§ 26-1-9.1-316 — Continued perfection of security interest following change in governing law

Indiana § 26-1-9.1-316

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) A security interest perfected pursuant
to the law of the jurisdiction designated in IC 26-1-9.1-301(1), IC 26-1-9.1-305(c), IC 26-1-9.1-306.1(d), or IC 26-1-9.1-306.2(b) remains
perfected until the earliest of:
(1) the time perfection would have ceased under the law of that
jurisdiction;
(2) the expiration of four (4) months after a change of the debtor's
location to another jurisdiction; or
(3) the expiration of one (1) year after a transfer of collateral to a
person that thereby becomes a debtor and is located in another
jurisdiction.
(b) If a security interest described in subsection (a) becomes
perfected under the law of the other jurisdiction before the earliest time
or event described in that subsection, it remains perfected thereafter.
If the security interest does not become perfected under the law of the
other jurisdiction before the earliest time or event, it becomes
unperfected and is deemed never to have been perfected as against a
purchaser of the collateral for value.
(c) A possessory security interest in collateral, other than goods
covered by a certificate of title and as-extracted collateral consisting of
goods, remains continuously perfected if:
(1) the collateral is located in one (1) jurisdiction and subject to
a security interest perfected under the law of that jurisdiction;
(2) thereafter the collateral is brought into another jurisdiction;
and
(3) upon entry into the other jurisdiction, the security interest is
perfected under the law of the other jurisdiction.
(d) Except as otherwise provided in subsection (e), a security
interest in goods covered by a certificate of title which is perfected by
any method under the law of another jurisdiction when the goods
become covered by a certificate of title from this state remains
perfected until the security interest would have become unperfected
under the law of the other jurisdiction had the goods not become so
covered.
(e) A security interest described in subsection (d) becomes
unperfected as against a purchaser of the goods for value and is deemed
never to have been perfected as against a purchaser of the goods for
value if the applicable requirements for perfection under IC 26-1-9.1-311(b) or IC 26-1-9.1-313 are not satisfied before the earlier
of:
(1) the time the security interest would have become unperfected
under the law of the other jurisdiction had the goods not become
covered by a certificate of title from this state; or
(2) the expiration of four (4) months after the goods had become
so covered.
(f) A security interest in chattel paper, controllable accounts,
controllable electronic records, controllable payment intangibles,
deposit accounts, letter-of-credit rights, or investment property which
is perfected under the law of the chattel paper's jurisdiction, the
controllable electronic record's jurisdiction, the bank's jurisdiction, the
issuer's jurisdiction, a nominated person's jurisdiction, the securities
intermediary's jurisdiction, or the commodity intermediary's
jurisdiction, as applicable, remains perfected until the earlier of:
(1) the time the security interest would have become unperfected
under the law of that jurisdiction; or
(2) the expiration of four (4) months after a change of the
applicable jurisdiction to another jurisdiction.
(g) If a security interest described in subsection (f) becomes
perfected under the law of the other jurisdiction before the earlier of the
time or the end of the period described in that subsection, it remains
perfected thereafter. If the security interest does not become perfected
under the law of the other jurisdiction before the earlier of that time or
the end of that period, it becomes unperfected and is deemed never to
have been perfected as against a purchaser of the collateral for value.
(h) The following rules apply to collateral to which a security
interest attaches within four (4) months after the debtor changes its
location to another jurisdiction:
(1) A financing statement filed before the change under the law
of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) is effective to perfect a security interest in the
collateral if the financing statement would have been effective to
perfect a security interest in the collateral had the debtor not
changed its location.
(2) If a security interest perfected by a financing statement that is
effective under subdivision (1) becomes perfected under the law
of the other jurisdiction before the earlier of the time the
financing statement would have become ineffective under the law
of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of the four (4) month period, it
remains perfected thereafter. If the security interest does not
become perfected under the law of the other jurisdiction before
the earlier time or event, it becomes unperfected and is deemed
never to have been perfected as against a purchaser of the
collateral for value.
(i) If a financing statement naming an original debtor is filed under
the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) and the new debtor is located in another jurisdiction,
the following rules apply:
(1) The financing statement is effective to perfect a security
interest in collateral acquired by the new debtor before, and
within four (4) months after, the new debtor becomes bound
under IC 26-1-9.1-203(d), if the financing statement would have
been effective to perfect a security interest in the collateral had
the collateral been acquired by the original debtor.
(2) A security interest perfected by the financing statement and
which becomes perfected under the law of the other jurisdiction
before the earlier of the time the financing statement would have
become ineffective under the law of the jurisdiction designated in
IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of the
four (4) month period remains perfected thereafter. A security
interest that is perfected by the financing statement but which
does not become perfected under the law of the other jurisdiction
before the earlier time or event becomes unperfected and is
deemed never to have been perfected as against a purchaser of the
collateral for value.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.7; P.L.199-2023, SEC.61.