Sec. 42a-9-508. Effectiveness of financing statement if new debtor becomes bound by security agreement.
Sec. 42a-9-508. Effectiveness of financing statement if new debtor becomes
bound by security agreement. (a) 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.
(b) 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 (a) to be
seriously misleading under section 42a-9-506:
(1) 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 (d) of section 42a-9-203; and
(2) 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 (d) of section 42a-9-203 unless an initial financing statement providing
the name of the new debtor is filed before the expiration of that time.
(c) This section does not apply to collateral as to which a filed financing statement
remains effective against the new debtor under subsection (a) of section 42a-9-507.
(P.A. 01-132, S. 79.)