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North Carolina General Statutes Chapter 25. Uniform Commercial Code § 25-9-103.1. Production-money crops; production-money obligation; production-money security interest; burden of establishing

Current as of January 01, 2023 | Updated by FindLaw Staff

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

(b) Production-money obligation. -- 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) Production-money security interest. -- 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) Burden of proof. -- 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.

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Cite this article: FindLaw.com - North Carolina General Statutes Chapter 25. Uniform Commercial Code § 25-9-103.1. Production-money crops; production-money obligation; production-money security interest; burden of establishing - last updated January 01, 2023 | https://codes.findlaw.com/nc/chapter-25-uniform-commercial-code/nc-gen-st-sect-25-9-103-1/

Read this complete North Carolina General Statutes Chapter 25. Uniform Commercial Code § 25-9-103.1. Production-money crops; production-money obligation; production-money security interest; burden of establishing on Westlaw

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