Enforceability and perfection of security interest enforceable immediately prior to July 1, 2001, and subordinate to lien creditor.

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57A-9-704. Enforceability and perfection of security interest enforceable immediately prior to July 1, 2001, and subordinate to lien creditor.

A security interest that is enforceable immediately before July 1, 2001, but which would be subordinate to the rights of a person that becomes a lien creditor at that time:

(1)Remains an enforceable security interest for one year after July 1, 2001;

(2)Remains enforceable thereafter if the security interest becomes enforceable under §57A-9-203 on July 1, 2001, or within one year thereafter; and

(3)Becomes perfected:

(A)Without further action, on July 1, 2001, if the applicable requirements for perfection under this chapter are satisfied before or at that time; or

(B)When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.

Source: SL 2000, ch 231.


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