(1) |
Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral. |
(2) |
If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under Subsection (1) to be seriously misleading under Section 70A-9a-506:
(a) |
the financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under Subsection 70A-9a-203(4); and |
(b) |
the financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Subsection 70A-9a-203(4) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time. |
|
(3) |
This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under Subsection 70A-9a-507(1). |
Enacted by Chapter 252, 2000 General Session