251.395 Lien on grain stored with grain warehouse operator -- Relation to other

203 words·~1 min read·/ky/251-395

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

liens or security interests -- Filing of notice not required to perfect -- Discharge

of lien.

(1)When a depositor stores grain with a grain warehouse operator and has written

evidence of ownership disclosing a storage obligation, the producer or other

depositor has a first priority lien on the grain, the proceeds from the grain, or on

grain owned by the grain warehouse operator. The lien terminates when the storage

liability of the grain warehouse operator to the depositor terminates.

(2)The lien created under this section shall be preferred to any lien or security interest

of any creditor to the grain warehouse operator, regardless of whether the creditor’s

lien or security interest was attached to the grain or proceeds before or after the date

on which the producer or other depositor’s lien was attached.

(3)A depositor who claims a lien under this section need not file any notice of the lien

in order to perfect the lien.

(4)The lien created under this section is discharged, except as to the proceeds

therefrom and except as to grain owned by the grain warehouse operator, upon sale

of the grain by the warehouse operator to a buyer in the ordinary course of business.