MARVIN MANDEL, Governor

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value given under a written security agreement.

(5)   A security interest remains perfected for a
period of twenty—one days without filing where a secured
party having a perfected security interest in an
instrument, a negotiable document or goods in possession
of a bailee other than one who has issued a negotiable
document therefor

(a)    Makes available to the debtor the goods
or documents representing the goods for the purpose of
ultimate sale or exchange or for the purpose of loading,
unloading, storing, shipping, transshipping,
manufacturing, processing or otherwise dealing with them
in a manner preliminary to their sale or exchange; or

(b)   Delivers the instrument to the debtor for
the purpose of ultimate sale or exchange or of
presentation, collection, renewal or registration of
transfer.

(6)   After the twenty-one day period in subsections
(4) and (5) perfection depends upon compliance with
applicable provisions of this [subtitle] TITLE.

9—305. When possession by secured party perfects
security interest without filing.

A security interest in letters of credit and advices
of credit (subsection (2) (a) of § 5-116), goods,
instruments, negotiable documents or chattel paper may be
perfected by the secured party's taking possession of the
collateral. If such collateral other than goods covered
by a negotiable document is held by a bailee, the secured
party is deemed to have possession from the time the
bailee receives notification of the secured party's
interest. A security interest is perfected by
possession from the time possession is taken without
relation back and continues only so long as possession is
retained, unless otherwise specified in this [subtitle]
TITLE. The security interest may be otherwise perfected
as provided in this [subtitle] TITLE before or after the
period of possession by the secured party.

9—306. "Proceeds"; secured party's rights on disposition
of collateral.

(1) "Proceeds" includes whatever is received when
collateral or proceeds is sold, exchanged, collected or
otherwise disposed of. The term also includes the
account arising when the right to payment is earned under
a contract right. Honey, checks and the like are "cash
proceeds." All other proceeds are "non—cash proceeds."