Rule 1-4-13.5 - Agricultural Liens - Mississippi Central Filing System Regulations for Farm ProductsA. Summary of Agricultural Central Filing System - The Mississippi Secretary of State prescribes regulations for implementation and management of a "Central Filing System" for an "effective financing statement" as defined in Chapter of these regulations. 1. Supplementary Information - Section 1324 of the Food Security Act of 1985, P.L. 99-198 (hereinafter "The Food Security Act"), is headed "Protection For Purchasers of Farm Products." Subsections (e) and (q) of the Food Security Act provide that certain persons may be made subject to a security interest in a Farm Product created by the seller under certain circumstances including the existence of a statewide "central filing system" for an "effective financing statement." Part three of Senate Bill 2626 (2001 Mississippi Legislative Session), Mississippi Code § 75-9-320(g) provides; "The Secretary of State shall issue regulations implementing a central filing system relating to farm products." These regulations set forth requirements for the implementation of the Central Filing System. This document is believed and intended to be in full compliance with the regulations promulgated by the United States Department of Agriculture in accordance with the Food Security Act for certification of the Central Filing System. The Secretary of State's authority and responsibility is limited to the implementation and management of the Central Filing System. The Secretary of State's authority does not extend to other matters under the section. The legislation does not give the Secretary any authority or responsibility relating to such matters and direct notification by secured parties, sales and payment for products, standards for making checks payable, and procedures for personal liability protection. These regulation are subject to changes to reflect amendments to federal Law/or federal regulations. C. Effective Financing Statement (EFS) for Farm Product Filings - The Mississippi UCC-1F is designated as the official form to be used as an effective financing statement. The UCC-1F contains all information required under state law (Mississippi Code § 75-9-502) for filing financing statements. Additionally, the UCC-1F captures the information required for filing an effective financing statement in the central filing system. For filing efficiency and to eliminate a duplicate filing requirement, all Farm Products should be submitted for filing on the UCC-1F financing statement. Forms including the Mississippi UCC-1F, Mississippi UCC-3F, National UCC-5, and National UCC-11 forms will be used for the Central Filing System. Other documents containing information which complies with Mississippi law and § 1324 of the Food Security Act of 1985 will be accepted for filing. 1. Farm Filing EFS Requirements a. Debtor name and address (or other person subjecting the farm product to the security interest). In the case of a natural person, the surname (last name or family name) must appear first; in the case of a corporation or other entity not a natural person, the name must appear beginning with the first word not an article; b. Debtor's social security number or, if other than a natural person, IRS taxpayer identification ; c. Secured party name an address; d. Crop year unless every crop of the Farm Product in question, for the duration of the EFS, is to be subject to the particular security interest; e. Farm Product name and Farm Product code as published by the Mississippi Secretary of State (Attached as Appendix "A") and is included in the online filing system. f. Each county code number in the state where the Farm Product is produced or to be produced. County Codes are found in Appendix "B" attached and are included in the online filing system. g. Signature of debtor and secured party if submitted non-electronically until July 1, 2017. Beginning July 1, 2017 the Mississippi Secretary of State will accept electronic filing of UCC statements for farm liens, and will accept an electronic reproduced copy of a statement and paper copies produced by the Secretary of State's electronic filing system pursuant to Rule 5.3 without the debtor's signature; h. Further details of the Farm Product subject to the security interest if needed to distinguish it from other such product owned by the same person but not subject to the particular security interest. 2. Place of Filing EFS a. The place of filing an EFS or notice of such financing statement is with the Mississippi Secretary of State, Division of Business Services. b. Presentation for filing of an effective financing statement (UCC-1F) and tender of the filing fee and acceptance of the statement by the system operator constitutes filing. The system operator shall mark each EFS with a file number and with the date and hour of filing. In addition the system operator shall index the statements in a manner which will comply with the farm products master list requirements. c. A UCC-3F or UCC-1F may be submitted for all Farm Products currently on file. The UCC-3F amendment or UCC-1F should provide all information (i.e. collateral codes, federal ID numbers, etc.) needed for preparation of the master list of Farm Products. 