Validity of Security Agreements and Rights of Parties

Question 1

Secured party’s rights on disposition of collateral and in proceeds

Answer 1

When collateral is disposed of, a secured party automatically obtains a security interest in identifiable proceeds of the collateral. UCC § 9-315(a)(2)

Question 2

“Proceeds”

Answer 2

The term “proceeds” includes, inter alia, whatever is obtained on the sale of collateral.

UCC section 9-102(a)(64)(A)