New York Uniform Commercial Code Law Section 9-507 - Effect of Certain Events on Effectiveness of Financing Statement

Section 9--507. Effect  of  Certain Events on Effectiveness of Financing
                Statement.
(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.

Last modified: February 3, 2019