SB 384--
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Session of 1997
SENATE BILL No. 384
By Committee on Judiciary
3-20
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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. 14 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 28 statute; 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; SB 384
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 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
 7  thereto;
 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.
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 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,
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 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
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 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
 9  proceeds.
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-
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 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
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 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
33  located.
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
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 1  __________________________________________________________________________________________________________________
 2                                                  (name of property owner)
 3  and having the legal description as follows:
 4  __________________________________________________________________________________________________________________
 5  __________________________________________________________________________________________________________________
 6  _______________________________________________________________________________________________________________.''
 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
15  _____________________________________________
16                                                  (name of property owner)
17  and having the legal description as follows:
18  __________________________________________________________________________________________________________________
19  __________________________________________________________________________________________________________________
20  __________________________________________________________________________________________________________________
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
36  extinguished.
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
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 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
 4  failure.
 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
18  interested.
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
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 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
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 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.
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 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-
19  formed.
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
24  claimant.
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
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 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)
19  __________________________________________________________________________________________________________________
20  Address _________________________________________________________________________________________________________
21  Name of lien holder (or assignee)
22  __________________________________________________________________________________________________________________
23  Address _________________________________________________________________________________________________________
24  1. This lien statement covers the following property:
25  (Describe)
26  __________________________________________________________________________________________________________________
27  ____________ [VIN ____________]
28  2. (If collateral is growing crops, describe real estate) _________________________________________________________
29  __________________________________________________________________________________________________________________
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)
32  __________________________________________________________________________________________________________________
33  4. (Name(s) of record owner(s))
34  __________________________________________________________________________________________________________________
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 __________________
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 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
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 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
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 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.
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 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
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 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
20  state.
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-
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19

 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
15  lien.
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
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 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
37  repealed.
38    Sec. 23.  This act shall take effect and be in force from and after its
39  publication in the statute book.