A security interest in collateral does not give the secured party a security interest in the proceeds acquired from the sale of that collateral.

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A security interest in collateral may give the secured party a security interest in the proceeds acquired from the sale of that collateral, depending on the terms of the security agreement and applicable state law. This can include cash proceeds, accounts receivable, or other forms of payment received from the sale or disposition of the collateral. However, the scope of the security interest and the priority of the secured party's lien on the proceeds may be limited by competing security interests or other legal considerations.

A Security Interest in Collateral Does Not Give the Secured