{"data":{"id":"us-nc/n.c.-gen.-stat.-25-9-103.1","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-9-103.1","heading":"Production-money crops; production-money obligation; production-money security interest; burden of establishing.","body":"(a)\tProduction-money crops. - A security interest in crops is a production-money security interest to the extent that the crops are production-money crops.\n(b)\tProduction-money obligation. - If the extent to which a security interest is a production-money security interest depends on the application of a payment to a particular obligation, the payment must be applied:\n(1)\tIn accordance with any reasonable method of application to which the parties agree;\n(2)\tIn the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or\n(3)\tIn the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order:\na.\tTo obligations that are not secured; and\nb.\tIf more than one obligation is secured, to obligations secured by production-money security interests in the order in which those obligations were incurred.\n(c)\tProduction-money security interest. - A production-money security interest does not lose its status as such, even if:\n(1)\tThe production-money crops also secure an obligation that is not a production-money obligation;\n(2)\tCollateral that is not production-money crops also secures the production-money obligation; or\n(3)\tThe production-money obligation has been renewed, refinanced, or restructured.\n(d)\tBurden of proof. - A secured party claiming a production-money security interest has the burden of establishing the extent to which the security interest is a production-money security interest. (1866-7, c. 1, s. 1; 1872-3, c. 133, s. 1; Code, s. 1799; 1893, c. 9; Rev., s. 2052; C.S., s. 2480; 1925, c. 302, s. 1; 1927, c. 22; 1935, c. 205; 1945, c. 196, s. 4; 1955, c. 816; 1957, c. 999; 1965, c. 700, s. 1; 1967, c. 24, s. 13; 1975, c. 862, s. 7; 1979, c. 404, s. 2; 1989 (Reg. Sess., 1990), c. 1024, s. 8(o); 1997-181, ss. 15, 16; 1997-336, s. 1; 1997-456, s. 5; 2000-169, s. 1.)","path":["Chapter 25. Uniform Commercial Code.","Article 9. Secured Transactions.","Part 1. General Provisions."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-103.1.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"6f804ee6c982671a164f0d096651d61049fafcb9b9c93cd3f1eeee925c200a2c","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-9-103","next":"us-nc/n.c.-gen.-stat.-25-9-104"},"notice":"GroundRules: Original legal text. Not legal advice."}