§ 9-705. Effectiveness of action taken before effective date

(a) If action, other than the filing of a financing statement, is taken before July 1, 2001 and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor, had the security interest become enforceable before the provisions of this article as in effect on and after July 1, 2001 become effective, the action is effective to perfect a security interest that attaches under this article as in effect on and after July 1, 2001, within one year after such provisions take effect. An attached security interest becomes unperfected on July 1, 2002, unless the security interest becomes a perfected security interest under the provisions of this article as in effect on and after July 1, 2001, on or before June 30, 2002.

(b) The filing of a financing statement before July 1, 2001 is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under the provisions of this article as in effect on and after July 1, 2001.

(c) The provisions of this article as in effect on and after July 1, 2001 do not render ineffective an effective financing statement that is filed before July 1, 2001 and satisfied the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in section 9-103 of this title as in effect prior to July 1, 2001. However, except as otherwise provided in subsections (d) and (e) of this section and section 9-706 of this title as in effect on and after July 1, 2001, the financing statement ceases to be effective at the earlier of:

(1) the time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or

(2) June 30, 2006.

(d) The filing of a continuation statement on or after July 1, 2001 does not continue the effectiveness of the financing statement filed before provisions of this article as in effect on and after July 1, 2001 take effect. However, upon the timely filing of a continuation statement on or after July 1, 2001, and in accordance with the law of the jurisdiction governing perfection as provided in Part 3 of this article as in effect on and after July 1, 2001, the effectiveness of a financing statement filed in the same office in that jurisdiction before July 1, 2001 continues for the period provided by the law of that jurisdiction.

(e) Subdivision (c)(2) of this section applies to a financing statement that is filed against a transmitting utility before July 1, 2001 and satisfied the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in section 9-103 of this title as in effect prior to July 1, 2001, only to the extent that Part 3 of this article as in effect on and after July 1, 2001 provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.

(f) A financing statement that includes a financing statement filed before July 1, 2001 takes effect and a continuation statement filed on or after July 1, 2001 is effective only to the extent that it satisfies the requirements of Part 5 of this article as in effect on and after July 1, 2001 for an initial financing statement. (Added 2001, No. 46, § 12.)