8.9A-705 - A-705. Effectiveness of action taken before effective date.
§ 8.9A-705. Effectiveness of action taken before effective date.
(a) Preeffective-date action; one-year perfection period unless reperfected.If action, other than the filing of a financing statement, is taken beforethis title takes effect and the action would have resulted in priority of asecurity interest over the rights of a person that becomes a lien creditorhad the security interest become enforceable before this title takes effect,the action is effective to perfect a security interest that attaches underthis title within one year after this takes effect. An attached securityinterest becomes unperfected one year after this title takes effect unlessthe security interest becomes a perfected security interest under this titlebefore the expiration of that period.
(b) Preeffective-date filing. The filing of a financing statement before thistitle takes effect is effective to perfect a security interest to the extentthe filing would satisfy the applicable requirements for perfection underthis title.
(c) Preeffective-date filing in jurisdiction formerly governing perfection.This title does not render ineffective an effective financing statement that,before this title takes effect, is filed and satisfies the applicablerequirements for perfection under the law of the jurisdiction governingperfection as provided in former § 8.9-103. However, except as otherwiseprovided in subsections (d) and (e) and § 8.9A-706, the financing statementceases to be effective at the earlier of:
(1) the time the financing statement would have ceased to be effective underthe law of the jurisdiction in which it is filed; or
(2) June 30, 2006.
(d) Continuation statement. The filing of a continuation statement after thistitle takes effect does not continue the effectiveness of the financingstatement filed before this title takes effect. However, upon the timelyfiling of a continuation statement after this title takes effect and inaccordance with the law of the jurisdiction governing perfection as providedin Part 3 (§ 8.9A-301 et seq.) of this title, the effectiveness of afinancing statement filed in the same office in that jurisdiction before thistitle takes effect continues for the period provided by the law of thatjurisdiction.
(e) Application of subsection (c) (2) to transmitting utility financingstatement. Subsection (c) (2) applies to a financing statement that, beforethis title takes effect, is filed against a transmitting utility andsatisfies the applicable requirements for perfection under the law of thejurisdiction governing perfection as provided in former § 8.9-103 only to theextent that Part 3 (§ 8.9A-301 et seq.) of this title provides that the lawof a jurisdiction other than the jurisdiction in which the financingstatement is filed governs perfection of a security interest in collateralcovered by the financing statement.
(f) Application of Part 5 (§ 8.9A-501 et seq.) of this title. A financingstatement that includes a financing statement filed before this title takeseffect and a continuation statement filed after this title takes effect iseffective only to the extent that it satisfies the requirements of Part 5 foran initial financing statement.
(2000, c. 1007.)