Section 9--315. Secured Party's Rights on Disposition of Collateral and

in Proceeds.

(a) Disposition of collateral: continuation of security interest or
agricultural lien; proceeds. Except as otherwise provided in this
article and in Section 2--403(2):

(1) a security interest or agricultural lien continues in

collateral notwithstanding sale, lease, license, exchange, or

other disposition thereof unless the secured party authorized

the disposition free of the security interest or agricultural

lien; and

(2) a security interest attaches to any identifiable proceeds of

collateral.

(b) When commingled proceeds identifiable. Proceeds that are
commingled with other property are identifiable proceeds:

(1) if the proceeds are goods, to the extent provided by Section

9--336; and

(2) if the proceeds are not goods, to the extent that the secured

party identifies the proceeds by a method of tracing,

including application of equitable principles, that is

permitted under law other than this article with respect to

commingled property of the type involved.

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

(d) Continuation of perfection. A perfected security interest in
proceeds becomes unperfected on the 21st day after the security interest
attaches to the proceeds unless:

(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 be perfected by filing in the office in which the

financing statement has been filed; 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 than

under subsection (c) when the security interest attaches to

the proceeds or within 20 days thereafter.

(e) When perfected security interest in proceeds becomes unperfected.
If a filed financing statement covers the original collateral, a
security 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

lapses under Section 9--515 or is terminated under Section

9--513; or

(2) the 21st day after the security interest attaches to the

proceeds.