400.9-316. Continued perfection of security interest following change in governing law. - Missouri Statutes

Continued perfection of security interest following change ingoverning law.

400.9-316. (a) A security interest perfected pursuant to the law ofthe jurisdiction designated in section 400.9-301(1) or 400.9-305(c) remainsperfected until the earliest of:

(1) The time perfection would have ceased under the law of thatjurisdiction;

(2) The expiration of four months after a change of the debtor'slocation to another jurisdiction; or

(3) The expiration of one year after a transfer of collateral to aperson that thereby becomes a debtor and is located in anotherjurisdiction.

(b) If a security interest described in subsection (a) becomesperfected under the law of the other jurisdiction before the earliest timeor event described in that subsection, it remains perfected thereafter. Ifthe security interest does not become perfected under the law of the otherjurisdiction before the earliest time or event, it becomes unperfected andis deemed never to have been perfected as against a purchaser of thecollateral for value.

(c) A possessory security interest in collateral, other than goodscovered by a certificate of title and as-extracted collateral consisting ofgoods, remains continuously perfected if:

(1) The collateral is located in one jurisdiction and subject to asecurity interest perfected under the law of that jurisdiction;

(2) Thereafter the collateral is brought into another jurisdiction;and

(3) Upon entry into the other jurisdiction, the security interest isperfected under the law of the other jurisdiction.

(d) Except as otherwise provided in subsection (e), a securityinterest in goods covered by a certificate of title which is perfected byany method under the law of another jurisdiction when the goods becomecovered by a certificate of title from this state remains perfected untilthe security interest would have become unperfected under the law of theother jurisdiction had the goods not become so covered.

(e) A security interest described in subsection (d) becomesunperfected as against a purchaser of the goods for value and is deemednever to have been perfected as against a purchaser of the goods for valueif the applicable requirements for perfection under section 400.9-311(b) or400.9-313 are not satisfied before the earlier of:

(1) The time the security interest would have become unperfectedunder the law of the other jurisdiction had the goods not become covered bya certificate of title from this state; or

(2) The expiration of four months after the goods had become socovered.

(f) A security interest in deposit accounts, letter-of-credit rights,or investment property which is perfected under the law of the bank'sjurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction,the securities intermediary's jurisdiction, or the commodity intermediary'sjurisdiction, as applicable, remains perfected until the earlier of:

(1) The time the security interest would have become unperfectedunder the law of that jurisdiction; or

(2) The expiration of four months after a change of the applicablejurisdiction to another jurisdiction.

(g) If a security interest described in subsection (f) becomesperfected under the law of the other jurisdiction before the earlier of thetime or the end of the period described in that subsection, it remainsperfected thereafter. If the security interest does not become perfectedunder the law of the other jurisdiction before the earlier of that time orthe end of that period, it becomes unperfected and is deemed never to havebeen perfected as against a purchaser of the collateral for value.

(L. 1963 p. 503 § 9-316, A.L. 2001 S.B. 288)

Effective 7-01-01