Secured Transactions

 

Overviewcontentphoto_securedtransactions

As agriculture becomes more industrialized, credit becomes more of an integral part of the production process. Lenders secure loans to agricultural producers with collateral in property such as crops, livestock, and equipment. The mechanism that governs these transactions is primarily contained in Article 9 of the Uniform Commercial Code (UCC) as adopted in each state. As of January 1, 2002, Revised Article 9 of the UCC, the first major revision since 1972, has taken effect in all fifty states and the District of Columbia. Revised Article 9 broadens the scope of covered transactions and attempts to simplify the creation, perfection, and enforcement of security interests. Enactment of the UCC across the states includes some variations incorporated by individual state legislatures, and this overview focuses generally on Article 9 of the UCC as revised, and how it functions in agricultural lending. Due to the complex nature of the rules governing secured transactions, careful attention must be paid to the rules and the details applicable to each transaction in order to avoid potential pitfalls. Read the full overview

 Note: Recently added resources are posted at the top of the applicable sections.


Major Statutes

Federal Farm Products Rule, 7 U.S.C. § 1631
Uniform Commercial Code (UCC) Revised Article 9, Secured Transactions, §§ 9-101 – 9-709
Updated Compilation of States’ Statutory Agricultural Lien Charts

Regulations

9 CFR Part 205 – Clear Title – Protection for Purchasers of Farm Products
Federal Register Rules Open for Comment

Case Law

Case Law Index for Secured Transactions

Center Research Publications

Financing the Farm: A Law Bulletin Series on Legal Arrangements for Farm Financing (Hall & Bachelor, 2020)
U.C.C. Forms and Filing Information (NALC Staff, 2020)
State Level Overview of Laws Addressing the Regulation of Grain Sales and Storage (Rumley & Fritts, 2014)
Updated Statutory Agricultural Lien Charts (Rumley & Fiser, 2009)
2005 Commercial Law Update (Meyer, 2006)
Current Article 9 Issues and Agricultural Credit (Meyer, 2005)
Statutory Agricultural Liens Under Revised Article 9 of the Uniform Commercial Code (Schneider, 2002)

Congressional Research Service Reports

Reports– published and made available by CRS beginning in 2017
Subjects- published by CRS and made available by NALC until 2018:

Finance and Credit

Agricultural Law Bibliography

Introduction   |   Keyword Search   |   Browse Categories

Legal publications on Secured Transactions:

Finance and Credit
Land Sales/Real Estate Finance, Mortgages/Foreclosures
Livestock and Packers & Stockyards
Uniform Commercial Code

Reference Resources

Publications

How Do You Perfect a Security Interest in Agriculture? (Howard, 2020)
What is Purchase Money Security Interest (PMSI)? (CSC, 2019)
Section 1631 and the Farm Products Exception to the UCC Exception – Fertile Traps for the Unwary (Schumm, 2019)
Secured Transactions Flowcharts (Feliciano & Radwan, 2018)
UCC Article 9 for Dummies (Tucker, 2017)
Selling Collateralized Ag Products – The “Farm Products” Rule (McEowen, 2017)
Ag Bankruptcies (Massouh, 2016)
A Quick Guide to Understanding “Farm Filings” (Hodnefield, 2014)
A Garden Variety of UCC Issues Dealing with Agriculture (Meyer, 2010)
Description of the Collateral Under Revised Article 9(Grant, 2006)
Current Article 9 Issues and Agricultural Credit (Meyer, 2005)
What Every Farmer Should Know About Secured Transactions (Hayes, 2004)
Agricultural Liens under Revised Article 9 (Burnham, 2002)
Agricultural Liens and Revised UCC Article 9 (Ice Miller, 2001)

Additional Resources

Secured Transactions Posts (Ag & Food Law Blog)
UCC Article 9 State Statute Locator (Cornell U.)
Washburn Agricultural Law & Tax Report: Secured Transactions Annotations (Washburn U.)