N.Y. Uniform Commercial Code 9-703 – Security Interest Perfected Before Effective Date
Section 9–703. Security Interest Perfected Before Effective Date.
Terms Used In N.Y. Uniform Commercial Code 9-703
- Lien: A claim against real or personal property in satisfaction of a debt.
(a) Continuing priority over lien creditor: perfection requirements satisfied. A security interest that is enforceable immediately before Revised Article 9 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 Revised Article 9 if, when Revised Article 9 takes effect, the applicable requirements for enforceability and perfection under Revised Article 9 are satisfied without further action.
(b) Continuing priority over lien creditor: perfection requirements not satisfied. Except as otherwise provided in Section 9–705 and subsection (c), if, immediately before this article 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 article are not satisfied when this article takes effect, the security interest:
(1) is a perfected security interest for one year after this
article 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 article are satisfied
before the year expires.
(c) Special rule for cooperative interests: perfection requirements not satisfied. If, immediately before Revised Article 9 takes effect, a security interest in a cooperative 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 perfection under Revised Article 9 are not satisfied when Revised Article 9 takes effect, the security interest:
(1) is a perfected security interest for 5 years after Revised
Article 9 takes effect; and
(2) remains perfected thereafter only if the applicable
requirements for perfection under Revised Article 9 are
satisfied before the 5 years expire.