Session of 1997
SENATE BILL No. 384
By Committee on Judiciary
9 AN ACT enacting the Kansas statutory lien act; repealing K.S.A. 9-1506,
10 34-266, 47-836, 55-201, 55-207, 58-203, 58-207, 58-208, 58-209, 58-
11 218, 58-220, 58-222, 58-227, 58-813, 58-2524, 60-1102, 60-1103, 60-
12 1103a, 60-1104, 60-1105, 60-1106, 60-1107, 60-1108, 60-1109 and
13 60-1110 and K.S.A. 1996 Supp. 60-1103b.
15 Be it enacted by the Legislature of the State of Kansas:
16 Section 1. Sections 1 through 21 and amendments thereto, shall be
17 known and may be cited as the Kansas statutory lien act.
18 Sec. 2. (a) Except as otherwise provided in section 3 and amend-
19 ments thereto on excluded transactions, this act provides the sole means
20 for creating, perfecting and enforcing statutory liens arising under section
21 5 and amendments thereto on real or personal property, including lease-
22 hold interests. This act applies to any transaction, regardless of its form,
23 which gives rise to a lien under section 5 and amendments thereto.
24 (b) This act is intended to replace all types of statutory liens referred
25 to in K.S.A. 84-9-310 and amendments thereto.
26 Sec. 3. (a) This act shall not apply to creation, perfection or en-
27 forcement of the following types of liens: (1) Any liens created by federal
29 (2) any lien created by state statute or attachment for the enforce-
30 ment of taxes owed by one or more owners of real or personal property;
31 (3) any lien under K.S.A. 7-108 and amendments thereto;
32 (4) any lien imposed under K.S.A. 17-6910 and amendments thereto;
33 (5) any lien under K.S.A. 36-201 and amendments thereto;
34 (6) any lien imposed under K.S.A. 56-328 or 56-339(a) and amend-
35 ments thereto or charging orders against partnership interests under
36 K.S.A. 56-1a-403 and amendments thereto;
37 (7) any agricultural input liens created under K.S.A. 58-241 et seq.
38 and amendments thereto;
39 (8) any lien created by agreement under an apartment, home or con-
40 dominium owner's association contract or covenant including any lien
41 imposed under K.S.A. 58-3710 and amendments thereto;
42 (9) any lien on a mobile home created under K.S.A. 58-25,121 and
43 amendments thereto;
1 (10) any liens created by judicial attachment, levy or garnishment
2 under K.S.A. 60-701 et seq. and amendments thereto or judgment liens
3 arising under K.S.A. 60-2202 and amendments thereto;
4 (11) any security interest arising under article 9 of the uniform com-
5 mercial code, K.S.A. 84-9-101, et seq. and amendments thereto, including
6 any security interest or lien under K.S.A. 84-9-319 and amendments
8 (12) any lien for medical treatment in a personal injury recovery im-
9 posed by agreement or under K.S.A. 65-406 and amendments thereto;
10 (13) any lien imposed under K.S.A. 68-2069 or 68-20,112 and amend-
11 ments thereto;
12 (14) any lien arising under K.S.A. 55-180 and amendments thereto
13 relating to testing and investigation of pollution;
14 (15) any lien created under a real estate mortgage, contract for deed,
15 escrow contract or written agreement in which real estate is involved;
16 (16) any lien arising under K.S.A. 74-3210 and amendments thereto;
17 (17) any liens created and perfected under laws of another state on
18 property moved into the state of Kansas after the lien is perfected; or
19 (18) any lien imposed by court order to secure payment of alimony,
20 maintenance or child support.
21 (b) Nothing in this act shall be construed to limit a court of this state's
22 inherent power to impose as a remedy an equitable mortgage or construc-
23 tive or resulting trust on property subject to its jurisdiction after due
24 process. The provisions of this act shall not apply to creation, attachment,
25 priority or enforcement of such remedies.
26 Sec. 4. (a) The following definitions found in the uniform com-
27 mercial code shall apply to this act and the sections in which they appear,
28 including any amendments thereto are:
29 (1) ``Agreement.''...........................................................................K.S.A. 84-1-201.
30 (2) ``Buyer in ordinary course of business.''................................................K.S.A. 84-1-201.
31 (3) ``Creditor.''............................................................................K.S.A. 84-1-201.
32 (4) ``Good faith.''..........................................................................K.S.A. 84-1-201.
33 (5) ``Notice.''..............................................................................K.S.A. 84-1-201.
34 (6) ``Party.''...............................................................................K.S.A. 84-1-201.
35 (7) ``Person.''..............................................................................K.S.A. 84-1-201.
36 (8) ``Purchase.''............................................................................K.S.A. 84-1-201.
37 (9) ``Purchaser.''...........................................................................K.S.A. 84-1-201.
38 (10) ``Remedy.''.............................................................................K.S.A. 84-1-201.
39 (11) ``Rights.''.............................................................................K.S.A. 84-1-201.
40 (12) ``Security interest.''..................................................................K.S.A. 84-1-201.
41 (13) ``Signed.''.............................................................................K.S.A. 84-1-201.
42 (14) ``Value.''..............................................................................K.S.A. 84-1-201.
43 (15) ``Warehouse receipt.''..................................................................K.S.A. 84-1-201.
1 (16) ``Written.''............................................................................K.S.A. 84-1-201.
2 (17) ``Certificate of deposit.''.............................................................K.S.A. 84-3-104.
3 (18) ``Accounts.''...........................................................................K.S.A. 84-9-106.
4 (19) ``Attaches.''...........................................................................K.S.A. 84-9-203.
5 (20) ``Collateral.''.........................................................................K.S.A. 84-9-105.
6 (21) ``Consumer goods, except that
7 consumer goods shall not
8 include any vehicle or motor home
9 or manufactured home.''...........................................................................K.S.A. 84-9-109.
10 (22) ``Debtor.''.............................................................................K.S.A. 84-9-105.
11 (23) ``Document.''...........................................................................K.S.A. 84-9-105.
12 (24) ``Encumbrance.''........................................................................K.S.A. 84-9-105.
