Sec. 64.061. ATTACHMENT, PERFECTION, AND PRIORITY OF ASSIGNEE'S SECURITY INTEREST IN PROCEEDS. (a) An assignee's security interest in rents attaches to identifiable proceeds.
(b) If an assignee's security interest in rents is perfected, the assignee's security interest in identifiable cash proceeds is perfected.
(c) Except as provided by Subsection (b), the provisions of Chapter 9, Business & Commerce Code, or the comparable Uniform Commercial Code provisions of another applicable jurisdiction, determine:
(1) whether an assignee's security interest in proceeds is perfected;
(2) the effect of perfection or nonperfection;
(3) the priority of an interest in proceeds; and
(4) the law governing perfection, the effect of perfection or nonperfection, and the priority of an interest in proceeds.
(d) For purposes of this chapter, cash proceeds are identifiable if they are maintained in a segregated deposit account or, if commingled with other funds, to the extent they can be identified by a method of tracing, including application of equitable principles, that is permitted under a law of this state other than this chapter with respect to commingled funds.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Section: Previous 64.001 64.002 64.051 64.052 64.053 64.054 64.055 64.056 64.057 64.058 64.059 64.060 64.061Last modified: September 28, 2016