                                 CODE OF VIRGINIA

EFFECTIVENESS OF FINANCING STATEMENT IF NEW DEBTOR BECOMES BOUND BY SECURITY
AGREEMENT (§ 8.9A-508)

a. Financing statement naming original debtor. Except as otherwise provided in
this section, a filed financing statement naming an original debtor is effective
to perfect a security interest in collateral in which a new debtor has or
acquires rights to the extent that the financing statement would have been
effective had the original debtor acquired rights in the collateral.

b. Financing statement becoming seriously misleading. If the difference between
the name of the original debtor and that of the new debtor causes a filed
financing statement that is effective under subsection (a) to be seriously
misleading under § 8.9A-506:

   1. the financing statement is effective to perfect a security interest in
   collateral acquired by the new debtor before, and within four months after,
   the new debtor becomes bound under &#xA7; 8.9A-203 (d); and

   2. the financing statement is not effective to perfect a security interest in
   collateral acquired by the new debtor more than four months after the new
   debtor becomes bound under &#xA7; 8.9A-203 (d) unless an initial financing
   statement providing the name of the new debtor is filed before the expiration
   of that time.

c. When section not applicable. This section does not apply to collateral as to
which a filed financing statement remains effective against the new debtor under
&#xA7; 8.9A-507 (a).

HISTORY: 2000, c. 1007.