57A-9-508 Effect of new debtor's rights in collateral.
Effect of new debtor's rights in collateral.
(a) 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) 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
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
§ 57A-9-203(d); and
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
§ 57A-9-203(d) unless an initial financing statement providing the name of the new
debtor is filed before the expiration of that time.
(c) This section does not apply to collateral as to which a filed financing statement remains
effective against the new debtor under § 57A-9-507(a).
Source: SL 2000, ch 231.