§ 9-705 — Effectiveness of Action Taken Before Effective Date

Section 9--705. Effectiveness of Action Taken Before Effective Date.\n (a) Pre-effective-date action; one-year perfection period unless\nreperfected. If action, other than the filing of a financing statement,\nis taken before Revised Article 9 takes effect and the action would have\nresulted in priority of a security interest over the rights of a person\nthat becomes a lien creditor had the security interest become\nenforceable before Revised Article 9 takes effect, the action is\neffective to perfect a security interest that attaches under Revised\nArticle 9 within one year after Revised Article 9 takes effect. An\nattached security interest becomes unperfected one year after Revised\nArticle 9 takes effect unless the security interest becomes a perfected\nsecurity interest under Revised Article 9 before the expiration of that\nperiod.\n (b) Pre-effective-date filing. The filing of a financing statement\nbefore Revised Article 9 takes effect is effective to perfect a security\ninterest to the extent the filing would satisfy the applicable\nrequirements for perfection under Revised Article 9.\n (c) Pre-effective-date filing in jurisdiction formerly governing\nperfection. Revised Article 9 does not render ineffective an effective\nfinancing statement that, before Revised Article 9 takes effect, is\nfiled and satisfies the applicable requirements for perfection under the\nlaw of the jurisdiction governing perfection as provided in Former\nSection 9--103. However, except as otherwise provided in subsections (d)\nand (e) and Section 9--706, the financing statement ceases to be\neffective at the earlier of:\n (1) the time the financing statement would have ceased to be\n effective under the law of the jurisdiction in which it is\n filed; or\n (2) June thirtieth, 2006.\n (d) Continuation statement. The filing of a continuation statement\nafter Revised Article 9 takes effect does not continue the effectiveness\nof the financing statement filed before Revised Article 9 takes effect.\nHowever, upon the timely filing of a continuation statement after\nRevised Article 9 takes effect and in accordance with the law of the\njurisdiction governing perfection as provided in Part 3, the\neffectiveness of a financing statement filed in the same office in that\njurisdiction before Revised Article 9 takes effect continues for the\nperiod provided by the law of that jurisdiction.\n (e) Application of subsection (c) (2) to transmitting utility\nfinancing statement. Subsection (c) (2) applies to a financing statement\nthat, before Revised Article 9 takes effect, is filed against a\ntransmitting utility and satisfies the applicable requirements for\nperfection under the law of the jurisdiction governing perfection as\nprovided in Former Section 9--103 only to the extent that Part 3\nprovides that the law of a jurisdiction other than the jurisdiction in\nwhich the financing statement is filed governs perfection of a security\ninterest in collateral covered by the financing statement.\n (f) Application of Part 5. A financing statement that includes a\nfinancing statement filed before Revised Article 9 takes effect and a\ncontinuation statement filed after Revised Article 9 takes effect is\neffective only to the extent that it satisfies the requirements of Part\n5 for an initial financing statement.\n