§ 10:9-507 — Effect of certain events on effectiveness of financing statement

§9-507. Effect of certain events on effectiveness of financing statement
(a) Disposition. A filed financing statement remains effective with respect to
collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a
security interest or agricultural lien continues, even if the secured party knows of or consents
to the disposition.
(b) Information becoming seriously misleading. Except as otherwise provided in
Subsection (c) and R.S. 10:9-508, a financing statement is not rendered ineffective if, after
the financing statement is filed, the information provided in the financing statement becomes
seriously misleading under R.S. 10:9-506.
(c) Change in debtor's name. If the name that a filed financing statement provides
for a debtor becomes insufficient as the name of the debtor under R.S. 10:9-503(a) so that
the financing statement becomes seriously misleading under R.S. 10:9-506:
(1) the financing statement is effective to perfect a security interest in collateral
acquired by the debtor before, or within four months after, the filed financing statement
becomes seriously misleading; and
(2) the financing statement is not effective to perfect a security interest in collateral
acquired by the debtor more than four months after the filed financing statement becomes
seriously misleading, unless an amendment to the financing statement which renders the
financing statement not seriously misleading is filed within four months after the financing
statement became seriously misleading.

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.