§ 4-201.3 — Livestock lien - Existence - Validity.

A. To secure the obligations of a first purchaser to pay the sales price, every livestock owner is granted a lien in all livestock sold by such livestock owner, for any unpaid portion of the sales price for such livestock. The lien granted by this act is granted and shall exist as part of and incident to the ownership of livestock. B. An owner’s lien: 1. Exists in and attaches immediately to all livestock on the effective date of this act; 2. Continues uninterrupted and without lapse in all livestock upon and after sale of any livestock; and 3. Continues uninterrupted and without lapse in and to all proceeds. C. An owner’s lien exists until the livestock owner or sales agent entitled to receive the sales price has received the full amount of the sales price. Any security interest or mortgage lien of an owner’s lender shall attach to the livestock owner’s right to an owner’s lien in livestock or proceeds from the sale of the livestock. An owner’s lender shall not be considered to have waived its security interest or mortgage lien or right in an owner’s lien by approving or authorizing the livestock owner to sell the livestock pursuant to the sales agreement. D. The validity of an owner’s lien shall not be dependent on possession of the livestock by a livestock owner or sales agent. No owner’s lien shall become or be deemed to be void or expired by reason of a change or transfer of the actual or constructive possession of or title to the livestock from the livestock owner or sales agent to a first purchaser or subsequent purchaser.

Legislative History

Added by Laws 2011, c. 123, § 4, eff. Nov. 1, 2011.