3. Amendment or Continuation of EFS a. The "material change" required by the Food Security Act to be reflected in an amendment (UCC-3F) to an EFS and master list entry, is whatever change that would render the master list entry no longer informative as to what is subject to the security interest in question. This will vary from case to case. The basis for this is the purpose for which the information is supplied, that is, to make information available, to a buyer, commission merchant, or selling agent who proposes to enter into a transaction in a product, whether it is subject to a security interest. The requirement to amend arises when the information already made available no longer serves the purpose and other information is needed in order to do so.b. The amendment must be submitted in writing (UCC-3F) within three months of such material change signed by both the person who subjects the farm product to the security interest and the secured party, and filed with the Secretary of State. c. A continuation of an EFS is subject to the same requirement as an amendment. An effective financing statement remains effective for a period of five (5) years from the date of filing, subject to extensions for additional periods of five (5) years each by refilling or filing a continuation statement within six (6) months before the expiration of the initial five (5) year period. d. An EFS lapses on either the expiration or the filing of a notice signed by the secured party that the statement had lapsed, whichever occurs first.e. An EFS may be terminated at any time during the effective period by the secured party submitting a termination statement UCC-3F).4. Effect of EFS Outside State in Which Filed a. A question arises whether, if an EFS is filed in one State, a notice of it should be filed in another State. Where the farm products covered by an EFS are located in a state other than the state where the debtor is -located as defined under the UCC, filers may need to file in both states to ensure that the creditor is adequately protected under both the UCC and Food Security Act. It is may be advisable to seek legal advice in such situations.b. The Food Security Act provides only for filing an EFS, covering a given product, in the system for the state in which it is produced. Upon such filing in the system, buyers, commission merchants and selling agents not registered with the system are subject to the security interest in that product whether or not they know about it, even if they are outside that state. Persons registered with the system are subject if they received written notice of an EFS even if they are outside that state. All of these provisions apply only where an EFS is filed in the system for the state in which the product is produced. They do not apply to a filing in another system.D. Obligations Subject to Central Filing 1. The Food Security Act does not provide for the transaction in which one person subjects a product to a security interest for another's debt. However, the terms "person indebted" and "debtor" in the Food Security Act refer to the person who owns a product and subjects it to a security interest, whether or not that person owes a debt to the secured party. The basis for this is the purpose for which the information is supplied. Any buyer of a Farm Product, commission merchant, or selling agent querying the master list or system operator about a prospective seller of a Farm Product is interested in whether that seller has subjected that product to a security interest, not in whether the debt is owed by that seller or by another.2. A debt need not exist at the time of filing of an EFS.E. Registration 1. Buyer, commission merchants and selling agents may register with the Secretary of State, for an annual period by submitting a registration form accompanied with the registration fee for each farm product for which an interest is registered. The registration form shall be provided by the Mississippi Secretary of State, Division of Business Services and indicate2.a. The name and address of the buyer, commission merchant, or selling agent. Any address changes of the buyer, commission merchant or selling agent shall be reported immediately to the system operator.b. Farm Product or Products in which registrant is interested.c. If registrant is interested only in such product or products in a certain county or certain counties, in the State of Mississippi.3. A registrant, if not registered for any specified county or counties, shall be deemed to have registered for all counties shown on the master list.4. The list will only be provided online and will be accessed by subscribers using a password as determined by the Secretary of State.5. The list will be electronically updated daily .6. The Food Security Act does not require a person to register. Not registering with the system operator has the effect, of making such persons, whether they are inside or outside other state covered by that system, subject to security interests shown on that system's master list whether or not such persons know about them, so that such persons for their own protection will need to query the system operator about any seller engaged in farming operations, of a farm product produced in the state covered by that system, with whom they deal.F. Master List 1. The Secretary of State shall compile all EFS into a master list: a. Organized according to farm products;b. Arranged within each such product; 1. In alphabetical order;2. According to the last name of the individual debtors, or in the case of debtors doing business other than as individuals, the first word in the name of such debtors not an article;3. In numerical order according to the social security number of the individual debtors or, in the case of debtors doing business other than an individuals, the Internal Revenue Service taxpayer identification number of such debtors;4. Geographically by county of debtor location and county where crop is produced;c. The list will contain: 1. The name and address of the secured party 2. The name and address of the person subjecting the product to a security interest3. The social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor. d. A description of the Farm Products subject to the security interest created by the debtor, including the amount of such products where applicable, and a reasonable description of the property, including county or parish in which the property is produced. 