§ 34.1-9-315 — Secured party's rights on disposition of collateral and in proceeds

(a) Except as otherwise provided in this article and in
section 34.1-2-403(b):
(i) 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
(ii) A security interest attaches to any identifiable
proceeds of collateral.
(b) Proceeds that are commingled with other property are
identifiable proceeds:
(i) If the proceeds are goods, to the extent provided
by section 34.1-9-336; and
(ii) 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) A security interest in proceeds is a perfected
security interest if the security interest in the original
collateral was perfected.
(d) A perfected security interest in proceeds becomes
unperfected on the twenty-first day after the security interest
attaches to the proceeds unless:
(i) 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;
(ii) The proceeds are identifiable cash proceeds; or
(iii) The security interest in the proceeds is
perfected other than under subsection (c) when the security
interest attaches to the proceeds or within twenty (20) days
thereafter.
(e) If a filed financing statement covers the original
collateral, a security interest in proceeds which remains
perfected under paragraph (d)(i) becomes unperfected at the
later of:
(i) When the effectiveness of the filed financing
statement lapses under section 34.1-9-515 or is terminated under
section 34.1-9-513; or
(ii) The twenty-first day after the security interest
attaches to the proceeds.