8.9A-316 - A-316. Continued perfection of security interest following change in governing law.
§ 8.9A-316. Continued perfection of security interest following change ingoverning law.
(a) General rule; effect on perfection of change in governing law. A securityinterest perfected pursuant to the law of the jurisdiction designated in §8.9A-301 (1) or § 8.9A-305 (c) remains perfected until the earliest of:
(1) the time perfection would have ceased under the law of that jurisdiction;
(2) the expiration of four months after a change of the debtor's location toanother jurisdiction; or
(3) the expiration of one year after a transfer of collateral to a personthat thereby becomes a debtor and is located in another jurisdiction.
(b) Security interest perfected or unperfected under law of new jurisdiction.If a security interest described in subsection (a) becomes perfected underthe law of the other jurisdiction before the earliest time or event describedin that subsection, it remains perfected thereafter. If the security interestdoes not become perfected under the law of the other jurisdiction before theearliest time or event, it becomes unperfected and is deemed never to havebeen perfected as against a purchaser of the collateral for value.
(c) Possessory security interest in collateral moved to new jurisdiction. Apossessory security interest in collateral, other than goods covered by acertificate of title and as-extracted collateral consisting of goods, remainscontinuously perfected if:
(1) the collateral is located in one jurisdiction and subject to a securityinterest perfected under the law of that jurisdiction;
(2) thereafter the collateral is brought into another jurisdiction; and
(3) upon entry into the other jurisdiction, the security interest isperfected under the law of the other jurisdiction.
(d) Goods covered by certificate of title from this state. Except asotherwise provided in subsection (e), a security interest in goods covered bya certificate of title which is perfected by any method under the law ofanother jurisdiction when the goods become covered by a certificate of titlefrom this Commonwealth remains perfected until the security interest wouldhave become unperfected under the law of the other jurisdiction had the goodsnot become so covered.
(e) When subsection (d) security interest becomes unperfected againstpurchasers. A security interest described in subsection (d) becomesunperfected as against a purchaser of the goods for value and is deemed neverto have been perfected as against a purchaser of the goods for value if theapplicable requirements for perfection under § 8.9A-311 (b) or § 8.9A-313 arenot satisfied before the earlier of:
(1) the time the security interest would have become unperfected under thelaw of the other jurisdiction had the goods not become covered by acertificate of title from this Commonwealth; or
(2) the expiration of four months after the goods had become so covered.
(f) Change in jurisdiction of bank, issuer, nominated person, securitiesintermediary, or commodity intermediary. A security interest in depositaccounts, letter-of-credit rights, or investment property which is perfectedunder the law of the bank's jurisdiction, the issuer's jurisdiction, anominated person's jurisdiction, the securities intermediary's jurisdiction,or the commodity intermediary's jurisdiction, as applicable, remainsperfected until the earlier of:
(1) the time the security interest would have become unperfected under thelaw of that jurisdiction; or
(2) the expiration of four months after a change of the applicablejurisdiction to another jurisdiction.
(g) Subsection (f) security interest perfected or unperfected under law ofnew jurisdiction. If a security interest described in subsection (f) becomesperfected under the law of the other jurisdiction before the earlier of thetime or the end of the period described in that subsection, it remainsperfected thereafter. If the security interest does not become perfectedunder the law of the other jurisdiction before the earlier of that time orthe end of that period, it becomes unperfected and is deemed never to havebeen perfected as against a purchaser of the collateral for value.
(Code 1950, § 55-9; 1964, c. 219, § 8.9-103; 1973, c. 509; 1984, c. 613;1996, c. 216; 1997, c. 343; 2000, c. 1007.)