Prenotification Statement
[Notice of Security Interest]
Basic Information
To: [name of buyer, commission merchant, or selling agent]
Date:
Debtor:
Debtor’s Mailing Address:
Debtor’s Social Security No. or Federal Tax ID No.:
Secured Party:
Secured Party’s Mailing Address:
Collateral:
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)].
2.Amount of farm products collateral:
3.Crop year of farm products collateral:
4.[County/Counties] where farm products collateral located:
5.Real property where farm products collateral located:
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.
Conditions for Waiver or Release of Security Interest
The 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 to be sold (as that value may be determined by Secured Party) 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. Any contract or agreement for the sale or other disposition of any of the Collateral must provide that the sales proceeds will be 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.
Notice of Security Interest
Debtor or Secured Party has identified you as a potential buyer, commission merchant, or selling agent of the Collateral. You are hereby given notice pursuant to the Food Security Act of 1985 that Debtor has given a security interest in the Collateral to Secured Party. This security interest covers the Collateral wherever located.
You will be subject to the security interest in the Collateral unless the Conditions for Waiver or Release of Security Interest are satisfied.
Satisfaction of the Conditions for Waiver or Release of Security Interest will not affect the security interest of the Secured Party in any proceeds from the sale or other disposition of the Collateral.
[Name of secured party]