Under the Uniform Commercial Code,the secured party's interest in proceeds lasts for sixty days after the debtor receives the proceeds.

When a debtor sells collateral,he or she receives proceeds,something that is exchanged for the collateral.The secured party automatically has an interest in the proceeds.Under the Uniform Commercial Code,the secured party's interest in proceeds lasts only ten days after the debtor receives the proceeds.At that time,the secured party will typically need to file a new financing statement.The parties may also agree in the security agreement that there will be extended coverage of interest in the proceeds.