HARRY HUGHES, Governor

2319

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1985.

Approved May 21, 1985.

CHAPTER 390

(House Bill 999)

AN ACT concerning

Notice of Security Interest - Buyer of Farm Products

Auctioneers

FOR the purpose of providing that a buyer of farm products takes
free of any security interest if the buyer registers with
the Secretary of Agriculture for the purpose of receiving
notification of certain liens and pays an annual fee to the
Secretary and the secured party fails to notify the buyer of
farm products of the existence of the lien by mailing a
certain written notice; requiring that the written notice of
security interests be provided to buyers of farm products by
the secured party; in order to insure payment to the secured
party; making it the responsibility of the secured party to
request a list of registrants from the Secretary on a
regular basis in order to recieve notice of the purchase of
any farm products subject to a lien held by the secured
party, defining a certain term; requiring the written notice

of security interests to contain certain information;

providing that a buyer of farm products, who receives the
written notice of security interests and makes proper
payment to the seller and to any secured parties listed in
the written notice, is protected from claims by any secured

party not listed; and generally relating to security

interests in the purchase of farm products.

FOR the purpose of providing that a person who, without acquiring
an interest in farm products, performs auction services for
a seller of farm products may not be liable to the holder of
a security interest in the farm products solely by reason of
having performed the auction services, even though the
security interest is perfected and the person performing the
auction services knows of the perfection; and generally
relating to the taking of goods free of security interests
under the Commercial Law Article.

BY repealing and reenacting, with amendments,

Article - Commercial Law
Section 9-307