(a) Court decisions under the Uniform Commercial Code (UCC), about the scope of the ``farm products'' exception in Section 9-307(1) thereof, and interpreting the terms therein, particularly ``person engaged in farming operations'' which is not defined in the Section, are applicable to an extent in interpreting the Section. The basis of this is the legislative intent of the Section to pre-empt State laws reflecting that ``farm products'' exception, as shown in the House Committee Report on Pub. L. 99-198, No. 99-271, Part 1, September 13, 1985, at pages 108 et seq.
(b) That UCC Section 9-307(1) reads as follows:
(1) A buyer in ordinary course of business (subsection (9) of Section 1-201) other than a person buying farm products from a person engaged in farming operations takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its existence. (emphasis added) Sec. 205.212 ``Buyer in ordinary course of business'' and``security interest.''
The terms ``buyer in ordinary course of business'' and ``security interest'' are defined in subsections (c) (1) and (7). There are differences between those definitions and the UCC definitions of the same terms. In interpreting those differences, the following would be pertinent:
(a) The legislative intent discussed above in Sec. 205.211, to pre-empt State laws reflecting the ``farm products'' exception; and
(b) The legislative intent shown in subsections (a) and (b) that certain persons take free and clear of certain interests of a ``secured lender'' ``when the seller fails to repay the lender,'' unless such persons have information about such interests made available to them as provided in the Section.