70A-9a-508 - Effectiveness of financing statement if new debtor becomes bound by security agreement.
70A-9a-508. Effectiveness of financing statement if new debtor becomes bound bysecurity agreement.
(1) Except as otherwise provided in this section, a filed financing statement naming anoriginal debtor is effective to perfect a security interest in collateral in which a new debtor has oracquires rights to the extent that the financing statement would have been effective had theoriginal debtor acquired rights in the collateral.
(2) If the difference between the name of the original debtor and that of the new debtorcauses a filed financing statement that is effective under Subsection (1) to be seriously misleadingunder Section 70A-9a-506:
(a) the financing statement is effective to perfect a security interest in collateral acquiredby the new debtor before, and within four months after, the new debtor becomes bound underSubsection 70A-9a-203(4); and
(b) the financing statement is not effective to perfect a security interest in collateralacquired by the new debtor more than four months after the new debtor becomes bound underSubsection 70A-9a-203(4) unless an initial financing statement providing the name of the newdebtor is filed before the expiration of that time.
(3) This section does not apply to collateral as to which a filed financing statementremains effective against the new debtor under Subsection 70A-9a-507(1).
Enacted by Chapter 252, 2000 General Session