Part 11- Appendix B: Uniform Commercial Code, Note 32

Summary of Appendix B B-151: Amendments, Continuations, and Priorities in Transition This section provides details on how to handle pre-effective-date financing statements and the implications of transitioning to new UCC provisions under Revised Article 9. It outlines processes for amendments, continuations, terminations, and priority rules for conflicting claims to collateral. 1. Handling Pre-Effective-Date Financing Statements (§ 9–707 to § 9–708): Definition (§ 9–707(a)):  A pre-effective-date financing statement refers to a statement filed before the effective date of the revised UCC. Amendment Rules (§ 9–707(b)-(d)):   General Rule: o Amendments must follow the law of the jurisdiction governing perfection (as provided in Part 3). o Termination may also occur under the law of the jurisdiction where the original statement was filed. Specific Requirements for Amendments: o Amendments are allowed if: 1. Both the original and amended statements are filed in the proper office under § 9–501. 2. An amendment is filed concurrently with or after an initial financing statement in the same office. 3. A new initial financing statement is filed, incorporating the amended information and complying with § 9–706(c). Continuation of Effectiveness (§ 9–707(d)-(e)):   Continuation is possible only if: o The statement complies with § 9–705(d) and (f) or § 9–706. Termination is permitted in the original jurisdiction unless superseded by new filings that meet the updated requirements. 2. Filing Initial Financing Statements for Transition (§ 9–706): When an Initial Financing Statement is Required:  An initial financing statement filed under § 9–501 continues the effect of a pre-effective-date filing if: 1. It would be effective to perfect a security interest under the revised UCC. 2. The original filing occurred in a different state or office. 3. The initial statement satisfies updated requirements. Details of Initial Financing Statements (§ 9–706(c)):  Must include: 1. All required information for initial financing statements under Part 5. 2. Identification of the original filing office, filing date(s), and file numbers (including the latest continuation statement). 3. A declaration that the original filing remains effective. 3. Authorization for Filing (§ 9–708):  A person may file an initial financing or continuation statement if: 1. Authorized by the secured party of record. 2. Filing is necessary to:  Continue the effect of a pre-effective-date statement.  Perfect or maintain perfection of a security interest. 4. Priority Rules (§ 9–709): General Priority Rules (§ 9–709(a)):  The revised UCC determines the priority of claims unless: o Conflicting claims’ priorities were established before the revised UCC's effective date, in which case prior rules apply. Special Priority Situations (§ 9–709(b)):  For security interests enforceable under § 9–203 of the revised UCC: o Priority dates from the act’s effective date if perfected by a preeffective-date filing that wouldn’t have been valid under former Article 9. o Does not apply to conflicting interests where both are perfected by pre-effective-date filings. Key Takeaways: 1. Amendments and Terminations: o Strict adherence to updated filing rules is required for amending or terminating pre-effective-date financing statements. 2. Initial Financing Statements: o Necessary to bridge old filings with the revised UCC's requirements, ensuring continued perfection. 3. Priority Preservation: o Pre-established priorities remain intact, but new filings must comply with updated rules to maintain enforceability and priority. 4. Authorization: o Secured parties must authorize filings to prevent unauthorized amendments or terminations.