Texas § 70.406 EFFECT OF LIEN; RECOVERY.

Texas Statutes

§ 70.406 — EFFECT OF LIEN; RECOVERY.

Texas § 70.406

Code PRProperty Code

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Bluebook

Tex. Property Code Code Ann. § 70.406 (2026).

Text

Sec. 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 warehouse or 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.

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Sec. 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 warehouse or 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.

Legislative History

Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001. Amended by: Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063 ), Sec. 6, eff. September 1, 2017.