Opinion
Case No. 99-40689
June 4, 2001
JUDGMENT ON DECISION
This case comes before the Court on Debtor's Motion For Utilization Of Cash Collateral and Ag Services Of America, Inc.'s Motion To Prohibit Debtor's Use Of Cash Collateral And For Turnover Of CLDAP Payment. In its motion, Shore Limited ("Shore"), debtor, sought to use funds received from the Crop Loss Disaster Assistance Program ("CLDAP") post-petition to purchase cattle. Ag Services of America, Inc. ("Ag Services") objected to Shore's use of the funds, claiming it had a valid security interest in the CLDAP payment. On February 1, 2001, the Court granted Shore's Motion for Use of Cash Collateral and allowed Ag Services a replacement lien on cattle purchased with the CLDAP payment only if it could establish a lien in the payment, taking the issue of whether Ag Services had a valid lien in the CLDAP payment under advisement.
For reasons stated in the Memorandum Opinion Concerning Ag Services' Security Interest In CLDAP Payments, the Court finds that Ag Services has a valid and perfected security interest in, inter alia, Shore's crops, proceeds, and government payments, and that this security interest extends to the CLDAP payment as well as any cattle purchased by debtor pursuant to this Court's previous orders with CLDAP payment and the proceeds of such cattle.
IT IS SO ORDERED.