Republic Acts1 min read
Section 8Sec./Art. 8
Personal notes Saved on this device
0 / 5,000 charactersReport page issue
Answer First
Primary Text
Right to Proceeds and Commingled Funds and Money.
(a) A security interest in personal property shall extend to its identifiable or traceable proceeds.
(b) Where proceeds in the form of funds credited to a deposit account or money are commingled with other funds or money:
(1) The security interest shall extend to the commingled money or funds, notwithstanding that the proceeds have ceased to be identifiable to the extent they remain traceable:
(2) The security interest in the commingled funds or money shall be limited to the amount of the proceeds immediately before they were commingled: and
(3) If at any time after the commingling, the balance credited to the deposit account or the amount of the commingled money is less than the amount of the proceeds immediately before they were commingled, the security interest against the commingled funds or money shall be limited to the lowest amount of the commingled funds or money between the time when the proceeds were commingled and the time the security interest in the proceeds is claimed.
Use With Care
Definitions and exceptions often appear before or after this text.
Court decisions may interpret, limit, or apply this provision.
Confirm amendment, repeal, effectivity, and official publication.