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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 9A : Uniform Commercial Code

Article 009 : Secured Transactions

(Cite as: 9A V.S.A. § 9-103A)
  • § 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.)