13 (25) ``Equipment.''..........................................................................K.S.A. 84-9-109.
14 (26) ``Fixture.''............................................................................K.S.A. 84-9-313.
15 (27) ``Fixture filing.''.....................................................................K.S.A. 84-9-313.
16 (28) ``Farm products.''......................................................................K.S.A. 84-9-109.
17 (29) ``Goods.''..............................................................................K.S.A. 84-9-105.
18 (30) ``Instrument.''.........................................................................K.S.A. 84-9-109.
19 (31) ``Inventory.''..........................................................................K.S.A. 84-9-109.
20 (32) ``Mortgage.''...........................................................................K.S.A. 84-9-105.
21 (33) ``Purchase money security interest.''...................................................K.S.A. 84-9-107.
22 (34) ``Secured party.''......................................................................K.S.A. 84-9-105.
23 (b) As used in this act, unless the context otherwise requires:
24 (1) ``Custom farming'' means any services or labor contracted for by the
25 owner or lessee of real estate or the agent of the owner or lessee, incident
26 to production of crops, including planting, harvesting or hauling or farm
27 products of all kinds on that real estate. Custom farming shall not include
28 the furnishing of agricultural inputs of any kind, including, but not limited
29 to, fuel, fertilizer, chemicals and medicines, seed or other supplies used
30 in the planting or productions of crops or farm products. Custom farming
31 shall not include labor, services or materials provided, or performed in
32 terracing, fencing, constructing buildings, storage facilities, fixtures or
33 other improvements, or any other work done to repair or improve the
34 real estate itself.
35 (2) ``Improvement of residential property'' means: (A) Improve-
36 ment of an existing structure in which the owner resides at the time the
37 claimant first furnishes labor, equipment, material or supplies and which
38 is not used or intended for use as a residence for more than two families
39 or for commercial purposes, and improvement or construction of any
40 addition, garage, fence, swimming pool, outbuilding or other improve-
41 ment appurtenant to such a structure; or
42 (B) any construction upon real property which is: (i) Owned or ac-
43 quired by an individual at the time the claimant first furnishes labor,
1 equipment, material or supplies;
2 (ii) intended to become and does become the principal personal res-
3 idence of that individual upon completion; and
4 (iii) not used or intended for use as a residence for more than two
5 families or for commercial purpose.
6 (3) ``Harvesting'' means all services, labor and materials furnished in
7 connection with the cutting, picking or gathering and transportation of
8 crops severed from the real estate on which they were grown. It does not
9 include any work or materials provided in connection with breeding, feed-
10 ing, finishing or transporting livestock.
11 (4) ``Lien'' means a charge on property created under this act to se-
12 cure payment of a debt or performance of an obligation.
13 (5) ``Lien holder'' means a person claiming a lien on personal or real
14 property under the provisions of this act. The assignee of a statutory lien
15 is also a lien holder.
16 (6) ``Lien statement'' means the written document necessary to per-
17 fect a nonpossessory statutory lien. Lien statement means the original
18 lien statement and any amendments thereto.
19 (7) ``New residential property'' means a new structure which is con-
20 structed for use as a residence and which is not used or intended for use
21 as a residence for more the two families or for commercial purposes. New
22 residential property does not include any improvement of an existing
23 structure or construction of any addition, garage or outbuilding appur-
24 tenant to an existing structure.
25 (8) ``Owner contractor'' means any person, firm, partnership, limited
26 partnership, limited liability corporation or corporation who: (A) Is the
27 fee title owner of the real estate or a leasehold in real estate subject to
28 the lien; and
29 (B) enters into contracts with more than one person, firm or corpo-
30 ration for labor, equipment, material or supplies used or consumed for
31 the improvement of such real property or leasehold.
32 (9) ``Operator'' means any person or entity operating an oil and gas
33 or other mineral or mining leasehold. Such person or entity shall be
34 deemed to act for all interest holders and may subject the whole of such
35 leasehold to a lien under this act by contracting for services, labor, repairs,
36 equipment, improvements or transportation.
37 (10) ``Possession'' means physical control of personal property, other
38 than a leasehold interest. Where personal property is covered by a non-
39 negotiable instrument, the lien holder is deemed to have perfected its
40 lien by possession as of the time the lien holder serves written notice of
41 the claimed lien together with any required lien statement on the bailee.
42 Where a third party, other than the owner/debtor or the lien holder is in
43 possession of personal property, other than a leasehold, the lien holder
1 may agree with the third party in writing that the third party has posses-
2 sion of the property subject to the lien as bailee for the lien holder.
3 (11) ``Proceeds'' means whatever is received upon the sale, exchange,
4 collection or other disposition of property subject to a statutory lien. In-
5 surance payable by reason of loss or damage to the collateral is proceeds,
6 except to the extent that it is payable to a person other than a party to
7 the transaction giving rise to the statutory lien. Money, checks, deposit
8 accounts and the like are cash proceeds. All other proceeds are noncash
10 (12) ``Single transaction'' means any work on the same tract of real
11 property or item of personal property, whether done under a single con-
12 tract or a series of contracts unless a period of more than 90 days elapses
13 between the dates of such work. It shall only be necessary for the claimant
14 to file one lien statement of the work done and material furnished cov-
15 ering the transactions as a whole.
16 (13) ``Statutory lien'' means a lien created by this act.
17 (14) ``Subcontractor'' means: (A) A person furnishing labor under
18 an agreement with a contractor or owner contractor;
19 (B) a person furnishing labor under an agreement with a person who
20 is a subcontractor under subsection (14) (A); or
21 (C) a person furnishing equipment, material or supplies under an
22 agreement with a contactor, owner contractor or person who is a subcon-
23 tractor under subsection (14) (A).
24 (15) ``Vehicle'' means any means of transportation of goods or persons
25 as defined under K.S.A. 8-126 and amendments thereto, and any vehicles
26 which moves on stationary rails or tracks in interstate commerce.
27 (16) ``Warning statement'' means the warning statement served by a
28 subcontractor performing repairs, or improvements or furnishing labor,
29 materials or supplies for the improvement of real property pursuant to
30 section 6 and amendments thereto.
