New York Uniform Commercial Code Law Section 9-508 - Effectiveness of Financing Statement If New Debtor Becomes Bound by Security Agreement

Section 9--508. Effectiveness  of  Financing  Statement  If  New  Debtor
                Becomes Bound by Security Agreement.
(a) Financing statement naming original debtor.  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) Financing  statement  becoming  seriously   misleading.   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 Section 9--506:
     (1) 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
         Section 9--203(d); and
     (2) 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 Section 9--203(d) unless an initial financing statement
         providing the name of the new  debtor  is  filed  before  the
         expiration of that time.
(c) When  section  not  applicable.  This  section  does  not apply to
  collateral as to which a filed  financing  statement  remains  effective
  against the new debtor under Section 9--507(a).

Last modified: February 3, 2019