Of course, the language cited in the new section 9-102 (a) (64) (B) is “broad enough” to cover income from collateral other than fixed assets. The question is to what extent the authors wanted to go beyond the traditional concept of product (which will be obtained when the security is marketed) or the courts will be willing to accept. On the other hand, a party that has an interest in the safety of goods mixed with other goods has an interest in the safety of the product or mass resulting from the mixture, without referring to the goods mixed in the security agreement. Thus, a party with a safety interest in the cakes described as such in a safety agreement has an interest in the safety of the cake, including flour provided by another party and to which the other party has an interest in safety without having to refer to the flour in the safety agreement on the cakes. In Chapter 4 (Article 9), it was found that the old Article 9 only accounted for the collateral on illicit claims as a product, but that the creation of an interest in the security of an illicit commercial claim within the meaning of the new section 9-102, point a) (13), fell within the scope of the new Article 9 as an initial guarantee. However, the new section 9-204 (b) (2) provides that a security interest cannot be linked to an acquired commercial right. Therefore, if the commercial claim does not exist at the time of certification of the security contract, a security interest in the claim is enforceable only if it represents a product. See the new sections 9-102 (a) (1) and Official Comment 4 of new 9-204 and subsection C below. In addition, it is generally preferable for an insured party to be able to claim ownership as part of its initial guarantees, rather than as a product of its original security. As a result, prudent lenders and lenders in the equipment and finance industry often have a security interest not only in leased or financed equipment, but also in chat paper, instruments, accounts, insurance products or other real estate resulting from the sale, rental or other sale of these equipments. This approach has the advantage of mitigating the risk of judicial interpretation of the section 9 security category as “product.” Donald Debtor makes auto parts. Second Bank has a safety interest in Donald`s inventory of existing and acquired auto parts, and interest has been honed in time. Donald went bankrupt.
Of the $30,000 inventory of auto parts subject to second Bank`s security interest, there was US$10,000 prior to bankruptcy, $5,000 was acquired with the proceeds from the sale of the pre-sale inventory and $15,000 after the non-product petition. This observation implicitly accepts the fact that the new section 9-204 (a) is permitted (a security agreement may include acquired property), but determines whether the property has been properly described is appropriate for the interpretation of a guarantee agreement. There is no more effective way to express the intent of a security interest to include post-acquired properties than to include a clause that explicitly provides it. Conversely, a security agreement that does not cover acquired real estate does not cover the original warranties purchased later. In the new section 9-102 (a) (64), the “recipe” as defined in the recipe definition of the old section 9-306(1) is referred to. However, it would be unwise if a security interest did not continue in revenue (assuming the ability to identify). Official commentary 13c on the new section 9-102 states that “the idea of “revenue” is included in the revised definition of guarantees and that no change in meaning is expected.” Securities” are defined in the new section 9-102 (a) (12) to essentially refer to property subject to securities interest or agricultural pawn, including revenues that are included in a security interest under the new section 9-315 (a)).2).