31 (17) ``Work'' means any of the acts giving rise to a lien under section
32 5 and amendments thereto.
33 Sec. 5. (a) (1) Any person who, at the request of, or with the con-
34 sent of the owner, operator or spouse of an owner of personal or real
35 property or the agent of the owner or other person in lawful possession
36 of such property, shall perform or furnish labor , including custom farm-
37 ing and harvesting, furnish accessions, material, equipment, parts, sup-
38 plies, feed, including pasturage, seed, veterinary services, provide trans-
39 portation, bailment, warehousing or storage for, make improvements or
40 repairs to real or personal property shall:
41 (A) In the case of a leasehold, including an oil and gas or other min-
42 eral or mining leasehold, have a lien on the whole of such leasehold to
43 secure the payment of the charges for such labor, equipment, parts, sup-
1 plies, feed, seed, services, transportation, bailment, warehousing or stor-
2 age; and
3 (B) in the case of all other personal or real property, have a lien on
4 the interest of the person, or spouse of the person, requesting the work,
5 materials, repairs or improvements in that property to secure the payment
6 of the charges for such labor, equipment, parts, supplies, feed, seed, serv-
7 ices, transportation, bailment, warehousing or storage.
8 (2) Except as this act otherwise provides, a statutory lien continues
9 in property subject to the lien notwithstanding sale, exchange or other
10 disposition of such property unless the disposition was authorized by the
11 holder of the lien in writing, and also continues in an identifiable proceeds
12 including collections received by the debtor. The statutory lien in pro-
13 ceeds terminates 10 days after receipt of the proceeds by the debtor
14 unless the proceeds are identifiable cash proceeds.
15 (b) Any person who, acting as a subcontractor, at the request of a
16 person performing work or improvements with the consent of the owner
17 or spouse of an owner of personal or real property or the agent of the
18 owner or other person in lawful possession of such property, shall perform
19 labor, furnish accessions, material, equipment, parts, supplies, feed, in-
20 cluding pasturage, seed, veterinary services, provide transportation or
21 storage for, make improvements or repairs to real or personal property
22 shall have a lien on the interest of the person, or spouse of the person,
23 with whom the contractor has an agreement for the work, materials, re-
24 pairs or improvements in that property to secure the payment of the
25 charges for such labor, equipment, parts, supplies, feed, seed, services,
26 transportation, bailment, warehousing or storage.
27 (c) The owner of real or personal property shall not become liable
28 for a greater amount than the owner has contracted to pay the original
29 contractor, except for any payments to the contractor made: (1) Prior
30 to the expiration of the period for filing lien statements under this act, if
31 no warning statement is required by this act; or
32 (2) subsequent to the date the owner received the warning statement,
33 if a warning statement is required by this act and amendments thereto.
34 (d) The owner may discharge any lien filed under this act which the
35 contractor fails to discharge and credit such payment against the amount
36 due the contractor.
37 Sec. 6. (a) The statutory lien created by this act shall attach to the
38 property on which the lien holder performed work or provided goods or
39 services at the time the work, goods or services are first performed or
40 provided. The lien for custom harvesting, farming, repairs to fixtures,
41 equipment and accessions located on real property where the debtor is a
42 lessee shall not attach to the real property but only to the debtor's interest
43 in the leasehold or equipment located on the leasehold or real property
1 or the farm products produced on the leasehold.
2 (b) A statutory lien continues in identifiable proceeds of the property
3 subject to the lien as provided in subsection (a)(2) of section 5 and amend-
4 ments thereto.
5 (c)(1) A statutory lien by a subcontractor furnishing labor, equipment,
6 materials or supplies for the improvement of residential property does
7 not attach pursuant to this act unless the claimant has: (A) Mailed to
8 any one of the owners of the property a warning statement conforming
9 with this act; or
10 (B) in the claimant's possession a copy of a statement signed and
11 dated by any one owner of the property stating that the general contractor
12 or the claimant had given the warning statement conforming with this
13 section to one such owner of the property.
14 (2) The warning statement provided for by this subsection, to be ef-
15 fective, shall contain substantially the following statement:
16 ``Notice to owner:
17 (name of supplier or subcontractor) is a supplier or subcontractor providing materials or
18 labor on Job No. ______ at __________________________________________ (residence address) under an agreement with
19 ____________ (name of contractor). Kansas law will allow this supplier or subcontractor to
20 file a lien against your property for materials or labor not paid for by your contractor unless
21 you have a waiver of lien signs by this supplier or subcontractor. If you receive a notice of
22 filing of a lien statement by this supplier or subcontractor, you may withhold from your
23 contractor the amount claimed until the dispute is settled.''
24 (3) The warning statement provided for by this subsection shall not
25 be required if the claimant's total claim does not exceed $250.
26 (d)(1) A lien for the furnishing of labor, equipment, materials or sup-
27 plies for the construction of new residential property may be claimed
28 pursuant to this act after the passage of title to such new residential
29 property to a good faith purchaser for value only if the claimant has filed
30 a notice of intent to perform prior to the recording of the deed evidencing
31 passage of title to such new residential property. Such notice shall be filed
32 in the office of the register of deeds in the county where the property is
34 (2) The notice of intent to perform and release thereof provided for
35 in this subsection, to be effective, shall contain substantially the following
36 statement, whichever is applicable:
37 NOTICE OF INTENT TO PERFORM
38 ``I _______________________________________________________________________________________________________________
39 (name of supplier, subcontractor or contractor)
40 of _______________________________________________________________________________________________________________
41 (address of supplier, subcontractor or contractor)
42 do hereby give public notice that I am a supplier, subcontractor or contractor or other
43 person providing materials or labor on property owned by
2 (name of property owner)
3 and having the legal description as follows:
7 RELEASE OF NOTICE OF INTENT TO PERFORM No. ____________
8 AND WAIVER OF LIEN
9 ``I _______________________________________________________________________________________________________________
10 (name of supplier, subcontractor or contractor)
11 of _______________________________________________________________________________________________________________
12 (address of supplier, subcontractor or contractor)
13 do hereby acknowledge that I filed notice of intent to perform no.____________ covering
14 property owned by
16 (name of property owner)
17 and having the legal description as follows:
21 In consideration of the sum of $______, the receipt of which is hereby acknowledged, I
22 hereby direct the register of deeds of ____________, Kansas to release the subject notice
23 of intent to perform and do hereby waive and relinquish any statutory right to a lien for the
24 furnishing of labor, equipment, materials or supplies to the above-described real estate
25 under the statutes of the state of Kansas.''
