Check whether a security interest in proceeds stays perfected
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- The tool lists the date the security interest attached to the proceeds, the 21st day after that date, and which Section 9-315(d) path, if any, the facts appear to match. Where the proceeds are a deposit account, it records that a security interest in a deposit account may be perfected only by control, except as Section 9-315(c) and (d) provide for proceeds. It does not say the interest is perfected.
- What the lawyer must review
- UCC Sections 9-315(c) and (d) and 9-312(b)(1). If the security interest in the original collateral was perfected, a security interest in proceeds is a perfected security interest under Section 9-315(c). Under subsection (d), a perfected security interest in proceeds becomes unperfected on the 21st day after the security interest attaches to the proceeds unless one of three paths applies. The first requires a filed financing statement covering the original collateral, proceeds that are collateral in which a security interest may be perfected by filing in the same office, and proceeds not acquired with cash proceeds. The second is that the proceeds are identifiable cash proceeds. The third is that the security interest in the proceeds is perfected other than under subsection (c) when it attaches to the proceeds or within 20 days thereafter. Section 9-312(b) states that, except as Section 9-315(c) and (d) provide for proceeds, a security interest in a deposit account may be perfected only by control under Section 9-314. The lawyer decides whether perfection continues.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.