PROPERTY CODE
CHAPTER 70. MISCELLANEOUS LIENS
SUBCHAPTER A. POSSESSORY LIENS
§ 70.001. WORKER'S LIEN. (a) A worker in this state
who by labor repairs an article, including a vehicle, motorboat,
vessel, or outboard motor, may retain possession of the article
until:
(1) the amount due under the contract for the repairs
is paid; or
(2) if no amount is specified by contract, the
reasonable and usual compensation is paid.
(b) If a worker relinquishes possession of a motor vehicle,
motorboat, vessel, or outboard motor in return for a check, money
order, or a credit card transaction on which payment is stopped, has
been dishonored because of insufficient funds, no funds or because
the drawer or maker of the order or the credit card holder has no
account or the account upon which it was drawn or the credit card
account has been closed, the lien provided by this section
continues to exist and the worker is entitled to possession of the
vehicle, motorboat, vessel, or outboard motor until the amount due
is paid, unless the vehicle, motorboat, vessel, or outboard motor
is possessed by a person who became a bona fide purchaser of the
vehicle after a stop payment order was made. A person entitled to
possession of property under this subsection is entitled to take
possession thereof in accordance with the provisions of Section
9.609, Business & Commerce Code.
(c) A worker may take possession of an article under
Subsection (b) only if the person obligated under the repair
contract has signed a notice stating that the article may be subject
to repossession under this section. A notice under this subsection
must be:
(1) separate from the written repair contract; or
(2) printed on the written repair contract, credit
agreement, or other document in type that is boldfaced,
capitalized, underlined, or otherwise set out from surrounding
written material so as to be conspicuous with a separate signature
line.
(d) A worker who takes possession of an article under
Subsection (b) may require a person obligated under the repair
contract to pay the costs of repossession as a condition of
reclaiming the article only to the extent of the reasonable fair
market value of the services required to take possession of the
article. For the purpose of this subsection, charges represent the
fair market value of the services required to take possession of an
article if the charges represent the actual cost incurred by the
worker in taking possession of the article.
(e) A worker may not transfer to a third party, and a person
who performs repossession services may not accept, a check, money
order, or credit card transaction that is received as payment for
repair of an article and that is returned to the worker because of
insufficient funds or no funds, because the drawer or maker of the
check or money order or the credit card holder has no account, or
because the account on which the check or money order is drawn or
the credit card account has been closed.
(f) A person commits an offense if the person transfers or
accepts a check, money order, or credit card transaction in
violation of Subsection (e). An offense under this subsection is a
Class B misdemeanor.
(g) A motor vehicle that is repossessed under this section
shall be promptly delivered to the location where the repair was
performed or a vehicle storage facility licensed under Chapter
2303, Occupations Code . The motor vehicle must remain at the
repair location or a licensed vehicle storage facility at all times
until the motor vehicle is lawfully returned to the motor vehicle's
owner or a lienholder or is disposed of as provided by this
subchapter.
Acts 1983, 68th Leg., p. 3579, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 6(b), eff.
Oct. 2, 1984; Acts 1985, 69th Leg., ch. 275, § 1, eff. June 5,
1985; Acts 1993, 73rd Leg., ch. 754, § 1, 2, eff. Sept. 1, 1993;
Acts 1995, 74th Leg., ch. 375, § 1, eff. Sept. 1, 1995; Acts
1999, 76th Leg., ch. 414, § 2.38, eff. July 1, 2001; Acts 1999,
76th Leg., ch. 978, § 1, eff. Sept. 1, 1999; Acts 2003, 78th
Leg., ch. 1276, § 14A.807, eff. Sept. 1, 2003.
§ 70.002. LIENS ON GARMENTS. A person with whom a
garment is left for repair, alteration, dyeing, cleaning,
laundering, or pressing may retain possession of the garment until:
(1) the amount due the person under the contract for
the work is paid; or
(2) if no amount is specified by contract, the
reasonable and usual compensation is paid.