26 (3) When any claimant who has filed a notice of intent to perform
27 has been paid in full, such claimant shall be required to file in the office
28 in which the notice of intent to perform was filed, and to pay any requisite
29 filing fee, a release of such notice and waiver of lien which shall be exe-
30 cuted by the claimant, shall identify the property as set forth in the notice
31 of intent to perform, and state that it is the intention of the claimant to
32 waive or relinquish any statutory right to a lien for the furnishing of labor
33 or material to the property. Upon such filing, the notice of intent to
34 perform previously filed by such claimant shall be of no further force or
35 effect, and such claimant's right to a statutory lien under this act shall be
37 (4) Any owner of the real estate upon which a notice of intent to
38 perform has been filed, or any owner's heirs or assigns, or anyone acting
39 for such owner, heirs or assigns, and after payment in full to the claimant,
40 may make demand upon the claimant filing the notice of intent to per-
41 form, for the filing of a release of the notice and waiver of lien as provided
42 for in subsection (d)(3), unless the same has expired by virtue of the
43 provisions set forth in subsection (d)(5). If the claimant fails to file such
1 a release within 10 days after written demand, the claimant shall be liable
2 to the owner, or the owner's heirs and assigns, for $500, and in addition
3 for any loss caused to the owner, or the owner's heirs and assigns, by such
5 (5) Notwithstanding the requirements of subsection (d)(3) and (4), a
6 notice of intent to perform shall be of no further force or effect after the
7 expiration of 18 months from the date of filing the same, unless within
8 such time the claimant has perfected a statutory lien under this act.
9 Sec. 7. The contractor or owner may execute a bond to the state of
10 Kansas for the use of all persons in whose favor liens might accrue by
11 virtue of this act, conditioned for the payment of all claims which might
12 be the basis of liens in a sum not less than the contract price, with good
13 and sufficient sureties, to be approved by a judge of the district court and
14 filed with the register of deeds in the county where the work is to be
15 performed. When a bond is approved and filed, no lien shall attach under
16 this act; and if when such bond if filed liens have already been filed, such
17 liens are discharged. Suit may be brought on such bond by any person
19 Sec. 8. (a) Except as provided in subsection (c), whenever any public
20 official, under the laws of the state, enters into a contract in any sum
21 exceeding $10,000 with any person or persons for the purpose of making
22 any public improvements, or constructing any public building or making
23 repairs on the same, such officer shall take, from the party contracted
24 with, a bond to the state of Kansas with good and sufficient sureties in a
25 sum not less than the sum total in the contract, conditioned that such
26 contractor or the subcontractor of such contractor shall pay all indebt-
27 edness incurred for labor furnished, materials, equipment or supplies,
28 used or consumed in connection with or in or about the construction of
29 such public building or in making such public improvements.
30 (b) The bond required under subsection (a) shall be filed with the
31 register of deeds of the county in which such public improvement is to
32 be made. When such bond is filed, no statutory lien shall attach under
33 this act, and if, when such bond is filed, liens have already been filed,
34 such liens shall be discharged. Any person to whom there is due any sum
35 for which a statutory lien under this act might attach, or such person's
36 assigns, may bring an action on such bond for the recovery of such in-
37 debtedness but no action shall be brought on such bond after six months
38 from the completion of such public improvements or public buildings.
39 (c) In any case of a contract for construction, repairs or improvements
40 for the state or a state agency under K.S.A. 75-3739 or 75-3741 and
41 amendments thereto, a certificate of deposit payable to the state may be
42 accepted in accordance with the subject to section 9 and amendments
43 thereto. When such certificate of deposit is so accepted, no lien shall
1 attach under this act, and if when such certificate of deposit is so accepted,
2 liens have already been filed, such liens shall be discharged. Any person
3 to whom there is due any sum for labor furnished, materials, equipment
4 or supplies used or consumed in connection with or for such contract for
5 construction, repairs or improvements, shall make a claim therefor with
6 the director of purchases under section 9 and amendments thereto.
7 Sec. 9. (a) The director of purchases may accept a certificate of de-
8 posit payable to the state instead of any required surety bond from a
9 bidder or contractor in the case of any contract for construction, repairs
10 or improvements under K.S.A. 75-3739, 75-3741 or section 8 and amend-
11 ments thereto. Each such certificate of deposit shall be in an amount
12 which is at least equal to the contract price, shall be subject to forfeiture
13 to the state and shall be in a form and under such other conditions as
14 may be applicable and prescribed by the director of purchases for surety
15 bonds and in accordance with this section.
16 (b) Each such certificate of deposit shall be retained by the state for
17 at least six months after the final acceptance of the construction, repairs
18 or improvements for which the contract was entered into. At the end of
19 such period, the certificate of deposit may be endorsed back to the vendor
20 or bidder if there are no claims by the state under the contract for which
21 the certificate of deposit was accepted under this section or by any person
22 making a claim against the certificate of deposit under subsection (c). All
23 interest accruing under any such certificate of deposit shall belong to the
24 bidder or contractor or unless the certificate of deposit is forfeited to the
25 state or as otherwise provided under subsection (c).
26 (c) (1) In any case of a breach of performance under a contract for
27 construction repairs or improvements for which a certificate of deposit
28 was accepted under this section, the director of purchases shall determine
29 the amount of money needed to remedy such breach and may set off the
30 amount from the moneys on deposit under the certificate of deposit, after
31 notice to the contractor of such breach and the amount determined by
32 the director therefor.
