70A-9a-705 - Effectiveness of action taken before effective date.
70A-9a-705. Effectiveness of action taken before effective date.
(1) If action, other than the filing of a financing statement, is taken before this act takeseffect and the action would have resulted in priority of a security interest over the rights of aperson that becomes a lien creditor had the security interest become enforceable before this acttakes effect, the action is effective to perfect a security interest that attaches under this act withinone year after this act takes effect. An attached security interest becomes unperfected one yearafter this act takes effect unless the security interest becomes a perfected security interest underthis act before the expiration of that period.
(2) The filing of a financing statement before this act takes effect is effective to perfect asecurity interest to the extent the filing would satisfy the applicable requirements for perfectionunder this act.
(3) This act does not render ineffective an effective financing statement that, before thisact takes effect, is filed and satisfies the applicable requirements for perfection under the law ofthe jurisdiction governing perfection as provided in former Section 70A-9-103. However, exceptas otherwise provided in Subsections (4) and (5) and Section 70A-9a-706, the financing statementceases to be effective at the earlier of:
(a) the time the financing statement would have ceased to be effective under the law ofthe jurisdiction in which it is filed; or
(b) June 30, 2006.
(4) The filing of a continuation statement after this act takes effect does not continue theeffectiveness of the financing statement filed before this act takes effect. However, upon thetimely filing of a continuation statement after this act takes effect and in accordance with the lawof the jurisdiction governing perfection as provided in Part 3, the effectiveness of a financingstatement filed in the same office in that jurisdiction before this act takes effect continues for theperiod provided by the law of that jurisdiction.
(5) Subsection (3)(b) applies to a financing statement that, before this act takes effect, isfiled against a transmitting utility and satisfies the applicable requirements for perfection underthe law of the jurisdiction governing perfection as provided in former Section 70A-9-103 only tothe extent that Part 3 provides that the law of a jurisdiction other than the jurisdiction in which thefinancing statement is filed governs perfection of a security interest in collateral covered by thefinancing statement.
(6) A financing statement that includes a financing statement filed before this act takeseffect and a continuation statement filed after this act takes effect is effective only to the extentthat it satisfies the requirements of Part 5 for an initial financing statement.
Enacted by Chapter 252, 2000 General Session