8.9A-706 - A-706. When initial financing statement suffices to continue effectiveness of financing statement.

§ 8.9A-706. When initial financing statement suffices to continueeffectiveness of financing statement.

(a) Initial financing statement in lieu of continuation statement. The filingof an initial financing statement in the office specified in § 8.9A-501continues the effectiveness of a financing statement filed before this titletakes effect if:

(1) the filing of an initial financing statement in that office would beeffective to perfect a security interest under this title;

(2) the preeffective-date financing statement was filed in an office inanother state or another office in this Commonwealth; and

(3) the initial financing statement satisfies subsection (c).

(b) Period of continued effectiveness. The filing of an initial financingstatement under subsection (a) continues the effectiveness of thepreeffective-date financing statement:

(1) if the initial financing statement is filed before this title takeseffect, for the period provided in former § 8.9-403 with respect to afinancing statement; and

(2) if the initial financing statement is filed after this title takeseffect, for the period provided in § 8.9A-515 with respect to an initialfinancing statement.

(c) Requirements for initial financing statement under subsection (a). To beeffective for purposes of subsection (a), an initial financing statement must:

(1) satisfy the requirements of Part 5 (§ 8.9A-501 et seq.) of this title foran initial financing statement;

(2) identify the preeffective-date financing statement by indicating theoffice in which the financing statement was filed and providing the dates offiling and file numbers, if any, of the financing statement and of the mostrecent continuation statement filed with respect to the financing statement;and

(3) indicate that the preeffective-date financing statement remains effective.

(2000, c. 1007.)