9-703 - Security Interest Perfected Before Effective Date - New York Statutes

Section 9--703. Security Interest Perfected Before Effective Date. (a) Continuing priority over lien creditor: perfection requirements satisfied. A security interest that is enforceable immediately before Revised Article 9 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 Revised Article 9 if, when Revised Article 9 takes effect, the applicable requirements for enforceability and perfection under Revised Article 9 are satisfied without further action. (b) Continuing priority over lien creditor: perfection requirements not satisfied. Except as otherwise provided in Section 9--705 and subsection (c), if, immediately before this article 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 article are not satisfied when this article takes effect, the security interest: (1) is a perfected security interest for one year after this article takes effect; (2) remains enforceable thereafter only if the security interest becomes enforceable under Section 9--203 before the year expires; and (3) remains perfected thereafter only if the applicable requirements for perfection under this article are satisfied before the year expires. (c) Special rule for cooperative interests: perfection requirements not satisfied. If, immediately before Revised Article 9 takes effect, a security interest in a cooperative 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 perfection under Revised Article 9 are not satisfied when Revised Article 9 takes effect, the security interest: (1) is a perfected security interest for 5 years after Revised Article 9 takes effect; and (2) remains perfected thereafter only if the applicable requirements for perfection under Revised Article 9 are satisfied before the 5 years expire.