30-9A-705. Effectiveness of action taken before effective date of act. (1) If action other than the filing of a financing statement is taken before July 1, 2001, and the action would have resulted in priority of a security interest over the rights of a lien creditor had the security interest become enforceable before July 1, 2001, the action is sufficient to perfect a security interest that attaches under this chapter within 1 year after July 1, 2001. An attached security interest becomes unperfected 1 year after July 1, 2001, unless the security interest becomes a perfected security interest under this chapter before the expiration of that period.
     (2) The filing of a financing statement before July 1, 2001, is sufficient to perfect a security interest that attaches after July 1, 2001, to the extent the filing would satisfy the applicable requirements for perfection under this chapter.
     (3) This chapter does not render ineffective an effective financing statement that is filed before this chapter takes effect in accordance with the law of the jurisdiction governing perfection as provided in former 30-9-103. However, except as otherwise provided in subsection (4):
     (a) the financing statement ceases to be effective at the earlier of:
     (i) the time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or
     (ii) 5 years after July 1, 2001; and
     (b) a continuation statement filed after July 1, 2001 does not continue the effectiveness of the financing statement.
     (4) A continuation statement filed after July 1, 2001, and in accordance with the law of the jurisdiction governing perfection as provided in Title 30, chapter 9A, part 3, is effective to continue the effectiveness of a financing statement filed in that jurisdiction before July 1, 2001.
     (5) Subsection (3)(b) applies to a financing statement that, before July 1, 2001, 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 30-9-103 only to the extent that Title 30, chapter 9A, 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.
     (6) This chapter does not render ineffective an effective financing statement that was filed before July 1, 2001, and in the office specified in former 30-9-401. However, except as otherwise provided in subsection (7):
     (a) the financing statement ceases to be effective at the earlier of:
     (i) the time the financing statement would have ceased to be effective under former chapter 9; or
     (ii) 5 years after July 1, 2001; and
     (b) a continuation statement filed after July 1, 2001, does not continue the effectiveness of the financing statement.
     (7) A continuation statement filed after July 1, 2001, and in the office specified in 30-9A-501 is effective to continue the effectiveness of a financing statement filed in that office before July 1, 2001.
     (8) A financing statement that includes a financing statement filed before July 1, 2001, and a continuation statement filed after July 1, 2001, is effective only to the extent that it satisfies the requirements of Title 30, chapter 9A, part 5, for an initial financing statement.

     History: En. Sec. 164, Ch. 305, L. 1999; amd. Sec. 23, Ch. 179, L. 2001.