43-31-104 - Extent of supplier's security interest When it attaches.
43-31-104. Extent of supplier's security interest When it attaches.
(a) A supplier who furnishes crop production inputs has an agricultural input security interest only as provided in this chapter for the unpaid retail cost of the crop production inputs. The security interest attaches to:
(1) The existing crops upon the land where a furnished agricultural chemical was applied, or if crops are not planted, to the next production crop following the last date on which the agricultural chemical was applied;
(2) The crops produced from furnished seed; or
(3) The crops produced, harvested, or processed using a furnished petroleum product.
If the crops are grown on leased land and the lease provides for payment in crops, the security interest does not attach to the lessor's portion of the crops. The security interest continues in crop products and proceeds.
(b) An agricultural input security interest attaches when the agricultural production inputs are furnished by the supplier to the purchaser.
[Acts 1986, ch. 922, § 4.]