Proceeds

Question 1

Attachment of Proceeds

Answer 1

Attaches AUTOMATICALLY

Does not matter if security agreement lists proceeds or not

Question 2

Perfection of Proceeds: Initially

Answer 2

Temporary automatic perfection for 20 DAYS after collateral is sold

Question 3

Perfection of Proceeds: After 20 Days

Answer 3

Perfection will lapse, UNLESS:

(1) Amendment
(2) Cash Proceeds Rule
(3) Same Office Rule

Question 4

Perfection of Proceeds After 20 Days: Amendment

Answer 4

Secured party amends financing statement

Question 5

Perfection of Proceeds After 20 Days: Cash Proceeds Rule

Answer 5

If collateral generates cash proceeds, perfection continues INDEFINITELY in cash proceeds as long as they are IDENTIFIABLE

Question 6

Perfection of Proceeds After 20 Days: Same Office Rule

Answer 6

If a filed financing statement covers the original collateral and the proceeds are collateral in which an SI may be perfected by filing in the office in which the financing statement has been filed, then a perfected SI in proceeds may continue INDEFINITELY

Question 7

Priority

Answer 7

FIRST TO FILE OR PERFECT

Use filing date/perfection date of the original collateral