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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-316. Effect of change in governing law

(a) A security

interest perfected pursuant to the law of the jurisdiction designated in

section 9-301(1) or 9-305(c) of this title 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 to another

jurisdiction;

(3) the

expiration of one year after a transfer of collateral to a person that thereby

becomes a debtor and is located in another jurisdiction; or

(4) the

expiration of one year after a new debtor located in another jurisdiction

becomes bound under section 9-203(d) of this section.

(b) If a

security interest described in subsection (a) of this section becomes perfected

under the law of the other jurisdiction before the earliest time or event

described in that subsection, it remains perfected thereafter. If the security

interest does not become perfected under the law of the other jurisdiction

before the earliest time or event, it becomes unperfected and is deemed never

to have been perfected as against a purchaser of the collateral for value.

(c) A possessory

security interest in collateral, other than goods covered by a certificate of

title and as-extracted collateral consisting of goods, remains continuously

perfected if:

(1) the

collateral is located in one jurisdiction and subject to a security interest

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 is perfected under the law

of the other jurisdiction.

(d) Except as

otherwise provided in subsection (e) of this section, a security interest in

goods covered by a certificate of title which is perfected by any method under

the law of another jurisdiction when the goods become covered by a certificate

of title from this state remains perfected until the security interest would

have become unperfected under the law of the other jurisdiction had the goods

not become so covered.

(e) A security

interest described in subsection (d) of this section becomes unperfected as

against a purchaser of the goods for value and is deemed never to have been

perfected as against a purchaser of the goods for value if the applicable

requirements for perfection under section 9-311(b) or 9-313 of this title are

not satisfied before the earlier of:

(1) the time the

security interest would have become unperfected under the law of the other

jurisdiction had the goods not become covered by a certificate of title from

this state; or

(2) the

expiration of four months after the goods had become so covered.

(f) A security

interest in deposit accounts, letter-of-credit rights, or investment property

which is perfected under the law of the bank's jurisdiction, the issuer's

jurisdiction, a nominated person's jurisdiction, the securities intermediary's

jurisdiction, or the commodity intermediary's jurisdiction, as applicable,

remains perfected until the earlier of:

(1) the time the

security interest would have become unperfected under the law of that

jurisdiction; or

(2) the

expiration of four months after a change of the applicable jurisdiction to

another jurisdiction.

(g) If a

security interest described in subsection (f) of this section becomes perfected

under the law of the other jurisdiction before the earlier of the time or the

end of the period described in that subsection, it remains perfected

thereafter. If the security interest does not become perfected under the law of

the other jurisdiction before the earlier of that time or the end of that

period, it becomes unperfected and is deemed never to have been perfected as

against a purchaser of the collateral for value.

(h) The

following rules apply to collateral to which a security interest attaches

within four months after the debtor changes its location to another

jurisdiction:

(1) A financing

statement filed before the change pursuant to the law of the jurisdiction

designated in subsection 9-301(1) or 9-305(c) of this title is effective to

perfect a security interest in the collateral if the financing statement would

have been effective to perfect a security interest in the collateral had the

debtor not changed its location.

(2) If a

security interest perfected by a financing statement that is effective under

subdivision (1) of this subsection becomes perfected under the law of the other

jurisdiction before the earlier of the time the financing statement would have

become ineffective under the law of the jurisdiction designated in subsection

9-301(1) or 9-305(c) of this title or the expiration of the four-month period,

it remains perfected thereafter. If the security interest does not become

perfected under the law of the other jurisdiction before the earlier time or

event, it becomes unperfected and is deemed never to have been perfected as

against a purchaser of the collateral for value.

(i) If a

financing statement naming an original debtor is filed pursuant to the law of

the jurisdiction designated in subsection 9-301(1) or 9-305(c) of this title

and the new debtor is located in another jurisdiction, the following rules

apply:

(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 9-203(d) of this title if the financing

statement would have been effective to perfect a security interest in the

collateral had the collateral been acquired by the original debtor.

(2) A security

interest perfected by the financing statement, which becomes perfected under

the law of the other jurisdiction before the earlier of the time the financing

statement would have become ineffective under the law of the jurisdiction

designated in subsection 9-301(1) or 9-305(c) of this title or the expiration

of the four-month period, remains perfected thereafter. A security interest

perfected by the financing statement, which does not become perfected under the

law of the other jurisdiction before the earlier time or event, becomes

unperfected and is deemed never to have been perfected as against a purchaser

of the collateral for value. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July

1, 2001; amended 2013, No. 157 (Adj. Sess.), § 1.)