This post should not be construed as legal advice.
Many of you realize that the agricultural industry relies on financing to operate. Producers often take out operating loans annually to purchase necessary inputs, and the lenders in return often secure these operating loans with the crops the producers grow. What happens if a producer fails to pay the lender back for the operating loan but sells the crop to a third party? Could that third party have to pay twice, once to the producer and once to the lender who had a security interest in the crop?Read More