§12A-9-307.7.

§12A-9-307.7.
   
   Written Notification Affecting Farm Products; Disclosure Requirements;
   Penalty.
   
   (1) A secured party or a seller of farm products may furnish to the
   buyer of such farm products, commission merchant, or selling agent,
   within one (1) year before the sale of the farm products, a written
   notice of such security interest, organized according to farm
   products, that:
   
   (a) is an original or reproduced copy thereof;
   
   (b) contains:
   
   (i) the name and address of the secured party;
   
   (ii) the name and address of the person indebted to the secured party;
   
   (iii) the social security number of the debtor or, in the case of a
   debtor doing business other than as an individual, the Internal
   Revenue Service taxpayer identification number of such debtor; and
   
   (iv) a description of the farm products subject to the security
   interest created by the debtor, including the amount of such products
   where applicable, crop year, county, and a reasonable description of
   the property;
   
   (c) must be amended in writing, within ten (10) days, similarly signed
   and transmitted, to reflect material changes. Any such amendment shall
   also be filed with the Secretary of State as provided in Section
   9-307.6 of this title;
   
   (d) will lapse on the expiration period of the statement, the
   transmission of a notice signed by the secured party that the
   statement has lapsed, or distribution as provided in Section 6 of this
   act of the next ensuing master list on which the security interest is
   reflected, whichever occurs first; and
   
   (e) states any payment obligations imposed on the buyer of farm
   products, commission merchant, or selling agent by the secured party
   as conditions for waiver or release of the security interest.
   
   (2) A secured party may furnish written notice as provided in this
   section:
   
   (a) only during the interval between the date on which the debtor
   signed the effective financing statement as provided in Section 6 of
   this act and distribution of the next ensuing master list on which the
   security interest of the secured party in the farm products of such
   debtor is reflected; and
   
   (b) only after filing an effective financing statement with the
   Secretary of State as provided in Section 9-307.6 of this title.
   
   (3) For purposes of this section, receipt of notice shall be presumed
   if notice is sent by certified mail.
   
   (4) (a) A secured party who intends to furnish written notification of
   the existence of a security interest in farm products as provided in
   this section, shall require the person engaged in farming operations
   to execute a security agreement containing a provision requiring such
   person to furnish to the secured party a list of the buyers,
   commission merchants, and selling agents to or through whom such
   person may sell the farm products. If the person engaged in farming
   operations sells the farm product collateral to a buyer or through a
   commission merchant or selling agent not included on the list, the
   person engaged in farming operations shall be subject to the penalty
   provisions of paragraph (b) of this subsection, unless such person:
   
   (i) has notified the secured party in writing of the identity of the
   buyer, commission merchant, or selling agent at least seven (7) days
   prior to such sale; or
   
   (ii) has accounted to the secured party for the proceeds of such sale
   not later than twenty (20) days after such sale.
   
   (b) A person violating the provisions of paragraph (a) of this
   subsection shall be fined Five Thousand Dollars ($5,000.00) or fifteen
   percent (15%) of the value or benefit received for such farm product
   described in the security agreement, whichever is greater.