Acts 1983, 68th Leg., p. 3580, ch. 576, § 1, eff. Jan. 1, 1984.
§ 70.003. STABLE KEEPER'S, GARAGEMAN'S, PASTURER'S, AND
COTTON GINNER'S LIEN'S. (a) A stable keeper with whom an animal
is left for care has a lien on the animal for the amount of the
charges for the care.
(b) An owner or lessee of a pasture with whom an animal is
left for grazing has a lien on the animal for the amount of charges
for the grazing.
(c) A garageman with whom a motor vehicle, motorboat,
vessel, or outboard motor is left for care has a lien on the motor
vehicle, motorboat, vessel, or outboard motor for the amount of the
charges for the care, including reasonable charges for towing the
motor vehicle, motorboat, vessel, or outboard motor to the
garageman's place of business.
(d)(1) A cotton ginner to whom a cotton crop has been
delivered for processing or who, under an agreement, is to be paid
for harvesting a cotton crop has a lien on the cotton processed or
harvested for the amount of the charges for the processing or
harvesting. The lienholder is entitled to retain possession of the
cotton until the amount of the charge due under an agreement is paid
or, if an amount is not specified by agreement, the reasonable and
usual compensation is paid. If the cotton owner's address is known
and the amount of the charge is not paid before the 31st day after
the date the cotton ginner's work is completed or the date payment
is due under a written agreement, whichever is later, the
lienholder shall request the owner to pay the unpaid charge due and
shall notify the owner and any other person having a lien on the
cotton which is properly recorded under applicable law with the
secretary of state of the fact that unless payment is made not later
than the 15th day after the date the notice is received, the
lienholder is entitled to sell the cotton under any procedure
authorized by Section 9.610, Business & Commerce Code. If the
cotton owner's address is not known and the amount of the charge is
not paid before the 61st day after the date the cotton ginner's work
is completed or the date payment is due under a written agreement,
whichever is later, the lienholder is entitled to sell the cotton
without notice at a commercially reasonable sale. The proceeds of a
sale under this subsection shall be applied first to charges due
under this subsection, and any remainder shall be paid in
appropriate proportion to:
(A) any other person having a lien on the cotton
which is properly recorded under applicable law with the secretary
of state; and
(B) the cotton owner.
(2) Nothing in this subsection shall be construed to
place an affirmative burden on the cotton ginner to perform any lien
searches except as may be appropriate to provide notices required
by this section.
Acts 1983, 68th Leg., p. 3580, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1989, 71st Leg., ch. 629, § 1, eff. June 14,
1989; Acts 1997, 75th Leg., ch. 462, § 1, 2, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 414, § 2.39, eff. July 1, 2001.
§ 70.004. POSSESSION OF MOTOR VEHICLE, MOTORBOAT,
VESSEL, OR OUTBOARD MOTOR. (a) A holder of a lien under Section
70.003 on a motor vehicle, motorboat, vessel, or outboard motor who
obtains possession of the motor vehicle, motorboat, vessel, or
outboard motor under a state law or city ordinance shall give notice
for a motor vehicle, motorboat, vessel, or outboard motor
registered in this state to the last known registered owner and each
lienholder of record not later than the fifth day after the day
possession is obtained. If the motor vehicle, motorboat, vessel,
or outboard motor is registered outside this state, the notice
shall be given to the last known registered owner and each
lienholder of record not later than the 14th day after the day
possession is obtained.
(b) Except as provided by Subsection (c), the notice must be
sent by certified mail with return receipt requested and must
contain:
(1) a request to remove the motor vehicle, motorboat,
vessel, or outboard motor;
(2) a request for payment;
(3) the location of the motor vehicle, motorboat,
vessel, or outboard motor; and
(4) the amount of accrued charges.
