Transfer of lien due to sale.

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A. A purchaser or sales agent takes free of any owner’s lien otherwise applicable to the livestock so purchased and shall be relieved of any obligations created by subsection A of Section 4 of this act if the purchaser or sales agent has paid the full amount of required consideration for the livestock pursuant to a good faith, noncollusive agreement to purchase such livestock. If a purchaser or sales agent has paid the full amount of consideration as set forth in this section, the owner’s lien shall transfer to the proceeds paid by the purchaser or sales agent. Except as specifically provided by this section, an owner’s lien has priority over the rights of any purchaser or sales agent.

B. Notwithstanding subsection A of this section, the owner’s lien shall continue uninterrupted in the proceeds paid to or otherwise due the first purchaser. Except as specifically set forth in this section, an owner’s lien has priority over the rights of any purchaser.

Added by Laws 2011, c. 123, § 7, eff. Nov. 1, 2011.


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