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California Law (Last Updated: March 4, 2014) |
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Food and Agricultural Code - FAC |
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Division 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS |
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Chapter 13. Agricultural Chemical and Seed Lien |
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ARTICLE 2. Agricultural Chemical and Seed Lien |
Section 57561.
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(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.