(c) The notice may be given by publishing the notice once in
a newspaper of general circulation in the county in which the motor
vehicle, motorboat, vessel, or outboard motor is stored if:
(1) the motor vehicle, motorboat, vessel, or outboard
motor is registered in another state;
(2) the holder of the lien submits a written request by
certified mail, return receipt requested, to the governmental
entity with which the motor vehicle, motorboat, vessel, or outboard
motor is registered requesting information relating to the identity
of the last known registered owner and any lienholder of record;
(3) the holder of the lien:
(A) is advised in writing by the governmental
entity with which the motor vehicle, motorboat, vessel, or outboard
motor is registered that the entity is unwilling or unable to
provide information on the last known registered owner or any
lienholder of record; or
(B) does not receive a response from the
governmental entity with which the motor vehicle, motorboat,
vessel, or outboard motor is registered on or before the 21st day
after the date the holder of the lien submits a request under
Subdivision (2);
(4) the identity of the last known registered owner
cannot be determined;
(5) the registration does not contain an address for
the last known registered owner; and
(6) the holder of the lien cannot determine the
identities and addresses of the lienholders of record.
(d) The holder of the lien is not required to publish notice
under Subsection (c) if a correctly addressed notice is sent with
sufficient postage under Subsection (b) and is returned as
unclaimed or refused or with a notation that the addressee is
unknown or has moved without leaving a forwarding address.
(e) A person is entitled to fees for towing, impoundment,
preservation, and notification and to reasonable storage fees for
up to five days before the day that the notice is mailed or
published, as applicable. After the day that the notice is mailed
or published, the person is entitled to reasonable storage,
impoundment, and preservation fees until the motor vehicle,
motorboat, vessel, or outboard motor is removed and accrued charges
are paid.
(f) A person charging fees under Subsection (e) commits an
offense if the person charges a storage fee for a period of time not
authorized by that subsection. An offense under this subsection is
punishable by a fine of not less than $200 nor more than $1,000.
Acts 1983, 68th Leg., p. 3580, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 6(c), eff.
Oct. 2, 1984; Acts 1985, 69th Leg., ch. 308, § 1, eff. Sept. 1,
1985; Acts 1989, 71st Leg., ch. 629, § 2, eff. June 14, 1989;
Acts 1999, 76th Leg., ch. 70, § 2, eff. Sept. 1, 1999.
§ 70.005. SALE OF PROPERTY. (a) Except as provided by
Subsection (c), a person holding a lien under this subchapter on
property other than a motor vehicle subject to Chapter 501,
Transportation Code, or cotton under Section 70.003(d), who retains
possession of the property for 60 days after the day that the
charges accrue shall request the owner to pay the unpaid charges due
if the owner's residence is in this state and known. If the charges
are not paid before the 11th day after the day of the request, the
lienholder may, after 20 days' notice, sell the property at a public
sale, or if the lien is on a garment, at a public or private sale.
(b) Except as provided by Subsection (c), if the residence
of the owner of property subject to sale under this section is not
in this state or not known, the lienholder may sell the property
without notice at a public sale after the 60th day after the day
that the unpaid charges accrued.
(c) A person holding a lien under Section 70.003(a) on an
animal fed in confinement for slaughter may enforce that lien in any
manner authorized by Sections 9.610-9.619, Business & Commerce
Code.
(d) The lienholder shall apply the proceeds of a sale under
this section to the charges. If the lien is on a garment, the
lienholder shall apply the proceeds to the charges and the
reasonable costs of holding the sale. The lienholder shall pay
excess proceeds to the person entitled to them.
Acts 1983, 68th Leg., p. 3581, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.247, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 249, § 1, eff. Sept. 1, 1997;
Acts 1997, 75th Leg., ch. 462, § 3, 4, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 414, § 2.40, eff. July 1, 2001.
§ 70.006. SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR
OUTBOARD MOTOR. (a) A holder of a lien under this subchapter or
Chapter 59 on a motor vehicle subject to Chapter 501,
Transportation Code, or on a motorboat, vessel, or outboard motor
for which a certificate of title is required under Subchapter B,
Chapter 31, Parks and Wildlife Code, as amended, who retains
possession of the motor vehicle, motorboat, vessel, or outboard
motor for 30 days after the day that the charges accrue shall give
written notice to the owner and each holder of a lien recorded on
the certificate of title. If the motor vehicle, motorboat, vessel,
or outboard motor is registered outside this state, the holder of a
lien under this subchapter who retains possession during that
period shall give notice to the last known registered owner and each
lienholder of record.
