§ 9-706. When initial financing statement suffices to continue effectiveness of financing statement.

322 words·~1 min read·/de/title-6/chapter-9/9-706

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Initial financing statement in lieu of continuation statement. — The filing of an initial financing statement in the office specified in Section 9-501 continues the effectiveness of a financing statement filed before this Act takes effect if:

(1)the filing of an initial financing statement in that office would be effective to perfect a security interest under this Act;

(2)the pre-effective-date financing statement was filed in an office in another State or another office in this State; and

(3)the initial financing statement satisfies subsection (c).

(b)Period of continued effectiveness. — The filing of an initial financing statement under subsection

(a)continues the effectiveness of the pre-effective-date financing statement:

(1)if the initial financing statement is filed before this Act takes effect, for the period provided in former Section 9-403 with respect to a financing statement; and

(2)if the initial financing statement is filed after this Act takes effect, for the period provided in Section 9-515 with respect to an initial financing statement.

(c)Requirements for initial financing statement under subsection (a). — To be effective for purposes of subsection (a), an initial financing statement must:

(1)satisfy the requirements of Part 5 for an initial financing statement;

(2)identify the pre-effective-date financing statement by indicating the office in which the pre-effective-date financing statement was filed and providing the dates of filing and file numbers, if any, of the initial pre-effective-date financing statement and of the most recent continuation statement filed with respect to that financing statement; provided, that if the law of the jurisdiction governing perfection prior to the effective date of this act [June 28, 2005] required the filing of the pre-effective-date financing statement in both a central filing office and a local filing office, then an identification of the filing in the central filing office suffices for purposes of this subsection (c)(2) of this section; and

(3)indicate that the pre-effective-date financing statement remains effective.