30-9A-507. Effect of certain events on effectiveness of financing statement.
30-9A-507. Effect of certain events on effectiveness of financing statement. (1) 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.
(2) Except as otherwise provided in 30-9A-508 and subsection (3) of this section, 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 the standard set forth in 30-9A-506.
(3) If a debtor so changes its name that a filed financing statement becomes seriously misleading under the standard set forth in 30-9A-506:
(a) the financing statement is effective to perfect a security interest in collateral acquired by the debtor before or within 4 months after the change; and
(b) the financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than 4 months after the change, unless an amendment to the financing statement that renders the financing statement not seriously misleading is filed within 4 months after the change.
History: En. Sec. 77, Ch. 305, L. 1999; Sec. 30-9-527, MCA 1999; redes. 30-9A-507 by Code Commissioner, 2001.