2898

LAWS OF MARYLAND

Ch. 824

specified in this title. The security interest may, be
otherwise perfected as provided in this title before or
after the period of possession by the secured party.

9-306.

(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.] "PROCEEDS" INCLUDES WHATEVER IS RECEIVED UPON THE
SALE, EXCHANGE, COLLECTION, OR OTHER DISPOSITION OF
COLLATERAL OR PROCEEDS. INSURANCE PAYABLE 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. Money, checks, DEPOSIT ACCOUNTS, and
the like are "cash proceeds." All other proceeds are
"noncash proceeds."

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

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

(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;
OR

(B)  A FILED FINANCING STATEMENT COVERS THE
ORIGINAL COLLATERAL AND THE PROCEEDS ARE IDENTIFIABLE CASH
PROCEEDS; OR

[(b)] (C) 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 TITLE FOR ORIGINAL
COLLATERAL OF THE SAME TYPE.