400.9-315. Secured party's rights on disposition of collateral and in proceeds. - Missouri Statutes

Secured party's rights on disposition of collateral and in proceeds.

400.9-315. (a) Except as otherwise provided in this article and insection 400.2-403(2):

(1) A security interest or agricultural lien continues in collateralnotwithstanding sale, lease, license, exchange, or other dispositionthereof unless the secured party authorized in writing the disposition freeof the security interest or agricultural lien; and

(2) A security interest attaches to any identifiable proceeds ofcollateral.

(b) Proceeds that are commingled with other property are identifiableproceeds:

(1) If the proceeds are goods, to the extent provided by section400.9-336; and

(2) If the proceeds are not goods, to the extent that the securedparty identifies the proceeds by a method of tracing, including applicationof equitable principles, that is permitted under law other than thisarticle with respect to commingled property of the type involved.

(c) A security interest in proceeds is a perfected security interestif the security interest in the original collateral was perfected.

(d) A perfected security interest in proceeds becomes unperfected onthe twenty-first day after the security interest attaches to the proceedsunless:

(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 beperfected by filing in the office in which the financing statement has beenfiled; 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 thanunder subsection (c) when the security interest attaches to the proceeds orwithin twenty days thereafter.

(e) If a filed financing statement covers the original collateral, asecurity interest in proceeds which remains perfected under subsection(d)(1) becomes unperfected at the later of:

(1) When the effectiveness of the filed financing statement lapsesunder section 400.9-515 or is terminated under section 400.9-513; or

(2) The twenty-first day after the security interest attaches to theproceeds.

(L. 1963 p. 503 § 9-315, A.L. 2001 S.B. 288)

Effective 7-01-01