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

1. Law
2. Mississippi Code
3. Regulation of Trade, Commerce and Investments
4. Uniform Commercial Code-Secured Transactions
5. General Provisions
6. Short Title, Definitions, and General Concepts
7. "Production-money crops"; "production-money obligation"; production-money security interest; burden of establishing

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

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:

To obligations that are not secured; and

If more than one (1) obligation is secured, to obligations secured by production-money security interests in the order in which those obligations were incurred.

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

The production-money crops also secure an obligation that is not a production-money obligation;

Collateral that is not production-money crops also secures the production-money obligation; or

The production-money obligation has been renewed, refinanced, or restructured.

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.

Download our app to see the most-to-date content.