§ 41-09-79 — (9-508) Effectiveness of financing statement if new debtor becomes bound by security agreement

by security agreement.
1. 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.
2. 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 1 to be seriously
misleading under section 41-09-77:
a. 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 subsection 4 of section 41-09-13; and
b. 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 subsection 4 of section 41-09-13 unless an initial financing
statement providing the name of the new debtor is filed before the expiration of
that time.
3. This section does not apply to collateral as to which a filed financing statement
remains effective against the new debtor under subsection 1 of section 41-09-78.