(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 Section 9-508, 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 Section 9-506.
(c) Change in debtor's name. If the name that a filed financing statement provides for a debtor becomes insufficient
as the name of the debtor under Section 9-503(a) so that the financing statement becomes seriously misleading under Section 9-506:
(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
the financing statement became seriously misleading.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.