Proceeds

Question 1

Tracing

Answer 1

is the process used by courts in many different areas of law to identify and segregate property that has been mingled with other property in such a manner that it has lost its identity

Question 2

5 tracing principles employed:

Answer 2

o The lowest intermediate balance rule (LIBR), from trust
accounting (adopted by comment 3 to UCC §9-315(b)(2)).
o The pro rata distribution hybrid of the lowest intermediate balance rule, used in more complicated commingling cases, where multiple trust funds are mingled,
o The first-in-first-out (FIFO) and the similar last-in-first-out
(LIFO) rules from trust accounting
o The community-out first rule, from community property
rule, and
o The rule of approximate correctness from both trust and
property law