Texas § AG.128.006 - NOTICE BEFORE PURCHASE

§ AG.128.006. NOTICE BEFORE PURCHASE

NOTICE BEFORE PURCHASE; REQUIRED NOTICE BEFORE CLAIMING LIEN. (a) A person claiming a lien under this chapter must have provided notice of the provisions of this chapter, before purchase, either generally to purchasers of agricultural chemicals, agricultural seeds, or labor as part of the lien claimant's normal business practices or specifically to the lien debtor. Notice provided under this subsection must read, to the extent applicable, substantially as follows: "The sale of agricultural chemicals or agricultural seed on credit and the provision of labor related to agricultural chemicals or agricultural seed is subject to Chapter 128 , Agriculture Code. Failure to pay the agreed or reasonable charges for the chemicals, seed, or labor may result in the attachment of a lien to the proceeds of the agricultural products produced with the aid of the chemicals, seed, or labor." A potential lien claimant may satisfy the requirements of this subsection: (1) by printing or stamping the notice on credit applications filled out by purchasers; and (2) for future purchases by purchasers who are not notified on the credit application, by printing or stamping the notice on an invoice or on a statement sent by separate cover. (b) Before a person may claim a lien under this chapter, the person must send to the debtor by certified mail written notice that states: (1) that the payment of the reasonable or agreed charges is more than 30 days overdue; (2) the amount that is overdue; (3) that the debtor has the following three alternatives: (A) to allow the lien to be filed; (B) to enter into an agreement granting a security interest in the proceeds described by Section 128.002 under the Business & Commerce Code; or (C) to pay the reasonable or agreed charges; and (4) in at least 10-point type, that: (A) the debtor has until the 10th day after the date on which the notice is received to select an alternative under Subdivision (3), notify the claimant of the alternative selected, and satisfy all the requirements of the selected alternative; and (B) the claimant may file the notice of claim of lien at any time after the 10th day after the date on which the debtor receives the notice if the debtor does not comply with the requirements of Paragraph (A). Added by Acts 1995, 74th Leg., ch. 197, Sec. 1, eff. Sept. 1, 1995.