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

409.1035

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

409.1035(1)

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

409.1035(2)

(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:

409.1035(2)(a)

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

409.1035(2)(b)

(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

409.1035(2)(c)

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

409.1035(3)

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

409.1035(3)(a)

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

409.1035(3)(b)

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

409.1035(3)(c)

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

409.1035(4)

(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.

409.1035(5)

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

409.1035(6)

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

409.1035 - ANNOT.

History: 2001 a. 10.