1. (a) For the purposes of this chapter, proceeds are the amounts received by a lien debtor, before a deduction for taxes, fees, or assessments or a deduction made under a court order, from the sale of:

   1. (1) the livestock for which the animal feed was used;
   2. (2) meat, milk, skins, wool, or other products derived from that livestock; or
   3. (3) issue born to that livestock.

2. (b) For the purposes of this chapter, proceeds do not include amounts:

   1. (1) due or owing to a cooperative association under Chapter 51 or 52; or
   2. (2) retained by a cooperative association under Chapter 51 or 52.

Added by Acts 1995, 74th Leg., ch. 197, Sec. 2, eff. Sept. 1, 1995.