TITLE 6A
Uniform Commercial Code
CHAPTER 6A-9
Secured Transactions
PART 6A-9-301
Perfection and Priority
SECTION 6A-9-316
§ 6A-9-316 Effect of change in governing
law.
(a) General rule: effect on perfection of change in governing law. A
security interest perfected pursuant to the law of the jurisdiction designated
in § 6A-9-301(1) or 6A-9-305(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 to another jurisdiction; or
(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.
(b) Security interest perfected or unperfected under law
of new jurisdiction. If a security interest described in subsection (a)
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) Possessory security interest in collateral moved to
new jurisdiction. 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) Goods covered by certificate of title from this
state. Except as otherwise provided in subsection (e), 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) When subsection (d) security interest becomes
unperfected against purchasers. A security interest described in subsection
(d) 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 § 6A-9-311(b) or
6A-9-313 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) Change in jurisdiction of bank, issuer, nominated
person, securities intermediary, or commodity intermediary. 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) Subsection (f) security interest perfected or
unperfected under law of new jurisdiction. If a security interest described
in subsection (f) 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) Effect on filed financing statement of change in
governing law. The following rules apply to collateral to which a security
interest attaches within four (4) 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 subdivision 6A-9-301(1) or subsection
6A-9-305(c) 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) 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
subdivision 6A-9-301(1) or subsection 6A-9-305(c) or the expiration of the four
(4) 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) Effect of change in governing law on financing statement
filed against original debtor. If a financing statement naming an original
debtor is filed pursuant to the law of the jurisdiction designated in
subdivision 6A-9-301(1) or subsection 6A-9-305(c) 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 (4) months after, the new debtor becomes bound under subsection
6A-9-203(d), 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
and 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 subdivision 6A-9-301(1) or subsection
6A-9-305(c) or the expiration of the four (4) month period remains perfected
thereafter. A security interest that is perfected by the financing statement
but 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.
History of Section.
(P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6; P.L. 2011, ch.
173, § 2; P.L. 2011, ch. 192, § 2.)
