§12A-9-306.

§12A-9-306.
   
   "Proceeds"; Secured Party's Rights on Disposition of Collateral.
   
   (1) "Proceeds" includes whatever is received upon the sale, exchange,
   collection or other disposition of collateral or proceeds including,
   but not limited to, payments from a third party tort-feasor or his or
   her insurer. Insurance payable from any source by reason of loss or
   damage to the collateral is proceeds, except to the extent that it is
   payable to a person other than a party to the security agreement. Any
   payments or distributions made with respect to investment property
   collateral are proceeds. Money, checks, deposit accounts and the like
   are "cash proceeds". All other proceeds are "noncash proceeds".
   
   (2) Except where this article otherwise provides, a security interest
   continues in collateral, notwithstanding sale, exchange or other
   disposition thereof, unless the disposition was authorized by the
   secured party in the security agreement or otherwise, and also
   continues in any identifiable proceeds including collections received
   by the debtor.
   
   (3) The security interest in proceeds is a continuously perfected
   security interest if the interest in the original collateral was
   perfected, but it ceases to be a perfected security interest and
   becomes unperfected ten (10) days after receipt of the proceeds by the
   debtor unless:
   
   (a) a filed financing statement covers the original collateral and the
   proceeds are collateral in which a security interest may be perfected
   by filing in the office or offices where the financing statement has
   been filed and, if the proceeds are acquired with cash proceeds, the
   description of collateral in the financing statement indicates the
   types of property constituting the proceeds;
   
   (b) a filed financing statement covers the original collateral and the
   proceeds are identifiable cash proceeds;
   
   (c) the original collateral was investment property and the proceeds
   are identifiable cash proceeds; or
   
   (d) the security interest in the proceeds is perfected before the
   expiration of the ten-day period.
   
   Except as provided in this section, a security interest in proceeds
   can be perfected only by the methods or under the circumstances
   permitted in this article for original collateral of the same type.
   
   (4) In the event of insolvency proceedings instituted by or against a
   debtor, a secured party with a perfected security interest in proceeds
   has a perfected security interest only in the following proceeds:
   
   (a) identifiable noncash proceeds and separate deposit accounts
   containing only proceeds;
   
   (b) identifiable cash proceeds in the form of money which is neither
   commingled with other money nor deposited in a deposit account prior
   to the insolvency proceedings;
   
   (c) identifiable cash proceeds in the form of checks and the like
   which are not deposited in a deposit account prior to the insolvency
   proceedings; and
   
   (d) all cash and deposit accounts of the debtor, in which proceeds
   have been commingled with other funds, but the perfected security
   interest under this paragraph (d) is:
   
   (i) subject to any right of set-off; and
   
   (ii) limited to an amount not greater than the amount of any cash
   proceeds received by the debtor within ten (10) days before the
   institution of the insolvency proceedings less the sum of:
   
   (I) the payments to the secured party on account of cash proceeds
   received by the debtor during such period, and
   
   (II) the cash proceeds received by the debtor during such period to
   which the secured party is entitled under subparagraphs (a) through
   (c) of this subsection.
   
   (5) If a sale of goods results in an account or chattel paper which is
   transferred by the seller to a secured party and if the goods are
   returned to or are repossessed by the seller or the secured party, the
   following rules determine priorities:
   
   (a) If the goods were collateral at the time of sale, for an
   indebtedness of the seller which is still unpaid, the original
   security interest attaches again to the goods and continues as a
   perfected security interest if it was perfected at the time when the
   goods were sold. If the security interest was originally perfected by
   a filing which is still effective, nothing further is required to
   continue the perfected status; in any other case, the secured party
   must take possession of the returned or repossessed goods or must
   file.
   
   (b) An unpaid transferee of the chattel paper has a security interest
   in the goods against the transferor. Such security interest is prior
   to a security interest asserted under subparagraph (a) of this section
   to the extent that the transferee of the chattel paper was entitled to
   priority under Section 9-308 of this title.
   
   (c) An unpaid transferee of the account has a security interest in the
   goods against the transferor. Such security interest is subordinate to
   a security interest asserted under subparagraph (a) of this section.
   
   (d) A security interest of an unpaid transferee asserted under
   subparagraph (b) or (c) of this section must be perfected for
   protection against creditors of the transferor and purchasers of the
   returned or repossessed goods.