409.1035 Production-money crops; production-money obligation; production-money security interest; burden of establishing.

247 words·~1 min read·/wi/chapter-409/409-1035

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 in the following order until fully applied:

(a)First, to all production-money obligations secured by production-money crops, in the order in which those obligations were incurred;

(b)Second, to all obligations secured by conflicting security interests in the production-money crops referred to in par.

(a), in the order in which those obligations were incurred; and

(c)Third, to all unsecured obligations of the debtor making the payment, in the order in which those obligations were incurred.

(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.

(5)This section does not affect any right to proceeds under s. 409.315 .

(6)A person may not claim a purchase-money security interest in crops grown, growing, or to be grown.