Perfection of Proceeds

Question 1

An SI on proceeds is automatically perfected for

Answer 1

20 days

Question 2

Beyond 20 days Perfection will lapse unless

Answer 2

1) SP amends filing or statement already covers proceeds

2) Cash proceeds rule- perfection continues in cash so ling as it is identifiable

3) Same office rule-

1. The financing statement covers the original collateral
2. The proceeds are the type which may be perfected by filing
3. The proceeds are not acquired with cash-proceeds