How would you perfect a security interest in a landlord's lien on crops? Our borrower, landlord, rents to a farmer and takes a 14% interest in crops grown. He is placing his interest in the farmer's crop as collateral for our loan. I was thinking that farm products would not be an appropriate description since our borrower is not actively engaged in the farming operation?? Confused about how to describe and perfect on his interest

If it is the actual crop you are taking the interest in and not the proceeds then it would still be approrpiate to describe the collateral as farm products.

Someone more knowledgable in UCC law will need to respond, but if your borrower is the landlord, and the collateral offered is his interest in the crops of another person, I would take accounts as my collateral for the purpose of UCC filing. The landlord can not grant the crops of someone else as your collateral, they can only grant the proceeds they receive from the farmer for the use of the land. This would be an account receivable for the landlord. If the landlord has a filed lien on the proceeds of the crop. You could take an assignment of that lien as well. This is just my take and I would like to hear others comments.

Taking crops on rented land, borrower should have a lease agreement signed by the landholder allowing him to plant crops on his land. You then take a UCC1F on Farm Products (Crops , Livestock, and aqua culture ): File with Secretary of State (Central Filing System). A UCC1F is still required with debtor and secured party's signature. The Food Security Act of 1985 still requires the Farm Product Description, Quantity, Crop Code, Crop year, County code, and a description of the real estate, e.g. 100 acres rented from Joe Jones, S5, T6N, R9E.

These are the guidelines that we understand under the NEW article 9. I have just today posted another question about refiling a continuation of a UCC1F that was filed in the county that needs to be continued. I would like some help on that also. If you have an old UCC1F filing in the county that needs to be continued, do you file an "in lieu" filing with the Secretary of State? Under the old article 9 we had to file in the county in the land records, but I "think" under the new Article 9, you just indicate the legal description on the form, but actually file in the State of Juridiction. Can someone give me some insight on this?