2. Portions of the Master List a. The portion of the master list available to registrants will be organized in such a manner that information regarding the debtor and collateral in question can be readily obtained. b. The portions of the master list will contain a heading for each Farm Product and contain for each such product a sub-heading for each debtor with effective financing statements on file with the system.c. Each Farm Product list will contain the name, address, and social security number, or, if other than a natural person, IRS taxpayer identification number, of each debtor (or other person subjecting such a product to a security interest).d. For each such person, the list will contain further details of the Farm Product subject to the security interest if supplied on the EFS.e. One of the sections will have these names in alphabetical order by the word appearing first in the name. The other section will have them in numerical order by social security number, or, if other than a natural person, IRS taxpayer identification number.f. For each such person each section will show the secured party name and address.g. The list portions will only be available to online subscribers.G. Farm Product List And Codes 1. The Farm Products, according to which the master list must be organized as required by the Food Security Act and which must be identified on an EFS are found in the "Mississippi Farm Product Collateral Codes" found in "Appendix "A" and available within the online filing system.2. The Farm Products, according to which the master list must be organized and which must be identified on an EFS, must be specific commodities, species of livestock, and specific products of crops or livestock. Miscellaneous categories are not permissible.H. Crop Year 1. The crop year, according to which the master list must be arranged "within each Farm Product is: a. For a crop grown in soil, the calendar year in which it is harvested or to be harvested;b. For animals, the calendar year in which they are born or acquired;c. For fish, poultry, or eggs, the calendar year in which they are sold or to be sold.2. An EFS or notice thereof which does not show crop year must be regarded as applicable to the crop or product in question for every year for which the EFS is effective.I. Amount and Reasonable Description 1. The amount of Farm Products and reasonable description of the property, including county, on an EFS and on the master list, need not be shown on every EFS and master copy.2. Any EFS and master list entry will identify a product. If no amount is indicated, this means that all of such product. If no amount is indicated, this means that all such product owned by the person, in question is subject to the security of interest in question. 3. Any EFS and master list entry will identify each county in Mississippi where the product is produced. If no further identification of the location of the product in each such county owned by that person is subject to the security interest.4. The need to supply additional information arises only where some of that product owned by that person is subject to the security interest and some is not.5. The additional information about amount and property must be sufficient to enable a reader of the information to identify what product owned by that person is subject, as distinguished from what of the same product owned by the same person is not subject. The precision needed, in the description of the amount and location, will vary from case to case.J. Distribution of Portions of Master List 1. Electronic Access License - Master Farm Product List a. The Mississippi Secretary of State, Division of Business Services will make available electronic access via the Internet in the form of an exclusive use license to interested parties who register for this service.K. Fees 1. The Secretary of State is authorized to set reasonable fees to defray the costs of the Central Filing System pursuant to Mississippi Code § 75-9-320(g). The fees listed are subject to a six month experience period and may be increased or decreased upon proper notice and compliance with the Administrative Procedure Act. Fees are as indicated in Rule 6.2supra. Additional fees specific to the Central Filing System are listed below in the -Mississippi Central Filing System Table of Fees.2. Failure to pay fees as agreed shall result in suspension from receipt of further service until all delinquent amounts are paid in full. During a period of suspension a registrant shall be deemed to be unregistered for that period. MISSISSIPPI CENTRAL FILING SYSTEM TABLE OF ADDITIONAL FEES
Farm Product Electronic Data Access License | $250.00 per year |
*Other services not listed above, which constitute the same or similar service as those in a non-farm product UCC Article 9 filing, will have fees as set forth in Rule 6.2 for those services.
75-9-501 et seq. Mississippi Code of 1972 as amended.