N.Y. Uniform Commercial Code 9-704 – Security Interest Unperfected Before Effective Date
Section 9–704. Security Interest Unperfected Before Effective Date.
Terms Used In N.Y. Uniform Commercial Code 9-704
- Lien: A claim against real or personal property in satisfaction of a debt.
A security interest that is enforceable immediately before Revised Article 9 takes effect but which would be subordinate to the rights of a person that becomes a lien creditor at that time:
(a) remains an enforceable security interest for one year after Revised Article 9 takes effect;
(b) remains enforceable thereafter if the security interest becomes enforceable under Section 9–203 when Revised Article 9 takes effect or within one year thereafter; and
(c) becomes perfected:
(1) without further action, when Revised Article 9 takes effect
if the applicable requirements for perfection under Revised
Article 9 are satisfied before or at that time; or
(2) when the applicable requirements for perfection are satisfied
if the requirements are satisfied after that time.