Federal Food Security Act
The Federal Food Security Act provides buyers of farm
products, commission merchants and selling agents the opportunity to register
for a listing of security interests in specific farm products such as cattle,
horses, hogs, wheat, barley, hay, etc. Failure for the buyer to register with
the Secretary of State's office makes the buyer liable for payment of the
security interest. Buyers who register will be deemed to be registered only as
to those portions on the master list for which they registered. A registered
buyer will receive clear title when purchasing farm products for those products
in which they have registered.
To register with the Secretary of State's office the buyer
must complete the Farm Bill Registration. Montana does not charge a fee for the buyer to register. Once
registered, the buyer will receive a monthly Farm Bill Master List. The fees
for the Farm Bill Master List are as follows:
| Paper Output |
$5.00 per category plus $0.10 per page over fifty |
| Microfiche Output |
$5.00 per category plus $0.20 per microfiche over twenty-five |
| CD-ROM |
$20.00 |
The Farm Bill Master List is run on the 15th of
every month unless the 15th is on a weekend or holiday and then the
list is run the previous business day. The Farm Bill Master List is distributed
to registered buyers no later then the 20th of each month.
Registered buyers must refer to the Farm Bill Master List
before purchasing farm products to determine if a security interests exists. If
a security interests exists against the specific farm product being sold then
the buyer is responsible for writing the check in the seller's name and the
lender who holds the security interest.
A new separate
Effective Financing Statement form has been designed that meets the requirements
of the Federal Food Security Act so the lien appears on the Farm Bill Master
List.
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