HB1553 Summary

• Creates the Grain, Soybean, and Peanut Owner's Lien Act as a new subchapter of Arkansas Code Title 2, Chapter 15, establishing a statutory lien for grain, soybean, and peanut owners to secure payment of sales prices from first purchasers.

• Grants automatic perfection of owner's liens without filing requirements; liens attach immediately upon the effective date or execution of a sales agreement and continue through commingled goods and proceeds from sales.

• Owner's liens take priority over all other liens except "permitted liens" (pre-existing mortgages with fixed terms and validly perfected statutory liens), and rank equally among multiple owner's liens in proportion to their respective sales prices when commingled.

• Prohibits requiring grain, soybean, or peanut owners to waive lien rights as a condition of sale unless the first purchaser posts a letter of credit or executes an acceptable prepayment/escrow contract.

• Owner's liens expire one year after the last day of the month following the required payment date unless an enforcement action is commenced; prevailing parties may recover costs and reasonable attorney's fees.