Law360 Canada ( May 14, 2021, 6:18 AM EDT) -- Appeal by Farm Credit Canada from an order distributing monies paid into court to the respondent, Gustafson. The respondent was a farmer who financed the purchase of two combines and related equipment. To secure payment, the respondent entered into three purchase-money security agreements with the dealership. The lender took a purchase-money security interest (PMSI) in the farm equipment with the right to seize and sell it in the event of a payment default. Thereafter, the appellant extended credit to the respondent. The respondent granted the appellant a security interest in all his present and future personal property. The respondent defaulted on his payment obligations. The equipment lender seized and sold the farm equipment and paid a surplus of $78,000 into court after the terms of its agreements were satisfied. The respondent applied for payout of the surplus. The appellant opposed the application and claimed the surplus under its general security agreement and proceeds from the sale of non-exempt equipment. The chambers judge held that the farm equipment was exempt property under s. 66(d) of the Farm Security Act and that the proceeds were exempt, if they were used to secure remaining farm equipment. Farm Credit Canada appealed....