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§12A-9-307.4.
§12A-9-307.4.
Protection of Buyers of Farm Products, Commission Merchants
and Selling Agents.
A buyer of farm products, commission merchant, or selling agent who
purchases or sells farm products in the ordinary course of business
from or for a person engaged in farming operations takes subject to a
security interest in such farm products if:
(a) (i) the buyer of farm products, commission merchant or selling
agent has failed to register with the Secretary of State prior to the
purchase of such farm products and the secured party has filed an
effective financing statement that covers the farm products being
sold; or
(ii) the buyer of farm products, commission merchant or selling agent
receives from the Secretary of State written notice as provided in
paragraph (d) or (f) of subsection (4) of Section 6 of this act, and
such buyer of farm products, commission merchant or selling agent does
not secure a waiver or release of the security interest specified in
such effective financing statement from the secured party by
performing any payment obligation or otherwise; or
(b) the secured party or the seller provides written notice of the
security interest pursuant to the provisions of Section 7 of this act.
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