84-9-507. Effectiveness of financing statement; disposition of collateral; seriously misleading information; change in debtor's name. (a) Disposition. A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.

(b) Information becoming seriously misleading. Except as otherwise provided in subsection (c) and K.S.A. 2018 Supp. 84-9-508, and amendments thereto, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under K.S.A. 2018 Supp. 84-9-506, and amendments thereto.

(c) Change in debtor's name. If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under K.S.A. 2018 Supp. 84-9-503(a), and amendments thereto, so that the financing statement becomes seriously misleading under K.S.A. 2018 Supp. 84-9-506, and amendments thereto:

(1) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four months after, the filed financing statement becomes seriously misleading; and

(2) the financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the financing statement becomes seriously misleading.

History: L. 2000, ch. 142, § 78; L. 2012, ch. 84, § 12; July 1, 2013.

Revisor's Note:

Former section 84-9-507 was repealed by L. 2000, ch. 142, § 155 and the number reassigned to the current text.