(3)__A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.

(4)__A perfected security interest in proceeds becomes unperfected on the 21st day after the security interest attaches to the proceeds unless:

(a)__The following conditions are satisfied:

(i)__A filed financing statement covers the original collateral;

(ii)__The proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed; and

(iii) the proceeds are not acquired with cash proceeds;

(b)__The proceeds are identifiable cash proceeds; or

(c)__The security interest in the proceeds is perfected other than under subsection (3) when the security interest attaches to the proceeds or within 20 days thereafter.

(5)__If a filed financing statement covers the original collateral, a security interest in proceeds that remains perfected under subsection (4), paragraph (a) becomes unperfected at the later of:

(a)__The date when the effectiveness of the filed financing statement lapses under section 9-1515 or is terminated under section 9-1513; or

(b)__The 21st day after the security interest attaches to the proceeds.

Official Comment

1. Source. Former Section 9-306.

2. Continuation of Security Interest or Agricultural Lien Following Disposition of Collateral. Subsection (a)(1) [Maine cite subsection (1), paragraph (a)], which derives from former Section 9-306(2), contains the general rule that a security interest survives disposition of the collateral. In these cases, the secured party may repossess the collateral from the