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Commercial Law Keyed to Zierdt, 1st Ed.
In re Sand & Sage Farm & Ranch
Citation:
266 B.R. 507 (2001)Facts
In 1988, Randolf Ardery purchased an 80-acre tract in Edwards County, Kansas, which included a center pivot irrigation system. To secure the purchase, the Arderys granted a mortgage to Farmers State Bank (predecessor to Offerle National Bank) covering the real estate and all fixtures. The mortgage was properly recorded. Eight years later, in 1996, the Arderys executed a security agreement granting Ag Services a security interest in their equipment and other farm-related assets, which was properly filed with the Kansas Secretary of State. The irrigation system in question was an eight-tower Zinmatic center pivot system attached to the land when Ardery purchased it. The system included an underground well and pump connected to pipes and sprinklers suspended from towers. The system was not easily removable, requiring partial disassembly and specialized equipment for extraction of the underground components. Removal would cost approximately $2,500-3,000, while the system itself was valued at approximately $10,000. The irrigated farmland would be worth less than half its current value without the irrigation system.
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