(b) Except as provided by Subsection (c), the notice must be
sent by certified mail with return receipt requested and must
include the amount of the charges and a request for payment.
(c) The notice may be given by publishing the notice once in
a newspaper of general circulation in the county in which the motor
vehicle, motorboat, vessel, or outboard motor is stored if:
(1) the holder of the lien submits a written request by
certified mail, return receipt requested, to the governmental
entity with which the motor vehicle, motorboat, vessel, or outboard
motor is registered requesting information relating to the identity
of the last known registered owner and any lienholder of record;
(2) the holder of the lien:
(A) is advised in writing by the governmental
entity with which the motor vehicle, motorboat, vessel, or outboard
motor is registered that the entity is unwilling or unable to
provide information on the last known registered owner or any
lienholder of record; or
(B) does not receive a response from the
governmental entity with which the motor vehicle, motorboat,
vessel, or outboard motor is registered on or before the 21st day
after the date the holder of the lien submits a request under
Subdivision (1);
(3) the identity of the last known registered owner
cannot be determined;
(4) the registration does not contain an address for
the last known registered owner; and
(5) the holder of the lien cannot determine the
identities and addresses of the lienholders of record.
(d) The holder of the lien is not required to publish notice
under Subsection (c) if a correctly addressed notice is sent with
sufficient postage under Subsection (b) and is returned as
unclaimed or refused or with a notation that the addressee is
unknown or has moved without leaving a forwarding address.
(e) After notice is given under this section to the owner of
or the holder of a lien on the motor vehicle, motorboat, vessel, or
outboard motor, the owner or holder of the lien may obtain
possession of the motor vehicle, motorboat, vessel, or outboard
motor by paying all charges due to the holder of a lien under this
subchapter and Chapter 59 before the 31st day after the date the
notice is mailed or published as provided by this section.
(f) If the charges are not paid before the 31st day after the
day that the notice is mailed or published, as applicable, the
lienholder may sell the motor vehicle, motorboat, vessel, or
outboard motor at a public sale and apply the proceeds to the
charges. The lienholder shall pay excess proceeds to the person
entitled to them.
Acts 1983, 68th Leg., p. 3581, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 6(d), eff.
Oct. 2, 1984; Acts 1997, 75th Leg., ch. 165, § 30.248, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 70, § 3, eff. Sept. 1,
1999.
§ 70.007. UNCLAIMED EXCESS. (a) If a person entitled
to excess proceeds under this subchapter is not known or has moved
from this state or the county in which the lien accrued, the person
holding the excess shall pay it to the county treasurer of the
county in which the lien accrued. The treasurer shall issue the
person a receipt for the payment.
(b) If the person entitled to the excess does not claim it
before two years after the day it is paid to the treasurer, the
excess becomes a part of the county's general fund.
Acts 1983, 68th Leg., p. 3582, ch. 576, § 1, eff. Jan. 1, 1984.
§ 70.008. ATTORNEY'S FEES. The court in a suit
concerning possession of a motor vehicle, motorboat, vessel, or
outboard motor and a debt due on it may award reasonable attorney's
fees to the prevailing party.
Acts 1983, 68th Leg., p. 3582, ch. 576, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 6(e), eff.
Oct. 2, 1984.
§ 70.009. PLASTIC FABRICATOR LIENS. (a) A plastic
fabricator has a lien on any die, mold, form, or pattern in his
possession that belongs to a customer for the amount due from the
customer for plastic fabrication work performed with the die, mold,
form, or pattern. The plastic fabricator may retain possession of
the die, mold, form, or pattern until the amount due is paid.
(b) In this section:
(1) "Customer" means a person who contracts with or
causes a plastic fabricator to use a die, mold, form, or pattern to
manufacture, assemble, or otherwise make a plastic product or
products.
