---
title: "Trace a security interest into proceeds of a disposition"
url: "https://ailawframework.com/practice/banking-and-finance/trace-a-security-interest-into-proceeds-of-the-collateral/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A3-OC20261022-15-US"
practice_area: "Banking & Finance (Lending, Securities, Project Finance)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Trace a security interest into proceeds of a disposition

> The tool lists the disposition, whether the secured party authorized it free of the security interest, and the identifiable proceeds.…

Canonical page: https://ailawframework.com/practice/banking-and-finance/trace-a-security-interest-into-proceeds-of-the-collateral/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Banking & Finance (Lending, Securities, Project Finance)](https://ailawframework.com/practice/banking-and-finance.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | The tool lists the disposition, whether the secured party authorized it free of the security interest, and the identifiable proceeds. For proceeds that are not goods and have been commingled, it records the tracing method the lawyer identifies. It does not state whether a buyer takes free. |
| What the lawyer must review | UCC Sections 9-315 and 9-320. Section 9-315(a), except as otherwise provided in Article 9 and in Section 2-403(2), provides that a security interest continues in collateral notwithstanding sale, lease, license, exchange, or other disposition unless the secured party authorized the disposition free of the security interest, and that a security interest attaches to any identifiable proceeds. Proceeds that are not goods and are commingled are identifiable to the extent the secured party identifies them by a method of tracing, including equitable principles, permitted under law other than Article 9 for commingled property of that type. Section 9-320 asks a different question. Except as subsection (e) provides, a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if perfected and even if the buyer knows of it. A buyer of consumer goods takes free, even if the interest is perfected, only if the buyer buys without knowledge, for value, primarily for personal, family, or household purposes, and before a financing statement is filed. The lawyer decides whether the interest continues and whether any buyer takes free. |
| Written for | United States |
| Applies to | [Trace a security interest into proceeds of the collateral](https://ailawframework.com/practice/banking-and-finance/trace-a-security-interest-into-proceeds-of-the-collateral.md) |

## Checking plan

- What the AI does: The tool lists the disposition, whether the secured party authorized it free of the security interest, and the identifiable proceeds. For proceeds that are not goods and have been commingled, it records the tracing method the lawyer identifies. It does not state whether a buyer takes free.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Article 9 in the sources is the uniform text. The lawyer reads the enacting state's current text before reliance. Section 9-336, which Section 9-315(b)(1) uses for commingled goods, was not opened.
- Continuation of the interest and a buyer taking free are separate questions. The tool does not treat one answer as the other.
- Section 9-315(e) was not applied. The tool does not say the interest in proceeds remains perfected.

## Sources

- [UCC § 9-315, Secured party's rights on disposition of collateral and in proceeds](https://www.law.cornell.edu/ucc/9/9-315) (checked 2026-10-22)
- [UCC § 9-320, Buyer of goods](https://www.law.cornell.edu/ucc/9/9-320) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*