LD 2245
pg. 118
Page 117 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 119 of 493
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LR 1087
Item 1

 
c. Timber to Be Cut. Application of the general rule in
paragraph (1) [Maine cite paragraph (a)] to perfection of a
security interest in timber to be cut would yield undesirable
results analogous to those described with respect to fixtures.
Paragraph (3)(B) [Maine cite paragraph (c), subparagraph (ii)]
adopts a similar solution: perfection is governed by the law
of the jurisdiction in which the timber is located. As with
fixtures, under paragraph (3)(C) [Maine cite paragraph (c),
subparagraph (iii)], the same law governs priority. Timber to
be cut also is "goods" as defined in Section 9-102 [Maine cite
section 9-1102].

 
Paragraph (3)(B) [Maine cite paragraph (c), subparagraph (ii)]
applies only to "timber to be cut," not to timber that has been
cut. Consequently, once the timber is cut, the general choice-
of-law rule in paragraph (1) [Maine cite paragraph (a)] becomes
applicable. To ensure continued perfection, a secured party
should file in both the jurisdiction in which the timber to be
cut is located and in the state where the debtor is located. The
former filing would be with the office in which a real property
mortgage would be filed, and the latter would be a central
filing. See Section 9-501 [Maine cite section 9-1501].

 
d. As-Extracted Collateral. Paragraph (4) [Maine cite
paragraph (d)] adopts the rule of former Section 9-103(5)
with respect to certain security interests in minerals and
related accounts. Like security interests in fixtures
perfected by filing a fixture filing, security interests in
minerals that are as-extracted collateral are perfected by
filing in the office designated for the filing or recording
of a mortgage on the real property. For the same reasons,
the law governing perfection and priority is the law of the
jurisdiction in which the wellhead or minehead is located.

 
6. Change in Law Governing Perfection. When the debtor
changes its location to another jurisdiction, the jurisdiction
whose law governs perfection under paragraph (1) [Maine cite
paragraph (a)] changes, as well. Similarly, the law governing
perfection of a possessory security interest in collateral under
paragraph (2) [Maine cite paragraph (b)] changes when the
collateral is removed to another jurisdiction. Nevertheless,
these changes will not result in an immediate loss of perfection.
See Section 9-316(a), (b) [Maine cite section 9-1316, subsection
(1), subsection (2)].

 
7. Law Governing Effect of Perfection and Priority: Goods,
Documents, Instruments, Money, Negotiable Documents, and Tangible
Chattel Paper. Under former section 9-103, the law of a single


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