Published: 2015-07-08
Key Benefits:
The changes to this division made by the act adding this chapter shall become operative on July 1, 2014.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
(a) Except as otherwise provided in this chapter, the changes to this division made by the act adding this chapter apply to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2014.
(b) The changes to this division made by the act adding this chapter do not affect an action, case, or proceeding commenced before July 1, 2014.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
(a) A security interest that is a perfected security interest immediately before July 1, 2014, is a perfected security interest under this division as amended by this act if, as of July 1, 2014, the applicable requirements for attachment and perfection under this division as of that date are satisfied without further action.
(b) Except as otherwise provided in Section 9805, if, immediately before July 1, 2014, a security interest is a perfected security interest, but the applicable requirements for perfection under this division as of July 1, 2014, are not satisfied as of that date, the security interest remains perfected thereafter only if the applicable requirements for perfection under this division as amended by this act are satisfied by July 1, 2015.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
A security interest that is an unperfected security interest immediately before July 1, 2014, becomes a perfected security interest as follows:
(a) Without further action, on July 1, 2014, if the applicable requirements for perfection under this division as amended by this act are satisfied before or at that time.
(b) When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
(a) The filing of a financing statement before July 1, 2014, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this division as amended by this act.
(b) The changes to this division made by the act adding this chapter do not render ineffective an effective financing statement that, before July 1, 2014, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in this division as it existed before that date. However, except as otherwise provided in subdivisions (c) and (d) and Section 9806, the financing statement ceases to be effective under the following conditions:
(1) If the financing statement is filed in this state, at the time the financing statement would have ceased to be effective had the changes to this division made by the act adding this chapter not become operative.
(2) If the financing statement is filed in another jurisdiction, at the earlier of the following:
(A) The time the financing statement would have ceased to be effective under the law of that jurisdiction.
(B) June 30, 2018.
(c) The filing of a continuation statement after July 1, 2014, does not continue the effectiveness of a financing statement filed before that date. However, upon the timely filing of a continuation statement after July 1, 2014, and in accordance with the law of the jurisdiction governing perfection as provided in this division, the effectiveness of a financing statement filed in the same office in that jurisdiction before July 1, 2014, continues for the period provided by the law of that jurisdiction.
(d) Subparagraph (B) of paragraph (2) of subdivision (b) applies to a financing statement that, before July 1, 2014, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in this division as it existed before that date, only to the extent that this division provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
(e) A financing statement that includes a financing statement filed before July 1, 2014, and a continuation statement filed after that date is effective only to the extent that it satisfies the requirements of Chapter 5 (commencing with Section 9501) as amended by the act adding this chapter for an initial financing statement. A financing statement that indicates that the debtor is a decedent’s estate indicates that the collateral is being administered by a personal representative within the meaning of paragraph (2) of subdivision (a) of Section 9503, as amended by the act adding this chapter. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of paragraph (3) of subdivision (a) of Section 9503 as amended by the act adding this chapter.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
(a) The filing of an initial financing statement in the office specified in Section 9501 continues the effectiveness of a financing statement filed before July 1, 2014, if the following conditions are satisfied:
(1) The filing of an initial financing statement in that office would be effective to perfect a security interest under this division as amended by the act adding this chapter.
(2) The preeffective-date financing statement was filed in an office in another state.
(3) The initial financing statement satisfies subdivision (c).
(b) The filing of an initial financing statement under subdivision (a) continues the effectiveness of the preeffective-date financing statement if the following conditions are satisfied:
(1) If the initial financing statement is filed before July 1, 2014, for the period provided in Section 9515 prior to its amendment by the act adding this chapter with respect to an initial financing statement.
(2) If the initial financing statement is filed after July 1, 2014, for the period provided in Section 9515 as amended by the act adding this chapter with respect to an initial financing statement.
(c) To be effective for purposes of subdivision (a), an initial financing statement shall satisfy the following conditions:
(1) Satisfy the requirements of Chapter 5 (commencing with Section 9501) as amended by the act adding this chapter for an initial financing statement.
(2) Identify the preeffective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement.
(3) Indicate that the preeffective-date financing statement remains effective.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
(a) In this section, “preeffective-date financing statement” means a financing statement filed before July 1, 2014.
(b) After July 1, 2014, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a preeffective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in this division as amended by the act adding this chapter. However, the effectiveness of a preeffective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.
(c) Except as otherwise provided in subdivision (d), if the law of this state governs perfection of a security interest, the information in a preeffective-date financing statement may be amended after July 1, 2014, only if:
(1) The preeffective-date financing statement and an amendment are filed in the office specified in Section 9501.
(2) An amendment is filed in the office specified in Section 9501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies subdivision (c) of Section 9806.
(3) An initial financing statement that provides the information as amended and satisfies subdivision (c) of Section 9806 is filed in the office specified in Section 9501.
(d) If the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement may be continued only under subdivision (c) or (e) of Section 9805 or Section 9806.
(e) Whether or not the law of this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement filed in this state may be terminated after July 1, 2014, by filing a termination statement in the office in which the preeffective-date financing statement is filed, unless an initial financing statement that satisfies subdivision (c) of Section 9806 has been filed in the office specified by the law of the jurisdiction governing perfection as provided in this division as amended by the act adding this chapter as the office in which to file a financing statement.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
A person may file an initial financing statement or a continuation statement under this chapter if the following conditions are satisfied:
(a) The secured party of record authorizes the filing.
(b) The filing is necessary under this part to accomplish either of the following:
(1) To continue the effectiveness of a financing statement filed before July 1, 2014.
(2) To perfect or continue the perfection of a security interest.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
The changes to this division made by the act adding this chapter determine the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before those changes become operative on July 1, 2014, this division as it existed before those changes become operative determines priority.
(Added by Stats. 2013, Ch. 531, Sec. 23. Effective January 1, 2014. Operative July 1, 2014, by Sec. 28 of Ch. 531.)
