LD 2245
pg. 64
Page 63 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 65 of 493
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LR 1087
Item 1

 
consumer-goods transactions leaves to the court the determination
of the proper rules in consumer-goods transactions. Subsection
(h) [Maine cite subsection (8)] also instructs the court not to
draw any inference from this limitation as to the proper rules
for consumer-goods transactions and leaves the court free to
continue to apply established approaches to those transactions.

 
This section addresses only whether a security interest is a
"purchase-money security interest" under this Article, primarily
for purposes of perfection and priority. See, e.g., Sections 9-
317, 9-324 [Maine cite sections 9-1317, 9-1324]. In particular,
its adoption of the dual-status rule, allocation of payments
rules, and burden of proof standards for non-consumer-goods
transactions is not intended to affect or influence
characterizations under other statutes. Whether a security
interest is a "purchase-money security interest" under other law
is determined by that law. For example, decisions under
Bankruptcy Code Section 522(f) have applied both the dual-status
and the transformation rules. The Bankruptcy Code does not
expressly adopt the state law definition of "purchase-money
security interest." Where federal law does not defer to this
Article, this Article does not, and could not, determine a
question of federal law.

 
§9-1103-A.__Production-money crops; production-money

 
obligation; production-money security interest;

 
burden of establishing

 
(1)__A security interest in crops is a production-money
security interest to the extent that the crops are production-
money crops.

 
(2)__If the extent to which a security interest is a
production-money security interest depends on the application of
a payment to a particular obligation, the payment must be
applied:

 
(a)__In accordance with any reasonable method of application
to which the parties agree;

 
(b)__In the absence of the parties' agreement to a
reasonable method, in accordance with any intention of the
obligor manifested at or before the time of payment; or

 
(c)__In the absence of an agreement to a reasonable method
and a timely manifestation of the obligor's intention, in
the following order:

 
(i)__To obligations that are not secured; and


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