(a) Continuing priority over lien creditor: Perfection requirements satisfied. A security interest that is enforceable immediately before January 1, 2002, 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 article if, on January 1, 2002, the applicable requirements for enforceability and perfection under this article are satisfied without further action.
Terms Used In Alabama Code 7-9A-703
Lien: A claim against real or personal property in satisfaction of a debt.
person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
year: means a calendar year; but, whenever the word "year" is used in reference to any appropriations for the payment of money out of the treasury, it shall mean fiscal year. See Alabama Code 1-1-1
(b) Continuing priority over lien creditor: Perfection requirements not satisfied. Except as otherwise provided in Section 7-9A-705, if, immediately before January 1, 2002, 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 article are not satisfied on January 1, 2002, the security interest:
(1) is a perfected security interest for one year after January 1, 2002;(2) remains enforceable thereafter only if the security interest becomes enforceable under Section 7-9A-203 before the year expires; and(3) remains perfected thereafter only if the applicable requirements for perfection under this article are satisfied before the year expires.
