Trace a security interest into proceeds of the collateral
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the dealing and the security agreement, list whether section 32 says the interest continues in the collateral, whether it attaches to the proceeds, and whether the market-value limit applies because enforcement is against both. The tool does not state the priority result.
- What the lawyer must review
- The lawyer decides whether the interest survived the dealing and what it attaches to. Another provision that lets a buyer take free was not applied in this task.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the dealing and the security agreement, list whether section 32 says the interest continues in the collateral, whether it attaches to the proceeds, and whether the market-value limit applies because enforcement is against both. The tool does not state the priority result. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Separate continuation in the original collateral from attachment to the proceeds. Authorisation can end the first. The agreement can exclude the second.
- Apply the market-value limit only where enforcement is against both the collateral and the proceeds, and the collateral is not an investment instrument or an intermediated security.
- Do not decide that a buyer takes free under Part 2.5. That Part was not opened. Do not apply section 55 beyond the timing rule stated in section 32.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.