§ 25-9-515. Duration and effectiveness of financing statement; effect of lapsed financing statement.
§25‑9‑515. Duration and effectiveness of financing statement;effect of lapsed financing statement.
(a) Five‑yeareffectiveness. Except as otherwise provided in subsections (b), (e), (f), and(g) of this section, a filed financing statement is effective for a period offive years after the date of filing.
(b) Public‑financeor manufactured‑home transaction. Except as otherwise provided insubsections (e), (f), and (g) of this section, an initial financing statementfiled in connection with a public‑finance transaction or manufactured‑hometransaction is effective for a period of 30 years after the date of filing ifit indicates that it is filed in connection with a public‑financetransaction or manufactured‑home transaction.
(c) Lapse andcontinuation of financing statement. The effectiveness of a filed financingstatement lapses on the expiration of the period of its effectiveness unlessbefore the lapse a continuation statement is filed pursuant to subsection (d)of this section. Upon lapse, a financing statement ceases to be effective andany security interest or agricultural lien that was perfected by the financingstatement becomes unperfected, unless the security interest is perfectedotherwise. If the security interest or agricultural lien becomes unperfectedupon lapse, it is deemed never to have been perfected as against a purchaser ofthe collateral for value.
(d) When continuationstatement may be filed. A continuation statement may be filed only within sixmonths before the expiration of the five‑year period specified insubsection (a) of this section or the 30‑year period specified insubsection (b) of this section, whichever is applicable.
(e) Effect of filingcontinuation statement. Except as otherwise provided in G.S. 25‑9‑510,upon timely filing of a continuation statement, the effectiveness of theinitial financing statement continues for a period of five years commencing onthe day on which the financing statement would have become ineffective in theabsence of the filing. Upon the expiration of the five‑year period, thefinancing statement lapses in the same manner as provided in subsection (c) ofthis section, unless, before the lapse, another continuation statement is filedpursuant to subsection (d) of this section. Succeeding continuation statementsmay be filed in the same manner to continue the effectiveness of the initialfinancing statement.
(f) Transmittingutility financing statement. If a debtor is a transmitting utility and afiled financing statement so indicates, the financing statement is effectiveuntil a termination statement is filed.
(g) Record of mortgageas financing statement. A record of a mortgage that is effective as afinancing statement filed as a fixture filing under G.S. 25‑9‑502(c)remains effective as a financing statement filed as a fixture filing until themortgage is released or satisfied of record or its effectiveness otherwiseterminates as to the real property. (1866‑7, c. 1, s. 1;1872‑3, c. 133, s. 1; Code, s. 1799; 1893, c. 9; Rev., s. 2052; C.S., s.2480; 1925, c. 302, s. 1; 1927, c. 22; 1935, c. 205; 1945, c. 182, ss. 2, 4; c.196, s. 2; 1955, c. 386, ss. 1, 2; c. 816; 1957, cc. 564, 999; 1961, c. 574;1965, c. 700, s. 1; 1967, c. 562, s. 1; 1969, c. 1115, s. 1; 1971, c. 1170;1973, c. 1316, s. 1; 1975, c. 862, s. 7; 1977, cc. 156, 295; 1983, c. 713, s.23; 1987, c. 792, s. 6; 1989, c. 523, s. 4; 1991, c. 164, s. 1; 1997‑456,s. 55.3; 1997‑475, s. 5.4; 2000‑169, s. 1.)