37 Security Interests In Crops

• 37 (1) In this section, “secured party” includes a receiver.
• (2) This section applies to land for which a certificate of title has been issued under the Land Title Act and to prescribed land or classes of land.
• (3) Except as provided in this section, a security interest in crops has priority with respect to the crops over an interest in the crops claimed by a person with an interest in the land.
• (4) A security interest referred to in subsection (3) is subordinate to the interest of

• (a) a person who acquires for value an interest in the land while the crops are growing crops, including an assignee for value of the interest of a person with an interest in the land while the crops are growing crops, and
• (b) a person with a registered mortgage on the land who
  • (i) makes an advance under the mortgage after the crops become growing crops, but only with respect to the advance, or
  • (ii) obtains an order for sale or foreclosure after the crops become growing crops,

• without fraud and before the notice of the security interest in the growing crops is filed in accordance with section 49.
• (5) A security interest referred to in subsection (3) is subordinate to the interest of a creditor of the debtor who causes to be registered, in accordance with the Court Order Enforcement Act, a judgment in the appropriate land title office affecting the land on which the crops are growing before the notice of the security interest is filed in accordance with section 49.
• (6) The interest of a creditor referred to in subsection (5) does not take priority over a purchase money security interest in the crops, or a security interest in the crops referred to in section 34(8), a notice of which is filed in accordance with section 49 not later than 15 days after the time the security interest in the crops attaches.
• (7) Section 36(8) to (15) applies to seizure and removal of growing crops from land.

1989-36-37.