§25‑9‑316. Continued perfection of security interest followingchange in governing law.
(a) General rule:effect on perfection of change in governing law. A security interestperfected pursuant to the law of the jurisdiction designated in G.S. 25‑9‑301(1)or G.S. 25‑9‑305(c) remains perfected until the earliest of:
(1) The time perfectionwould have ceased under the law of that jurisdiction;
(2) The expiration offour months after a change of the debtor's location to another jurisdiction; or
(3) The expiration ofone year after a transfer of collateral to a person that thereby becomes adebtor and is located in another jurisdiction.
(b) Security interestperfected or unperfected under law of new jurisdiction. If a securityinterest described in subsection (a) of this section becomes perfected underthe law of the other jurisdiction before the earliest time or event describedin that subsection, it remains perfected thereafter. If the security interestdoes not become perfected under the law of the other jurisdiction before theearliest time or event, it becomes unperfected and is deemed never to have beenperfected as against a purchaser of the collateral for value.
(c) Possessory securityinterest in collateral moved to new jurisdiction. A possessory securityinterest in collateral, other than goods covered by a certificate of title andas‑extracted collateral consisting of goods, remains continuouslyperfected if:
(1) The collateral islocated in one jurisdiction and subject to a security interest perfected underthe law of that jurisdiction;
(2) Thereafter thecollateral is brought into another jurisdiction; and
(3) Upon entry into theother jurisdiction, the security interest is perfected under the law of theother jurisdiction.
(d) Goods covered by certificateof title from this State. Except as otherwise provided in subsection (e) ofthis section, a security interest in goods covered by a certificate of titlewhich is perfected by any method under the law of another jurisdiction when thegoods become covered by a certificate of title from this State remainsperfected until the security interest would have become unperfected under thelaw of the other jurisdiction had the goods not become so covered.
(e) When subsection (d)security interest becomes unperfected against purchasers. A security interestdescribed in subsection (d) of this section becomes unperfected as against apurchaser of the goods for value and is deemed never to have been perfected asagainst a purchaser of the goods for value if the applicable requirements forperfection under G.S. 25‑9‑311(b) or G.S. 25‑9‑313 arenot satisfied before the earlier of:
(1) The time thesecurity interest would have become unperfected under the law of the otherjurisdiction had the goods not become covered by a certificate of title fromthis State; or
(2) The expiration offour months after the goods had become so covered.
(f) Change injurisdiction of bank, issuer, nominated person, securities intermediary, orcommodity intermediary. A security interest in deposit accounts, letter‑of‑creditrights, or investment property which is perfected under the law of the bank'sjurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, thesecurities intermediary's jurisdiction, or the commodity intermediary'sjurisdiction, as applicable, remains perfected until the earlier of:
(1) The time thesecurity interest would have become unperfected under the law of thatjurisdiction; or
(2) The expiration offour months after a change of the applicable jurisdiction to anotherjurisdiction.
(g) Subsection (f)security interest perfected or unperfected under law of new jurisdiction. Ifa security interest described in subsection (f) of this section becomesperfected under the law of the other jurisdiction before the earlier of thetime or the end of the period described in that subsection, it remainsperfected thereafter. If the security interest does not become perfected underthe law of the other jurisdiction before the earlier of that time or the end ofthat period, it becomes unperfected and is deemed never to have been perfectedas against a purchaser of the collateral for value. (1945, c. 196, s. 2; 1957, c.564; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1975, c. 862, s. 7; 1989 (Reg.Sess., 1990), c. 1024, s. 8(e), (f); 1997‑181, s. 2; 1999‑73, s.4(a), (b); 2000‑169, s. 1.)
§25‑9‑316. Continued perfection of security interest followingchange in governing law.
(a) General rule:effect on perfection of change in governing law. A security interestperfected pursuant to the law of the jurisdiction designated in G.S. 25‑9‑301(1)or G.S. 25‑9‑305(c) remains perfected until the earliest of:
(1) The time perfectionwould have ceased under the law of that jurisdiction;
(2) The expiration offour months after a change of the debtor's location to another jurisdiction; or
(3) The expiration ofone year after a transfer of collateral to a person that thereby becomes adebtor and is located in another jurisdiction.
(b) Security interestperfected or unperfected under law of new jurisdiction. If a securityinterest described in subsection (a) of this section becomes perfected underthe law of the other jurisdiction before the earliest time or event describedin that subsection, it remains perfected thereafter. If the security interestdoes not become perfected under the law of the other jurisdiction before theearliest time or event, it becomes unperfected and is deemed never to have beenperfected as against a purchaser of the collateral for value.
(c) Possessory securityinterest in collateral moved to new jurisdiction. A possessory securityinterest in collateral, other than goods covered by a certificate of title andas‑extracted collateral consisting of goods, remains continuouslyperfected if:
(1) The collateral islocated in one jurisdiction and subject to a security interest perfected underthe law of that jurisdiction;
(2) Thereafter thecollateral is brought into another jurisdiction; and
(3) Upon entry into theother jurisdiction, the security interest is perfected under the law of theother jurisdiction.
(d) Goods covered by certificateof title from this State. Except as otherwise provided in subsection (e) ofthis section, a security interest in goods covered by a certificate of titlewhich is perfected by any method under the law of another jurisdiction when thegoods become covered by a certificate of title from this State remainsperfected until the security interest would have become unperfected under thelaw of the other jurisdiction had the goods not become so covered.
