8.9A-315 - A-315. Secured party's rights on disposition of collateral and in proceeds.
§ 8.9A-315. Secured party's rights on disposition of collateral and inproceeds.
(a) Disposition of collateral; continuation of security interest oragricultural lien; proceeds. Except as otherwise provided in this title andin § 8.2-403 (2):
(1) a security interest or agricultural lien continues in collateralnotwithstanding sale, lease, license, exchange, or other disposition thereofunless the secured party authorized the disposition free of the securityinterest or agricultural lien; and
(2) a security interest attaches to any identifiable proceeds of collateral.
(b) When commingled proceeds identifiable. Proceeds that are commingled withother property are identifiable proceeds:
(1) if the proceeds are goods, to the extent provided by § 8.9A-336; and
(2) if the proceeds are not goods, to the extent that the secured partyidentifies the proceeds by a method of tracing, including application ofequitable principles, that is permitted under law other than this title withrespect to commingled property of the type involved.
(c) Perfection of security interest in proceeds. A security interest inproceeds is a perfected security interest if the security interest in theoriginal collateral was perfected.
(d) Continuation of perfection. A perfected security interest in proceedsbecomes unperfected on the twenty-first day after the security interestattaches to the proceeds unless:
(1) the following conditions are satisfied:
(A) a filed financing statement covers the original collateral;
(B) the proceeds are collateral in which a security interest may be perfectedby filing in the office in which the financing statement has been filed; and
(C) the proceeds are not acquired with cash proceeds;
(2) the proceeds are identifiable cash proceeds; or
(3) the security interest in the proceeds is perfected other than undersubsection (c) when the security interest attaches to the proceeds or withintwenty days thereafter.
(e) When perfected security interest in proceeds becomes unperfected. If afiled financing statement covers the original collateral, a security interestin proceeds which remains perfected under subsection (d) (1) becomesunperfected at the later of:
(1) when the effectiveness of the filed financing statement lapses under §8.9A-515 or is terminated under § 8.9A-513; or
(2) the twenty-first day after the security interest attaches to the proceeds.
(1964, c. 219, § 8.9-306; 1973, c. 509; 1983, c. 204; 1996, c. 216; 2000, c.1007.)