No,9n0fi
Mov*slr Pnopnnry $scuRrry lNrrnssrs
Cap, l4r35
commingled assets is limited to the lowest anrount between the tirne when
the proceeds were commingled and the time the security interest in the
proceeds is claimed.
Security intere
sts in
fungibles
3. (1) A security interest in a fungible asset continues after it is commingled with
otherfungiblee of thesamekind,and is limitedtothe valueofthecollateral immediately
before commingling.
(2) Where fungibles are commingled with other fungibles of the same kind, and
two or more secured creditqs had separate security interests in those fungibles before
commingling, the secured creditors are entitled to share in the commingled fungibles
according to the ratio that the obligation secured by each security interest bears to ttre
sum of the obligations secured by all s*urity interests.
Contractual limitatiow an creation of a security interest
4, (l) A security interest in a receivable is effective as between the debtor and
the secured crcditor and as against the obligor of the receivable despite an agreement
limiting in any way the debtor's right to create a security interest entercd into between
the debtor and the obligor ofthe receivable or any subsequent secured creditor.
(2) Nothing in this
affects any obligation or liability of the debtor
for breach of the agreement refened to in subparagnph (l), but tbe other party to
the agreement may not avoid tbe contact grving rise to the receivable or the seeurity
agleement on the sole ground of the heach of that agreement, c raise against the
secured creditor any claim it may have as a result of such a heach against the debtor.
(3) Any person who is not a party to the agreement referred to in subparagraph
shall not be liable for the debtor's breach of the agreement on the sole ground that
he or she had knowledge of the agreement.
(t)
(4) This parasaph applies only to receivables arising from a contract-
(a) that is a contract for the supply s
lease
of goods or services other than
financial services;
o)
that is a constnrction contract or a contract for the sale or lease of
immovable prop€rty; or
(c) fq the sale,lease or licensing of indusnial
or other intellectual propefty
or of proprietary infomration.
(5)Asecurity interest in arigbt topaymentof fundscreditedto adepositaccount
is effective despite an agreernent betrven the dehor
in any way the debtor's riglrt to create
ad
the financial institution
a sectrity intenest.
Personal or property rights securing or supparting
limiting
Wwent or othcr performarce
5. (t) A secured credits with a secuity interest in a receivable or other intangible
asset, or a negotiable instrument, bas the benefit of any personsl or propeny right that
secures or supptrts payment or other performance of the collateral without a new act
oftransfer.
(2) If the right referred to in subparagraph (l) is transferable only with a new
act of transfer, the debtor must create a security interest in it in favqrr of the swured
creditq.
Poit-registration transfer of collateral
a
6. (t) If a security intercst has been perfected and the collateral is transferred !o
transferee who acquires its rights subject to the security interest, the security interest
165
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