(e) When subsection (d)security interest becomes unperfected against purchasers. A security interestdescribed in subsection (d) of this section becomes unperfected as against apurchaser of the goods for value and is deemed never to have been perfected asagainst a purchaser of the goods for value if the applicable requirements forperfection under G.S. 25‑9‑311(b) or G.S. 25‑9‑313 arenot satisfied before the earlier of:
(1) The time thesecurity interest would have become unperfected under the law of the otherjurisdiction had the goods not become covered by a certificate of title fromthis State; or
(2) The expiration offour months after the goods had become so covered.
(f) Change injurisdiction of bank, issuer, nominated person, securities intermediary, orcommodity intermediary. A security interest in deposit accounts, letter‑of‑creditrights, or investment property which is perfected under the law of the bank'sjurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, thesecurities intermediary's jurisdiction, or the commodity intermediary'sjurisdiction, as applicable, remains perfected until the earlier of:
(1) The time thesecurity interest would have become unperfected under the law of thatjurisdiction; or
(2) The expiration offour months after a change of the applicable jurisdiction to anotherjurisdiction.
(g) Subsection (f)security interest perfected or unperfected under law of new jurisdiction. Ifa security interest described in subsection (f) of this section becomesperfected under the law of the other jurisdiction before the earlier of thetime or the end of the period described in that subsection, it remainsperfected thereafter. If the security interest does not become perfected underthe law of the other jurisdiction before the earlier of that time or the end ofthat period, it becomes unperfected and is deemed never to have been perfectedas against a purchaser of the collateral for value. (1945, c. 196, s. 2; 1957, c.564; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1975, c. 862, s. 7; 1989 (Reg.Sess., 1990), c. 1024, s. 8(e), (f); 1997‑181, s. 2; 1999‑73, s.4(a), (b); 2000‑169, s. 1.)
§25‑9‑316. Continued perfection of security interest followingchange in governing law.
(a) General rule:effect on perfection of change in governing law. A security interestperfected pursuant to the law of the jurisdiction designated in G.S. 25‑9‑301(1)or G.S. 25‑9‑305(c) remains perfected until the earliest of:
(1) The time perfectionwould have ceased under the law of that jurisdiction;
(2) The expiration offour months after a change of the debtor's location to another jurisdiction; or
(3) The expiration ofone year after a transfer of collateral to a person that thereby becomes adebtor and is located in another jurisdiction.
(b) Security interestperfected or unperfected under law of new jurisdiction. If a securityinterest described in subsection (a) of this section becomes perfected underthe law of the other jurisdiction before the earliest time or event describedin that subsection, it remains perfected thereafter. If the security interestdoes not become perfected under the law of the other jurisdiction before theearliest time or event, it becomes unperfected and is deemed never to have beenperfected as against a purchaser of the collateral for value.
(c) Possessory securityinterest in collateral moved to new jurisdiction. A possessory securityinterest in collateral, other than goods covered by a certificate of title andas‑extracted collateral consisting of goods, remains continuouslyperfected if:
(1) The collateral islocated in one jurisdiction and subject to a security interest perfected underthe law of that jurisdiction;
(2) Thereafter thecollateral is brought into another jurisdiction; and
(3) Upon entry into theother jurisdiction, the security interest is perfected under the law of theother jurisdiction.
(d) Goods covered by certificateof title from this State. Except as otherwise provided in subsection (e) ofthis section, a security interest in goods covered by a certificate of titlewhich is perfected by any method under the law of another jurisdiction when thegoods become covered by a certificate of title from this State remainsperfected until the security interest would have become unperfected under thelaw of the other jurisdiction had the goods not become so covered.
(e) When subsection (d)security interest becomes unperfected against purchasers. A security interestdescribed in subsection (d) of this section becomes unperfected as against apurchaser of the goods for value and is deemed never to have been perfected asagainst a purchaser of the goods for value if the applicable requirements forperfection under G.S. 25‑9‑311(b) or G.S. 25‑9‑313 arenot satisfied before the earlier of:
(1) The time thesecurity interest would have become unperfected under the law of the otherjurisdiction had the goods not become covered by a certificate of title fromthis State; or
(2) The expiration offour months after the goods had become so covered.
(f) Change injurisdiction of bank, issuer, nominated person, securities intermediary, orcommodity intermediary. A security interest in deposit accounts, letter‑of‑creditrights, or investment property which is perfected under the law of the bank'sjurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, thesecurities intermediary's jurisdiction, or the commodity intermediary'sjurisdiction, as applicable, remains perfected until the earlier of:
(1) The time thesecurity interest would have become unperfected under the law of thatjurisdiction; or
(2) The expiration offour months after a change of the applicable jurisdiction to anotherjurisdiction.
(g) Subsection (f)security interest perfected or unperfected under law of new jurisdiction. Ifa security interest described in subsection (f) of this section becomesperfected under the law of the other jurisdiction before the earlier of thetime or the end of the period described in that subsection, it remainsperfected thereafter. If the security interest does not become perfected underthe law of the other jurisdiction before the earlier of that time or the end ofthat period, it becomes unperfected and is deemed never to have been perfectedas against a purchaser of the collateral for value. (1945, c. 196, s. 2; 1957, c.564; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1975, c. 862, s. 7; 1989 (Reg.Sess., 1990), c. 1024, s. 8(e), (f); 1997‑181, s. 2; 1999‑73, s.4(a), (b); 2000‑169, s. 1.)
