Law governing perfection and priority of agricultural liens.
While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
Source:Laws 1999, LB 550, § 95.
1. Source. New.
2. Agricultural Liens. This section provides choice of law rules for agricultural liens on farm products. Perfection, the effect of perfection or nonperfection, and priority all are governed by the law of the jurisdiction in which the farm products are located. Other choice of law rules, including section 1-301, determine which jurisdiction's law governs other matters, such as the secured party's rights on default. See section 9-301, comment 2. Inasmuch as no agricultural lien on proceeds arises under this article, this section does not expressly apply to proceeds of agricultural liens. However, if another statute creates an agricultural lien on proceeds, it may be appropriate for courts to apply the choice of law rule in this section to determine priority in the proceeds.