70A-9a-703. Security interest perfected before effective date.
- (1) A security interest that is enforceable immediately before this act takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this act if, when this act takes effect, the applicable requirements for enforceability and perfection under this act are satisfied without further action.
- (2) Except as otherwise provided in Section 70A-9a-705, if, immediately before this act takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under this act are not satisfied when this act takes effect, the security interest:
- (a) is a perfected security interest for one year after this act takes effect;
- (b) remains enforceable thereafter only if the security interest becomes enforceable under Section 70A-9a-203 before the year expires; and
- (c) remains perfected thereafter only if the applicable requirements for perfection under this act are satisfied before the year expires.
Enacted by Chapter 252, 2000 General Session