33 (2) In any case of a claim against a certificate of deposit accepted
34 under this section for labor furnished, materials, equipment or supplies,
35 used or consumed in connection with or for the contract for construction,
36 repairs or improvements, the director of purchases may pay such claim
37 from the moneys on deposit under the certificate of deposit if the con-
38 tractor does not dispute such claim or the amount thereof. If the con-
39 tractor disputes any such claim or the amount thereof, the director of
40 purchases may interplead such claim or claims in the district court for a
41 county where the construction, repairs or improvements are located. The
42 director of purchases may file an original action to resolve such claim or
43 claims, if necessary, and pay any moneys remaining from the certificate
1 of deposit into the district court therefor.
2 Sec. 10. (a) (1) Except as otherwise provided, any statutory lien cre-
3 ated under this act may be perfected by possession of personal property
4 or the filing of a lien statement, as provided in the section and section 11
5 and amendments thereto, in a form approved by the secretary of state.
6 (2) A person holding a statutory lien on personal property may perfect
7 the lien by retaining possession thereof. A statutory lien on consumer
8 goods having a fair market value of $1,000 or less at the time of the
9 attachment of the lien may only be perfected by possession.
10 (3) A person holding a statutory lien on personal property, other than
11 an interest in a leasehold or consumer goods having a fair market value
12 of $1,000 or less at the time of the attachment of the lien may continue
13 perfection of that lien by filing a lien statement, within the time pre-
14 scribed by section 11 and amendments thereto, as follows:
15 (A) If the personal property is a titled motor vehicle, a lien statement
16 shall be filed with the secretary of state in a form prescribed by the
17 secretary of state.
18 (B) If the personal property is consumer goods having a fair market
19 value of greater than $1,000 as of the date the lien attaches, the lien
20 statement shall be filed with the register of deeds in the county of the
21 owner's residence if the debtor is a Kansas resident or in the county where
22 the property is located if the debtor is not a resident of Kansas. If the
23 lien holder is unable to determine where the owner is resident, the lien
24 statement shall be filed in the county where the property is located when
25 the lien attaches.
26 (C) If the personal property is farm products, other than growing or
27 harvested crops, the lien statement shall be filed with the register of deeds
28 in the county where the debtor is resident as of the date of attachment
29 and with the secretary of state. If the debtor is not a resident of Kansas,
30 the lien statement shall be filed with the register of deeds in the county
31 where the farm products are located as of the date of attachment of the
32 lien and with the secretary of state. If the lien holder is unable to deter-
33 mine where the owner is resident, the lien statement shall be filed in the
34 county where the property is located when the lien attaches and with the
35 secretary of state.
36 (D) If the personal property is growing or harvested crops the lien
37 statement shall be filed with the register of deeds in the county where
38 the crops are located as of the date of attachment and with the secretary
39 of state.
40 (E) If the property is an interest in a leasehold, including but not
41 limited to oil or gas or other mineral or mining leases, the lien statement
42 shall be filed with the register of deeds in the county where the real estate
43 subject to the lease is located and with the secretary of state.
1 (F) In all other cases, the lien statement shall be filed with the sec-
2 retary of state.
3 (4) Perfection of a statutory lien in personal property by possession
4 continues in the property upon the filing of the lien statement.
5 (b) A person holding a statutory lien on real property or fixtures shall
6 file the lien statement required by this act with the secretary of state and
7 the register of deeds in the county where the real property is located.
8 Sec. 11. (a) (1) Except as provided in subsection (a)(2), a lien holder
9 claiming a lien on personal property shall file a lien statement as provided
10 in this act not later than 90 days after the later of: (A) Delivery of pos-
11 session of the property subject to the lien to the debtor or some other
12 person entitled to possession; or (B) the date material, equipment or
13 supplies were last furnished or work was last performed.
14 (2) A lien holder claiming a lien on a vehicle or consumer goods shall
15 file a lien statement as provided in this act not later than 30 days after
16 the later of: (A) Delivery of possession of the property subject to the lien
17 to the debtor or some other person entitled to possession; or (B) the date
18 material, equipment or supplies were last furnished or work was last per-
20 (b) (1) Except as provided in subsection (b)(2), a lien holder claiming
21 a lien on an interest in fixtures, a leasehold or any other interest in real
22 estate shall file a lien statement as provided in this act not later than 90
23 days after material was last furnished or labor last performed by the lien
25 (2) If the lien holder is a subcontractor, the lien holder shall file a
26 lien statement as provided in this act not later than 60 days after material
27 was last furnished or labor last performed by the lien claimant.
28 Sec. 12. (a) A lien statement shall conform substantially to a form
29 prescribed by the secretary of state and shall contain: (1) The names of
30 the debtor and the lien holder; (2) an address of the lien holder from
31 which information concerning the lien may be obtained; (3) a mailing
32 address of the debtor; (4) a statement of the date the lien attached; (5) a
33 statement describing the property subject to the lien; (6) a reasonably
34 itemized statement of the amount of the lien and the work, storage and
35 materials for which the lien is claimed; but if the amount of the claim is
36 evidenced by a written instrument, a copy thereof may be attached to the
37 claim in lieu of the itemized statement; (7) a legal description of the real
38 estate when the lien statement covers an interest in real estate or fixtures;
39 (8) the name of the record owner of the real estate where the debtor is
40 a lessee of the real estate; (9) the name of the contractor when the lien
41 claimant is a subcontractor; (10) a serial or vehicle identification number
42 for the vehicle subject to the lien when the lien statement covers a titled
43 vehicle, mobile or manufactured home, and shall be signed by the lien
1 holder under penalty of perjury pursuant to K.S.A. 53-601 and amend-
2 ments thereto.
3 If a warning statement is required to be given pursuant to subsection
4 (c) of section 6 and amendments thereto, there shall be attached to the
5 lien statement the affidavit of the subcontractor that such warning state-
6 ment was properly given.
7 (b) For the purposes of this section: (1) A description of the location
8 of the property subject to the lien is not necessary except where a de-
9 scription of location is specifically required by this act.
10 (2) When the lien statement covers growing crops, the statement shall
11 contain a description of the real estate concerned. When the lien state-
12 ment covers a leasehold interest, including an oil and gas or other mineral
13 or mining leasehold, real estate or fixtures, as defined in K.S.A. 84-9-313
14 and amendments thereto, the statement shall contain a legal description
15 of the real property subject to the lien.
