§ 10:9-316 — Continued perfection of security interest following change in governing law

§9-316. Continued perfection of security interest following change in governing law
(a) General rule: effect on perfection of change in governing law. A security interest
perfected pursuant to the law of the jurisdiction designated in R.S. 10:9-301(1), 9-305(c),
9-306.1(d), or 9-306.2(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 months after a change of the debtor's location to another
jurisdiction; or
(3) the expiration of one year after a transfer of collateral to a person that thereby
becomes a debtor and is located in another jurisdiction.
(b) Security interest perfected or unperfected under law of new jurisdiction. 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) Possessory security interest in collateral moved to new jurisdiction. 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 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) Goods covered by certificate of title from this state. 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) When Subsection (d) security interest becomes unperfected against purchasers.
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 R.S. 10:9-311(b) or
9-313 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 months after the goods had become so covered.
(f) Change in jurisdiction of chattel paper, controllable electronic record, bank,
issuer, nominated person, securities intermediary, or commodity intermediary. 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 months after a change of the applicable jurisdiction to
another jurisdiction.
(g) Subsection (f) security interest perfected or unperfected under law of new
jurisdiction. 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) Effect on filed financing statement of change in governing law. The following
rules apply to collateral to which a security interest attaches within four months after the
debtor changes its location to another jurisdiction:
(1) A financing statement filed before the change pursuant to the law of the
jurisdiction designated in R.S. 10:9-301(1) or 9-305(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
Paragraph (1) of this Subsection 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 R.S. 10:9-301(1) or 9-305(c) or the expiration of the
four-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) Effect of change in governing law on financing statement filed against original
debtor. If a financing statement naming an original debtor is filed pursuant to the law of the
jurisdiction designated in R.S. 10:9-301(1) or 9-305(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 months after, the new debtor becomes
bound under R.S. 10:9-203(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 R.S.
10:9-301(1) or 9-305(c) or the expiration of the four-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

Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2012, No. 450, §1, eff. July 1, 2013; Acts 2024, No. 773, §1.