| 1 | 1 | | By: Burns H.B. No. 3663 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to marketing contracts and agricultural liens. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 70.4045(c), Property Code, is amended to |
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| 9 | 9 | | read as follows: |
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| 10 | 10 | | (c) Notwithstanding Chapter 9, Business & Commerce |
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| 11 | 11 | | Code, a lien created and perfected under this subchapter has |
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| 12 | 12 | | priority over a conflicting security interest in or lien on the |
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| 13 | 13 | | agricultural crop or the proceeds from the sale of the crop created |
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| 14 | 14 | | by the contract purchaser in favor of a third party, [other than a |
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| 15 | 15 | | cotton ginner's lien created under Section 70.003(d),] regardless |
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| 16 | 16 | | of the date the security interest or lien created by the contract |
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| 17 | 17 | | purchaser attached. This subsection does not: [affect a security |
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| 18 | 18 | | interest or lien created and perfected to secure a loan directly to |
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| 19 | 19 | | the agricultural producer.] |
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| 20 | 20 | | (1) affect the validity or priority of a security interest |
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| 21 | 21 | | or lien created and perfected to secure a loan directly to the |
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| 22 | 22 | | agricultural producer; |
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| 23 | 23 | | (2) affect the validity or priority of a cotton ginner's |
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| 24 | 24 | | lien created under Section 70.003(d); |
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| 25 | 25 | | (3) apply to a contract purchaser who purchases an |
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| 26 | 26 | | agricultural crop from an agricultural producer pursuant to a |
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| 27 | 27 | | marketing contract created under Section 52.016, Agriculture Code, |
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| 28 | 28 | | or under Title 7, USC (specifically Chapter 35A, Subchapter I, § |
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| 29 | 29 | | 1421, and Subchapter II, § 1441, and Chapter 106, Subchapter II, §§ |
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| 30 | 30 | | 7931-7939) and Title 15, Chapter 15, Subchapter II, USC (statutes |
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| 31 | 31 | | relating to the Commodity Credit Corporation, and specifically §§ |
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| 32 | 32 | | 714b, 714c, and 714j). |
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| 33 | 33 | | SECTION 2. This Act takes effect September 1, 2017. |
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