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You are asking. . .

Q. Aren't all purchase money security interests automatically given priority over everyone else?

A. No. N.D.C.C. § 41-09-33 (U.C.C. § 9-312) provides that if there is a question of priority, a purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives possession of the collateral or within twenty days thereafter. So, in order to perfect a purchase money security interest, file a financing statement with the office of the Secretary of State or the Register of Deeds at the time the debtor receives possession of the collateral or within twenty days.

Q. With the new season upon us, we are now permitted to include specific crops and other personal property in the same security agreement, correct?

A. Yes. Effective August 1, 1997, the 1997 legislature repealed N.D.C.C. § 35-05-04, which prohibited including crops and other personal property as collateral on a single security agreement. You can now take a security interest in crops and equipment, machinery, and livestock in the same security agreement.