16 (c) The secretary of state shall prescribe a form substantially as fol-
17 lows to comply with subsections (a) and (b) of this section:
18 Name or debtor (or assignor)
20 Address _________________________________________________________________________________________________________
21 Name of lien holder (or assignee)
23 Address _________________________________________________________________________________________________________
24 1. This lien statement covers the following property:
27 ____________ [VIN ____________]
28 2. (If collateral is growing crops, describe real estate) _________________________________________________________
30 3. This lien statement covers real estate or fixtures, or a leasehold interest (including an oil
31 and gas or other mineral or mining leasehold) located on: (Legal description of real estate)
33 4. (Name(s) of record owner(s))
35 5. Date of attachment of lien: __________________.
36 6. Amount of lien claimed: $____________. (Attached is a statement of the service, repair,
37 labor, storage or material charges)
38 I declare under penalty of perjury under the laws of the state of Kansas that the foregoing
39 is true and correct and reflects work performed, storage provided or material furnished and
40 that the lien holder identified above is entitled to a lien on the property described pursuant
41 to K.S.A. ____________.
42 Signature of lien holder (or assignor) ______________________________
43 Date __________________
1 (d) A lien statement may be amended by filing a writing signed by
2 the lien holder or the lien holder's assignee. An amendment does not
3 extend the period of effectiveness of a lien statement and does not relate
4 back to the date of the original lien statement. If any amendment adds
5 property subject to the lien, it is effective as to the added property only
6 from the filing date of the amendment.
7 (e) A lien statement sufficiently shows the name of the debtor if it
8 gives the individual, partnership or corporate name of the debtor as of
9 the date of attachment, whether or not it adds other trade names or the
10 names of all partners. A filing listing only the trade names of the debtor
11 is insufficient as against third parties.
12 (f) A filed lien statement remains effective with respect to property
13 transferred by the debtor unless the lien holder consents to the transfer
14 in writing.
15 (g) A description of property subject to the lien is adequate if it rea-
16 sonably identifies the personal property subject to the lien. A legal de-
17 scription of real property is sufficient if it identifies the property or affords
18 the means of identification within the instrument itself or by specific
19 reference to other instruments recorded in the office of the register of
20 deeds where the lien statement is filed.
21 (h) A lien statement substantially complying with the requirements
22 of this section is effective even though it contains minor errors which are
23 not seriously misleading.
24 Sec. 13. (a) Presentation for filing of a lien statement and tender of
25 the filing fee to the filing officer constitutes filing under this act.
26 (b) Except as provided in subsection (d), a filed lien statement cov-
27 ering an interest in real property, a leasehold or fixtures is effective for a
28 period of one year from the date of filing. If a promissory notes has been
29 attached to the lien statement in lieu of an itemized statement, the lien
30 statement shall be effective for a period of one year from the maturity of
31 the note.
32 (c) Except as provided in subsection (d), a filed lien statement cov-
33 ering an interest in personal property is effective for a period of 90 days
34 from the date of filing.
35 (d) The effectiveness of a filed lien statement lapses on the expiration
36 of the period specified in subsection (b) or (c) unless the lien holder has
37 commenced an action to foreclose the lien prior to the lapse. If a statutory
38 lien perfected by filing exists at the time insolvency proceedings are com-
39 menced by or against the debtor, the lien remains perfected until ter-
40 mination of the insolvency proceedings and thereafter for a period of 60
41 days. Upon lapse the lien becomes unperfected, unless it is perfected
42 without filing. If the lien becomes unperfected upon lapse, it is deemed
43 to have been unperfected as against a person who became a purchaser
1 or lien creditor before lapse.
2 (e) Where a lien statement must be filed with both a register of deeds
3 and the secretary of state to perfect a lien under this act, if the filing with
4 the second office is accomplished within 20 days of the filing with the
5 first office to receive the lien statement, perfection relates back to the
6 date the first lien statement was received for filing. In all other cases,
7 perfection is effective from the date the lien statement is received by the
8 second office.
9 (f) The fee for filing and indexing and for stamping a copy furnished
10 by the lien holder to show the date and place of filing for an original lien
11 statement, or for any amendments thereto shall be $6, plus $1 for each
12 additional page, or an amount fixed by rules and regulations adopted by
13 the secretary of state on or after the effective date of this act of not to
14 exceed $10, plus $1 for each additional page.
15 (g)(1) A filing officer shall mark each lien statement with a file num-
16 ber and with the date and hour of filing and shall hold the statement or
17 a microfilm or other photographic copy thereof for public inspection.
18 (2) In addition the filing officer shall index all statements according
19 to the names of the debtors but shall not index the names of corporate
20 officers or signatures of the debtors, shall note in the index the file num-
21 ber, the address of the debtor given in the statement, the date of filing
22 and general description of the collateral and shall cause the index to be
23 accessible to the public.
24 (3) In addition the filing officer shall index all statements by legal
25 description where the lien statement contains a legal description and shall
26 note in the index the file number, the address of the debtor given in the
27 statement, the date of filing and the legal description of the collateral and
28 shall cause the index to be accessible to the public.
29 (4) When a lien statement covers minerals or the like, including oil
30 and gas, real property or indicates that it covers goods which are or are
31 to become fixtures and contains the information required by K.S.A. 84-
32 9-402 and amendments thereto, the filing officer shall also index the state-
33 ment according to the name of the record owner of the real estate and
34 shall cause the index to be accessible to the public.
35 Sec. 14. (a) The holder of a statutory lien on personal property per-
36 fected by the filing of a lien statement shall serve a file stamped copy of
37 the lien statement on the debtor by first class mail, postage prepaid, by
38 mailing the file stamped copy to the individual debtor's dwelling, resi-
39 dence or place where the debtor conducts a business or profession, or if
40 the debtor is an entity, to either the place where the debtor conducts its
41 business or profession or the debtor's registered agent.
