Section 21
Security interests in crops
ActIn forceProvision 20 of 87
Section 21
(1)
Except as otherwise provided in this Act, a security interest may be created and perfected in crops and continue as such before they are planted while growing and afterwards when cut or separated from the soil.
(2)
A security interest in crops shall only be created with the consent of the mortgagee or lessor under a lease with the duration of not more than 3 years.
(3)
No perfected security interest in crops shall be extinguished or prejudicially affected by a subsequent sale, lease, mortgage or other encumbrance of or on the land on which the crops are growing.