2013 North Dakota Century Code Title 35 Liens Chapter 35-05 Crop Mortgages
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CHAPTER 35-05
CROP MORTGAGES
35-05-01. Security agreement on crops prohibited - Exceptions.
Security interests in growing and unharvested crops are prohibited, and any security
agreement purporting to create a security interest therein is void. The provisions of this section
do not apply to any security interest or lien in favor of the United States, this state, any county,
or any department or agency of any of them, including the Bank of North Dakota, nor to any
financial institution as defined by section 6-01-02 or 21-04-01, nor to any agricultural
cooperative or agricultural lending agency, nor to any security interest created by contract to
secure money advanced or loaned for the purpose of paying government crop insurance
premiums or to secure the purchase price or the rental or improvement of the land upon which
the crops covered by the contract are to be grown.
35-05-01.1. Crop liens - Limitations - Exceptions - Remedies - Penalty.
A security interest upon crops attaches only to the crop next maturing after the delivery of
the security agreement. The financing statement covering a crop cannot be used to enforce a
security interest on any crop other than the crop listed in the security agreement. If the court
finds a willful violation of this section, the court shall award a producer the reasonable expenses
of maintaining an action, including reasonable attorney's fees. The provisions of this section do
not apply to liens by contract given to secure the purchase price or the rental of land upon which
the crops covered by the lien are to be grown or to a security interest upon crops created by a
security agreement that contains an after-acquired property clause and the following wording or
its equivalent, in boldface print or set forth in some other conspicuous manner, is in the
agreement: "This security agreement covers crops now growing. This security agreement also
covers future crops to be grown in the current year or any year hereafter.". The lien on future
crops maintains its priority as to crops grown in future years only so long as the lienholder
continues to provide operating funds to the borrower. If, in any subsequent year, another entity
entitled to a crop security interest under section 35-05-01 advances operating funds to a
borrower, the entity has a first priority purchase money security interest in the crops grown by
the borrower during the year in which the funds are advanced.
35-05-02. Lien on crops - Limitation - Exceptions.
Repealed by S.L. 1965, ch. 296, § 32.
35-05-03. Bills of sale and transfers circumventing crop mortgage law prohibited Presumption - Penalty.
No person may solicit or procure bills of sale or transfers of whatever nature for the purpose
of obtaining title to or liens upon growing crops in circumvention of section 35-05-01, and any
such bill of sale or transfer is void. Any such bill of sale or transfer relating to growing crops is
presumed to be in violation of this section. Any person who violates the provisions of this section
is guilty of an infraction.
35-05-04. Security agreement not to include other personal property.
Repealed by S.L. 1997, ch. 301, § 3.
35-05-05. Recorder to keep index of continuing crop liens.
Repealed by S.L. 1969, ch. 317, § 1.
35-05-06. Abstract of crop liens - Fees - Duty of recorder.
Repealed by S.L. 1969, ch. 317, § 1.
35-05-07. Cancellation by recorder - Exception.
Repealed by S.L. 1965, ch. 296, § 32.
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