                                 CODE OF VIRGINIA

EFFECTIVENESS OF ACTION TAKEN BEFORE EFFECTIVE DATE (§ 8.9A-705)

a. Preeffective-date action; one-year perfection period unless reperfected. If
action, other than the filing of a financing statement, is taken before this
title takes effect and the action would have resulted in priority of a security
interest over the rights of a person that becomes a lien creditor had the
security interest become enforceable before this title takes effect, the action
is effective to perfect a security interest that attaches under this title
within one year after this takes effect. An attached security interest becomes
unperfected one year after this title takes effect unless the security interest
becomes a perfected security interest under this title before the expiration of
that period.

b. Preeffective-date filing. The filing of a financing statement before this
title takes effect is effective to perfect a security interest to the extent the
filing would satisfy the applicable requirements for perfection under this
title.

c. Preeffective-date filing in jurisdiction formerly governing perfection. This
title does not render ineffective an effective financing statement that, before
this title takes effect, is filed and satisfies the applicable requirements for
perfection under the law of the jurisdiction governing perfection as provided in
former § 8.9-103. However, except as otherwise provided in subsections (d) and
(e) and § 8.9A-706, the financing statement ceases to be effective at the
earlier of:

   1. the time the financing statement would have ceased to be effective under
   the law of the jurisdiction in which it is filed; or

   2. June 30, 2006.

d. Continuation statement. The filing of a continuation statement after this
title takes effect does not continue the effectiveness of the financing
statement filed before this title takes effect. However, upon the timely filing
of a continuation statement after this title takes effect and in accordance with
the law of the jurisdiction governing perfection as provided in Part 3 (&#xA7;
8.9A-301 et seq.) of this title, the effectiveness of a financing statement
filed in the same office in that jurisdiction before this title takes effect
continues for the period provided by the law of that jurisdiction.

e. Application of subsection (c) (2) to transmitting utility financing
statement. Subsection (c) (2) applies to a financing statement that, before this
title takes effect, is filed against a transmitting utility and satisfies the
applicable requirements for perfection under the law of the jurisdiction
governing perfection as provided in former &#xA7; 8.9-103 only to the extent
that Part 3 (&#xA7; 8.9A-301 et seq.) of this title provides that the law of a
jurisdiction other than the jurisdiction in which the financing statement is
filed governs perfection of a security interest in collateral covered by the
financing statement.

f. Application of Part 5 (&#xA7; 8.9A-501 et seq.) of this title. A financing
statement that includes a financing statement filed before this title takes
effect and a continuation statement filed after this title takes effect is
effective only to the extent that it satisfies the requirements of Part 5 for an
initial financing statement.

HISTORY: 2000, c. 1007.