Why do we learn about secured transactions in agricultural law? When are they used?

We learn about these types of transactions because they are very common. Farmers often don’t have enough cash on hand to buy equipment or product outright, so secured transactions involving collateral are needed.

What was your top take-away point after learning about secured transactions?

It is extremely important for lenders to fully complete the paperwork on their end to create a perfected security interest. Without registering the agreed collateral with the correct authority, their loan could fall to the back of the line if a default occurs.

What further questions do you have about secured transactions?

Even if a lender files a UCC-1, doesn’t other government debt fall first in the line of payment on default? For example, if the borrower defaults on a loan, but also doesn’t pay their taxes, wouldn’t those taxes be paid before any other lender?

I guess this would only be in question if the borrower is so massively in debt that the worth of the real property and personal property would be at risk. I’ve just seen quite a few times (in my work) where there are mortgages listed and UCC filings, but the taxes are always paid off first when someone "loses everything".  Not every lender gets paid back. Or is it just that things get extra complicated during a bankruptcy? I'm not well versed in bankruptcy, I've just seen a lot of them in passing because they create problems during the leasing process.