Security interests in growing and unharvested crops are prohibited, and any security
agreement purporting to create a security interest therein is void. The provisions of this section
do not apply to any security interest or lien in favor of the United States, this state, any county,
or any department or agency of any of them, including the Bank of North Dakota, nor to any
financial institution as defined by section 6-01-02 or 21-04-01, nor to any agricultural
cooperative or agricultural lending agency, nor to any security interest created by contract to
secure money advanced or loaned for the purpose of paying government crop insurance
premiums or to secure the purchase price or the rental or improvement of the land upon which
the crops covered by the contract are to be grown.
Notes of Decisions
Great W. Bank v. Willmar Poultry Co., 2010 ND 50, 780 N.W.2d 437.
· cites it 4× “An agricultural supplier’s lien filed as a security interest created by contract to secure money advanced or loaned for any purposes is not effective to secure a priority over liens filed under section 35-05-01. This chapter does not limit the sale, assignment, or transfer of an…”
In Re Yagow, 62 B.R. 73 (Bankr. D.N.D. 1986).
· cites it 6× “PCA alleges that section 35-05-04 has been impliedly repealed by a 1932 initiated measure and by section 35-05-01. This argument is meritless.”
Prod. Credit Ass'n of Minot v. Melland, 278 N.W.2d 780 (N.D. 1979).
· cites it 3× “Delaney is a crop mortgage to an individual which is not valid under N.D.C.C. § 35-05-01; “3. As a transfer of growing crops, the ‘Agreement,’ dated December 19, 1975, between Defendant Dorland Melland and Defendant Daniel R.”
First State Bank v. Moen Enter., 529 N.W.2d 887 (N.D. 1995).
· cites it 2× “For example, N.D.C.C. § 35-05-01, which restricts the taking of crop liens by anyone other than certain specified govem- *891 mental bodies and agricultural lenders, provides “[s]eeurity interests in growing and unharvested crops are prohibited.”
Bernstein Ranch, LLC v. United States (In Re Bernstein), 230 B.R. 144 (Bankr. D.N.D. 1999).
· cites it 2× “An agricultural supplier’s lien filed as a security interest created by contract to secure money advanced or loaned for any purposes is not effective to secure a priority over liens filed under section 35-05-01. (Emphasis added). Assuming the proper procedure for obtaining a hen…”
Stockman Bank of Montana v. AGSCO, INC., 2007 ND 27, 727 N.W.2d 742.
· cites it 6× “§ 35-31-01 was amended to provide that “[a]n agricultural supplier’s lien filed as a security interest created by contract to secure money advanced or loaned for any purposes is not effective to secure a priority over liens filed under section 35-05-01.” As originally…”
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