Addendum to Security Agreement
[Farm Products]
Basic Information
Date:
Debtor:
Secured Party:
Date of Security Agreement:
This addendum applies to and is incorporated in the security agreement.
A.Supplemental Description of Farm Products Collateral
A.1.Type and description of farm products collateral: [describe collateral and specify farm products collateral type according to USDA classification system at 9 C.F.R. § 205.206(a)].
A.2.Amount of farm products collateral:
A.3.Crop year of farm products collateral:
A.4.[County/Counties] where farm products collateral located:
A.5.Real property where farm products collateral located:
A.6.Additional collateral:
The Collateral includes, with respect to both the Collateral and all products, increase, or offspring of the Collateral, the following: all seed, seed plants, and propagative materials of crops or plants; all sale or other proceeds; all insurance proceeds for loss, damage, or theft; all claims or causes of action relating to use, sale, lease, damage, or loss; all contracts, warehouse receipts, bills of lading, assignments, receipts, claims, drafts, checks, or causes of action relating to or representing any sale of the Collateral; all fees, charges, or things of value earned by livestock for reproductive services or uses of any kind; all copyrights and patents in any way relating to or arising out of the Collateral; all future-acquired property of Debtor of the same type or kind as the Collateral; and all additions to or replacement of the Collateral.
B.Debtor Agrees:
B.1.Conditions for Sale of Collateral. This security interest may not be waived or released unless the sale or other disposition is approved in advance in writing by Secured Party for the full value of the Collateral and the consideration from the sale or other disposition is actually delivered to Secured Party and finally paid. Debtor may not transfer or encumber the Collateral or engage in any transaction involving the Collateral with any buyer, commission merchant, or selling agent without seven days’ prior written notice to Secured Party and without securing the prior written consent of Secured Party. Debtor may make no sale or other disposition of any of the Collateral unless the proceeds are paid by an instrument jointly payable to Debtor and Secured Party and delivered to Secured Party. Debtor will immediately remit to Secured Party all proceeds of the sale or other disposition or as much of the proceeds as necessary to fully discharge the Obligation.
B.2.Conditions for Collateral Storage. The Collateral may not be placed in storage at any storage facility issuing warehouse receipts for the Collateral without seven days’ prior written notice to Secured Party. Any warehouse receipts issued for the Collateral must be nonnegotiable warehouse receipts naming Secured Party as the person entitled to possession of the Collateral. Debtor must immediately deliver all such receipts to Secured Party. Before placing any of the Collateral in storage, Debtor must advise the storage facility of the security interest of Secured Party in the Collateral.
B.3.Compliance with Federal Food Security Act. Debtor agrees to furnish Secured Party a list of the names and addresses of every buyer, commission merchant, and selling agent to or through whom Debtor may make any sale or other disposition of the Collateral. “Commission merchant” and “selling agent” have those meanings set out in 7 U.S.C. section 1631. Debtor agrees to notify Secured Party in writing of the identity of any buyer, selling agent, or commission merchant for any of the Collateral at least seven days before the sale or other disposition of any part of the Collateral as may be authorized by the security agreement. If Debtor makes an unauthorized sale or transfer of the Collateral, Debtor must account to Secured Party for the proceeds of the sale or other disposition within ten days.
Notice: Violation of the foregoing may constitute a criminal act under the provisions of 7 U.S.C. section 1631.
B.4.Additional Defaults. In addition to the defaults listed in the security agreement, a default exists if—
a.the Collateral is not maintained, preserved, or protected according to the standards of the industry or good agricultural husbandry; or
b.Debtor makes any sale or other disposition of any of the Collateral without complying with the provisions of this addendum.
B.5.Additional Remedies on Default. If a default exists, Secured Party, in addition to the remedies provided in the security agreement, may—
a.complete any and all growing, grazing, fattening, or other farming or ranching operations in connection with the Collateral reasonable to its sale or other disposition; or
b.incur reasonable expenses on behalf of Debtor in connection with the retaking, holding, storing, growing, nurturing, fattening, or grazing of the Collateral and in preparation of the Collateral for sale or other disposition.