The attachment of the security interest to the collateral automatically gives the secured party a security interest in the proceeds of the disposal of the collateral by the debtor.

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This is known as the "proceeds" clause in security agreements, and it provides additional protection for the secured party by giving them a security interest in any funds obtained from the sale or disposition of the collateral. This clause is typically included in security agreements to ensure that the secured party can recover the value of their collateral if the debtor defaults on the loan.

The Attachment of the Security Interest to the Collateral Automatically