LD 2245
pg. 41
Page 40 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 42 of 493
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LR 1087
Item 1

 
the possession of a marketing agency for sale or distribution or
of a manufacturer or processor as raw materials, they become
inventory. Products of crops or livestock, even though they
remain in the possession of a person engaged in farming
operations, lose their status as farm products if they are
subjected to a manufacturing process. What is and what is not a
manufacturing operation is not specified in this Article. At one
end of the spectrum, some processes are so closely connected with
farming-such as pasteurizing milk or boiling sap to produce maple
syrup or sugar-that they would not constitute manufacturing. On
the other hand an extensive canning operation would be
manufacturing. Once farm products have been subjected to a
manufacturing operation, they normally become inventory.

 
The revised definition of "farm products" clarifies the
distinction between crops and standing timber and makes clear
that aquatic goods produced in aquacultural operations may be
either crops or livestock. Although aquatic goods that are
vegetable in nature often would be crops and those that are
animal would be livestock, this Article leaves the courts free to
classify the goods on a case-by-case basis. See Section 9-324
[Maine cite section 9-1324], Comment 11.

 
b. "Accession"; "Manufactured Home"; "Manufactured-Home
Transaction." Other specialized definitions of goods
include "accession" (see the special priority and
enforcement rules in Section 9-335) [Maine cite section 9-
1335], and "manufactured home" (see Section 9-515 [Maine
cite section 9-1515], permitting a financing statement in a
"manufactured-home transaction" to be effective for 30
years). The definition of "manufactured home" borrows from
the federal Manufactured Housing Act, 42 U.S.C. §§ 5401 et
seq., and is intended to have the same meaning.

 
c. "As-Extracted Collateral." Under this Article, oil,
gas, and other minerals that have not been extracted from
the ground are treated as real property, to which this
Article does not apply. Upon extraction, minerals become
personal property (goods) and eligible to be collateral
under this Article. See the definition of "goods," which
excludes "oil, gas, and other minerals before extraction."
To take account of financing practices reflecting the shift
from real to personal property, this Article contains
special rules for perfecting security interests in minerals
which attach upon extraction and in accounts resulting from
the sale of minerals at the wellhead or minehead. See,
e.g., Sections 9-301(6) [Maine cite section 9-1301,
subsection (6)] (law governing perfection and priority); 9-
501 [Maine cite section 9-1501] (place of filing), 9-502
[Maine cite section 9-1502]
(contents of financing


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