(2) "Plastic fabricator" means a person, including a
tool or die maker, who manufactures or causes to be manufactured, or
who assembles or improves, a die, form, mold, or pattern for a
customer, or who uses or contracts to use a die, mold, form, or
pattern to manufacture, assemble, or otherwise make a plastic
product or products for a customer.
Added by Acts 1985, 69th Leg., ch. 357, § 1, eff. Sept. 1, 1985.
SUBCHAPTER B. LIENS ON VESSELS
§ 70.101. GENERAL LIEN ON VESSELS. A person who
furnishes supplies or materials or who performs repairs or labor
for or on account of a domestic vessel that is owned in whole or part
in this state has a lien for the person's charges.
Acts 1983, 68th Leg., p. 3582, ch. 576, § 1, eff. Jan. 1, 1984.
§ 70.102. LIEN OF NAVIGATION DISTRICT OR PORT. (a) A
navigation district or port within the territorial limits of this
state that furnishes supplies or materials, performs repairs or
labor, or provides a facility or service for which charges are
specified in its official published port tariff for or on account of
a domestic vessel that is owned in whole or part in this state has a
maritime lien for the amount of its charges.
(b) A lien under this section may be enforced in rem. A
plaintiff in an action to enforce the lien need not allege or prove
that credit was given to the vessel.
Acts 1983, 68th Leg., p. 3582, ch. 576, § 1, eff. Jan. 1, 1984.
§ 70.103. PROPERTY SUBJECT TO LIEN. A lien under this
subchapter attaches to the vessel and its tackle, apparel,
furniture, and freight money.
Acts 1983, 68th Leg., p. 3583, ch. 576, § 1, eff. Jan. 1, 1984.
§ 70.104. PERSONS WHO MAY BIND VESSEL. (a) The
following persons are presumed to be authorized by the owner of a
vessel to incur charges that give rise to a lien under this
subchapter:
(1) the managing owner;
(2) the ship's husband;
(3) the master;
(4) the local agent; and
(5) a person entrusted with management of the vessel
at the port of supply.
(b) A person tortiously or unlawfully in possession or
charge of a vessel may not bind the vessel.
Acts 1983, 68th Leg., p. 3583, ch. 576, § 1, eff. Jan. 1, 1984.
SUBCHAPTER C. STOCK BREEDER'S LIEN
§ 70.201. STOCK BREEDER'S LIEN. An owner or keeper of a
stallion, jack, bull, or boar confined to be bred for profit has a
preference lien on the offspring of the animal for the amount of the
charges for the breeding services, unless the owner or keeper
misrepresents the animal by false pedigree.
Acts 1983, 68th Leg., p. 3583, ch. 576, § 1, eff. Jan. 1, 1984.
§ 70.202. ENFORCEMENT OF LIEN. The lien may be enforced
in the same manner as a statutory landlord's lien. The lien remains
in force for 10 months from the day that the offspring is born, but
the lien may not be enforced until five months after the date of
birth of the offspring.
Acts 1983, 68th Leg., p. 3583, ch. 576, § 1, eff. Jan. 1, 1984.
SUBCHAPTER D. AIRCRAFT REPAIR AND MAINTENANCE LIEN
§ 70.301. LIEN. (a) A person who stores, fuels,
repairs, or performs maintenance work on an aircraft has a lien on
the aircraft for:
(1) the amount due under a contract for the storage,
fuel, repairs, or maintenance work; or
(2) if no amount is specified by contract, the
reasonable and usual compensation for the storage, fuel, repairs,
or maintenance work.
(b) This subchapter applies to a contract for storage only
if it is:
(1) written; or
(2) oral and provides for a storage period of at least
30 days.
Added by Acts 1989, 71st Leg., ch. 250, § 1, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 946, § 1, eff. Aug. 28,
1995; Acts 2001, 77th Leg., ch. 1171, § 1, eff. Sept. 1, 2001.
