35-05 Crop Mortgages

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CHAPTER 35-05CROP MORTGAGES35-05-01. Security agreement on crops prohibited - Exceptions. Security interests ingrowing and unharvested crops are prohibited, and any security agreement purporting to create a<br>security interest therein is void.The provisions of this section do not apply to any securityinterest or lien in favor of the United States, this state, any county, or any department or agency<br>of any of them, including the Bank of North Dakota, nor to any financial institution as defined by<br>section 6-01-02 or 21-04-01, nor to any agricultural cooperative or agricultural lending agency,<br>nor to any security interest created by contract to secure money advanced or loaned for the<br>purpose of paying government crop insurance premiums or to secure the purchase price or the<br>rental or improvement of the land upon which the crops covered by the contract are to be grown.35-05-01.1. Crop liens - Limitations - Exceptions - Remedies - Penalty. A securityinterest upon crops attaches only to the crop next maturing after the delivery of the security<br>agreement.The financing statement covering a crop cannot be used to enforce a securityinterest on any crop other than the crop listed in the security agreement. If the court finds a<br>willful violation of this section, the court shall award a producer the reasonable expenses of<br>maintaining an action, including reasonable attorney's fees. The provisions of this section do not<br>apply to liens by contract given to secure the purchase price or the rental of land upon which the<br>crops covered by the lien are to be grown or to a security interest upon crops created by a<br>security agreement that contains an after-acquired property clause and the following wording or<br>its equivalent, in boldface print or set forth in some other conspicuous manner, is in the<br>agreement: "This security agreement covers crops now growing. This security agreement also<br>covers future crops to be grown in the current year or any year hereafter.". The lien on future<br>crops maintains its priority as to crops grown in future years only so long as the lienholder<br>continues to provide operating funds to the borrower. If, in any subsequent year, another entity<br>entitled to a crop security interest under section 35-05-01 advances operating funds to a<br>borrower, the entity has a first priority purchase money security interest in the crops grown by the<br>borrower during the year in which the funds are advanced.35-05-02. Lien on crops - Limitation - Exceptions. Repealed by S.L. 1965, ch. 296,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t35/pdf/t35c05.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 35-05CROP MORTGAGES35-05-01. Security agreement on crops prohibited - Exceptions. Security interests ingrowing and unharvested crops are prohibited, and any security agreement purporting to create a\u003cbr\u003esecurity interest therein is void.The provisions of this section do not apply to any securityinterest or lien in favor of the United States, this state, any county, or any department or agency\u003cbr\u003eof any of them, including the Bank of North Dakota, nor to any financial institution as defined by\u003cbr\u003esection 6-01-02 or 21-04-01, nor to any agricultural cooperative or agricultural lending agency,\u003cbr\u003enor to any security interest created by contract to secure money advanced or loaned for the\u003cbr\u003epurpose of paying government crop insurance premiums or to secure the purchase price or the\u003cbr\u003erental or improvement of the land upon which the crops covered by the contract are to be grown.35-05-01.1. Crop liens - Limitations - Exceptions - Remedies - Penalty. A securityinterest upon crops attaches only to the crop next maturing after the delivery of the security\u003cbr\u003eagreement.The financing statement covering a crop cannot be used to enforce a securityinterest on any crop other than the crop listed in the security agreement. If the court finds a\u003cbr\u003ewillful violation of this section, the court shall award a producer the reasonable expenses of\u003cbr\u003emaintaining an action, including reasonable attorney's fees. The provisions of this section do not\u003cbr\u003eapply to liens by contract given to secure the purchase price or the rental of land upon which the\u003cbr\u003ecrops covered by the lien are to be grown or to a security interest upon crops created by a\u003cbr\u003esecurity agreement that contains an after-acquired property clause and the following wording or\u003cbr\u003eits equivalent, in boldface print or set forth in some other conspicuous manner, is in the\u003cbr\u003eagreement: \u0026quot;This security agreement covers crops now growing. This security agreement also\u003cbr\u003ecovers future crops to be grown in the current year or any year hereafter.\u0026quot;. The lien on future\u003cbr\u003ecrops maintains its priority as to crops grown in future years only so long as the lienholder\u003cbr\u003econtinues to provide operating funds to the borrower. 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