Like current law, if the security interest in the original collateral was perfected, then the proceeds security interest is automatically perfected for a short period of time, giving the creditor an opportunity to take the steps necessary in order to maintain perfection. Compare current §9-306(3) with §9-315(c & d). If the security interest in the original collateral was not properly perfected, then the security interest in proceeds will not be perfected automatically.
The revised act extends the period of automatic perfection from 10 to 20 days. On the 21st day after the security interest attaches to the proceeds, it will become unperfected unless one of three conditions is satisfied. See §9-315(d). Unlike current law, this lapse in perfection is prospective only and apparently does not permit a competing interest that arose while the security interest was perfected to move ahead in priority. See §9-315, cmt. 4. Read more
For information on foreclosure defense call us at 844-372-8378. We offer litigation support, admissible evidence, expert witness testimony, education, training, and support in all 50 states to attorneys and pro se homeowners.
Fraudstoppers PMA
Feel free to connect with us . . .
Address:
332 S Michigan Avenue
Suite 1032 #F513
Chicago IL 60604-4434
Phone: 844-372-8378
Legal Information Is Not Legal Advice: This site provides “information” about the law and is only designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice — the application of law to an individual’s specific circumstances. THIS SITE IS NOT INTENDED TO BE MISCONSTRUED AS LEGAL ADVICE. Fraud Stoppers is NOT a law firm, non-profit organization, or government agency. Register for your Free Mortgage Fraud Analysis and Securitization Search, and get Free Foreclosure Defense Help and Free Foreclosure Defense Documents that you can use to stop a foreclosure and save your house.