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Code · UCC · UCC Article 9 — Secured Transactions · § 9-703

§ 9-703. 9-703

191 words·~1 min read·/us/ucc/a9/s9-703

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

(a)[Continuing priority over lien creditor: perfection requirements satisfied.] A security interest that is enforceable immediately before this [Act] takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this [Act] if, when this [Act] takes effect, the applicable requirements for enforceability and perfection under this [Act] are satisfied without further action.
(b)[Continuing priority over lien creditor: perfection requirements not satisfied.] Except as otherwise provided in Section 9-705 , if, immediately before this [Act] takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under this [Act] are not satisfied when this [Act] takes effect, the security interest:
(1)is a perfected security interest for one year after this [Act] takes effect;
(2)remains enforceable thereafter only if the security interest becomes enforceable under Section 9-203 before the year expires; and
(3)remains perfected thereafter only if the applicable requirements for perfection under this [Act] are satisfied before the year expires.
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