§ 41-09-35 — (9-315) Secured party's rights on disposition of collateral and in proceeds

1. Except as otherwise provided in this chapter and in subsection 2 of section 41-02-48:
a. 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
b. A security interest attaches to any identifiable proceeds of collateral.
2. Proceeds that are commingled with other property are identifiable proceeds:
a. If the proceeds are goods, to the extent provided by section 41-09-56; and
b. 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 chapter with respect to commingled
property of the type involved.
3. A security interest in proceeds is a perfected security interest if the security interest in
the original collateral was perfected.
4. A perfected security interest in proceeds becomes unperfected on the twenty-first day
after the security interest attaches to the proceeds unless:
a. The following conditions are satisfied:
(1) A filed financing statement covers the original collateral;
(2) 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
(3) The proceeds are not acquired with cash proceeds;
b. The proceeds are identifiable cash proceeds; or
c. The security interest in the proceeds is perfected other than under subsection 3
when the security interest attaches to the proceeds or within twenty days
thereafter.
5. If a filed financing statement covers the original collateral, a security interest in
proceeds which remains perfected under subdivision a of subsection 4 becomes
unperfected at the later of:
a. When the effectiveness of the filed financing statement lapses under section
41-09-86 or is terminated under section 41-09-84; or
b. The twenty-first day after the security interest attaches to the proceeds.