US Uniform Commercial Code Article 9 Secured Transactions 9-313-9-315-possession-control-proceeds: Maintain possession or control where perfection depends on it, and track proceeds, which stay perfected for twenty days and beyond only on the statutory conditions

What does 9-313-9-315-possession-control-proceeds require?

Perfection by possession lasts only while possession is retained, including possession through a third person that acknowledges in an authenticated record that it holds on the secured party's behalf (section 9-313); perfection by control lasts only while control is retained (section 9-314). A security interest continues in collateral after sale, lease, licence or other disposition unless the secured party authorised a disposition free of it, and it attaches to identifiable proceeds (equitable tracing applies to commingled proceeds); perfection of the original collateral carries to the proceeds, but lapses on the twenty-first day after the proceeds attach unless one of three conditions holds: the original collateral is covered by a filed financing statement and the proceeds are of a type perfectable by filing in the same office and were not bought with cash proceeds; the proceeds are cash proceeds that can be identified; or the proceeds interest has been perfected some other way (section 9-315).