§ 70.302. POSSESSION. (a) A holder of a lien under
this subchapter may retain possession of the aircraft subject to
the lien until the amount due is paid.
(b) Except as provided by Subsection (c), if the holder of a
lien under this subchapter relinquishes possession of the aircraft
before the amount due is paid, the person may retake possession of
the aircraft as provided by Section 9.609, Business & Commerce
Code.
(c) The holder of a lien under this subchapter may not
retake possession of the aircraft from a bona fide purchaser for
value who purchases the aircraft without knowledge of the lien
before the date the lien is recorded under Section 70.303.
Added by Acts 1989, 71st Leg., ch. 250, § 1, eff. Sept. 1, 1989.
Amended by Acts 1999, 76th Leg., ch. 414, § 2.41, eff. July 1,
2001.
§ 70.303. RECORDING OF LIEN. A holder of a lien under
this subchapter may record the lien on the aircraft by filing with
the Federal Aviation Administration Aircraft Registry not later
than the 180th day after the date of the completion of the
contractual storage period or the performance of the last repair or
maintenance a verified document in the form and manner required by
applicable federal laws and regulations that states:
(1) the name, address, and telephone number of the
holder of the lien under this subchapter;
(2) the amount due for storage, fuel, repairs, or
maintenance;
(3) a complete description of the aircraft; and
(4) the name and address of the owner of the aircraft
and the number assigned the aircraft by the Federal Aviation
Administration, if known.
Added by Acts 1989, 71st Leg., ch. 250, § 1, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 946, § 1, eff. Aug. 28,
1995; Acts 2001, 77th Leg., ch. 1171, § 2, eff. Sept. 1, 2001.
§ 70.304. NOTICE TO OWNER AND LIENHOLDERS. (a) Not
later than the 30th day after the date of the completion of the
contractual storage period or the performance of the last fueling,
repair, or maintenance, a holder of a lien under this subchapter who
retains possession of the aircraft shall notify the owner shown on
the certificate of registration and each holder of a lien on the
aircraft as shown by the records maintained for that purpose by the
Federal Aviation Administration Aircraft Registry. The notice must
state:
(1) the name, address, and telephone number of the
holder of the lien under this subchapter;
(2) the amount due for storage, fuel, repairs, or
maintenance;
(3) a complete description of the aircraft; and
(4) the legal right of the holder of the lien under
this subchapter to sell the aircraft at public auction and apply the
proceeds to the amount due.
(b) The notice must be delivered by certified or registered
mail, return receipt requested.
Added by Acts 1989, 71st Leg., ch. 250, § 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 538, § 1, eff. June 15,
1991; Acts 1995, 74th Leg., ch. 946, § 1, eff. Aug. 28, 1995;
Acts 2001, 77th Leg., ch. 1171, § 3, eff. Sept. 1, 2001.
§ 70.305. SALE OF AIRCRAFT. If the holder of a lien
under this subchapter provides the notice required by Section
70.304 and the amount due remains unpaid after the 60th day after
the date of the completion of the contractual storage period or the
performance of the last fueling, repair, or maintenance, the holder
of the lien may sell the aircraft at a public sale and apply the
proceeds to the amount due. The lienholder shall pay any excess
proceeds to the person entitled to them.
Added by Acts 1989, 71st Leg., ch. 250, § 1, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 946, § 1, eff. Aug. 28,
1995; Acts 2001, 77th Leg., ch. 1171, § 4, eff. Sept. 1, 2001.
§ 70.306. ATTORNEY'S FEES. The court in a suit brought
under this subchapter may award reasonable attorney's fees to the
prevailing party.
Added by Acts 1989, 71st Leg., ch. 250, § 1, eff. Sept. 1, 1989.
SUBCHAPTER E. AGRICULTURAL LIENS
§ 70.401. DEFINITIONS. In this subchapter:
(1) "Agricultural crop" means a plant product that is
grown, produced, or harvested as a result of an agricultural
producer's farm operation.
