Page:United States Statutes at Large Volume 99 Part 2.djvu/428

 99 STAT. 1538

PUBLIC LAW 99-198—DEC. 23, 1985

(11) The term "Secretary of State" means the Secretary of State or the designee of the State. (d) Except as provided in subsection (e) and notwithstanding any other provision of Federal, State, or local law, a buyer who in the ordinary course of business buys a farm product from a seller engaged in farming operations shall take free of a security interest created by the seller, even though the security interest is perfected; and the buyer knows of the existence of such interest. (e) A buyer of farm products takes subject to a security interest created by the seller if— (I)(A) within 1 year before the sale of the farm products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that— (i) is an original or reproduced copy thereof; (ii) 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; (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 or parish, and a reasonable description of the property; and (iii) must be amended in writing, within 3 months, similarly signed and transmitted, to reflect material changes; (iv) will lapse on either the expiration period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and (v) any payment obligations imposed on the buyer by the secured party as conditions for waiver or release of the security interest; and (B) the buyer has failed to perform the payment obligations, or (2) in the case of a farm product produced in a State that has established a central filing system— (A) the buyer has failed to register with the Secretary of State of such State prior to the purchase of farm products; and (B) the secured party has filed an effective financing statement or notice that covers the farm products being sold; or (3) in the case of a farm product produced in a State that has established a central filing system, the buyer— (A) receives from the Secretary of State of such State written notice as provided in subparagraph (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm product being sold by such seller as being subject to an effective financing statement or notice; and (B) does not secure a waiver or release of the security interest specified in such effective financing statement or

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