42 (b) The holder of a statutory lien on real property or fixtures per-
43 fected by filing a lien statement shall: (1) Cause a file stamped copy of
1 the lien statement to be served upon any one owner and any party obli-
2 gated to pay the lien by any of the methods provided by K.S.A. 60-303
3 and amendments thereto, for the service of process within the state, or
4 by K.S.A. 60-308 and amendments thereto, for service outside of the
5 state; or (2) if the address of any one owner or such party is unknown
6 and cannot be ascertained with reasonable diligence, post a copy of the
7 lien statement in a conspicuous place on the premises.
8 (c) The provisions of this section requiring that the claimant serve a
9 copy of the lien statement shall be deemed to have been complied with,
10 notwithstanding some irregularity or omission, if it is proven that the
11 person to be served actually received a copy of the lien statement.
12 Sec. 15. (1) Within one month, or within 10 days following written
13 demand by the debtor, after satisfaction of the debt, the lien holder must
14 file with each filing officer with whom the lien statement was filed, a
15 termination statement identified by file number thereof to the effect that
16 the lien holder no longer claims a lien under the statement. A termination
17 statement signed by a person other than the lien holder of record must
18 be accompanied by a separate written statement of assignment signed by
19 the lien holder of record. If the lien holder fails to file such a termination
20 statement as required by this subsection within 10 days after proper de-
21 mand therefore the lien holder shall be liable to the debtor for $500, and
22 in addition for any loss caused to the debtor by such failure.
23 (b) On presentation of such a termination statement, the filing officer
24 must note it in the index. If the filing officer has received the termination
25 statement in duplicate, the filing officer shall return one copy of the ter-
26 mination statement to the lien holder stamped to show the time of receipt
27 thereof. If the filing officer has a microfilm or other photographic record
28 of the lien statement, and of any related amendment, statement of as-
29 signment and statement of release, the filing officer may remove the
30 originals from the files at any time after receipt of the termination state-
31 ment, or if the filing officer has no such record, the filing officer may
32 remove them from the files at any time after one year after receipt of the
33 termination statement.
34 (c) Termination statements may be destroyed after such statements
35 have been on file for five years.
36 Sec. 16. (a) An assignment of a statutory lien shall contain the name
37 and address of the assignee, shall identify the file or other number of the
38 lien statement and shall contain the signature of the assignor. The assign-
39 ment shall be filed in all locations where the original lien statement was
40 filed. On presentation to the filing officer of an assignment, the filing
41 officer shall mark the same as provided in this act. The fee for filing,
42 indexing and furnishing filing data for a lien statement so indicating an
43 assignment shall be the amount fixed for filing original lien statements.
1 (b) After the filing of an assignment under this section, the assignee
2 is the lien holder of record.
3 Sec. 17. (a) If the person filing any lien statement, termination state-
4 ment, statement of assignment or statement of release furnishes the filing
5 officer a copy thereof, the filing officer shall upon request note upon the
6 copy the file number and date and hour of the filing of the original and
7 deliver or send the copy to such person.
8 (b) Upon written or electronic request of any person and tender of
9 the proper fee, the filing officer shall inform the person, in writing or
10 electronically, of whether there is on file on the date and hour stated, any
11 presently effective lien statement naming a particular debtor and any
12 related statement and, if there is, the date and hour of filing of each such
13 statement and the names and addresses of each lien holder therein. The
14 fee for providing the information shall be $8 or an amount, not to exceed
15 $10, fixed by rules and regulations adopted by the secretary of state. Upon
16 request, the filing officer shall furnish a copy of any filed lien statement
17 or related statement after payment of a fee of $1 per page except that, if
18 the filing officer is the secretary of state, the fee shall be in an amount
19 fixed by the secretary of state and approved by the director of accounts
20 and reports under K.S.A. 45-219 and amendments thereto.
21 (c) Except with respect to willful misconduct, the state, counties and
22 filing officers, and their employees and agents, are immune from liability
23 for damages resulting from errors or omissions in information supplied
24 pursuant to this section.
25 Sec. 18. (a) The secretary of state shall provide information concern-
26 ing filings under the Kansas statutory lien act to persons with an interest
27 in the information that is related exclusively to the purposes of that act.
28 (b) The secretary of state or a register of deeds may adopt one or
29 more of the following methods of providing information concerning fil-
30 ings under the Kansas statutory lien act to persons with an interest in the
31 information that is related exclusively to the purposes of that act: (1)
32 Telecopier access by interested parties and offices of registers of deeds
33 to filings in the office of the secretary of state; (2) subscription periodic
34 written summaries; (3) copies of microfilm; (4) data storage material; (5)
35 access to data processing functions; or (6) any other appropriate method
36 of disseminating the information.
37 (c) The secretary of state or a register of deeds may charge a reason-
38 able fee for the information on file in that office provided pursuant to
39 this section. In establishing the fees, the secretary of state or register of
40 deeds may take into account the costs incurred in establishing and main-
41 taining the information system as well as other costs.
42 (d) If information regarding filings in the office of the secretary of
43 state is provided by a register of deeds pursuant to this section, the fee
1 to be collected from the customer shall be an amount fixed by rules and
2 regulations adopted by the secretary of state. The rules and regulations
3 adopted by the secretary of state shall specify the amount the register of
4 deeds shall remit to the county treasurer for deposit into the county gen-
5 eral fund. The register of deeds shall remit at least monthly the remainder
6 of all such fees collected to the state treasurer. The state treasurer shall
7 deposit the entire amount in the state treasury and shall credit 20% of
8 the amount to the state general fund and the remainder to the uniform
9 commercial code fee fund.
10 (e) Except with respect to willful misconduct, the state, counties and
11 filing officers, and their employees and agents, are immune from liability
12 for damages resulting from errors or omissions in information supplied
13 pursuant to this section.
14 (f) Any fees in effect on the day preceding the effective date of this
15 act shall continue in effect until the secretary of state or the register of
16 deeds establishes different fees, as the case may be.
17 Sec. 19. (a) The secretary of state shall provide information con-
18 cerning filings under the Kansas statutory lien act upon request by tele-
19 phone to persons who have received prior approval of the secretary of
21 (b) Information provided under this section shall not include the text
22 descriptive of the collateral.
