                                 CODE OF VIRGINIA

EFFECT OF CERTAIN EVENTS ON EFFECTIVENESS OF FINANCING STATEMENT (§ 8.9A-507)

a. Disposition. A filed financing statement remains effective with respect to
collateral that is sold, exchanged, leased, licensed, or otherwise disposed of
and in which a security interest or agricultural lien continues, even if the
secured party knows of or consents to the disposition.

b. Information becoming seriously misleading. Except as otherwise provided in
subsection (c) and &#xA7; 8.9A-508, a financing statement is not rendered
ineffective if, after the financing statement is filed, the information provided
in the financing statement becomes seriously misleading under &#xA7; 8.9A-506.

c. Change in debtor&#8217;s name. If the name that a filed financing statement
provides for a debtor becomes insufficient as the name of the debtor under §
8.9A-503(a) so that the financing statement becomes seriously misleading under
§ 8.9A-506:

   1. the financing statement is effective to perfect a security interest in
   collateral acquired by the debtor before, or within four months after, the
   filed financing statement becomes seriously misleading; and

   2. the financing statement is not effective to perfect a security interest in
   collateral acquired by the debtor more than four months after the filed
   financing statement becomes seriously misleading, unless an amendment to the
   financing statement which renders the financing statement not seriously
   misleading is filed within four months after that event.

HISTORY: 1964, c. 219, § 8.9-402; 1966, c. 649; 1973, c. 509; 1976, c. 536;
1977, c. 539; 1978, cc. 284, 285; 1982, c. 652; 1999, c. 96; 2000, c. 1007;
2012, c. 155.