§ 6A-9-705 - Effectiveness of action taken before effective date.
SECTION 6A-9-705
§ 6A-9-705 Effectiveness of action takenbefore effective date. – (a) Pre-effective-date action; one-year perfection period unlessreperfected. If action, other than the filing of a financing statement, istaken before this chapter takes effect and the action would have resulted inpriority of a security interest over the rights of a person that becomes a liencreditor had the security interest become enforceable before this chapter takeseffect, the action is effective to perfect a security interest that attachesunder this chapter within one year after this chapter takes effect. An attachedsecurity interest becomes unperfected one year after this chapter takes effectunless the security interest becomes a perfected security interest under thischapter before the expiration of that period.
(b) Pre-effective-date filing. The filing of afinancing statement before this chapter takes effect is effective to perfect asecurity interest to the extent the filing would satisfy the applicablerequirements for perfection under this chapter.
(c) Pre-effective-date filing in jurisdiction formerlygoverning perfection. This chapter does not render ineffective an effectivefinancing statement that, before this chapter takes effect, is filed andsatisfies the applicable requirements for perfection under the law of thejurisdiction governing perfection as provided in former § 6A-9-103.However, except as otherwise provided in subsections (d), (e), and (g) and§ 6A-9-706, the financing statement ceases to be effective at the earlierof:
(1) The time the financing statement would have ceased to beeffective under the law of the jurisdiction in which it is filed; or
(2) June 30, 2006.
(d) Continuation statement. The filing of acontinuation statement after this chapter takes effect does not continue theeffectiveness of the financing statement filed before this chapter takeseffect. However, upon the timely filing of a continuation statement after thischapter takes effect and in accordance with the law of the jurisdictiongoverning perfection as provided in part 3, the effectiveness of a financingstatement filed in the same office in that jurisdiction before this chaptertakes effect continues for the period provided by the law of that jurisdiction.
(e) Application of subsection (c)(2) to transmittingutility financing statement. Subsection (c)(2) applies to a financingstatement that, before this chapter takes effect, is filed against atransmitting utility and satisfies the applicable requirements for perfectionunder the law of the jurisdiction governing perfection as provided in former§ 6A-9-103 only to the extent that part 3 provides that the law of ajurisdiction other than the jurisdiction in which the financing statement isfiled governs perfection of a security interest in collateral covered by thefinancing statement.
(f) Application of part 5. A financing statement thatincludes a financing statement filed before this chapter takes effect and acontinuation statement filed after this chapter takes effect is effective onlyto the extent that it satisfies the requirements of part 5 for an initialfinancing statement.
(g) Financing statement effective under subsection(b). The following rules apply to a filed financing statement that iseffective under subsection (b):
(1) Subdivision (c)(2) does not apply.
(2) The filing of a continuation statement with respect tothe financing statement is timely if the filing occurs before the financingstatement ceases to be effective and not before the earlier of December 30,2005 or six (6) months before the effectiveness of the financing statementwould lapse.
(h) Timely filing of certain continuation statements.The filing of a continuation statement with respect to a financing statementthat was filed and effective before the effective date of this chapter, andwhose effectiveness would lapse after June 30, 2006 but for subdivision (c)(2)is timely if the filing occurs before the financing statement ceases to beeffective or December 30, 2005.