Opinion ID: 1167578
Heading Depth: 2
Heading Rank: 6

Heading: Tracing

Text: [13] Finally, we find no merit in MZ's contention that the Bank must identify the bank account into which MZ placed the proceeds. § 9-306(2). The Bank is not attempting to assert a superior security interest in these specific cash proceeds against another creditor of Stirling or MZ. Compare § 9-306(4). Rather, the Bank seeks only a simple money judgment against MZ for its conversion of the cash proceeds of the Stirlings' apple crop. MZ converted these proceeds the moment it took the funds on its own account in satisfaction of the Stirlings' debt. See Restatement (Second) of Torts § 222A (1965). See also Farmers State Bank v. Production Credit Ass'n, 243 Kan. 87, 755 P.2d 518, 527 (1988) (discussing identifiable proceeds requirements under Kan. Stat. Ann. § 84-9-306(2) (1983) in terms of the creditor receiving the proceeds  not with disposition after receipt); United States v. Tugwell, 779 F.2d 5, 8 (4th Cir.1985) (appropriateness of action for conversion of proceeds); United States v. Minster Farmers Coop. Exch., Inc., 430 F. Supp. 566, 571 (N.D. Ohio 1977); Farmers & Merchants Nat'l Bank v. Fairview State Bank, 766 P.2d 330, 334 (Okla. 1988); American Nat'l Bank v. Cloud, 201 Cal. App.3d 766, 247 Cal. Rptr. 325, 330 (1988); Nolin Production Credit Ass'n v. Camer Deposit Bank, 726 S.W.2d 693, 702-03 (Ky. Ct. App. 1986). What MZ has since done with the proceeds is irrelevant.