Chapter 165

2006 -- S 2726 SUBSTITUTE A

Enacted 06/23/06

A N A C T

RELATING TO UNIFORM COMMERCIAL CODE -- SECURED TRANSACTIONS

Introduced By: Senator William A. Walaska

Date Introduced: February 14, 2006

It is enacted by the General Assembly as follows:

SECTION 1. Section 6A-9-705 of the General Laws in Chapter 6A-9 entitled "Secured

Transactions" is hereby amended to read as follows:

6A-9-705. Effectiveness of action taken before effective date. -- (a) Pre-effective-date

action; one-year perfection period unless reperfected. - If action, other than the filing of a

financing statement, is taken before this chapter 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 chapter takes effect, the action is effective to

perfect a security interest that attaches under this chapter within one year after this chapter takes

effect. An attached security interest becomes unperfected one year after this chapter takes effect

unless the security interest becomes a perfected security interest under this chapter before the

expiration of that period.

(b) Pre-effective-date filing. - The filing of a financing statement before this chapter

takes effect is effective to perfect a security interest to the extent the filing would satisfy the

applicable requirements for perfection under this chapter.

does not render ineffective an effective financing statement that, before this chapter takes effect,

is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction

governing perfection as provided in former section 6A-9-103. However, except as otherwise

provided in subsections (d), ~~and~~ (e), and (g) and section 6A-9-706, 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 chapter

takes effect does not continue the effectiveness of the financing statement filed before this chapter

takes effect. However, upon the timely filing of a continuation statement after this chapter takes

effect and in accordance with the law of the jurisdiction governing perfection as provided in part

3, the effectiveness of a financing statement filed in the same office in that jurisdiction before this

chapter 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 chapter 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 section 6A-9-103 only to the extent

that part 3 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. - A financing statement that includes a financing statement filed

before this chapter takes effect and a continuation statement filed after this chapter takes effect is

effective only to the extent that it satisfies the requirements of part 5 for an initial financing

statement.

(g) Financing statement effective under subsection (b). The following rules apply to a

filed financing statement that is effective under subsection(b):

(1) Subdivision (c)(2) does not apply.

(2) The filing of a continuation statement with respect to the financing statement is timely

if the filing occurs before the financing statement ceases to be effective and not before the earlier

of December 30, 2005 or six (6) months before the effectiveness of the financing statement would

lapse.

(h) Timely filing of certain continuation statements. The filing of a continuation

statement with respect to a financing statement that was filed and effective before the effective

date of this chapter, and whose effectiveness would lapse after June 30, 2006 but for subdivision

(c)(2) is timely if the filing occurs before the financing statement ceases to be effective or

December 30, 2005.

SECTION 2. This act shall take effect upon passage.

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LC02350/SUB A

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