(3)__A production-money security interest does not lose its status as such, even if:

(a)__The production-money crops also secure an obligation that is not a production-money obligation;

(b)__Collateral that is not production-money crops also secures the production-money obligation; or

(c)__The production-money obligation has been renewed, refinanced or restructured.

(4)__A secured party claiming a production-money security interest has the burden of establishing the extent to which the security interest is a production-money security interest.

Official Comment

1. Source. New.

2. Production-Money Priority; "Production-Money Security Interest." This section is patterned closely on Section 9-103 [Maine cite section 9-1103], which defines "purchase-money security interest." Subsection (b) [Maine cite subsection (2)] makes clear that a security interest can obtain production-money status only to the extent that it secures value that actually can be traced to the direct production of crops. To the extent that a security interest secures indirect costs of production, such as general living expenses, the security interest is not entitled to production-money treatment.

§9-1104.__Control of deposit account

(1)__A secured party has control of a deposit account if:

(a)__The secured party is the bank with which the deposit account is maintained;

(b)__The debtor, secured party and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the account without further consent by the debtor; or