§ 9705. Effectiveness of action taken before effective date.

687 words·~3 min read·/pa/title-13/chapter-97/9705

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(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 Division 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 Division 9 takes effect, the action is effective to perfect a security interest which attaches under Revised Division 9 within one year after Revised Division 9 takes effect. An attached security interest becomes unperfected one year after Revised Division 9 takes effect unless the security interest becomes a perfected security interest under Revised Division 9 before the expiration of that period.

(b)Pre-effective-date filing.-- The filing of a financing statement before July 1, 2001, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under Revised Division 9, and the effectiveness of such a financing statement shall not be affected by subsection (c).

(c)Pre-effective-date filing in jurisdiction formerly governing perfection.-- Revised Division 9 does not render ineffective an effective financing statement which, before Revised Division 9 takes effect, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in section 9103 of Former Division 9 (relating to perfection of security interests in multiple state transactions). However, except as otherwise provided in subsections

(d)and

(e)and section 9706 of Revised Division 9 (relating to when initial financing statement suffices to continue effectiveness of financing statement), 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 30, 2006.

(d)Continuation statement.--

(1)Except as set forth in paragraph (2), the filing of a continuation statement after Revised Division 9 takes effect does not continue the effectiveness of the financing statement filed before Revised Division 9 takes effect.

(2)Notwithstanding paragraph (1), upon the timely filing of a continuation statement after Revised Division 9 takes effect and in accordance with the law of the jurisdiction governing perfection as provided in Chapter 93 of Revised Division 9 (relating to perfection and priority), the effectiveness of a financing statement filed in the same office in that jurisdiction before Revised Division 9 takes effect continues for the period provided by the law of that jurisdiction. Filing of a continuation statement shall be timely under this paragraph if the filing occurs before the financing statement ceases to be effective but not before the earlier of:

(i)December 30, 2005; or

(ii)six months before the financing statement ceases to be effective.

(e)Application of subsection (c)(2) to transmitting utility financing statement.-- Subsection (c)(2) applies to a financing statement which, before Revised Division 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 section 9103 of Former Division 9 only to the extent that Chapter 93 of Revised Division 9 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 Chapter 95.-- A financing statement which includes a financing statement filed before Revised Division 9 takes effect and a continuation statement filed after Revised Division 9 takes effect is effective only to the extent that it satisfies the requirements of Chapter 95 of Revised Division 9 (relating to filing) for an initial financing statement.

13c9705v

(June 30, 2006, P.L.290, No.64, eff. imd.)

2006 Amendment. Act 64 amended subsecs.

(b)and (d). Section 2 of Act 64 provided that nothing in the amendment of subsecs.

(b)or

(d)shall render ineffective a continuation statement that was filed prior to the effective date of section 2.

Cross References. Section 9705 is referred to in sections 9702, 9703, 9706, 9707 of this title.

13c9706s