Perfection as to proceeds

    A security interest in personal property continues in the identifiable proceeds of the disposition of the property. See Commentary.Proceeds.   Although the most common proceeds will be payment (through cash, checks, or electronic payment), proceeds of other sorts are also possible: accounts, promissory notes, equipment, inventory, or other forms of personal property. Because proceeds are likely to be in the form of personal property different than the original collateral (e.g. a promissory note is given by a buyer to evidence an obligation to pay for the purchase of equipment sold a debtor), the perfection undertaken by the secured party with respect to the original collateral (e.g. the equipment) may not serve the public notice function with respect to the proceeds (e.g. the promissory note). U.C.C. 9315(c), (d), (e) addresses this problem by stating what additional steps, if any, the secured party must take to perfect its security interest in proceeds.  We explore the application of that section in Problem.Perfection as to Proceeds.