Question 578. - May a bank take a "promise to give security" on threshed grain, from a farmer to secure an advance under section 88, if the grain is still uncut and in the field?

Would it be valid provided advance and promise are made on same date?

Answer. - Yes, and security upon threshed grain afterwards taken in accordance with the promise would be valid, but the bank would acquire no claim upon the growing crop,' and would have no priority over other creditors in respect of the grain until it was actually cut and threshed, and the promise had been implemented by the actual giving of security.

Note. - For moneys advanced for the purchase of seed grain the bank may acquire a first and preferential claim upon the growing crop as well as the threshed grain, under sub-section 10 of section 88.