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(810 ILCS 5/9-315) (from Ch. 26, par. 9-315)
Sec. 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
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(2) a security interest attaches to any identifiable
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(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
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(2) if the proceeds are not goods, to the extent that
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| 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.
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(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
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(B) the proceeds are collateral in which a
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| security interest may be perfected by filing in the office in which the financing statement has been filed; and
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(C) the proceeds are not acquired with cash
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(2) the proceeds are identifiable cash proceeds; or
(3) the security interest in the proceeds is
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| perfected other than under subsection (c) when the security interest attaches to the proceeds or within 20 days thereafter.
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(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
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| statement lapses under Section 9-515 or is terminated under Section 9-513; or
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(2) the 21st day after the security interest attaches
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(Source: P.A. 91-893, eff. 7-1-01.)
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