70A-9a-315 - Secured party's rights on disposition of collateral and in proceeds.
70A-9a-315. Secured party's rights on disposition of collateral and in proceeds.
(1) Except as otherwise provided in this chapter and in Subsection 70A-2-403(2):
(a) a security interest or agricultural lien continues in collateral notwithstanding sale,lease, license, exchange, or other disposition thereof unless the secured party authorized thedisposition free of the security interest or agricultural lien; and
(b) a security interest attaches to any identifiable proceeds of collateral.
(2) Proceeds that are commingled with other property are identifiable proceeds:
(a) if the proceeds are goods, to the extent provided by Section 70A-9a-336; and
(b) if the proceeds are not goods, to the extent that the secured party identifies theproceeds by a method of tracing, including application of equitable principles, that is permittedunder law other than this chapter with respect to commingled property of the type involved.
(3) A security interest in proceeds is a perfected security interest if the security interest inthe original collateral was perfected.
(4) A perfected security interest in proceeds becomes unperfected on the 21st day afterthe security interest attaches to the proceeds unless:
(a) the following conditions are satisfied:
(i) a filed financing statement covers the original collateral;
(ii) the proceeds are collateral in which a security interest may be perfected by filing inthe office in which the financing statement has been filed; and
(iii) the proceeds are not acquired with cash proceeds;
(b) the proceeds are identifiable cash proceeds; or
(c) the security interest in the proceeds is perfected other than under Subsection (3) whenthe security interest attaches to the proceeds or within 20 days thereafter.
(5) If a filed financing statement covers the original collateral, a security interest inproceeds which remains perfected under Subsection (4)(a) becomes unperfected at the later of:
(a) when the effectiveness of the filed financing statement lapses under Section70A-9a-515 or is terminated under Section 70A-9a-513; or
(b) the 21st day after the security interest attaches to the proceeds.
Enacted by Chapter 252, 2000 General Session