What does agricultural lien mean?
What does agricultural-lien mean? (US, law) A statutory lien that protects the seller of farming equipment by giving the seller a lien on crops grown with…
What is an agricultural lien under the UCC?
Under the 2001 amendment of Article 9 of the Uniform Commercial Code (UCC), agricultural liens are a special kind of interest for lenders. 810 ILCS 5/9-102 (a) (5) defines an “agricultural lien” to mean an interest, other than a security interest, in farm products: (A) which secures payment or performance of an obligation for goods or …
How to get agricultural loan?
The Attorney General is required to perform debt collection legal services for certain Virginia State Colleges and Universities on overdue student accounts. Sometimes the collection fees can increase the amount of money owed by students by as much as 30 percent. Miyares says that’s wrong.
What is a crop lien?
The crop-lien system was a credit system that became widely used by cotton farmers in the United States in the South from the 1860s to the 1930s. Sharecroppers and tenant farmers, who did not own the land they worked, obtained supplies and food on credit from local merchants. The merchants held a lien on the cotton crop, and the merchants and landowners were the first ones paid from its sale.
How did the crop lien system work?
The crop-lien system was a way for farmers, mostly black, to get credit before the planting season by borrowing against the value of anticipated harvests. Local merchants provided food and supplies all year long on credit; when the cotton crop was harvested farmers turned it over to the merchant to pay back their loan.
How do you perfect a security interest in farm products?
A security interest is also perfected in goods if the secured party simply takes possession of the property. By taking possession of the property, the secured party alerts other potential third parties that he has a security interest in the collateral already.
What is an EFS statement?
Under the FSA, if the state has a certified CNS system, then the secured party can file an effective financing statement (“EFS”) with the secretary of state to notify buyers of the claimed security interest.
Why was the crop lien system important?
In the post-Civil War South, the crop lien system allowed farmers to obtain supplies, such as food and seed, on credit from merchants; the debt was to be repaid after the crop was harvested and brought to market.
Is livestock a good under the UCC?
Governed by Article 9 of the UCC, “Farm products” include livestock, livestock and the products of crops or livestock in their unmanufactured state. A bank or secured party will ordinarily perfect its security interest in farm products by filing a UCC-1 financing statement.
How do you perfect a security interest in livestock?
For agricultural secured transactions, there are a few general methods of perfection: (1) possession of the collateral; (2) control of the collateral; (3) automatic perfection when the security interest attaches; and (4) filing a financing statement.
Can a financing statement be filed electronically?
(b) An EFS may be filed electronically provided a State allows electronic filing of financing statements without the signature of the debtor under applicable State law under provisions of the Uniform Commercial Code or may be a paper document.
What is the difference between sharecropping and crop-lien system?
Farmers Caught & the Crop-Lien System So the small landowner often had to guarantee a portion of his upcoming crop to the country merchant, in exchange for the goods he needed – which were purchased on credit. The sharecropper worked someone else’s land and paid rent with a portion of his harvest.
How did the crop-lien system affect farmers?
Abuses in the crop lien system reduced many tenant farmers to a state of economic slavery, as their debts to landlords and merchants carried over from one year to the next. Many landowners joined the ranks of farm tenants when excessive indebtedness led to foreclosure.
Is sharecropping the same as crop-lien system?
(The term crop lien encompasses two forms of agricultural labor: tenant farming, in which the farmer owns his own tools and receives three-quarters of the cash crop and two-thirds of the corn that he raises; and sharecropping, in which the farmer provides only his labor and that of his family, and receives half of the …