SECTIONS 57561-57570 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 57561-57570

57561. (a) A person who provides agricultural chemical or
agricultural seed is not entitled to establish a lien pursuant to
this chapter, unless that person has first sent to the lien debtor a
written notice, by certified mail, which states all of the following:
(1) The payment of the reasonable or agreed charges is more than
30 days overdue. This requirement does not apply to deliveries of
agricultural chemicals and seed and related labor that are made
subsequent to deliveries which are overdue.
(2) The amount of reasonable or agreed charges that are overdue.
(3) The lien debtor has the following three alternatives:
(A) Allow the lien to be filed.
(B) Enter into a consensual security interest in the proceeds,
pursuant to the Commercial Code.
(C) Pay the reasonable or agreed charges that are overdue.
(4) In 10-point type or bolder, notify the lien debtor that he or
she has 10 days from receipt of the notice to select an alternative,
notify the lien claimant of the alternative selected, and satisfy all
the requirements of the selected alternative, and that the lien
claimant may file the notice of claim of lien pursuant to this
chapter at any time thereafter if the lien debtor does not comply
with the requirements of this section.
(b) A person who provides agricultural chemical or agricultural
seed, and has complied with subdivision (a), has a lien upon the
proceeds of the crop for the reasonable or agreed charges and for the
costs of enforcing the lien.
(c) The lien established pursuant to this chapter attaches to the
proceeds of the following:
(1) The crops that existed at the time of application upon the
land where the agricultural chemical was applied.
(2) If crops are not planted, the next production crop on that
land following the last date on which the agricultural chemical was
applied.
(3) The crops produced from the agricultural seed.
(d) The amount of charges secured by the lien shall not exceed an
amount equal to the reasonable or agreed charges for agricultural
chemicals furnished within a 60-day period and for agricultural seeds
furnished within a 45-day period.

57562. Except as otherwise provided in this chapter, the notice of
claim of lien shall remain in effect, and no new notice of claim of
lien shall be required in order to maintain the lien, as long as the
person who provides the agricultural chemicals and labor or
agricultural seeds and labor either (1) remains unpaid for the
amounts secured by the lien; or (2) continues to provide agricultural
chemicals and labor or agricultural seeds and labor on a regular
basis to the lien debtor. For purposes of this section, providing
agricultural chemicals and labor or agricultural seeds and labor
shall not be deemed to be made on a regular basis if a period of more
than 45 days elapses between applications, deliveries, or
preparations.

57563. The lien created by this chapter shall be perfected and
shall be effective upon the filing of a notice of claim of lien with
the Secretary of State pursuant to this article.

57564. Any person who provides agricultural chemicals or
agricultural seeds may file in the manner and at the place set forth
in Section 57568, the notice of claim of lien. The lien claimant may
not file a notice of claim of lien upon the proceeds of crops for
agricultural seeds and labor furnished by the lien claimant if an
investigation of a dispute between the lien claimant and the lien
debtor is pending pursuant to subdivision (g) of Section 52332. The
lien claimant may not file a notice of claim of lien upon the
proceeds of crops for agricultural chemicals and labor furnished by
the lien claimant, if the settlement of a dispute between the lien
claimant and the lien debtor is pending, or has not been resolved
pursuant to Section 57564.5.

57564.5. (a) The director shall, by regulation, establish methods
and procedures for the settlement of a dispute between a lien
claimant supplying agricultural chemicals and labor and a lien
debtor, including, but not limited to, the following:
(1) Time requirements for submitting the dispute to the
department.
(2) Time requirements within which a notice of the dispute shall
be submitted to each party.
(3) A process for evaluating the dispute.
(b) Each party to the dispute is equally liable for the reasonable
costs incurred by the department in carrying out this section.

57565. The notice of claim of lien shall contain all of the
following information:
(a) The name and address of the lien claimant.
(b) The name and address of the lien debtor.
(c) The location of the property to which the agricultural
chemicals and labor or agricultural seeds and labor were provided.
(d) A statement that the payment of the reasonable or agreed
charges is more than 30 days overdue.
(e) The amount of the reasonable or agreed charges that are
overdue.
(f) A statement, signed under penalty of perjury, that the lien
claimant sent to the lien debtor the notice required pursuant to
subdivision (a) of Section 57561, that more than 10 days have elapsed
since the notice was received by the lien debtor, and that the lien
debtor has not complied with the requirements of subdivision (a) of
Section 57561.
(g) That the lien claimant has an agricultural chemical and
agricultural seed lien pursuant to Section 57561.

57566. The notice of claim of lien shall be signed by the lien
claimant or by a person authorized to sign documents of a similar
kind on behalf of the claimant.

57567. The notice of claim of lien shall be filed on a form which
is the standard form of original financing statement prescribed by
the Secretary of State pursuant to Sections 9515, 9516, and 9522 of
the Commercial Code. The standard form shall be completed with the
following changes:
(a) The lien claimant may be identified either as a lien claimant
or as a secured party.
(b) The form shall be signed by the lien claimant and need not be
signed by the lien debtor.
(c) In the space for the description of the collateral there shall
instead be entered the information specified in subdivisions (c) to
(g), inclusive, of Section 57565.
(d) Attached to the form shall be a separately signed statement
containing the information specified in subdivision (f) of Section
57565.

57568. The notice of claim of lien shall be filed, indexed, and
marked in the office of the Secretary of State in the same manner as
a financing statement is filed, indexed, and marked pursuant to
Section 9519 of the Commercial Code.

57569. The lien claimant shall provide written notice of the claim
of lien to the lien debtor within 10 days of the date of the filing
with the office of the Secretary of State.

57570. For the purpose of the Secretary of State's index pursuant
to Section 9519 of the Commercial Code and for the purpose of the
issuance of a certificate pursuant to Section 9519 or 9528 of the
Commercial Code, the Secretary of State shall identify a notice
pursuant to this article as a financing statement.