Eastern Livestock Bill Signed into Law by the GovernorThu, 28 Apr 2011 3:51:02 CDT
On Tuesday of this week, Governor Mary Fallin signed SB 530 into law. The purpose of this bill is ensure producers selling livestock retain a security interest in the livestock until the sale proceeds from the sale clear the bank. Some people had dubbed this measure unofficially "the Eastern Livestock bill" because of the problems that individual cattle producers have had since last fall when Eastern Livestock saw their bank freeze their assets and force them to bankruptcy. When those funds were grabbed by Fifth Third Bank, $130 million in hot checks were left in the hands of cattle producers who got a check for their cattle and no cash to make the check good.
The Oklahoma Cattlemen's Association is pleased with lawmaker's efforts to get this bill through the process- "We appreciate Representative Don Armes and Senator Sean Burrage for their leadership on this issue. The measure grants every livestock owner a lien in all livestock for any unpaid portion of the livestock in order to secure the obligations of the first person that purchases livestock, either directly or through a sales agent, under an agreement to sell. The owner's lien attaches and is perfected immediately to all livestock and continues uninterrupted in all livestock and proceeds. The lien exists until the full amount of the sales price has been received and is not dependent on possession of livestock. Any security interest or mortgage lien of the owner's lender will attach to the livestock owner's right to the owner's lien.
While this bill will not help those harmed by the bankruptcy of Eastern Livestock from the end of last year, it will offer a level of protection to livestock producers who sell their livestock in the future, give up control of their cattle as they get a check- then later find out the check bounced higher than the new Devon Tower in downtown Oklahoma City.
We talked with OCA Executive Director Scott Dewald about the bill after Governor Fallin signed it- you can click on the LISTEN BAR below to hear comments from him on this measure. There was no emergency provision attached to the bill, so it will take effect November 1, 2011.
Click here to read the complete text of the bill as signed into law by the Governor.
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