The Vermont Statutes Online

Title 9A : Uniform Commercial Code

Article 009 : Secured Transactions

• § 9—103A. “Production-money crops”; “production-money obligation”; “production-money security interest”; burden of establishing

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

  (b) 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:

  (1) in accordance with any reasonable method of application to which the parties agree;

  (2) 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

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

  (A) to obligations that are not secured; and

  (B) if more than one obligation is secured, to obligations secured by production-money security interests in the order in which those obligations were incurred.

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

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

  (2) collateral that is not production-money crops also secures the production-money obligation; or

  (3) the production-money obligation has been renewed, refinanced, or restructured.

  (d) 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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)