Wisconsin Statutes 409.1035 – Production-money crops; production-money obligation; production-money security interest; burden of establishing
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Terms Used In Wisconsin Statutes 409.1035
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
(1) A security interest in crops is a production-money security interest to the extent that the crops are production-money crops.
(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:
(a) First, to all production-money obligations secured by production-money crops, in the order in which those obligations were incurred;
(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
(c) Third, to all unsecured obligations of the debtor making the payment, in the order in which those obligations were incurred.
(3) A production-money security interest does not lose its status as such, even if:
(a) The production-money crops also secure an obligation that is not a production-money obligation;
(b) Collateral that is not production-money crops also secures the production-money obligation; or
(c) The production-money obligation has been renewed, refinanced, or restructured.
(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.
(5) This section does not affect any right to proceeds under s. 409.315.
(6) A person may not claim a purchase-money security interest in crops grown, growing, or to be grown.