8. Proceeds of Non-filing Collateral: Non-temporal Priority. Subsection (c)(2) [Maine cite subsection (3), paragraph (b)] provides a baseline priority rule for proceeds of non-filing collateral which applies if the secured party has taken the steps required for non-temporal priority over a conflicting security interest in non-filing collateral (e.g., control, in the case of deposit accounts, letter-of-credit rights, and investment property). This rule determines priority in proceeds of non- filing collateral whether or not there exists an actual conflicting security interest in the original non-filing collateral. Under subsection (c)(2) [Maine cite subsection (3), paragraph (b)], the priority in the original collateral continues in proceeds if the security interest in proceeds is perfected and the proceeds are cash proceeds or non-filing proceeds "of the same type" as the original collateral. As used in subsection (c)(2) [Maine cite subsection (3), paragraph (b)], "type" means a type of collateral defined in the Uniform Commercial Code and should be read broadly. For example, a security is "of the same type" as a security entitlement (i.e., investment property), and a promissory note is "of the same type" as a draft (i.e., an instrument).

Example 6: SP-1 perfects its security interest in investment property by filing. SP-2 perfects subsequently by taking control of a certificated security. Debtor receives cash proceeds of the security (e.g., dividends deposited into Debtor's deposit account). If the first-to-file-or-perfect rule of subsection (a)(1) were applied, SP-1's security interest in the cash proceeds would be senior, although SP-2's security interest continues perfected under Section 9-315 [Maine cite section 9- 1315] beyond the 20-day period of automatic perfection. This was the result under former Article 9. Under subsection (c)