Is proceeds defined in the UCC?

“Proceeds” is defined as whatever is acquired on the sale, lease, or other disposition of property, whatever is collected on or distributed on account of collateral, rights arising out of collateral, and certain claims arising out of the collateral.

What is chattel paper UCC?

Defined in the UCC as a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of …

What are identifiable proceeds?

For cash proceeds and other non-goods proceeds, the proceeds are “identifiable” and thus subject to the security interest “to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under” non-Article 9 law for commingled …

What do the proceeds of chattel paper consist of?

(2) the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser’s security interest in the proceeds is unperfected.

What does UCC-1 mean for chattel paper?

The blanket UCC-1 Financing Statement, which is filed with the Secretary of State, secures “all inventories, chattel paper, accounts, contract rights, equipment and general intangibles” of debtor’s business.

How to perfect a security interest in chattel paper?

A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing. (b) [Control or possession of certain collateral.] (1) a security interest in a deposit account may be perfected only by control under Section 9-314;

What is the scope of Article 9 of the UCC?

Court held that security interest in rights under a life insurance policy was outside the scope of Article 9. (UCC § 9-109(d)(8)) The court looked at non-UCC law and the terms of the assignment of the policy to determine whether the secured party had a lien on the policy proceeds ahead of federal tax lien.