278

LAWS OF MARYLAND

[Ch. 49

(2)   Except where this [subtitle] TITLE otherwise
provides, a security interest continues in collateral
notwithstanding sale, exchange or other disposition
thereof by the debtor unless his action 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 days after receipt of the proceeds by the debtor
unless

(a)    A filed financing statement covering the
original collateral also covers proceeds; or

(b)   The security interest in the proceeds is
perfected before the expiration of the ten day period.

(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

(a)   In identifiable non-cash proceeds;

(b)   In identifiable cash proceeds in the form
of money which is not commingled with other money or
deposited in a bank account prior to the insolvency
proceedings;

(c)   In identifiable cash proceeds in the form
of checks and the like which are not deposited in a bank
account prior to the insolvency proceedings; and

(d)   In all cash and bank accounts of the
debtor, if other cash proceeds have been commingled or
deposited in a bank account, 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 days before the institution of the insolvency
proceedings and commingled or deposited in a bank account
prior to the insolvency proceedings less the amount of
cash proceeds received by the debtor and paid over to the
secured party during the ten day period.

(5)    If a sale of goods results in an account or
chattel paper which is transferred by the seller to a