§ 25‑9‑705. Effectiveness of action taken before effective date.
(a) Pre‑effective‑dateaction; one‑year perfection period unless reperfected. If action, otherthan the filing of a financing statement, is taken before July 1, 2001 and theaction would have resulted in priority of a security interest over the rightsof a person that becomes a lien creditor had the security interest becomeenforceable before July 1, 2001, the action is effective to perfect a securityinterest that attaches under this act within one year after July 1, 2001. Anattached security interest becomes unperfected one year after July 1, 2001unless the security interest becomes a perfected security interest under thisact before the expiration of that period.
(b) Pre‑effective‑datefiling. The filing of a financing statement before July 1, 2001 is effectiveto perfect a security interest to the extent the filing would satisfy theapplicable requirements for perfection under this act.
(c) Pre‑effective‑datefiling in jurisdiction formerly governing perfection. This act does notrender ineffective an effective financing statement that, before July 1, 2001,is filed and satisfies the applicable requirements for perfection under the lawof the jurisdiction governing perfection as provided in G.S. 25‑9‑103of former Article 9. However, except as otherwise provided in subsections (d),(e), and (g) of this section and G.S. 25‑9‑706, the financingstatement ceases to be effective at the earlier of:
(1) The time thefinancing statement would have ceased to be effective under the law of thejurisdiction in which it is filed; or
(2) June 30, 2006.
(d) Continuationstatement. The filing of a continuation statement after July 1, 2001 does notcontinue the effectiveness of the financing statement filed before July 1,2001. However, upon the timely filing of a continuation statement after July 1,2001 and in accordance with the law of the jurisdiction governing perfection asprovided in Part 3 of this Article, the effectiveness of a financing statementfiled in the same office in that jurisdiction before July 1, 2001 continues forthe period provided by the law of that jurisdiction.
(e) Application ofsubdivision (c)(2) to transmitting utility financing statement. Subdivision(c)(2) of this section applies to a financing statement that, before July 1,2001, is filed against a transmitting utility and satisfies the applicablerequirements for perfection under the law of the jurisdiction governingperfection as provided in G.S. 25‑9‑103 of former Article 9 only tothe extent that Part 3 of this Article provides that the law of a jurisdictionother than the jurisdiction in which the financing statement is filed governsperfection of a security interest in collateral covered by the financingstatement.
(f) Application ofPart 5. A financing statement that includes a financing statement filedbefore July 1, 2001 and a continuation statement filed after July 1, 2001 iseffective only to the extent that it satisfies the requirements of Part 5 ofthis Article for an initial financing statement.
(g) Inapplicability ofsubdivision (c)(2) to certain financing statements. With respect to aneffective financing statement that:
(1) Before July 1, 2001,was filed and satisfied the applicable requirements for perfection under thelaw of the jurisdiction governing perfection as provided in G.S. 25‑9‑103of former Article 9,
(2) Would satisfy theapplicable requirements for perfection under this act, and
(3) Was properlycontinued before July 1, 2001, such that the effectiveness of the financingstatement would lapse after June 30, 2006, but before January 1, 2007, but forsubdivision (c)(2) of this section,
subdivision (c)(2) of thissection shall not apply to the financing statement and the filing of acontinuation statement with respect to the financing statement is timely if thefiling of the continuation statement occurs before the financing statementceases to be effective and not before the earlier of (i) December 30, 2005, or(ii) six months before the effectiveness of the financing statement wouldlapse. (2000‑169,s. 1; 2001‑487, s. 15; 2006‑11, s. 1.)
§ 25‑9‑705. Effectiveness of action taken before effective date.
(a) Pre‑effective‑dateaction; one‑year perfection period unless reperfected. If action, otherthan the filing of a financing statement, is taken before July 1, 2001 and theaction would have resulted in priority of a security interest over the rightsof a person that becomes a lien creditor had the security interest becomeenforceable before July 1, 2001, the action is effective to perfect a securityinterest that attaches under this act within one year after July 1, 2001. Anattached security interest becomes unperfected one year after July 1, 2001unless the security interest becomes a perfected security interest under thisact before the expiration of that period.
(b) Pre‑effective‑datefiling. The filing of a financing statement before July 1, 2001 is effectiveto perfect a security interest to the extent the filing would satisfy theapplicable requirements for perfection under this act.
(c) Pre‑effective‑datefiling in jurisdiction formerly governing perfection. This act does notrender ineffective an effective financing statement that, before July 1, 2001,is filed and satisfies the applicable requirements for perfection under the lawof the jurisdiction governing perfection as provided in G.S. 25‑9‑103of former Article 9. However, except as otherwise provided in subsections (d),(e), and (g) of this section and G.S. 25‑9‑706, the financingstatement ceases to be effective at the earlier of:
(1) The time thefinancing statement would have ceased to be effective under the law of thejurisdiction in which it is filed; or
(2) June 30, 2006.
(d) Continuationstatement. The filing of a continuation statement after July 1, 2001 does notcontinue the effectiveness of the financing statement filed before July 1,2001. However, upon the timely filing of a continuation statement after July 1,2001 and in accordance with the law of the jurisdiction governing perfection asprovided in Part 3 of this Article, the effectiveness of a financing statementfiled in the same office in that jurisdiction before July 1, 2001 continues forthe period provided by the law of that jurisdiction.
