Also known as:timbers to be cut · severed timber · timber contract
Written by attorneys · grounded in primary & secondary sources — see below
Standing timber subject to a contract for severance and sale. The Uniform Commercial Code classifies such timber as goods once the agreement identifies the land from which it will be cut, allowing a security interest to attach and perfect under Article 9 rules that otherwise govern personal property.
Sources & Authorities
How it applies
Common Examples
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Security Agreement Lacks Land Description
Tabitha Taylor owns a wooded tract and signs a loan agreement granting Threshold Capital a security interest in all standing timber now or hereafter to be cut from the property. The writing describes only the timber itself and omits any reference to the specific parcel. When Taylor defaults, Threshold Capital cannot enforce the interest against the uncut trees because the security agreement fails to satisfy the land-description requirement for this collateral category.
Contract Triggers Goods Classification
Thomas Thompson owns timberland and enters a three-year harvest agreement with Tidal Energy under which Thompson will fell and deliver specified trees. Thompson later grants a security interest in the standing timber to another lender. Because the harvest contract commits the trees to severance and sale, the timber qualifies as goods collateral even while still rooted, allowing the lender to perfect by filing rather than under real-property rules.
Put it into practice
Test Yourself
10
Practice Questions5
· 8 primary sources
Select any source to read its text and confirm it supports the definition.
Uniform Acts
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Course Outlines
Study Supplements
Futch v. James River-Norwalk, Inc.722 F.Supp. 1395, 10 UCC2d 684 (S.D.Miss. 1989), aff’d, 887 F.2d 1085 (5th Cir. 1989)
Common questions
Frequently Asked
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How is standing timber classified for Article 9 purposes once a harvest contract exists?+
Standing timber subject to a contract for cutting and removal is reclassified as goods. This classification permits a security interest to attach and perfect under personal-property rules even before severance occurs.
What additional requirement applies to a security agreement covering timber to be cut?+
The security agreement must contain a description of the land concerned in addition to describing the timber itself. Without the land description the interest does not attach under UCC § 9-203(b)(3)(A).
Where must a financing statement covering timber to be cut be filed?+
The financing statement must be filed in the real-property records of the county where the timber is located and must include a description of that real property. Filing in the central office alone is insufficient.
Does actual severance need to occur before the timber can serve as Article 9 collateral?+
No. The existence of a contract for cutting and removal is enough to bring the standing timber within the definition of goods. Physical severance is not required for attachment or perfection.
Secured TransactionsApplicability and definitions (§ 9-101, et seq.) · Perfection of security interests in multiple state transactions (§ 9-301)UBEFoundational