HARRY HUGHES, Governor

2899

(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)  In identifiable noncash proceeds[;] AND IN
SEPARATE DEPOSIT ACCOUNTS CONTAINING ONLY PROCEEDS;

(b)  In identifiable cash proceeds in the form of
money which is [not] NEITHER commingled with other money
[or] NOR deposited in a [bank] DEPOSIT 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]
DEPOSIT account prior to the insolvency proceedings; and

            (d) In all cash and [bank] DEPOSIT accounts of

the debtor[, if other cash] IN WHICH proceeds have been
commingled WITH OTHER FUNDS, [or deposited in a bank
account[,] but the perfected security interest under this
paragraph (d) is

(i) Subject to any right of setoff; 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] LESS THE SUM OF

                               1. THE PAYMENTS TO THE SECURED PARTY

ON ACCOUNT OF CASH PROCEEDS RECEIVED BY THE DEBTOR DURING
SUCH PERIOD, AND

2. THE CASH PROCEEDS RECEIVED BY THE
DEBTOR DURING SUCH PERIOD TO WHICH THE SECURED PARTY IS
ENTITLED UNDER PARAGRAPHS (A) THROUGH (C) OF THIS SUBSECTION
(4).

(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[.];