| 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. |
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| | 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. |
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| 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. |
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| 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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