Source: http://codes.findlaw.com/us/title-7-agriculture/7-usc-sect-1631.html
Timestamp: 2017-10-21 10:23:37
Document Index: 5198892

Matched Legal Cases: ['§ 1631', '§ 1631', '§ 1631', '§\u20021631', '§ 1631', '§\u20021631']

7 U.S.C. § 1631 - U.S. Code Title 7. Agriculture § 1631 | FindLaw
7 U.S.C. § 1631 - U.S. Code - Unannotated Title 7. Agriculture § 1631. Protection for purchasers of farm products
certain State laws permit a secured lender to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lender's security interest in the products, lacks any practical method for discovering the existence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender;
The term “central filing system” means a system for filing effective financing statements or notice of such financing statements on a statewide basis and which has been certified by the Secretary of the United States Department of Agriculture; the Secretary shall certify such system if the system complies with the requirements of this section; specifically under such system--
the Secretary of State compiles all such statements into a master list--
arranged within each such product--
the Secretary of State maintains a list of all buyers of farm products, commission merchants, and selling agents who register with the Secretary of State, on a form indicating--
the Secretary of State distributes regularly as prescribed by the State to each buyer, commission merchant, and selling agent on the list described in subparagraph (D) a copy in written or printed form of those portions of the master list described in subparagraph (C) that cover the farm products in which such buyer, commission merchant, or selling agent has registered an interest except that--
if social security or taxpayer identification numbers on the master list are encrypted, the Secretary of State may distribute the master list only--
by compact disc or other electronic media that contains--
the Secretary of State furnishes to those who are not registered pursuant to (2)(D) of this section [FN1] oral confirmation within 24 hours of any effective financing statement on request followed by written confirmation to any buyer of farm products buying from a debtor, or commission merchant or selling agent selling for a seller covered by such statement.
The term “effective financing statement” means a statement that--
[FN2] The term “farm product” means an agricultural commodity such as wheat, corn, soybeans, or a species of livestock such as cattle, hogs, sheep, horses, or poultry used or produced in farming operations, or a product of such crop or livestock in its unmanufactured state (such as ginned cotton, wool-clip, maple syrup, milk, and eggs), that is in the possession of a person engaged in farming operations.
(5)[FN3] The term “approved unique identifier” means a number, combination of numbers and letters, or other identifier selected by the Secretary of State using a selection system or method approved by the Secretary of Agriculture.
A buyer of farm products takes subject to a security interest created by the seller if--
within 1 year before the sale of the farm products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that--
in the case of a farm product produced in a State that has established a central filing system--
in the case of a farm product produced in a State that has established a central filing system, the buyer--
A commission merchant or selling agent who sells a farm product for others shall be subject to a security interest created by the seller in such farm product if--
within 1 year before the sale of such farm product the commission merchant or selling agent has received from the secured party or the seller written notice of the security interest; organized according to farm products, that--
in the case of a farm product produced in a State that has established a central filing system, the commission merchant or selling agent--
If a security agreement contains a provision described in paragraph (1) and such person engaged in farming operations sells the farm product collateral to a buyer or through a commission merchant or selling agent not included on such list, the person engaged in farming operations shall be subject to paragraph (3) unless the person--
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