of animal feed on credit is subject | 0002| to the Livestock Feed Supplier Lien Act. | 0003| Failure to pay the agreed or reasonable | 0004| charges for the animal feed may result | 0005| in the attachment of a lien to the proceeds | 0006| of the livestock for which the feed is | 0007| used or the proceeds of the animal products | 0008| produced from the livestock.". | 0009| B. Notice may be provided by stamping or printing | 0010| the language in Subsection A of this section on the credit | 0011| application or by stamping or printing that language onto | 0012| invoices. | 0013| C. In addition to notices given by application or | 0014| invoices, a supplier shall provide additional notice | 0015| information to the customer by certified mail before the lien | 0016| may be imposed. The notice information shall include the | 0017| following: | 0018| (1) the fact that a lien will be imposed if | 0019| the payment of reasonable or agreed charges are more than | 0020| thirty days overdue and that the debtor has three alternatives: | 0021| (a) to allow the lien to be filed; | 0022| (b) to enter into an agreement granting | 0023| a security interest; and | 0024| (c) to pay the reasonable or agreed | 0025| charges; and | 0001| (2) the notice shall also state that the | 0002| debtor has until the tenth day after the date on which the | 0003| notice is received to select one of the three alternatives and | 0004| that a lien may be filed at any time after the tenth day that | 0005| the debtor actually receives the notice. | 0006| D. Notice of the lien shall also be given by | 0007| certified mail to all previous creditors filed of record | 0008| holding a security interest on the livestock or the proceeds | 0009| thereof. | 0010| Section 5. FILING OF LIEN.-- | 0011| A. The lien provided for in the Livestock Feed | 0012| Supplier Lien Act shall be filed in the office of the secretary | 0013| of state and in the office of the county clerk of the county in | 0014| which the livestock or livestock product is situate. | 0015| B. The filed lien shall contain the following: | 0016| (1) the name and address of the supplier; | 0017| (2) the name and address of the customer; | 0018| (3) the location of the livestock; | 0019| (4) a statement that the charges are more than | 0020| thirty days overdue; | 0021| (5) the amount that is overdue; | 0022| (6) a form statement that the supplier gave | 0023| notice to the customer, that more than ten days have passed | 0024| since the notice was given, that the debtor has not paid, given | 0025| a security interest, made arrangement for payment satisfactory | 0001| to the supplier or consented to the filing of the lien and a | 0002| declaration that a copy of the lien is being forwarded to the | 0003| customer within ten days; and | 0004| (7) the only signature required on the lien is | 0005| that of the claimant, supplier or his agent within ten days of | 0006| its filing. | 0007| Section 6. EFFECT OF SUIT TO ENFORCE LIEN.--If a suit is | 0008| brought by the supplier to enforce a lien, the lien shall | 0009| remain in effect, except as provided in Section 7 of the | 0010| Livestock Feed Supplier Lien Act, until: | 0011| A. the supplier receives payment of the agreed | 0012| price or the value of the livestock and livestock product; | 0013| B. the clerk of the court in which any action is | 0014| pending receives a deposit in the amount of the lien or claims; | 0015| or | 0016| C. a court issues a judgment. | 0017| Section 7. LIMITATION OF ACTION TO ENFORCE.--No lien | 0018| provided for in the Livestock Feed Supplier Lien Act remains | 0019| valid for a longer period than one year after the claim of lien | 0020| has been filed unless proceedings have been commenced in a | 0021| court of competent jurisdiction within that time to enforce the | 0022| lien. | 0023| Section 8. METHOD FOR RELEASE.--A lien under the | 0024| Livestock Feed Supplier Lien Act may be released by: | 0025| A. payment made to the supplier for the agreed or | 0001| reasonable charges; | 0002| B. a corporate surety bond, cash deposit or other | 0003| security, if the value of the claim on the livestock or | 0004| livestock product is secured; or | 0005| C. arrangements being made for payment that are | 0006| satisfactory to the supplier. | 0007| | 0008|  | 0009| State of New Mexico | 0010| House of Representatives | 0011| | 0012| FORTY-THIRD LEGISLATURE | 0013| FIRST SESSION, 1997 | 0014| | 0015| | 0016| March 8, 1997 | 0017| | 0018| | 0019| Mr. Speaker: | 0020| | 0021| Your AGRICULTURE AND WATER RESOURCES COMMITTEE, | 0022| to whom has been referred | 0023| | 0024| HOUSE BILL 1307 | 0025| | 0001| has had it under consideration and reports same with | 0002| recommendation that it DO PASS, amended as follows: | 0003| | 0004| 1. On page 1, line 23, after "C.", strike the remainder of | 0005| the line, strike all of line 24, and insert in lieu thereof: | 0006| | 0007| ""animals" or "livestock" means all domestic or domesticated | 0008| animals used or raised on a farm or ranch, including the | 0009| carcasses thereof, and exotic animals in captivity and includes | 0010| all horses and cattle. "Animals" or "livestock" does not include | 0011| canine or feline animals. For the purpose of the rules and | 0012| regulations governing meat inspection, wild animals, poultry and | 0013| birds used for human consumption shall also be included within | 0014| the meaning of "livestock" or "animal"; and"., | 0015| | 0016| and thence referred to the JUDICIARY COMMITTEE. | 0017| | 0018| Respectfully submitted, | 0019| | 0020| | 0021| | 0022| | 0023| | 0024| G. X. McSherry, Chairman | 0025| | 0001| | 0002| Adopted Not Adopted | 0003| | 0004| (Chief Clerk) (Chief Clerk) | 0005| | 0006| Date | 0007| | 0008| The roll call vote was 5 For 0 Against | 0009| Yes: 5 | 0010| Excused: Abeyta, Garnenez, Porter, Townsend | 0011| Absent: None | 0012| | 0013| | 0014| | 0015| G:\BILLTEXT\BILLW_97\H1307 |