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

New York § 9-508

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 5: Filing
• Subpart 1: Filing Office; Contents and Effectiveness of Financing Statement
• Art. 9: Secured Transactions

Text

Section 9--508. Effectiveness of Financing Statement If New Debtor\n Becomes Bound by Security Agreement.\n (a) Financing statement naming original debtor. Except as otherwise\nprovided in this section, a filed financing statement naming an original\ndebtor is effective to perfect a security interest in collateral in\nwhich a new debtor has or acquires rights to the extent that the\nfinancing statement would have been effective had the original debtor\nacquired rights in the collateral.\n (b) Financing statement becoming seriously misleading. If the\ndifference between the name of the original debtor and that of the new\ndebtor causes a filed financing statement that is effective under\nsubsection (a) to be seriously misleading under Section 9--506:\n (1) the financing statement is effective to perfect a security\n interest in collateral acquired by the new debtor before, and\n within four months after, the new debtor becomes bound under\n Section 9--203(d); and\n (2) the financing statement is not effective to perfect a\n security interest in collateral acquired by the new debtor\n more than four months after the new debtor becomes bound\n under Section 9--203(d) unless an initial financing statement\n providing the name of the new debtor is filed before the\n expiration of that time.\n (c) When section not applicable. This section does not apply to\ncollateral as to which a filed financing statement remains effective\nagainst the new debtor under Section 9--507(a).\n