SECTIONS 55701-55704 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 55701-55704

55701. As used in this article, the following definitions shall
apply:
(a) "Livestock" means any cattle, sheep, swine, goat, or any
horse, mule, or other equine, whether living or dead.
(b) "Meatpacker" means an establishment where livestock are either
slaughtered, the carcasses thereof are prepared, or meat is
processed and where state or federal inspection is maintained.

55702. (a) Except as otherwise provided in this section, any person
who sells or furnishes livestock to a meatpacker, shall have a lien,
not dependent upon possession, on the livestock and upon the
identifiable proceeds and products thereof, for the unpaid part of
the purchase price, or for the unpaid value of the livestock at the
time of the transfer of possession if no purchase price has been
agreed upon. The lien shall commence on the date of the transfer of
possession of the livestock to the meatpacker and shall have priority
over all other liens upon, and security interests in, the livestock
and the identifiable proceeds and products thereof, without regard to
the time of attachment or perfection of such other liens or security
interests and shall remain a lien upon the livestock and the
identifiable proceeds and products thereof notwithstanding sale,
exchange, or other disposition thereof.
(b) Notwithstanding the provisions of subdivision (a), a buyer in
the ordinary course of business, as that term is defined in paragraph
(9) of subdivision (b) of Section 1201 of the Commercial Code, shall
take free of such lien even though the buyer knows of the existence
of the lien.
(c) Notwithstanding the provisions of subdivision (a), the lien
shall cease to be of any force or effect after the expiration of 21
days from the date of delivery of the livestock unless a notice of
lien is filed pursuant to subdivision (e), in which case the lien
shall remain effective as long as such notice shall remain effective.
(d) No person shall have a lien pursuant to subdivision (a) to the
extent that the person shall have made the livestock available to
the meatpacker on credit terms.
(e) Any person selling or delivering livestock who claims a lien
under this article shall file a statement with the Secretary of State
and a copy thereof with the director, both within 21 days after
delivery of the livestock to the meatpacker. The statement shall be
in writing, verified by the oath of the person filing, and shall
contain all of the following:
(1) The name and address of the person filing.
(2) A statement of the amount demanded by the person filing the
statement after deducting all credits and offsets.
(3) The name and address of the meatpacker who received the
livestock.
(4) A description of the livestock delivered to the meatpacker and
the date of delivery.
(5) A statement that the amount claimed is a true and bona fide
existing debt as of the date of the statement.
(6) A statement that the amount claimed is a true and bona fide
existing debt as of the date on which payment was due for the
livestock.
(f) Every statement that is filed shall be accompanied by the fees
required by Chapter 5 (commencing with Section 9501) of Division 9
of the Commercial Code in the case of a financing statement not on
the standard form and shall remain effective for a period of five
years from the date of filing.

55703. Except as provided in this section, any lien created under
Section 55702 shall continue in force for a period of five years from
the date of filing of the notice of lien. The lien shall cease at
the expiration of five years unless the claimant thereof, or his
assignee, or successor in interest, brings suit to foreclose the
lien, in which case the lien continues in force until such lien
foreclosure suit is finally determined and closed. If such
foreclosure proceeding is not prosecuted to trial within two years
after the commencement thereof, the court may in its discretion
dismiss the foreclosure suit.
The plaintiff in any such lien foreclosure suit may have the
property upon which such lien subsists attached, as provided in the
Code of Civil Procedure.
Any number of persons claiming liens under this article may join
in the same action and when separate actions are commenced, the court
may consolidate them. Whenever the sale of the property subject to
any lien or liens provided for in this article, under the judgment or
decree of foreclosure of such lien or liens, results in a deficiency
of proceeds, the proceeds shall be divided pro rata among the lien
claimants whose liens are established, regardless of the order in
which the liens were created or the order in which the suits to
foreclose same were commenced, and the judgment or decree for the
deficiency may be docketed against the party personally liable
therefor and his sureties, in the same manner and with the same
effect as in actions for the foreclosure of security interests.
Nothing contained in this article shall be construed to impair or
affect the right of any person to whom any debt may be due for
livestock sold or delivered to maintain a personal action to recover
such debt against the person liable therefor, or his sureties, either
in connection with a suit to foreclose the lien or in a separate
action. Any person bringing such personal action may take out a
separate attachment therefor, notwithstanding his lien or the amount
of his debt. In the affidavit to procure an attachment pursuant to
such personal action, such person shall state that the attachment is
made pursuant to this section, and the judgment, if any, obtained by
the plaintiff in such personal action shall not be construed to
impair or merge any lien held by such person under this article. Any
money collected on such personal judgment shall be credited on the
amount of such lien in any action brought to enforce the lien.

55704. Any rights or remedies granted to a person who sells
livestock pursuant to this article, are in addition to any other
rights or remedies provided by law for such seller.