Effectiveness of Action Taken Before Effective Date

Section 9--705. Effectiveness of Action Taken Before Effective Date. (a) Pre-effective-date action; one-year perfection period unless reperfected. If action, other than the filing of a financing statement, is taken before Revised Article 9 takes effect and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before Revised Article 9 takes effect, the action is effective to perfect a security interest that attaches under Revised Article 9 within one year after Revised Article 9 takes effect. An attached security interest becomes unperfected one year after Revised Article 9 takes effect unless the security interest becomes a perfected security interest under Revised Article 9 before the expiration of that period. (b) Pre-effective-date filing. The filing of a financing statement before Revised Article 9 takes effect is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under Revised Article 9. (c) Pre-effective-date filing in jurisdiction formerly governing perfection. Revised Article 9 does not render ineffective an effective financing statement that, before Revised Article 9 takes effect, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in Former Section 9--103. However, except as otherwise provided in subsections (d) and (e) and Section 9--706, the financing statement ceases to be effective at the earlier of: (1) the time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or (2) June thirtieth, 2006. (d) Continuation statement. The filing of a continuation statement after Revised Article 9 takes effect does not continue the effectiveness of the financing statement filed before Revised Article 9 takes effect. However, upon the timely filing of a continuation statement after Revised Article 9 takes effect and in accordance with the law of the jurisdiction governing perfection as provided in Part 3, the effectiveness of a financing statement filed in the same office in that jurisdiction before Revised Article 9 takes effect continues for the period provided by the law of that jurisdiction. (e) Application of subsection (c) (2) to transmitting utility financing statement. Subsection (c) (2) applies to a financing statement that, before Revised Article 9 takes effect, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in Former Section 9--103 only to the extent that Part 3 provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement. (f) Application of Part 5. A financing statement that includes a financing statement filed before Revised Article 9 takes effect and a continuation statement filed after Revised Article 9 takes effect is effective only to the extent that it satisfies the requirements of Part 5 for an initial financing statement.