Security interest unperfected before effective date (§ 8.9A-704)

§ 8.9A-704 – Security interest unperfected before effective date

A security interest that is enforceable immediately before this title takes effect 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 this takes effect;

2. remains enforceable thereafter if the security interest becomes enforceable under § 8.9A-203 when this title takes effect or within one year thereafter; and

3. becomes perfected:

A. without further action, when this title takes effect if the applicable requirements for perfection under this title 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.