23 (c) The secretary of state may charge a reasonable fee in addition to
24 the fee specified in section 17 and amendments thereto to the requesting
25 party for information provided pursuant to this section.
26 (d) Except with respect to willful misconduct, the state and its em-
27 ployees and agents are immune from liability for damages resulting from
28 errors or omissions in information supplied pursuant to this section.
29 Sec. 20. (a) A perfected statutory lien in personal property with a fair
30 market value of $1,000 or less has priority over a person who has or takes
31 a security interest in the property subject to the lien.
32 (b) (1) A perfected statutory lien in a leasehold interest is subordi-
33 nate to any assignment of the leasehold interest and any interest created
34 in a mortgage or deed of trust duly filed of record in the appropriate
35 county prior to attachment of the statutory lien.
36 (2) A perfected statutory lien in a leasehold interest, has priority over:
37 (A) Any interest created through attachment by judicial process after the
38 statutory lien attaches; and (B) any interest created by an assignment,
39 mortgage or deed of trust unrecorded as of the time of attachment of the
40 statutory lien.
41 (3) Conflicting perfected statutory liens in a leasehold interest have
42 equal priority.
43 (c) (1) A perfected statutory lien in other personal property has pri-
1 ority over: (A) Any perfected or unperfected security interest in the prop-
2 erty subject to the lien even where the lien holder had actual or construc-
3 tive notice of the security interest; and (B) any interest created through
4 attachment by judicial process after the statutory lien attaches.
5 (2) Conflicting perfected statutory liens in other personal property
6 have equal priority.
7 (d) (1) A perfected statutory lien in real property and fixtures is sub-
8 ordinate to any assignment of the leasehold interest and any interest cre-
9 ated in a mortgage or deed of trust duly filed of record in the appropriate
10 county at the time of the attachment of the statutory lien.
11 (2) A perfected statutory lien in real property and fixtures, has priority
12 over: (A) Any interest created through attachment by judicial process after
13 the statutory lien attaches; and (B) any interest created by a mortgage or
14 deed of trust unrecorded as of the time of the attachment of the statutory
16 (3) Conflicting perfected statutory liens in real property and fixtures
17 have equal priority.
18 Sec. 21. Statutory liens shall be enforced as follows:
19 (a) (1) A perfected statutory lien in personal property with a fair mar-
20 ket value of $1,000 or less may be enforced by the lien holder in any
21 manner specified in K.S.A. 84-9-504 and amendments thereto and pro-
22 ceeds of any sale shall be applied first to satisfaction of the sale expenses
23 and thereafter to the statutory lien. Any surplus shall be applied to junior
24 liens and security interests in the order they are perfected.
25 (2) Goods which are subject to rapid deterioration may be sold with-
26 out advance notice to the owner if sold in a recognized public market for
27 goods of that type and proceeds of any sale shall be applied first to sat-
28 isfaction of the sale expenses and thereafter to the statutory lien. Any
29 surplus shall be applied to junior liens and security interests in the order
30 they are perfected.
31 (3) In all other instances, statutory liens in personal property shall be
32 foreclosed in the manner prescribed for judicial foreclosure under K.S.A.
33 60-1006 et seq. and amendments thereto.
34 (b) (1) In actions to foreclose statutory liens on real property, lease-
35 hold interests and fixtures, all persons whose liens are filed as provided
36 in this act, and other encumbrancers of record, shall be made parties, and
37 issues shall be made and trials had as in other cases. Where such an action
38 is brought by a subcontractor, or person other than the original contrac-
39 tor, such original contractor shall be made a party defendant, and shall at
40 the contractor's own expense defend against the claim of every subcon-
41 tractor, or other person claiming a lien under this act, and if the contractor
42 fails to make such defense the owner may make the same at the expense
43 of such contractor. Until all such claims, costs and expenses are finally
1 adjudicated, and defeated or satisfied, the owner shall be entitled to retain
2 from the contractor the amount thereof, and such costs and expenses as
3 the owner may be required to pay. If the sheriff of the county in which
4 such action is pending shall make return that the sheriff is unable to find
5 such original contractor, the court may proceed to adjudicate the liens
6 upon the land and render judgment to enforce the same with costs.
7 (2) In any action to foreclose a lien under this subsection if the build-
8 ing or other improvement is still in course of construction, the judge on
9 application of any party engaged in furnishing labor or materials for such
10 building or improvement, may stay the trial thereof for a reasonable time
11 to permit the filing of a lien statement by such party under the provisions
12 of this act.
13 (3) The lien statement may be amended by leave of the judge in
14 furtherance of justice, except to increase the amount claimed.
15 (4) If the proceeds of the sale be insufficient to pay all the claimants,
16 then the court shall order them to be paid in proportion to the amount
17 due each.
18 (5) After sale of property pursuant to foreclosure of a statutory lien
19 on a leasehold interest, there shall be no redemption and the sheriff shall
20 make a formal conveyance of all the property so sold to the purchaser, in
21 one leasehold assignment.
22 (6) If any lien or liens are filed under the provisions of this act and
23 no action to foreclose any of such liens is commenced, the owner of the
24 land may file such owner's petition in the district court of the county in
25 which such land is situated, making such lien claimants defendants
26 therein, and praying for an adjudication of such lien or liens so claimed.
27 If any such lien claimant shall fail to establish such claimant's lien, the
28 court may tax against such claimant the whole or such portion of the costs
29 of such action as may be just. If no action to foreclose or adjudicate any
30 lien filed under the provisions of this act shall be instituted within the
31 time provided in section 13 and amendments thereto, the lien shall be
32 considered canceled by limitation of law.
33 Sec. 22. K.S.A. 9-1506, 34-266, 47-836, 55-201, 55-207, 58-203, 58-
34 207, 58-208, 58-209, 58-218, 58-220, 58-222, 58-227, 58-813, 58-2524,
35 60-1102, 60-1103, 60-1103a, 60-1104, 60-1105, 60-1106, 60-1107, 60-
36 1108, 60-1109 and 60-1110 and K.S.A. 1996 Supp. 60-1103b are hereby
38 Sec. 23. This act shall take effect and be in force from and after its
39 publication in the statute book.