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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-508. Effectiveness of financing statement if new debtor becomes bound by

security agreement

(a) Except as

otherwise provided in this section, a filed financing statement naming an

original debtor is effective to perfect a security interest in collateral in

which a new debtor has or acquires rights to the extent that the financing

statement would have been effective had the original debtor acquired rights in

the collateral.

(b) If the

difference between the name of the original debtor and that of the new debtor

causes a filed financing statement that is effective under subsection (a) of

this section to be seriously misleading under section 9-506 of this title:

(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; and

(2) the

financing statement is not effective to perfect a security interest in

collateral acquired by the new debtor more than four months after the new

debtor becomes bound under subsection 9-203(d) of this title unless an initial

financing statement providing the name of the new debtor is filed before the

expiration of that time.

(c) This section

does not apply to collateral as to which a filed financing statement remains

effective against the new debtor under subsection 9-507(a) of this title.

(Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)