(e) Application ofsubdivision (c)(2) to transmitting utility financing statement. Subdivision(c)(2) of this section applies to a financing statement that, before July 1,2001, is filed against a transmitting utility and satisfies the applicablerequirements for perfection under the law of the jurisdiction governingperfection as provided in G.S. 25‑9‑103 of former Article 9 only tothe extent that Part 3 of this Article provides that the law of a jurisdictionother than the jurisdiction in which the financing statement is filed governsperfection of a security interest in collateral covered by the financingstatement.
(f) Application ofPart 5. A financing statement that includes a financing statement filedbefore July 1, 2001 and a continuation statement filed after July 1, 2001 iseffective only to the extent that it satisfies the requirements of Part 5 ofthis Article for an initial financing statement.
(g) Inapplicability ofsubdivision (c)(2) to certain financing statements. With respect to aneffective financing statement that:
(1) Before July 1, 2001,was filed and satisfied the applicable requirements for perfection under thelaw of the jurisdiction governing perfection as provided in G.S. 25‑9‑103of former Article 9,
(2) Would satisfy theapplicable requirements for perfection under this act, and
(3) Was properlycontinued before July 1, 2001, such that the effectiveness of the financingstatement would lapse after June 30, 2006, but before January 1, 2007, but forsubdivision (c)(2) of this section,
subdivision (c)(2) of thissection shall not apply to the financing statement and the filing of acontinuation statement with respect to the financing statement is timely if thefiling of the continuation statement occurs before the financing statementceases to be effective and not before the earlier of (i) December 30, 2005, or(ii) six months before the effectiveness of the financing statement wouldlapse. (2000‑169,s. 1; 2001‑487, s. 15; 2006‑11, s. 1.)
§ 25‑9‑705. Effectiveness of action taken before effective date.
(a) Pre‑effective‑dateaction; one‑year perfection period unless reperfected. If action, otherthan the filing of a financing statement, is taken before July 1, 2001 and theaction would have resulted in priority of a security interest over the rightsof a person that becomes a lien creditor had the security interest becomeenforceable before July 1, 2001, the action is effective to perfect a securityinterest that attaches under this act within one year after July 1, 2001. Anattached security interest becomes unperfected one year after July 1, 2001unless the security interest becomes a perfected security interest under thisact before the expiration of that period.
(b) Pre‑effective‑datefiling. The filing of a financing statement before July 1, 2001 is effectiveto perfect a security interest to the extent the filing would satisfy theapplicable requirements for perfection under this act.
(c) Pre‑effective‑datefiling in jurisdiction formerly governing perfection. This act does notrender ineffective an effective financing statement that, before July 1, 2001,is filed and satisfies the applicable requirements for perfection under the lawof the jurisdiction governing perfection as provided in G.S. 25‑9‑103of former Article 9. However, except as otherwise provided in subsections (d),(e), and (g) of this section and G.S. 25‑9‑706, the financingstatement ceases to be effective at the earlier of:
(1) The time thefinancing statement would have ceased to be effective under the law of thejurisdiction in which it is filed; or
(2) June 30, 2006.
(d) Continuationstatement. The filing of a continuation statement after July 1, 2001 does notcontinue the effectiveness of the financing statement filed before July 1,2001. However, upon the timely filing of a continuation statement after July 1,2001 and in accordance with the law of the jurisdiction governing perfection asprovided in Part 3 of this Article, the effectiveness of a financing statementfiled in the same office in that jurisdiction before July 1, 2001 continues forthe period provided by the law of that jurisdiction.
(e) Application ofsubdivision (c)(2) to transmitting utility financing statement. Subdivision(c)(2) of this section applies to a financing statement that, before July 1,2001, is filed against a transmitting utility and satisfies the applicablerequirements for perfection under the law of the jurisdiction governingperfection as provided in G.S. 25‑9‑103 of former Article 9 only tothe extent that Part 3 of this Article provides that the law of a jurisdictionother than the jurisdiction in which the financing statement is filed governsperfection of a security interest in collateral covered by the financingstatement.
(f) Application ofPart 5. A financing statement that includes a financing statement filedbefore July 1, 2001 and a continuation statement filed after July 1, 2001 iseffective only to the extent that it satisfies the requirements of Part 5 ofthis Article for an initial financing statement.
(g) Inapplicability ofsubdivision (c)(2) to certain financing statements. With respect to aneffective financing statement that:
(1) Before July 1, 2001,was filed and satisfied the applicable requirements for perfection under thelaw of the jurisdiction governing perfection as provided in G.S. 25‑9‑103of former Article 9,
(2) Would satisfy theapplicable requirements for perfection under this act, and
(3) Was properlycontinued before July 1, 2001, such that the effectiveness of the financingstatement would lapse after June 30, 2006, but before January 1, 2007, but forsubdivision (c)(2) of this section,
subdivision (c)(2) of thissection shall not apply to the financing statement and the filing of acontinuation statement with respect to the financing statement is timely if thefiling of the continuation statement occurs before the financing statementceases to be effective and not before the earlier of (i) December 30, 2005, or(ii) six months before the effectiveness of the financing statement wouldlapse. (2000‑169,s. 1; 2001‑487, s. 15; 2006‑11, s. 1.)
