Section 19 By Debtor Before Default

• Library: Farm Law 2006

A security interest or agricultural lien continues in collateral, even if the collateral is sold or otherwise disposed of, unless the disposition was authorized by the secured party. Section 400.9-315(a)(1), RSMo Supp. 2005. Further, the security interest will attach to any identifiable proceeds of the collateral. Section 400.9-315(a)(2). Even when proceeds are commingled with other property, they may still be identifiable if:

• the proceeds are goods; or

• the proceeds are not goods but the secured party identifies the proceeds by a method of tracing permitted under the law

Section 400.9-315(b). A security interest in proceeds will be
perfected if the security interest in the collateral was perfected. Section 400.9-315(c). But a security interest in proceeds will become unperfected unless the conditions found in § 400.9-315(d) are met.

This Article [400.9-315] does not determine whether a lien extends to proceeds of farm products encumbered by an...