Alabama § 7-9A-508 Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement

Alabama Statutes

§ 7-9A-508 — Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement

Alabama § 7-9A-508

JurisdictionAlabama

Title 7Commercial Code

Art. 9ASecured Transactions

Div. 1Filing; Contents and Effectiveness of Financing Statement

Part 5Filing

This text of Alabama § 7-9A-508 (Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 7-9A-508 (2026).

Text

(a)Financing statement naming original debtor. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.

(b)Financing statement becoming seriously misleading. If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) to be seriously misleading under Section 7-9A-506:

(1)the financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the n

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(a) Financing statement naming original debtor. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.
(b) Financing statement becoming seriously misleading. If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) to be seriously misleading under Section 7-9A-506:
(1) the financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under Section 7-9A-203(d); and
(2) the financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Section 7-9A-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
(c) When section not applicable. This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under Section 7-9A-507(a).