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Proceeds to be claimed

A security interest in collateral continues in the proceeds (except in certain cases).

Proceeds covers cash, insurance or compensation payments on the property, and any direct or indirect dealing with the property. As an example, if a new car that you have financed is sold and the price includes a traded-in used car, which is then sold, then the cash paid for the trade-in is proceeds of the original new car. The proceeds must derive from the original dealing and the grantor must have an interest in the proceeds.

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