What is one way to ensure perfection of a secured interest in the proceeds of collateral?

Ensuring perfection of a secured interest in the proceeds of collateral is fundamentally tied to the identification and description of those proceeds. The correct answer highlights that proceeds must be identifiable or described, which is crucial for determining a secured party's rights in those proceeds.

Under the Uniform Commercial Code (UCC), proceeds are defined as whatever is received from the sale, exchange, or other disposition of collateral. To perfect a security interest in these proceeds, the secured party must be able to trace the proceeds back to the original collateral and demonstrate they are identifiable. This requires that the proceeds can be specifically traced, named, or adequately described, making it clear how they relate to the original collateral.

In contrast, the other options do not meet the perfection requirements for proceeds. Proceeds do not need to consist solely of tangible property, as they can also include intangible assets. Furthermore, while cash can be a form of proceeds, it is not a requirement for perfection since proceeds can take many forms, not just cash. Lastly, while some transactions may require new filings under certain circumstances, it is not always the case that a new filing is necessary for each transaction involving proceeds, particularly if the original security interest was properly perfected.

Thus, the necessity for the proceeds to be identifiable