money security interest; burden of establishing. (a) A security interest in crops is a production-money security interest to the extent that the crops are production-money crops. (b) 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: (1) In accordance with any reasonable method of application to which the parties agree; (2) In 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 (3) In the absence of an agreement to a reasonable meathod and a timely manifestation of the obligor's intention, in the following order: (A) To obligations that are not secured; and (B) If more than one obligation is secured, to obligations secured by production-money security interests in the order in which those obligations were incurred. (c) A production-money security interest does not lose its status as such, even if: (1) The production-money crops also secure an obligation that is not a production-money obligation; L (2) Collateral that is not production-money crops also secures the production-money obligation; or (3) The production-money obligation has been renewed, refinanced, or restructured. (d) 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.
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