New Jersey § 12a:9-315

§ 12a:9-315.

(a) Disposition of collateral: continuation of security interest or agricultural lien;

proceeds. Except as otherwise provided in this chapter and in 12A:2-403(2): (1) a security interest or agricultural lien continues in collateral notwithstanding

sale, lease, license, exchange, or other disposition thereof unless the secured party

authorized the disposition free of the security interest or agricultural lien; and (2) a security interest attaches to any identifiable proceeds of collateral. (b) When commingled proceeds identifiable. Proceeds that are commingled with other property are identifiable proceeds: (1) if the proceeds are goods, to the extent provided by 12A:9-336; and (2) if the proceeds are not goods, to the extent that the secured party identifies

the proceeds by a method of tracing, including application of equitable principles,

that is permitted under law other than this chapter with respect to commingled property

of the type involved. (c) Perfection of security interest in proceeds. A security interest in proceeds is a perfected security interest if the security

interest in the original collateral was perfected. (d) Continuation of perfection. A perfected security interest in proceeds becomes unperfected on the 21st day after

the security interest attaches to the proceeds unless: (1) the following conditions are satisfied: (A) a filed financing statement covers the original collateral; (B) 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 (C) the proceeds are not acquired with cash proceeds; (2) the proceeds are identifiable cash proceeds; or (3) the security interest in the proceeds is perfected other than under subsection (c) when the security interest attaches to the proceeds or within 20 days thereafter. (e) When perfected security interest in proceeds becomes unperfected. If a filed financing statement covers the original collateral, a security interest

in proceeds which remains perfected under subsection (d) (1) becomes unperfected at the later of: (1) when the effectiveness of the filed financing statement lapses under 12A:9-515

or is terminated under 12A:9-513; or (2) the 21st day after the security interest attaches to the proceeds.