12A:9-703 Security interest perfected before effective date.
12A:9-703. Security Interest Perfected Before Effective Date.
(a) Continuing priority over lien creditor: perfection requirements satisfied. A security interest that is enforceable immediately before this chapter takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this chapter if, when this chapter takes effect, the applicable requirements for enforceability and perfection under this chapter are satisfied without further action.
(b) Continuing priority over lien creditor: perfection requirements not satisfied. Except as otherwise provided in 12A:9-705, if, immediately before this chapter takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under this chapter are not satisfied when this chapter takes effect, the security interest:
(1) is a perfected security interest for one year after this chapter takes effect;
(2) remains enforceable thereafter only if the security interest becomes enforceable under 12A:9-203 before the year expires; and
(3) remains perfected thereafter only if the applicable requirements for perfection under this chapter are satisfied before the year expires.
L.2001, c.117, s.1; amended 2001, c.386, s.120.