(2) "Agricultural producer" means a person who is
engaged in the business of growing, producing, or harvesting an
agricultural crop.
(3) "Buyer in ordinary course of business" has the
meaning assigned by Section 1.201, Business & Commerce Code.
(4) "Contract purchaser" means a person who, before
the planting of an agricultural crop, has agreed under a written
contract to purchase the crop or otherwise pay the agricultural
producer for growing, producing, or harvesting the agricultural
crop. The term does not include a person who, as to the transaction
in question, is licensed and bonded under Chapter 14, Agriculture
Code, or the United States Warehouse Act (7 U.S.C. Section 241 et
seq.).
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.402. LIEN CREATED. (a) An agricultural producer
who, under a written contract with a contract purchaser, is to
receive consideration for selling an agricultural crop grown,
produced, or harvested by the producer has a lien for the amount
owed under the contract, or for the reasonable value of the crop on
the date of transfer or delivery if there is no provision concerning
the amount owed in the agreement.
(b) A lien created under this subchapter is on every
agricultural crop, either in raw or processed form, that has been
transferred or delivered by the agricultural producer and is in the
possession of the contract purchaser. If the agricultural crop is
commingled after the crop has been transferred or delivered, a lien
created under this subchapter applies only to that portion of the
contract purchaser's inventory in an amount that is equal to the
amount of the crop transferred or delivered by the agricultural
producer.
(c) For purposes of this subchapter, an agricultural crop or
processed form of an agricultural crop deposited by a contract
purchaser with a warehouse, whether or not a warehouse receipt is
given as security, is considered to be in the possession of the
contract purchaser and subject to the lien.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.403. WHEN LIEN ATTACHES. A lien created under this
subchapter attaches to the agricultural crop on the date on which
physical possession of the crop is delivered or transferred by the
agricultural producer to the contract purchaser or the purchaser's
agent, or if there is to be a series of deliveries to the contract
purchaser or purchaser's agent, on the date of the last delivery of
the agricultural crop to the contract purchaser or purchaser's
agent.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.404. APPLICABILITY OF OTHER LAW. Chapter 9,
Business & Commerce Code, including applicable filing and
perfection requirements, applies to a lien created under this
subchapter.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.405. DURATION OF LIEN. A lien created under this
subchapter expires on the first anniversary of the date of
attachment.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.406. EFFECT OF LIEN; RECOVERY. (a) A buyer in
ordinary course of business of an agricultural crop, including a
person who buys any portion of an agricultural crop from a contract
purchaser, whether or not the agricultural crop has been
commingled, takes the agricultural crop free of a lien created
under this subchapter, and the lien created by this subchapter does
not pass to any subsequent claimant of the agricultural crop.
(b) An unequal pro rata recovery between agricultural
producers is not prohibited under this subchapter if the inequality
results from a lien on accounts receivable.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.407. DISCHARGE OF LIEN. (a) A lien created under
this subchapter is discharged when:
(1) the lienholder receives full payment for the
agricultural crop; or
(2) payment is tendered by the contract purchaser and
the lienholder, without coercion, defers payment.
(b) If payment for the agricultural crop is received in the
form of a negotiable instrument, full payment is received when the
negotiable instrument clears all financial institutions.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.408. JOINDER OF ACTIONS. Persons claiming a lien
against the same agricultural crop under this subchapter may join
in the same action, and if separate actions are commenced, the court
may consolidate them.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.409. RECOVERY OF COSTS. An agricultural producer
who prevails in an action brought to enforce a lien created under
this subchapter is entitled to recover:
(1) reasonable and necessary attorney's fees and court
costs; and
(2) interest on funds subject to the lien at the
judgment interest rate as provided by Chapter 304, Finance Code.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
§ 70.410. WAIVER OF CERTAIN RIGHTS PROHIBITED. An
agricultural producer's agreement with a contract purchaser to
waive the producer's right to seek a remedy provided by this
subchapter is void.
Added by Acts 2001, 77th Leg., ch. 732, § 1, eff. Sept. 1, 2001.
