Article 2. Agricultural Chemical And Seed Lien of California Food And Agricultural Code >> Division 20. >> Chapter 13. >> Article 2.

(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.

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.

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.

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.

(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.

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.

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.

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.

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.

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.

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.