§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.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(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;
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(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
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c).
In the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order:
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(i)
To obligations that are not secured; and
(ii)
If more than one obligation is secured, to obligations secured by production-money security interests in the order in which those obligations were incurred.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(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;
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b).
Collateral that is not production-money crops also secures the production-money obligation; or
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c).
The production-money obligation has been renewed, refinanced or restructured.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(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.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1999, c. 699, §A2 (NEW). PL 1999, c. 699, §A4 (AFF).