§ 34-21-1106 — Sales subject to security interest; release of security interest

(a) In the case of a farm product produced in Wyoming, a
buyer in the ordinary course of business buying farm products
takes subject to a security interest created by the seller, and
a commission merchant or selling agent who sells a farm product
for others shall be subject to a security interest created by
the seller in such farm product, if:
(i) The buyer, commission merchant or selling agent
has failed to register with the secretary of state prior to the
purchase of farm products, and the secured party has filed an
effective financing statement or notice that covers the farm
products being sold; or
(ii) The buyer, commission merchant or selling agent
received from the secretary of state written notice as provided
in W.S. 34-21-1102(a)(v) that specifies both the seller and the
farm products being sold by the seller as being subject to an
effective financing statement or notice, and does not secure a
waiver or release of the security interest specified in the
effective financing statement or notice from the secured party
by performing any payment obligation or otherwise. If a buyer
in the ordinary course of business buying farm products covered
by the central filing system tenders to the seller the total
purchase price by means of a check or other instrument payable
to the seller and each security interest holder of the seller
identified in the central filing system for those products and
if the security interest holder authorizes the negotiation of
the check or other instrument, the authorization or endorsement
and payment thereof constitutes a waiver or release of the
security interest specified to the extent of the amount of the
instrument.
(b) A buyer in the ordinary course of business buying farm
products covered by the central filing system shall take subject
to the security interest identified under the system, except
that a registrant or a buyer in the ordinary course of business
making an inquiry under W.S. 34-21-1105 shall not take subject
to the security interest if the central filing system's failure
to correctly provide any of the information specified in W.S.
34-21-1101(a)(v)(D) prevents the buyer from having knowledge of
the effective financing statement.